Symantec 2014 Annual Report Download - page 43

We also reimbursed Mercer and its affiliates for reasonable travel and business expenses. The Compensation
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 and the
Compensation Committee’s assessment of Mercer’s independence pursuant to the SEC rules, the Compensation
Committee concluded that the consulting advice it receives from Mercer is objective and not influenced by
Mercer and its affiliates’ other relationships with Symantec and that no conflict of interest exists that will prevent
Mercer from being independent consultants to the Compensation Committee.
The Compensation Committee establishes our compensation philosophy, approves our compensation pro-
grams 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
executive officers and makes compensation recommendations (other than with respect to his own compensation)
that go to the Compensation Committee for their approval. Our CEO, Chief Human Resources Officer and Gen-
eral Counsel regularly attend the Compensation Committee’s meetings to provide their perspectives on competi-
tion 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 recom-
mendations.
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-term cash and long-term equity awards. For cash awards, short-term results are measured by non-
GAAP operating income, annual revenue and, for all our named executive officers other than our CEO,
individual performance. A significant portion of equity grants for our named executive officers other than our
CEO are directly performance based, with base-level grants set by performance versus non-GAAP EPS targets,
modified over an extended term by the achievement of the total stockholder return ranking for our company as
compared to the S&P 500. The value of the remainder equity grants to our named executive officers other than
our CEO is determined by performance as reflected in our absolute company share price.
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 equity incentive opportunities and benefits for
our named executive officers with reference to the relevant market data for each position. The Compensation
Committee 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 com-
petencies, the desired pay mix (e.g., emphasizing short- or long-term results), and our budget.
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-
lished survey data from a broader set of information technology companies that the Compensation Committee,
based on the advice of Mercer, believes represent Symantec’s competition in the broader talent market. The peer
group’s proxy statements provide detailed pay data for the top five positions. Survey data, which we obtain from
the Radford Global Technology Survey and Radford Global Sales Survey, provides compensation information on
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