Symantec 2013 Annual Report Download - page 191

SYMANTEC CORPORATION
Notes to Consolidated Financial Statements — (Continued)
This feature provides for each one share granted as RSU, RSA, PRU, or PCSU to be counted as the issuance of
two shares reserved for issuance for the purpose of computing shares remaining available for issuance. Shares
subject to stock options or stock appreciation rights reduce the shares available for issuance on a one-for-one
basis.
As of March 29, 2013, we have 143 million shares authorized for issuance under the 2004 Plan. These
shares include 18 million shares originally reserved for issuance under the 2004 Plan upon its adoption by our
stockholders in September 2004, 29 million shares that were transferred to the 2004 Plan from the 1996 Equity
Incentive Plan (“1996 Plan”), 40 million, 50 million, and 55 million shares that were approved for issuance
thereunder on the amendment and restatement of the 2004 Plan at our 2006, 2008 and 2010 annual meeting of
stockholders, respectively, and a reduction of 49 million shares for the fungible share pool adjustment. In
addition to the shares currently reserved under the 2004 Plan, any shares reacquired by us from options
outstanding under the 1996 Plan upon their cancellation will also be added to the 2004 Plan reserve. As of
March 29, 2013, 65 million shares remained available for future issuance.
Other stock option plans
Options remain outstanding under several other stock option plans, including the 1996 Plan, and various
plans assumed in connection with acquisitions. No further options may be granted under any of these plans.
Performance-based restricted stock units and performance-contingent stock units
During the first quarters of fiscal 2013 and 2012, we granted PRUs to certain senior level employees under
our 2004 Plan. The PRU grants are in lieu of the stock option grants typically awarded as part of our annual
compensation program. These PRUs can be earned depending upon the achievement of a company-specific
performance condition and a market condition as follows: (1) our achievement of annual target earnings per share
for the applicable fiscal year and (2) our two and three-year cumulative relative total shareholder return ranked
against that of other companies that are included in the Standard & Poor’s 500 Index. These PRUs are also
subject to a three-year continued service vesting provision with earlier vesting permitted under certain
conditions, such as upon a change of control of the Company. The determination of the fair value of these awards
takes into consideration the likelihood of achievement of the market condition.
On July 24, 2012, Enrique Salem, our former President and Chief Executive Officer (“CEO”), resigned from
the Company. Our board of directors appointed Stephen M. Bennett as our new President and CEO, effective
July 25, 2012. During the second quarter of fiscal 2013, we granted 115,000 PRUs to our new CEO. These PRUs
are subject to vesting based on the same terms and conditions as the aforementioned fiscal 2013 PRU grants,
except that the target number of shares our CEO will be eligible to receive at the end of the three-year
performance period will be not less than 80,000 shares. Additionally, we granted 450,000 PCSUs to our CEO
based on the achievement of specified performance metrics. The PCSUs are also subject to an underlying
continued service vesting condition. Each performance metric is based on the average twenty day trailing closing
price of Symantec’s common stock (the “Average Closing Price”) over a three-year period beginning with the
second quarter of fiscal 2013. Upon achievement and ratification by our board of directors, these awards will vest
and release for the fiscal quarter when the Average Closing Price first exceeds $18.00, $20.00, and $22.00,
respectively. The price thresholds were achieved during fiscal 2013. The weighted-average grant date fair value
per share of PCSUs granted was $13.69 per share.
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