Symantec 2013 Annual Report Download - page 68

Following the end of each fiscal year, the Compensation Committee reviews our actual performance against the
performance measures established in that fiscal year’s Executive Annual Incentive Plans (after making any
appropriate adjustments to such measures for the effects of corporate events that were not anticipated in
establishing the performance measures), determines the extent of achievement and approves the payment of
annual cash incentives, if warranted. In determining the achievement of performance metrics for fiscal 2013, the
Compensation Committee made adjustments to the non-GAAP EPS target to reflect the impact of completing our
June 2012 debt offering. The determination of awards for the revenue and non-GAAP EPS metrics is formulaic,
while the individual performance metric is determined based on a qualitative evaluation of the individual’s per-
formance against pre-established objectives with input from our CEO. In rating the individual’s performance, the
Compensation Committee gives weight to the input of our CEO, but final decisions about the compensation of
our named executive officers are made solely by the Compensation Committee. Although the Compensation
Committee has the discretion to adjust awards as appropriate, it did not exercise such discretion for fiscal 2013.
The performance measures and weightings under the Fiscal Year 2013 Executive Annual Incentive Plans for
the named executive officers were as follows:
Revenue
Non-GAAP
EPS
Individual
Performance
CEO ........................................................ 50% 50% n/a
Other NEOs .................................................. 50% 20% 30%
We used the above performance metrics because:
‰Over time, revenue and non-GAAP EPS measures have strongly correlated with stockholder value crea-
tion for Symantec;
‰The revenue and non-GAAP EPS measures are transparent to investors and are included in our quarterly
earnings releases;
‰The revenue and non-GAAP EPS measures balance growth and profitability;
‰The performance goals used for the individual performance component align with our operational and
strategic objectives; and
‰The individual performance metric provides a balance in incentive compensation as it focuses on reward-
ing strong performance in achieving our operational and strategic objectives.
Revenue and non-GAAP EPS performance targets are established based on a range of inputs, including
external market economic conditions, growth outlooks for our product portfolio, the competitive environment,
our internal budgets, and market expectations.
For the revenue metric, for every 1% achievement above target the payout increases by 10%; for every 1%
achievement under target the payout decreases by 5%; there is a zero payout if the achievement is below 94%;
and the payout is capped at 200% of target for achievement at or above 110%. For the non-GAAP EPS metric,
for every 1% achievement above or below target the payout increases or decreases by 5%; there is a zero payout
if the achievement is below 95%; and the payout is capped at 150% of target for achievement at or above 110%.
For the individual performance metric, the payout ranges from 0% to 150%. The following table summarizes the
foregoing discussion of threshold, target and maximum performance levels and the relative payout at each level
under the Fiscal Year 2013 Executive Annual Incentive Plans:
Revenue
Performance
as % of
Target
Revenue
Payout
as % of
Target
EPS
Performance
as % of
Target
EPS
Payout
as % of
Target
Threshold ....................................... 94 70 95 75
Target .......................................... 100 100 100 100
Maximum ....................................... 110 200 110 150
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