Symantec 2014 Annual Report Download - page 45

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Appropriate Pay Mix: Consistent with our pay-for-performance philosophy, our executive officers’
compensation is structured with a large portion of their total direct compensation paid based on the performance
of our company and the individual. In determining the mix of the various reward elements and the value of each
component, the Compensation Committee takes into account the executive’s role, the competitiveness of the
market for executive talent, company performance, individual performance, internal pay equity and historical
compensation. In making its determinations with regard to compensation, the Compensation Committee reviews
the various compensation elements for the CEO and our other named executive officers (including base salary,
target annual bonus, and the value of vested and unvested equity awards actually or potentially issued).
The percentage of an executive officer’s compensation opportunity that is “at-risk,” or variable instead of
fixed, is based primarily on the officer’s level of influence at Symantec. Executive officers generally have a greater
portion of their pay at risk through short- and long-term incentive programs than the rest of our employee pop-
ulation because of their relatively greater responsibility and ability to influence our company’s performance. Typi-
cally, a materially higher proportion of the CEO’s compensation opportunity is at-risk relative to our other named
executive officers because the nature of his role and ability to influence our company’s performance. As illustrated
by the following charts, for fiscal 2014, approximately 91% of our former CEO’s target total direct compensation
(sum of base salary, target annual incentive and grant date fair value of equity award) was at-risk, and on average
approximately 84% of our other named executive officers’ (excluding our former CEO, current interim CEO, CFO,
former acting CFO and former interim CFO) compensation opportunity was at-risk compensation.
Annual
Incentive
14%
PCSU 77%
FY14 Former CEO Target Direct Compensation Mix
At-Risk
Compensation:
91%
Base 9%
Annual
Incentive
17%
PRU 38%
RSU 30%
FY14 Other NEO Target Direct Compensation Mix
At-Risk
Compensation:
84%
Base 16%
Form and Mix of Long-Term Equity Incentive Compensation: The long-term equity incentive
compensation component of our regular annual executive compensation program consists of PRUs and RSUs for
all of our named executive officers, except for our CEO. Our former CEO’s long-term equity incentive
compensation for 2014 consisted of PCSUs only, and our current interim CEO did not receive any long-term
equity incentive compensation for fiscal 2014. We allocated all of the value of our former CEO’s target total
long-term equity incentive award in the form of PCSUs, as depicted in the chart above. We believed these alloca-
tions would strike the appropriate balance between performance and retention for long-term equity incentive
awards. We no longer offer stock options as a regular part of our annual executive compensation program and we
may further adjust the mix and forms of equity award we offer to our named executive officers, including the
CEO, in the future.
For fiscal 2014, our former CEO received approximately 77% of the value of his target total direct compen-
sation in the form of PCSUs. Other named executive officers (excluding our former CEO, current interim CEO,
CFO, former acting CFO and former interim CFO), received on average, approximately 38% of the target value
of their equity compensation in the form of PRUs and 30% in RSUs.
These percentages (and other percentage-based equity awards values discussed below) are based on the
grant date fair value of the shares of common stock underlying the RSUs, and the grant date fair value of the
PRUs and PCSUs at the target level award size. The awards made to our named executive officers, other than the
35