Staples CEO compensation totals $17.6M
Ronald
Sargent exercised 1 million shares of Staples Inc.
last year for an $11.8 million gain, contributing to the chief
executive’s $17.6 million in total compensation from the office
supplies retailer.
In
a proxy filed with the Securities and Exchange Commission, Staples’
board indicated Sargent’s total direct compensation was well above the
company’s retail peers, but said the pay was justified given Staples’
performance.
Sargent’s 2005 compensation also included:
* $1 million in salary.
* $1.3 million in bonus compensation.
* $3.3 million in restricted stock that vests over time.
* $260,000 in retirement and life insurance benefits.
Sargent
received options to purchase 525,000 shares of stock in future years,
which Staples assigned a present value of $3.3 million.
Basil
Anderson, who retired from his post as vice chairman on March 1,
received $9 million in compensation last year, more than two-thirds in
the form of value realized from stock options. John Mahoney, who was
promoted to vice chairman and chief financial officer this year,
received $6.7 million in total compensation in 2005.
In a separate
disclosure in the proxy, Framingham, Mass.-based Staples indicated that
a class-action suit on behalf of California store managers could cost
it up to $150 million. The plaintiffs claim they are owed back pay for
a decade’s worth of overtime. Staples said it can successfully defend
itself if the case proceeds to travel, and is appealing the
class-action certification.