Symantec 2012 Annual Report Download - page 48

Committee did not review or approve the other services provided by Mercer and its affiliates to Symantec, as
those services were approved by management in the normal course of business. Based in part on policies and
procedures implemented by Mercer to ensure the objectivity of its executive compensation consultants, the
Compensation Committee believes that the consulting advice it receives from Mercer is objective and not influ-
enced by Mercer’s or its affiliates’ other relationships with Symantec.
The Compensation Committee establishes our compensation philosophy, approves our compensation programs
and solicits input and advice from several of our executive officers and Mercer. As mentioned above, our CEO
provides the Board of Directors and the Compensation Committee with feedback on the performance of our execu-
tive officers and makes compensation recommendations (other than with respect to his own compensation) that 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 princi-
ples. These policies and tools guide the Compensation Committee in determining the mix and value of the com-
pensation components for our named executive officers, consistent with our compensation philosophy. They
include:
Focus on Pay-for-Performance: Our executive compensation program is designed to reward executives
for results. As described below, the pay mix for our 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 revenue,
non-GAAP earnings per share and, for all our named executive officers other than our CEO, business unit per-
formance. Long-term results are measured by share price appreciation, and achievement of operating cash flow
targets. With the introduction of performance-based restricted stock units as a regular part of our annual execu-
tive compensation program beginning with fiscal 2012, our long-term results are also measured by the achieve-
ment of the total stockholder return ranking for our company as compared to the S&P 500.
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 pro-
gram and a consistent focus on individual professional growth and opportunities for new challenges.
Appropriate Market Positioning: Our general pay positioning strategy is to target the levels of base
salary, annual short-term cash incentive structure and long-term incentive opportunities and benefits for our
named executive officers with reference to the relevant market data for each position. The Compensation Com-
mittee 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.
For fiscal 2012, to further strengthen our pay for performance focus, we shifted our target pay positioning
for our executive officers from the 65th percentile to the 50th percentile of the relevant market composite for sal-
ary, and are gradually shifting the percentile of the relevant market composite we target for the variable pay
elements from the 50th percentile to the 65th percentile, subject to individual performance. Prior to this change,
our policy was to target the base salary for our executive officers at the 65th percentile of the relevant market data
and variable compensation target for our executive officers at the 50th percentile of the relevant market data. We
believe that these adjustments align our executive officers compensation more directly with the Company’s per-
formance. See also “Appropriate Pay Mix” below for more information about this change.
Competitive Market Assessments: Market competitiveness is one factor that the Compensation Commit-
tee 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 pub-
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