Symantec 2012 Annual Report Download - page 56

At the time award opportunities are established, there is no assurance that the amount of the target awards
will be realized. 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 2012, our operating cash flow target was $1,876 million and we achieved 101% of our target,
resulting in a payout of 105% of target bonus amounts under our FY12 LTIP for our named executive officers
who remain our employees as of the end of fiscal 2014. This level of achievement against target compares to our
reported increase in cash flow from operations of approximately 6% from fiscal 2011 to fiscal 2012.
Our NEOs’ fiscal 2012 LTIP target awards, actual awards and total payout as percentage of target oppor-
tunity are provided in the table below:
LTIP
Target ($)
LTIP
Actual
Award ($)
Payout
as % of
Target
Enrique Salem .......................................... 2,000,000 2,100,000 105
James A. Beer .......................................... 425,000 446,250 105
Rowan M. Trollope ...................................... 425,000 446,250 105
Francis A. deSouza ...................................... 425,000 446,250 105
William T. Robbins ...................................... 425,000 446,250 105
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 equity incentive awards, 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
financial performance of the Company. Equity incentive awards are also a useful vehicle for attracting and
retaining executive talent in our competitive talent market.
Our 2004 Equity Incentive Plan provides for the award of stock options, stock appreciation rights, restricted
stock, and restricted stock units (including performance-based restricted stock units). We granted named execu-
tive officers restricted stock units and performance-based restricted stock units in fiscal 2012 (as described in
more detail below, including under the Summary Compensation Table and Grants of Plan-Based Awards table on
pages 54 and 57, respectively). We also offer all employees the opportunity to participate in the 2008 Employee
Stock Purchase Plan, which allows for the purchase of our stock at a discount to the fair market value through
payroll deductions. This plan is designed to comply with Section 423 of the Code. During fiscal 2012, four of the
named executive officers participated in the 2008 Employee Stock Purchase Plan.
We seek to provide equity incentive awards that are competitive with companies in our peer group and the
other information technology companies that the Compensation Committee includes in its competitive market
assessment. As such, we establish target equity incentive award grant guideline levels for the named executive
officers based on competitive market assessments. When making annual equity awards to named executive offi-
cers, we consider corporate results during the past year, the role, responsibility and performance of the individual
named executive officer, the competitive market assessment described above, prior equity awards, and the level
of vested and unvested equity awards then held by each named executive officer. In making equity awards, we
also generally take into consideration gains recognizable by the executive from equity awards made in prior
years. Mercer provides the Compensation Committee with market data on these matters, as well as providing to
the Compensation Committee summaries of the prior grants made to the individual named executive officers.
As discussed below, the Compensation Committee believes that for fiscal 2012, a mix of time-based
restricted stock units and performance-based restricted stock units is the appropriate long-term equity incentive
for named executive officers, and stock options are no longer granted to the named executive officers as a regular
part of our annual executive compensation program. For fiscal 2012, approximately 68% of our former CEO’s
equity incentive award value was granted in the form of performance-based restricted stock units and approx-
imately 32% in the form of restricted stock units. On average 31% of the named executive officers’ (other than
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