October 16, 2015
Severance: Staples Limits to 2.99x (Unless Shareholders Approve More)
As noted in this press release, Staples has limited the severance benefits payments for its senior executives so they would not be paid more than 2.99 times the sum of their base salary plus target annual cash incentive award – unless a greater amount was approved by shareholders. The CEO also has elected to amend his severance agreement to align it with the terms of the new policy.
The move follows Staples’ latest shareholder meeting, where a majority of voters supported the non-binding anti-“golden parachute” proposal submitted by the New York State Common Retirement Fund and the International Brotherhood of Electrical Workers Pension Benefit Fund.
After I posted this blog, a member noted “In Staples’ 8-K – but not in press release – the company notes that this does not apply to office depot merger. Window-dressing.”