Staples to Limit Golden Parachutes
14 October 2015 - 12:40PM
Dow Jones News
Staples Inc. has adopted a policy that limits so-called golden
parachutes and requires shareholder approval to exceed a severance
benefits cap for senior executives, a stockholder proposal that won
majority backing at the company's annual shareholder meeting in
June, the company said.
Under the new policy, which the company said applies to existing
agreements, severance benefits for senior executives are capped at
2.99 times the sum of the executive's base salary and target annual
cash incentive award.
Staples had recommended against the proposal, submitted by the
New York State Common Retirement Fund, saying its practice was
"reasonable, appropriate and consistent with market practice, and
is critical to our ability to attract and retain senior
executives."
Chief Executive Ron Sargent, has already amended his severance
agreement to reflect the change, the company said.
"This new policy is in the best interests of Staples'
shareholders," Paul Walsh, who leads the board's compensation
committee, said.
Framingham, Mass.-based Staples has made a $6.3 billion takeover
bid for rival office-supply company Office Depot Inc., a deal that
antitrust regulators are scrutinizing, particularly over its
potential impact to business customers.
Write to Maria Armental at maria.armental@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 13, 2015 21:25 ET (01:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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