Symantec 2009 Annual Report Download - page 39

compensation in fiscal 2009 in the form of options. These percentages (and other percentage-based equity awards
value discussed below) are based on the grant date fair value of the shares of common stock underlying the restricted
stock units and the grant date fair value of the options using the Black-Scholes option pricing method. The awards
made to our named executive officers other than the CEO are determined by the Compensation Committee after
seeing recommendations made by the CEO. In determining its recommendations to the independent directors of the
Board, in the case of CEO compensation, and in making compensation decisions with respect to other NEOs, the
Compensation Committee may consider factors such as the individual’s tenure at the Company, industry expe-
rience, current pay mix, long-term equity and cash awards previously granted to the individual, retention
considerations, business unit performance (as applicable), individual performance, and other factors.
COMPENSATION COMPONENTS
Compensation for our named executive officers includes the following components:
Base Salary
The annual base salary for our named executive officers is our primary form of fixed (not at-risk) compen-
sation. The Compensation Committee reviews named executive officers’ salaries annually as part of its overall
competitive market assessment and may make adjustments based on positioning relative to market, individual role
and contribution levels, and our overall salary budget. The Compensation Committee reviews the CEO’s salary in
executive session (i.e., without any executives present), and changes are considered in light of market pay
assessments and the Compensation Committee’s annual CEO performance evaluation. In setting the base salaries
for the other named executive officers, the Compensation Committee also considers the recommendations of the
CEO based upon his annual review of their performance.
For fiscal 2009, the Compensation Committee did not increase the salaries of the named executive officers for
the second consecutive year. Specific information regarding fiscal 2009 salary amounts is contained in the
Summary Compensation Table beginning on page 39. In light of the challenging economic environment and in
order to continue to emphasize the alignment between pay and performance, the Compensation Committee also did
not increase the base salaries of any of the Company’s named executive officers for fiscal 2010 with the exception of
a promotional increase for Gregory Hughes.
Executive Annual Incentive Plans
The Executive Annual Incentive Plans for our executive officers are adopted pursuant to the Senior Executive
Incentive Plan (SEIP) most recently approved by our stockholders in 2008. The Executive Annual Incentive Plans
adopted under the SEIP are annual cash incentive plans that reward named executive officers (and other
participants) for generating strong financial results for our Company in the short term. To support collaboration
within the senior leadership group, all named executive officers earn incentive compensation based on performance
against pre-determined corporate goals described further below. The Compensation Committee may choose to
measure the named executive officers’ achievement against specific business unit or individual performance targets
as well.
Executive Annual Incentive Plan Target Opportunities: Under the Executive Annual Incentive Plans for a
given fiscal year, each named executive officer has a target award opportunity, expressed as a percentage of base
salary, with the ability to earn above or below target based on actual performance. The Compensation Committee
uses peer group and survey data as input in determining the target bonus levels for our Executive Annual Incentive
Plans. In addition, the award opportunities for fiscal 2009 were determined based on a market composite, the
desired pay mix, internal pay equity goals, and the role of the named executive officer. For fiscal 2009, the target
opportunity for John Thompson, who served as our Chief Executive Officer in fiscal 2009, was 150% of his base
salary; the target opportunity for Enrique Salem, who served as our Chief Operating Officer in fiscal 2009 was
100% of his base salary; and the target opportunity was 80% of base salary for our other named executive officers.
Each named executive officer must achieve threshold performance for each metric established in the named
executive officer’s executive annual incentive plan in order to receive payment for such metric. To motivate
participants to drive for superior performance, the non-GAAP revenue and EPS (defined below) portions of the
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