Avid 2011 Annual Report Download - page 24

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19
• the Avid Peer Group Index (see note following the graph).
This comparison assumes the investment of $100 on December 31, 2006 in our common stock, the NASDAQ Market Index, the
Old Avid Peer Group and the new Avid Peer Group Index, and assumes that dividends, if any, were reinvested.
Prior to 2010, Avid compared its common stock returns to the NASDAQ Index and the NASDAQ Computer, Data Processing
Index. Because our products and services are diverse, we do not believe any single published industry index is appropriate for
comparing stockholder return. Therefore, for 2010, we began comparing our common stock returns to a peer group index (the
“Old Peer Group”), which was composed of the following NASDAQ-traded companies selected by Avid to best represent its
peers based on various criteria, including industry classification, number of employees and market capitalization: Autodesk, Inc.,
Cadence Design Systems, Dolby Laboratories, Inc., Harmonic, Inc., Imation Corporation, Mentor Graphics Corporation, National
Instruments Corporation, Parametric Technology Corporation, Quantum Corporation, RealNetworks, Inc., Sybase Inc., Synopsys,
Inc., THQ, Inc., and Zoran Corporation.
The composition of the Avid Peer Group Index is dictated by the peer group selected by the compensation committee of Avid's
board of directors for its reference in setting executive compensation. The compensation committee seeks generally to include
companies with similar product and service offerings to those of Avid while also achieving a balance of smaller and larger sized
peer companies in terms of market capitalizations and revenue.
For purposes of the Avid Peer Group Index for 2011, Sybase Inc. and Zoran Corporation were removed because Sybase Inc. was
not publicly traded in 2011 and Zoran Corporation was only publicly traded for a portion of the year. RealD, Inc. and SeaChange
International, Inc. were added to the Avid Peer Group Index for 2011 based on their addition to the peer group selected by the
compensation committee. As a result, for 2011, the Avid Peer Group Index was composed of: Autodesk, Inc., Cadence Design