Symantec 2010 Annual Report Download - page 54

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 the 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 2010, the Compensation Committee did not increase the salaries of the named executive officers,
except in connection with promotions, for the third consecutive year due to a number of factors, including the
challenging economic environment, our reduction in cost structure and Symantec’s performance in fiscal 2010.
Specific information regarding fiscal 2010 salary amounts is contained in the Summary Compensation Table
beginning on page 51.
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 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 that 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 2010 were determined based on a market composite,
the desired mix between cash and equity-based incentive pay, internal pay equity goals, and the role of the named
executive officer. For fiscal 2010, the target opportunity for Enrique Salem, who served as our President and Chief
Executive Officer in fiscal 2010 was 125% 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 any payment
for such metric. To motivate our named executive officers to drive for superior performance, the non-GAAP revenue
and EPS (defined below) portions of the award opportunity were otherwise uncapped in amount, in that over-
achievement of performance goals can result in payments in excess of target, although the Executive Annual
Incentive Plan has an overall cap of $5 million that any single named executive officer may be paid for a single fiscal
year.
Executive Annual Incentive Plan Performance Measures and Target Setting: Executive Annual Incentive
Plan performance targets are established on or about the beginning of each plan year. Our management develops
proposed goals with reference to a variety of factors, including our historical performance, internal budgets, market
and peer performance, and external expectations for our performance. The Compensation Committee reviews,
adjusts as necessary, and approves the goals, the range of performance, and the weighting of the goals. Following the
end of each fiscal year, the Compensation Committee reviews our actual performance against the performance
measures established in the fiscal year’s Executive Annual Incentive Plans (after making any appropriate adjust-
ments to such measures for the effects of corporate events that were not anticipated in establishing the performance
measures), determines the extent of achievement and approves annual cash incentives, if warranted. In determining
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