Symantec 2011 Annual Report Download - page 41

EXECUTIVE COMPENSATION AND RELATED INFORMATION
COMPENSATION DISCUSSION & ANALYSIS (CD&A)
INTRODUCTION
This compensation discussion and analysis describes the material elements of Symantec’s executive com-
pensation program for fiscal 2011. For fiscal 2011, our named executive officers (“NEOs”) were:
• Enrique Salem, President and Chief Executive Officer
• James A. Beer, Executive Vice President and Chief Financial Officer
• Janice D. Chaffin, Group President, Consumer Business Unit
• William T. Robbins, Executive Vice President, Worldwide Sales and Services
• Rebecca Ranninger, Executive Vice President and Chief Human Resources Officer
Our Compensation Philosophy: Pay for Performance
The overriding principle driving our compensation programs is our belief that it benefits all of our constit-
uencies for management’s compensation to be tied to our current and long-term performance. The following factors
demonstrate our commitment to pay-for-performance and to corporate governance best practices:
• Approximately 90% of our CEO’s target compensation was performance-based for fiscal 2011;
• Our CEO’s total direct compensation declined by approximately 6% from fiscal 2010 to fiscal 2011, during a
period when we grew year-over-year revenue by 3% and year-over-year cash flow from operations by 6%;
• Our CEO’s total target direct compensation for fiscal 2011 was below the median total target direct
compensation of CEOs within our peer group;
• We do not provide for gross-ups of excise tax values under Section 4999 of the Internal Revenue Code, and
any potential severance payments are well under 3 times our executive officers’ total target cash
compensation; and
• We have clawback provisions in all of our executive compensation plans (providing for the return of any
excess compensation received by an executive officer if the Company’s financial statements are the subject
of a restatement due to error or misconduct).
To further demonstrate our commitment to pay for performance, we made the following changes to our
executive compensation program for fiscal year 2012:
• We are shifting our target pay positioning for our executive officers from the 65th percentile to the
50th percentile of the relevant market composite for salary, and from the 50th percentile to the 65th percentile
of the relevant market composite for other performance-based pay elements; and
• We granted performance — based restricted stock units to our named executive officers in lieu of option
grants, such that our CEO received approximately 68% of his fiscal year 2012 equity grant in the form of
performance-based restricted stock units with a component explicitly linked to total stockholder return over
a two and three-year period.
Summary of Compensation Matters During Fiscal 2011
In fiscal 2011, Symantec delivered 3% year-over-year growth in revenue and 6% growth in cash flow from
operations after a difficult fiscal 2010. In addition, strong bookings performance drove record deferred revenue
which grew 19% year-over-year. Our stock price growth of 10% reflected our resilience in managing through the
recent global recession. Our results also reflected solid execution, market leading products and services, strong
customer relationships and strength in our backup, SaaS, data loss prevention and consumer businesses as well as
stabilization in the storage management business. During fiscal 2011, we effectively integrated our authentication
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