Symantec 2013 Annual Report Download - page 73

granted 450,000 PCSUs that were subject to vesting provisions as follows: upon certification by the Compensa-
tion Committee at the end of each fiscal quarter, beginning with the second fiscal quarter of fiscal 2013, that the
volume weighted average closing price of the our common stock is at or above the price thresholds of $18.00,
$20.00 or $22.00 (for an average 20-day trading period at the end of each fiscal quarter), then 150,000 of the total
shares subject to the PCSU shall vest upon our first achievement of the lowest price threshold, 300,000 of the
total shares shall vest upon our first achievement of the middle price threshold, and all of the shares shall vest
upon our first achievement of the highest price threshold. In the event that none of the these price thresholds were
achieved during the period ending at the end of fiscal 2015, then all PCSUs would be forfeited. As illustrated in
the table below, each of these price thresholds was achieved during fiscal 2013, resulting in full settlement of the
PCSUs.
The stock price performance goals were established based on the intent to deliver substantial returns to stock-
holders relative to Symantec’s stock price of $13.18 before Mr. Bennett was announced as our new President and
CEO on July 25, 2012. The $18.00 hurdle represented a 37% increase in value, while the $22.00 hurdle was a
67% increase in value over the $13.18 price. In addition, the Compensation Committee wanted to ensure that the
stock price hurdles represented a strong return to stockholders if the performance goals took longer to achieve.
For example, achieving an $18.00 stock price over a 3-year period would have implied an annualized 11%
stockholder return, while achieving the $22.00 hurdle would have implied an annualized return of nearly 19%
over a 3-year period.
Following the announcement of the appointment of Mr. Bennett as our President and CEO, we experienced
a significant short-term rise in our stock price, and it took several weeks before the final awards were able to be
granted to Mr. Bennett on September 10, 2012. By the time the PCSU grants were made, the stock price had
risen to $17.99. At that point, the Compensation Committee felt it was still appropriate to recognize the under-
lying performance basis as the stock price at which Mr. Bennett took the CEO role, or $13.18.
$25.00
$20.00
$15.00
$10.00
4/2/12
5/2/12
6/2/12
7/2/12
8/2/12 9/2/12
10/2/12 11/2/12 12/2/12
1/2/13
2/2/13
3/2/13
3/29/13
- SYMC Stock Price
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