Symantec 2016 Annual Report Download - page 36

our common stock, any changes to our compensation strategy, changes in business practices or industry stan-
dards, changes in the compensation practices of our competitors, or changes in compensation practices in the
market generally, and the methodology used to establish the equity award mix.
In connection with its approval of the amendment of the 2013 Plan, the Board considered Symantec’s cur-
rent stock repurchase program, under which approximately $790 million remained authorized for future
repurchases as of July 21, 2016, with no expiration date. We believe that stock repurchases reduce the potential
dilutive effect of the issuance of additional equity incentives to employees. For example, the weighted average
common shares outstanding decreased from 696,309,329 shares in fiscal 2014 to 670,002,129 shares in fiscal
2016, due in part to Symantec’s stock repurchase programs.
Plan History
The 2013 Plan was originally adopted by the Board in July 2013, and it was approved by our stockholders in
October 2013. In 2016, the 2013 Plan was amended by the Board to provide the Committee the authority to make
certain adjustments under the 2013 Plan in the event of an extraordinary cash dividend by Symantec. Upon adop-
tion, our stockholders approved the reservation of an aggregate of 45 million shares for issuance under the 2013
Plan. No shares carried over from our 2004 Equity Incentive Plan (the “Prior Plan”), which was our primary
equity compensation plan prior to the adoption of the 2013 Plan. We no longer grant awards under the Prior Plan.
The following table summarizes certain information regarding our equity incentive program, which includes
our 2013 Plan and awards granted under our prior plans. Our only active equity plans with available share pools
are our 2013 Plan and our 2000 Director Equity Plan, as referenced below.
As of July 21, 2016
Total number of shares of common stock subject to outstanding full value awards
(including RSUs and PRUs) ........................................... 22,582,542
Total number of shares of common stock subject to outstanding stock options ...... 344,660
Weighted-average exercise price of outstanding stock options .................. $ 12.46
Weighted-average remaining term of outstanding stock options ................. 1.28 years
Total number of shares of common stock available for future grant under the 2013
Plan .............................................................. 10,735,252
Total number of shares of common stock available for future grant under 2000
Director Equity Plan ................................................. 53,931
One of the important factors that we consider in administering our equity compensation programs is our
“burn rate,” meaning the number of shares that we utilize under the 2013 Plan each year relative to total shares
outstanding.
The following table sets forth our gross burn rate for fiscal 2016, 2015 and 2014. Our net burn rate for the
same period was 0.24%, 1.75% and 0.51%, respectively. We think of “gross burn rate” as the total number of
shares granted under all of our equity incentive plans during a period divided by the weighted average number of
shares of common stock outstanding during that period and expressed as a percentage. We think of “net burn
rate” as the total number of shares granted under all of our equity incentive plans during a period, minus the total
number of shares returned to such plans through awards cancelled during that period, divided by the weighted
average number of shares of common stock outstanding during that period, and expressed as a percentage. When
we sought stockholder approval of the 2013 Plan in 2013, we estimated that our annual gross burn rate would be
approximately 1.8%, or 13,000,000 shares annually.
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