Symantec 2016 Annual Report Download - page 58

The FY16 Executive Annual Incentive Plans were funded by two primary measures: non-GAAP operating
income and non-GAAP revenue. We used the above performance metrics because:
‰over time, we believe that non-GAAP operating income and non-GAAP revenue measures have strongly
correlated with stockholder value creation for Symantec;
‰the non-GAAP operating income and non-GAAP revenue measures are transparent to investors and are
included in our quarterly earnings releases and supplemental materials;
‰the non-GAAP operating income and non-GAAP revenue measures are designed to balance growth and
profitability; and
‰the performance goals used for the individual performance component align with our operational and stra-
tegic objectives.
The non-GAAP operating income metric was also selected because it can be measured at various sub-
business unit levels within our company.
The determination of achievement of the non-GAAP operating income and non-GAAP revenue metrics is
formulaic, while the individual performance metric is determined based on a qualitative evaluation of the
individual’s performance against pre-established objectives with input from our CEO. In rating the individual’s
performance, the Compensation Committee gives weight to the input of our CEO, but final decisions about the
compensation of our named executive officers are made solely by the Compensation Committee. Although the
Compensation Committee has discretion to adjust awards as appropriate, it did not exercise such discretion for
fiscal 2016.
For the non-GAAP operating income and non-GAAP revenue metrics: (a) at the threshold achievement
level of 90% of target, the funding level is 40%; (b) above the threshold achievement level, the funding level
increases incrementally, up to a funding level of 100% at a target achievement level of 100%; (c) above the target
achievement level, funding increases incrementally, up to a cap of a 200% funding based on a maximum
achievement level of at least 106.5% of target; and (d) there is zero funding below the threshold achievement
level of 90%. The non-GAAP operating income and non-GAAP revenue metrics are tested and funded
independently of each other and are weighted equally. With the exception of our CEO, the actual individual
payouts are further modified based on the individual performance factor generally in the range of 0-140% (35-
140% for FY16) based on the performance achievement against pre-established goals for the fiscal year. The
following illustrates the calculation used to determine the individual payout amount, if any:
Base
Salary $
Annual
Incentive
Target %
Weighted Average
of Revenue and
Operating Income
Funding %
Individual
Performance
Factor %
Individual
Payout
Amount $
The following table summarizes the foregoing discussion of threshold, target and maximum performance
levels and the relative funding levels at each level under the FY16 Executive Annual Incentive Plans:
Non-GAAP
Operating Income
(%)
Non-
GAAP
revenue
(%)
Individual
Performance
Modifier (%)
Total Payout
as a Percentage of
Target (%)
Threshold ................................ 40 40 35 14
Target ................................... 100 100 100 100
Maximum ................................ 200 200 140 280
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