SanDisk 2010 Annual Report Download - page 11

Proxy Statement
TABLE OF CONTENTS
PROXY STATEMENT ................................................................. 1
General ........................................................................... 1
Important Notice Regarding Internet Availability of Proxy Materials and Annual Report ........... 1
Voting Rights ...................................................................... 1
Stockholders Sharing the Same Last Name and Address ..................................... 3
Revocability of Proxies ............................................................... 3
Solicitation of Proxies ................................................................ 3
Stockholder Proposals to be Presented at the 2012 Annual Meeting ............................ 3
PROPOSAL NO. 1—ELECTION OF DIRECTORS ......................................... 4
Business Experience and Qualifications of Nominees for Election as Directors ................... 4
Board Governance ................................................................... 7
Board Leadership Structure and Risk Oversight ........................................... 12
Consideration of Director Nominees .................................................... 12
Director Compensation Table—Fiscal 2010 .............................................. 14
PROPOSAL NO. 2—RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM ........................................................ 18
PROPOSAL NO. 3—APPROVAL OF AMENDMENTS TO THE SANDISK CORPORATION 2005
INCENTIVE PLAN .................................................................. 20
PROPOSAL NO. 4—APPROVAL OF AMENDMENTS TO INCREASE THE NUMBER OF
SHARES RESERVED FOR ISSUANCE UNDER THE SANDISK CORPORATION 2005
EMPLOYEE STOCK PURCHASE PLANS .............................................. 33
PROPOSAL NO. 5—ADVISORY VOTE ON NAMED EXECUTIVE OFFICER COMPENSATION
OF SANDISK CORPORATION “SAY ON PAY” ......................................... 38
PROPOSAL NO. 6—ADVISORY VOTE ON FREQUENCY OF “SAY ON PAY” VOTE .......... 40
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT ....... 41
COMPLIANCE WITH SECTION 16(A) OF THE SECURITIES EXCHANGE ACT OF 1934 ...... 44
FORM 10-K ........................................................................... 45
AUDIT COMMITTEE REPORT ......................................................... 46
COMPENSATION DISCUSSION AND ANALYSIS ......................................... 47
Executive Summary ................................................................. 47
Executive Compensation Program Objectives and Overview ................................. 49
Current Executive Compensation Program Elements ........................................ 51
Stock Ownership Guidelines ........................................................... 57
Section 162(m) Policy ................................................................ 57
COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION .............. 58
SUMMARY COMPENSATION TABLE—FISCAL 2008-2010 ................................ 59
GRANTS OF PLAN-BASED AWARDS IN FISCAL 2010 .................................... 62
OUTSTANDING EQUITY AWARDS AT FISCAL 2010 YEAR-END .......................... 65
OPTIONS EXERCISES AND STOCK VESTED IN FISCAL 2010 ............................. 67
POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL ............... 68
CERTAIN TRANSACTIONS AND RELATIONSHIPS ...................................... 70
OTHER BUSINESS .................................................................... 71
ANNEX A—PROPOSED AMENDED 2005 INCENTIVE PLAN ............................... A-1
ANNEX B—PROPOSED AMENDED 2005 EMPLOYEE STOCK PURCHASE PLAN AND 2005
INTERNATIONAL EMPLOYEE STOCK PURCHASE PLAN .............................. B-1