Office Depot (NYSE: ODP) is a supplier of office products and services. The company's selection of brand name office supplies includes business machines, computers, computer software and office furniture, while its business services encompass copying, printing, document reproduction, shipping, and computer setup and repair.

An S&P 500 company, Office Depot generates revenues of over US $14 billion annually and has 42,000 employees worldwide. It is headquartered in Boca Raton, Florida.

PAY PHILOSOPHY

Previously, the Commonwealth’s stated philosophy or goal was to pay
salaries comparable to employers in the private sector in the Commonwealth.
A new pay philosophy has been developed. In the new system, salaries are
compared to both private and public sector organizations using local, regional,
and national information. Total compensation, which includes both salary
and benefits, continues to be used when analyzing the labor market
information.

In the new system, salary increases are based on performance.
Entitlements such as across-the-board increases have been eliminated.

JOB ORGANIZATION STRUCTURE

The former Classification Plan consisted of approximately 1,650
individual job classifications, which were functionally organized into 580 class
series within 8 broad occupational groups. Included were a number of agency
specific and central agency job classes.

In contrast, the Compensation Management System has consolidated the
job organizational structure into approximately 300 broad Roles,
approximately 60 Career Groups and 7 Occupational Families. All agency

2

and central agency specific job classifications have been consolidated into the
new job organization structure.

Each new Occupational Family includes a number of Career Groups.
Each Career Group identifies progressively higher Roles within a recognized
occupational field. The concept of Role is central to the new job structure.
Roles describe a broad array of similar positions reflective of different levels of
work within an occupational field. The consolidation of the former job classes
into the new broader Roles helps provide greater consistency in salaries
assigned to the same or similar work across the Commonwealth.


SALARY STRUCTURE

The former State Compensation Plan was a graded salary plan
consisting of 23 pay grades with a 56% range spread between the minimum and
maximum of each grade. Within each pay grade were 21 fixed pay steps that
increased in a uniform percentage of 2.25%. Each of the 1,650 job
classifications was assigned to specific pay grade.

Pay Bands

The new Salary Structure in the Compensation Management System
consists of 9 pay bands. The first eight bands have a range spread of
approximately 105% between the minimum and maximum salaries. There is a
30.6% difference between the minimum salary in each pay band except
between pay band 2 and 3. The pay bands are “stepless”; that is there are no
incremental steps within the band. The 9th pay band specifically addresses
Mental Health physicians that serve as either Facility Directors or Medical
Directors. The maximum salary of the 9 th pay band is based on the market for
these positions.

The transition from a graded salary plan to the pay band structure is
the result of a comprehensive analysis of the class specifications and a review
of best practices adopted by other public and private organizations with similar
pay banding structures and alternative pay practices. The review included an
in-depth analysis and grouping of the classifications that had similar duties and
responsibilities, as well as knowledge, skills, abilities and qualifications.

Based on this review, the most logical grouping across various
occupational areas resulted in the consolidation of 3 former pay grades into
each pay band with the exception of pay band 2 that only grouped 2 former
pay grades (4 and 5). An additional 10% (with the exception of pay band 2
which was increased by 20%) was added to the maximum salary of each pay
grade resulting in approximately 105% range spread for each new pay bands.
 
Top