Symantec 2016 Annual Report Download - page 51

Incentive Plan Fiscal 2016 Performance Incentive Award Outcome
Fiscal 2016 Executive
Annual Incentive Plans ‰For fiscal 2016 in total
(Symantec/Veritas for the first
three quarters and Symantec alone
for the fourth quarter), our total
weighted average funding level
was 56.8%.
‰Our named executive officers
received individual performance
ratings of 50%-140% that resulted
in total payouts of 28-80% of
target.
Fiscal 2016 PRU Grants ‰For the first three quarters of fiscal
2016, as a combined Symantec/
Veritas company, our non-GAAP
EPS(1) was 88.7% of our targeted
performance level.
‰81.2% of the targeted number of
shares are eligible to be earned,
subject to modification on final
shares earned based on
Symantec’s 1- and 2-year relative
TSR versus the S&P 500
(1) Consistent with the presentation in our quarterly earnings releases and supplemental materials, under our
executive compensation programs, we define (i) non-GAAP operating income as gross profit less operating
expenses before interest and taxes, adjusted to exclude stock-based compensation expense, charges related to
the amortization of intangible assets, certain other income and expense items that management considers
unrelated to Symantec’s core operations, and the associated income tax effects of the adjustments; (ii) non-
GAAP revenue as adjusted to exclude certain litigation contingencies and settlements; and (iii) non-GAAP
EPS as diluted net income per share as adjusted to exclude the items described above, as well as non-cash
interest expense and the related tax impact of these adjustments.
For purposes of calculating achievement of these metrics, consistent with the presentation of non-GAAP
operating income in our quarterly supplemental materials, foreign exchange movements were held constant
at plan rates, pursuant to the terms of the plans.
Named Executive Officer Compensation
Our named executive officers were compensated in a manner consistent with our core pay-for-performance
compensation philosophy. The following are some important elements of our named executive officers’ compen-
sation for fiscal 2016:
‰Majority of pay at risk. For fiscal 2016, approximately 93% of our Chief Executive Officer’s target total
direct compensation was at risk and approximately 89% of the target total direct compensation for our
other named executive officers, on average, was at risk.
‰Short-term incentive compensation linked directly to Symantec financial results. Our executive
annual incentive compensation was structured to emphasize performance. Under the FY16 Executive
Annual Incentive Plans, the named executive officers were eligible to receive performance-based
incentive cash awards based on our company’s achievement of targeted non-GAAP operating income for
fiscal 2016 and targeted non-GAAP revenue during fiscal 2016.
‰Long-term incentive compensation is 100% equity-based. For fiscal 2016, the long-term compensation
component of our named executive officers’ compensation packages consisted entirely of long-
term equity incentive awards.
‰Performance measures are designed to reward executives for results that correlate with stockholder
value and that they have the ability to influence. In fiscal 2016, the cash annual incentive plan metrics
were non-GAAP operating income and non-GAAP revenue, which we believe our executives have a more
direct ability to affect.
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