Symantec 2010 Annual Report Download - page 52

and makes compensation recommendations which go to the Compensation Committee for their approval. Our CEO,
CFO, Chief Human Resources Officer and General Counsel regularly attend the Compensation Committee’s
meetings to provide: their perspectives on competition in the industry, the needs of the business, information
regarding Symantec’s performance, and other advice specific to their areas of expertise. In addition, at the
Compensation Committee’s direction, Mercer works with our Chief Human Resources Officer and other members
of management to obtain information necessary for Mercer to make their own recommendations as to various
matters as well as to evaluate management’s recommendations.
FACTORS WE CONSIDER IN DETERMINING OUR COMPENSATION PROGRAMS
We apply a number of compensation policies and analytic tools in implementing our compensation principles.
These policies and tools guide the Compensation Committee in determining the mix and value of the compensation
components for our named executive officers. They include:
A Total Rewards Approach: Elements of the total rewards offered to our executive officers include base
salary, short- and long-term incentives including equity awards, health benefits, a deferred compensation program
and a consistent focus on individual professional growth and opportunities for new challenges.
Focus on Pay-for-Performance: Our executive compensation program is designed to reward executives for
results. As described below, the pay mix for named executive officers emphasizes variable pay in the form of short-
and long-term cash and equity awards. Short-term results are measured by annual financial performance, specifically
revenue, earnings per share and, for all named executive officers other than our CEO, business unit performance.
Long-term results are measured by (a) share price appreciation, and (b) achievement of operating cash flow targets.
Appropriate Market Positioning: Our current policy is to target the base salary and annual short-term cash
incentive structure for named executive officers at the 65th percentile of the relevant market composite, as described
below, with target long-term incentive opportunities and benefits for named executive officers at the 50th percentile
of the relevant market composite. Base salary and short-term cash incentives are positioned at this level in order to
attract and retain high caliber talent in the highly competitive technology market. The target long-term incentive
strategy allows us to be competitive in the market for top talent, while providing alignment with stockholders and
keeping the burn rate and dilution associated with our equity compensation programs within a range we deem
appropriate. As described below, the pay mix for executives emphasizes long-term performance through a majority
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 in the event of outstanding financial perfor-
mance. 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 competencies, 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 a named executive officer’s overall compensation package, including 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 compe-
tition 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 that 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
40