Symantec 2008 Annual Report Download - page 60

for such metric. To motivate participants to drive for superior performance, the award opportunity is otherwise
uncapped in amount, in that overachievement of performance goals can result in payments in excess of target,
although the Executive Annual Incentive Plan has an overall cap of $5 million that any single named executive
officer may be paid for a single fiscal year.
Executive Annual Incentive Plan Performance Measures and Target Setting: Executive Annual Incentive
Plan performance targets are established on or about the beginning of each plan year. Our management develops
proposed goals with reference to a variety of factors, including our historical performance, internal budgets, market
and peer performance, and external expectations for our performance. The Committee reviews, adjusts as necessary,
and approves the goals, the range of performance, and the weighting of the goals. Following the end of each fiscal
year, the Committee reviews our actual performance against the performance measures established in the fiscal
year’s Executive Annual Incentive Plans (after making any appropriate adjustments to such measures to account for
corporate events such as acquisitions or other actions that may affect the achievement of such measures), determines
the extent of achievement and approves annual cash incentives, if warranted. The determination of named executive
officer incentives is formulaic, though the Committee has the discretion to reduce awards. It did not exercise such
discretion for fiscal 2008.
The performance measures in the Fiscal Year 2008 Executive Annual Incentive Plans for the named executive
officers were non-GAAP earnings per share (EPS) and revenue achievement which, for our CEO, CFO and COO,
were weighted equally. For our Group Presidents who are responsible for a business unit, in addition to revenue and
EPS metrics, the FY08 Executive Annual Incentive Plans also included business unit contribution margin as a
performance metric. For this group, the business unit contribution performance metric had a 30% weighting, with
the revenue and EPS metrics equally weighted at 35%. The incentive plans for Messrs. Kendra and Butterfield and
Ms. Chaffin included the business contribution weighting as set forth above. Mr. Hughes became our Chief Strategy
Officer in January 2008 after serving as Group President, Global Services for the first three quarters of fiscal 2008.
As a result, the incentive plan for Mr. Hughes included the business unit contribution performance metric for the
Services segment for the first three quarters of the year and did not include such metric for the fourth quarter. In
addition, Mr. Butterfield became our Interim Group President, Data Center Management Group in November 2007,
in addition to his role as our Group President, Altiris segment; however, Mr. Butterfield’s bonus opportunity under
the incentive plan was not adjusted to take into account these additional responsibilities.
We used the above performance metrics because:
• Over time, EPS and revenue measures have strongly correlated with stockholder value creation for
Symantec;
• Improvement in EPS and revenue measures aligns with our overall growth strategy;
• The EPS and revenue measures are transparent to investors;
• The EPS and revenue measures balance growth and profitability; and
• The business unit performance metrics drive behavior in a manner that aligns enterprise and business unit
results.
For each performance metric, the Committee established a threshold and target performance level that
represents 50% and 100% of target funding levels, respectively. If results for a goal are below threshold, the funding
level for that goal is 0%, and participants will be paid no incentive for that goal. At target, the goal is funded 100%.
Above target, the payout for revenue achievement increases by 10% of the target opportunity for each additional 1%
above target revenue achievement levels. Results above target EPS provided an additional 10% payout for each
approximate increment of $0.023 in EPS for fiscal 2008.
Fiscal Year 2008 Results
For fiscal 2008, our non-GAAP revenue target was $5.896 billion and our non-GAAP EPS target was $1.20 per
share. The Company performed at 100.7% of the revenue goal ($5.937 billion), resulting in a payout for that portion of
the plan at 100% of the plan target amount, and performed at 106.2% of the EPS goal ($1.27 per share), resulting in a
payout for that portion of the plan at 130% of the plan target amount. These levels of achievement compare to our
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