Symantec 2012 Annual Report Download - page 53

The award opportunities for fiscal 2012 were determined based on the relevant market data, desired market
positions, the desired mix between cash and equity-based incentive pay, internal pay equity goals, and the role of
the named executive officer. Taking into account these factors for fiscal 2012, the Compensation Committee
increased the target award opportunity as a percentage of base salary for all of the NEOs with the exception of
Enrique Salem. The bonus target increases for the NEOs (other than Enrique Salem) were made based on our
new compensation market positioning strategy to target market 65th percentile level for short- and long-term
incentives and total direct compensation. The promotion to Group President also contributed to the increase in
the applicable target award percentage under the Executive Annual Incentive Plan for Messrs. Trollope and
deSouza, and increased the absolute value of such award opportunities due to the related increase in the base
salary from which each target award value was derived.
At the time award opportunities are established, there is no assurance that the amount of the target awards
will be realized. As explained below, each named executive officer must achieve threshold performance for each
metric established in the named executive officer’s executive annual incentive plan to receive any payment for
such metric. The payout under the Executive Annual Incentive Plan is also capped at different levels based on the
performance metric.
Executive Annual Incentive Plan Performance Measures and Target Setting: Executive Annual
Incentive Plan performance targets are established at 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 adjustments 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 the payment of
annual cash incentives, if warranted. In determining the achievement of performance metrics for fiscal 2012, the
Compensation Committee made adjustments to both the revenue and non-GAAP EPS targets for several acquis-
itions made during the year. The determination of awards for the revenue and non-GAAP EPS metrics is for-
mulaic, while the business unit performance metric is determined based on a qualitative evaluation of business
unit performance against pre-established operational and strategic goals, with input from our CEO. In determin-
ing achievement of business unit metrics, the Compensation Committee gives weight to the input of our CEO,
but final decisions about the compensation of our named executive officers are made solely by the Compensation
Committee. Although the Compensation Committee has the discretion to adjust awards as appropriate, it did not
exercise such discretion for fiscal 2012.
The performance measures and weightings under the Fiscal Year 2012 Executive Annual Incentive Plans for
the named executive officers were as follows:
Revenue Non-GAAP EPS Business Unit Performance
CEO ........................................... 50% 50% N/A
Other NEOs ..................................... 50% 20% 30%
We used the above performance metrics because:
‰Over time, revenue and non-GAAP EPS measures have strongly correlated with stockholder value crea-
tion for Symantec;
‰Improvement in revenue and non-GAAP EPS measures aligns with our overall growth strategy;
‰The revenue and non-GAAP EPS measures are transparent to investors and are included in our quarterly
earnings releases;
‰The revenue and non-GAAP EPS measures balance growth and profitability;
‰The performance goals used for the business unit performance component align with our operational and
strategic objectives; and
‰The business unit performance metric provides a balance in incentive compensation as it focuses on both
operational excellence and strategic goals.
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