Autodesk 2012 Annual Report Download - page 42

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36
Pay Mix
In order to focus our executive officers on achieving superior annual and long-term performance, we have
structured our executive officers’ compensation mix so that the majority of their compensation is contingent
on achieving or surpassing our annual goals and achieving superior returns for our stockholders. In fact, in
fiscal 2012, short-term annual incentives together with long-term equity increased as a proportion of total
compensation mix.
Total Annual Cash Compensation
Total annual cash compensation is made up of a base salary and the short-term cash incentives described
above. The ratio of an executive officer’s base salary and short-term cash incentive target reflects the strong
importance that we place on superior performance and achievement. Most of our Named Executive Officers
have a significant portion of their annual eligible cash compensation contingent on corporate and individual
performance, and that portion was increased in fiscal 2012.
Total Equity Incentive Compensation
In addition, we want our executive officers focused on long-term achievements that build value for our
stockholders. We believe that consistent and prolonged appreciation of our stock price and the building of
Company market capitalization are key measures of success. We use stock option and increasingly RSU awards
to align our executive officers and their efforts with the interests of our stockholders. Because our executive
officers and their decisions and judgment are critical to our long-term success, the majority of their overall
compensation is aligned with Company and stockholder value creation.
Actual Pay Mix for Fiscal 2012
For fiscal 2012, the pay mix of our three main components of compensation (base salary, short-term cash
incentive and long-term equity compensation) for the Named Executive Officers is shown below. The pay mix
generally reflects our objective of providing a large portion of our executive officers’ compensation through
long-term equity compensation. Naturally, this mix varies depending on a number of factors, including stock
price changes, overall Company performance and individual performance. Amounts in the chart below are based
on what was paid or granted during fiscal 2012. Base salary is the amount of each Named Executive Officer’s
actual annual base salary. Short-term cash incentive is the actual short-term cash incentive payout. Long-term
equity incentive amounts represent aggregate grant date fair value of awards computed in accordance with
FASB ASC Topic 718, Compensation—Stock Compensation (“ASC 718”). These amounts do not necessarily
correspond to the actual value that will be realized by the Named Executive Officers upon exercise or sale of the
awards. In addition, our officers may from time to time receive other compensation as described in more detail
in “Executive Compensation— Summary Compensation Table and Narrative Disclosure,” below.
Long-term equity incentive compensation constitutes the largest single component of compensation of our
Named Executive Officers’ overall compensation in fiscal 2012. For our Named Executive Officers, overall
cash compensation for fiscal 2012 was more heavily weighted towards short-term incentives than base pay. This
mix between fixed base salary and cash incentives is consistent with our pay-for-performance philosophy and is
comparable to that for similar positions reviewed in our peer group.