Symantec 2009 Annual Report Download - page 38

of pay opportunity coming in the form of long-term award vehicles. By using these targets, we believe that upside
opportunity in the short- and long-term incentive plans is available with outstanding financial performance. The
Compensation Committee may set the actual components for an individual named executive officer above or below
the positioning benchmark based on factors such as experience, performance achieved, specific skills or compe-
tencies, the desired pay mix (e.g., emphasizing short- or long-term results), and our budget.
Competitive Market Assessments: Market competitiveness is one factor that the Compensation Com-
mittee considers each year in determining an individual named executive officer’s salary, incentive opportunity,
long-term equity awards and pay mix. The Compensation Committee relies on various data sources to evaluate the
market competitiveness of each pay element, including publicly-disclosed data from a peer group of companies (see
discussion below) and published survey data from a broader set of information technology companies that are
similar in size to Symantec and that the Compensation Committee and its advisors, including Mercer, believe
represent Symantec’s competition in the broader talent market. The peer group’s proxy statements provide detailed
pay data for the top five positions. Survey data provides compensation information from a broader group of
information technology companies, with positions matched based on specific job scope and responsibilities. The
Compensation Committee considers data from these sources in developing a market composite which it uses as a
framework for making compensation decisions for each named executive officer’s position.
Symantec is a prominent participant in the information technology industry. This industry is characterized by
rapid rates of change, intense competition from small and large companies, and significant cross-over in leadership
talent needs. As such, we compete for executive talent with leading software and services companies as well as in
the broad information technology industry. Further, because we believe that stockholders measure our performance
against a wide array of technology peers, the Compensation Committee uses a peer group that consists of a broader
group of high technology companies in different market segments that are of a comparable size to us. The
Compensation Committee uses the peer group, as well as other relevant market data, to develop a market composite
for purposes of establishing named executive officer pay levels (as described above). In addition, the peer group
performance is used as input for setting performance targets for our annual incentive plan.
For fiscal 2009, the Compensation Committee, based on the advice of Mercer, included the following
companies in the peer group: Adobe Systems, Analog Devices, Apple, Computer Associates, Cisco Systems,
Electronic Arts, EMC, Harris Interactive, Juniper Networks, Lexmark International, Network Appliance, Oracle,
Qualcomm, Seagate Technology and Yahoo! Adjustments are made to the peer group from time to time based on a
comparison of market capitalization, industry and company performance.
Appropriate Pay Mix: In determining the mix of the various reward elements and the value of each
component, the Compensation Committee takes into account the executive’s role, the competitive market,
individual and Company performance, business unit performance (where applicable), internal pay equity and
historical compensation. Details of the various programs and how they support the overall business strategy are
outlined in “Compensation Components.” In making its determinations with regard to compensation, the Com-
pensation Committee reviews the various compensation elements for the CEO and the other named executive
officers (including base salary, target annual bonus, target and accrued award payments under the Long Term
Incentive Plans, and the value of all vested and unvested equity awards).
The percentage of an executive officer’s compensation opportunity that is at-risk or variable instead of fixed is
based primarily on the officer’s level of influence at Symantec. Executive officers generally have a greater portion
of their pay at risk through short- and long-term incentive programs than the rest of our employee population
because of their relatively greater responsibility and ability to influence the Company’s performance. This is
achieved by having higher target short-term incentive opportunities and higher equity grant levels relative to base
salary than employees who are not senior executives.
Form and Mix of Long-Term Equity Incentive Compensation: We currently use two forms of equity for
long-term equity incentive compensation: stock options and restricted stock units. (See “Equity Incentive Awards”
below for more information regarding the specific features of each form). Starting in fiscal 2007, we increased the
proportion of restricted stock units granted to senior executives relative to options. For fiscal 2009, named executive
officers generally received approximately 50% of the value of their equity compensation in the form of restricted
stock units and 50% in stock options, other than Enrique Salem, who received approximately 62% of his equity
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