SanDisk 2014 Annual Report Download - page 8

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
Annual Meeting Admission .................................................. 4
Stockholder Proposals and Nominations to be Presented at the 2016 Annual Meeting of
Stockholders ........................................................... 4
PROPOSAL NO. 1—ELECTION OF DIRECTORS .................................. 5
Business Experience and Qualifications of Nominees for Election as Directors ............. 5
Board Governance ........................................................ 10
Board Leadership Structure and Risk Oversight ................................... 14
Consideration of Director Nominees ........................................... 15
Director Compensation .................................................... 17
PROPOSAL NO. 2—RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM .............................................. 21
ANNUAL REPORT ON FORM 10-K ............................................ 23
AUDIT COMMITTEE REPORT ............................................... 23
PROPOSAL NO. 3—ADVISORY RESOLUTION TO APPROVE THE COMPENSATION OF
THE NAMED EXECUTIVE OFFICERS OF SANDISK CORPORATION ................ 24
COMPENSATION DISCUSSION AND ANALYSIS .................................. 25
Executive Summary ....................................................... 25
Executive Compensation Program Overview ...................................... 27
Say-on-Pay Results ........................................................ 31
Elements of the Current Executive Compensation Program .......................... 32
Clawback Policy on Bonus Awards ............................................ 34
Stock Ownership Guidelines ................................................. 39
Insider Trading Policy ...................................................... 39
Section 162(m) Policy ...................................................... 40
Accounting for Share-based Compensation ...................................... 40
COMPENSATION COMMITTEE REPORT ....................................... 41
EXECUTIVE COMPENSATION ............................................... 42
Summary Compensation Table—Fiscal Years 2012-2014 ............................. 42
Grants of Plan-Based Awards in Fiscal Year 2014 ................................. 44
Outstanding Equity Awards at Fiscal 2014 Year-End ............................... 47
Options Exercises and Stock Vested in Fiscal Year 2014 ............................. 49
Potential Payments Upon Termination or Change in Control .......................... 49
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT ...... 52
SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE ............... 54
EQUITY COMPENSATION INFORMATION FOR PLANS OR INDIVIDUAL
ARRANGEMENTS WITH EMPLOYEES AND NON-EMPLOYEES .................... 55
CERTAIN TRANSACTIONS AND RELATIONSHIPS ................................ 56
OTHER BUSINESS ........................................................ 58
ANNEX A—NON-GAAP TO GAAP RECONCILIATIONS ............................. A-1