Symantec 2009 Annual Report Download - page 41

Fiscal Year 2009 Results
For fiscal 2009, our non-GAAP revenue target was $6.342 billion and our non-GAAP EPS target was $1.36 per
share. The Company performed at 97.8% of the revenue goal ($6.204 billion), resulting in a payout for that portion
of the plan at 85% of the plan target amount, and performed at 115.4% of the non-GAAP EPS goal ($1.57 per share),
resulting in a payout for that portion of the plan at 170% of the plan target amount. These levels of achievement
compare to our reported increases in non-GAAP revenue and non-GAAP EPS of approximately 1% and 24%,
respectively, from fiscal 2008 to fiscal 2009. The Company does not intend to disclose the specific targets for the
business unit performance against budget, as its segment-level business plan is highly confidential and not reported
publicly. Disclosing specific business unit-level spending objectives would provide competitors and third parties
with insights into the Company’s internal planning processes which might allow our competitors to predict certain
business strategies and cause us competitive harm. The amounts paid out with respect to the business unit metric
applicable to J. David Thompson, our Group President, IT and Services Group, as a percentage of the target payout
amount, was 110%. No other named executive officer had a business unit metric included in his FY09 Annual
Incentive Plan. The Compensation Committee believed when it established these business unit performance metrics
under the fiscal 2009 Annual Incentive Plans that while actual results were uncertain it was reasonably likely that
the Company would achieve at or close to the target goals. As noted above, performance objectives are established
based on a range of inputs, including external market economic conditions, growth outlooks for our product
portfolio, the competitive environment, our internal budgets, and market expectations.
For John Thompson, Enrique Salem, James Beer and Gregory Hughes, the metric achievements for fiscal 2009
described above resulted in a payout of 127.5% of the officer’s respective target bonus amount; and for J. David
Thompson, this achievement resulted in a 122% payout against his target bonus amount (in each case, amounts paid
are reflected in the Summary Compensation Table beginning on page 39).
Long Term Incentive Plans (LTIP)
In May 2008, the Compensation Committee approved our LTIP for fiscal 2009. Under the terms of the FY09
LTIP, named executive officers are eligible to receive performance-based compensation based upon the level of
attainment of target operating cash flow through the Company’s fiscal year ending April 3, 2009. The Compen-
sation Committee implemented the FY09 LTIP in order to provide an ongoing retention and performance incentive
by balancing option and restricted stock unit vesting periods (four and three years respectively) with another
component which will enhance the alignment to long-term financial performance. The FY09 LTIP was adopted
pursuant to the SEIP most recently approved by our stockholders in 2008.
As we currently operate the SEIP, the long-term incentive metric is measured at the end of the one-year
performance period (i.e., the end of fiscal 2009) and, subject to the meeting of the performance target(s) and
satisfaction of continuing service requirements, will be paid following the last day of the second fiscal year
following the end of the performance period (i.e., the end of fiscal 2011). By basing the LTIP payout on operating
cash flow, the plan focuses on a specific, measurable corporate goal that is aligned with generating stockholder
value, and provides performance-based compensation based upon the actual achievement of the goal. We believe
that the exclusive metric of operating cash flow, as opposed to revenue or EPS, appropriately focuses our executives
on tangible growth and cost reduction opportunities. Operating cash flow is also a direct measure of business
success and balances the annual plan measures that are not subject to some of the timing issues associated with the
accounting rules relating to revenues and EPS, which can lead to fluctuations in results that are not necessarily
directly tied to our business success. For our named executive officers, the target 2009 LTIP awards represented the
following percentages of base salary: John Thompson, 250%; Enrique Salem, 160%; James Beer, 71%; Gregory
Hughes, 69%; and J. David Thompson, 76%. A participant is eligible for 25% of the target LTIP award if at least
85% of budgeted operating cash flow is attained with respect to the performance period and for up to 200% of the
target LTIP award if at least 120% of budgeted operating cash flow is attained with respect to the performance
period. A participant must be an employee of the Company on the payment date to receive the payment. Subject to
certain limited exceptions, a participant who terminates his or her employment with the Company before the
payment date will not be eligible to receive the payment or any prorated portion thereof.
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