Symantec 2010 Annual Report Download - page 56

believed when it established these business unit performance metrics under the Fiscal Year 2010 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 Messrs. Salem, Beer, Hughes, Robbins and Thompson, the metric achievements for fiscal 2010 described
above resulted in a payout of 37.5%, 54%, 15%, 45% and 37.5% of the officer’s respective target bonus amount,
respectively (in each case, amounts paid are reflected in the Summary Compensation Table beginning on page 51).
Long Term Incentive Plans (LTIP)
In May 2009, the Compensation Committee approved our LTIP for fiscal 2010. Under the terms of the FY10
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 2, 2010. The Compen-
sation Committee implemented the FY10 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 a component
that will enhance the alignment to long-term financial performance. The FY10 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 2010) 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 2012). We believe the combination of these
performance goals and this time-based vesting period provide appropriate performance incentives and promote the
long-term retention of our executive officers. By basing the FY10 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 FY10 LTIP awards were: Enrique Salem,
$2,000,000; James Beer, $330,000; Gregory Hughes, $330,000; William Robbins, $330,000; and David Thompson,
$330,000. A participant is eligible for 25% of the target FY10 LTIP award if at least 85% of budgeted operating cash
flow target is achieved with respect to the performance period and for up to 200% of the target FY10 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, creating a strong incentive for our
executive officers to serve through the payment date for these awards. 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.
For fiscal 2010, our operating cash flow target was $1,567 million and we achieved 108% of our target,
resulting in a payout of 140% of target bonus amounts under our FY10 LTIP for our named executive officers who
remain our employees as of the end of fiscal 2012. Accordingly, Messrs. Salem, Beer, Robbins and Thompson will
each receive payouts of $2,800,000, $462,000, $462,000 and $462,000, respectively, if they remain employed by us
on such date. This level of achievement against target compares to our reported increase in cash flow from
operations of approximately 1% from fiscal 2009 to fiscal 2010.
Equity Incentive Awards
The primary purpose of our equity incentive awards is to align the interests of our named executive officers
with those of our stockholders by rewarding the named executive officers for creating stockholder value over the
long-term. By compensating our executives with the Company’s equity, our executives hold a stake in the
Company’s financial future. The gains realized in the long term depend on our executives’ ability to drive the
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