Symantec 2008 Annual Report Download - page 74

Potential Payments Upon Termination or Change-In-Control
Set forth below is a description of the plans and agreements that could result in potential payouts to the named
executive officers in the case of their termination of employment and/or a change in control of Symantec.
Symantec Executive Retention Plan
In January 2001, the Board approved the Symantec Executive Retention Plan, to deal with employment
termination resulting from a change in control of the company. The plan was modified by the Board in July 2002,
April 2006 and June 2007. Under the terms of the plan, all equity compensation awards (including, among others,
options and restricted stock units) granted by the company to the company’s Section 16(b) officers (including the
named executive officers) would become fully vested and, if applicable, exercisable following a change in control
of the Company (as defined in the plan) after which the officer’s employment is terminated without cause or
constructively terminated by the acquirer within 12 months after the change in control.
Symantec Corporation Severance Plan
During fiscal 2008, we adopted the Symantec Corporation Severance Plan, effective as of July 1, 2007, to
provide severance benefits to certain eligible employees of Symantec. Individual employees must meet certain
criteria in order to participate in the plan, including, among other criteria, (i) the employee is not entitled to
severance under any other plan, fund, program, policy, arrangement or individualized written agreement providing
for severance benefits that is sponsored or funded by Symantec and (ii) the employee was involuntarily terminated
from active employment because of market conditions or division performance resulting in elimination of their
position, and not solely because of poor work performance.
Under the terms of the plan, eligible employees at the Vice President level or above receive severance
payments calculated as follows: (i) severance payments equal to ten weeks of base pay if such employee has been
employed by Symantec for one year or less; or (ii) severance payments equal to ten weeks of base pay plus the
amount calculated by multiplying two weeks of base pay times the number of years of such employee’s employment
by Symantec after the first year of employment, prorated through the termination date. If an eligible employee
timely elects COBRA continuation coverage under Symantec’s group insurance plans, Symantec will also subsidize
the full amount of premiums for such eligible employees for the period of time upon which severance payments are
paid under the plan. Symantec will subsidize premiums for continuation coverage at the same level of coverage in
effect immediately before termination of employment for the applicable employee. Eligible employees at the Vice
President level are also entitled to receive six months of outplacement services, including counseling and guidance.
Payment of severance payments and COBRA premiums and provision of outplacement assistance pursuant to
the Symantec Corporation Severance Plan is subject to the applicable employee’s returning a release of claims
against Symantec.
John W. Thompson
In accordance with an employment agreement dated April 11, 1999 between Mr. Thompson and Symantec, in
the event Mr. Thompson resigns with good reason (i.e., material reduction in responsibilities, position or salary) or
is terminated without cause (as defined in the agreement), he is entitled to a severance payment equal to twice his
annual base salary, the vesting of his outstanding options will be accelerated by two years and he will be entitled to
reimbursement of COBRA premiums for the maximum period permitted by law. We also began maintaining a
$5,000,000 term executive life insurance policy on Mr. Thompson for the benefit of his family and coverage under
our long term disability plan that would pay Mr. Thompson up to $20,000 per month following the 180th day after
any disability.
In the event that Mr. Thompson’s employment is terminated due to his death or disability, the vesting of his
outstanding options will be accelerated by two years. Additionally, in the case of his death, his designated
beneficiary will be entitled to a single lump sum death benefit of $5,000,000 (in accordance with Symantec’s life
insurance plan), and in the case of his disability, he will be entitled to disability payments of up to $20,000 a month
after 180 days of continued disability (in accordance with Symantec’s long term disability plan). If Mr. Thompson
60