Autodesk 2007 Annual Report Download - page 206

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An individual’s actual salary, incentive award, and stock grant may fall below or above the target position
based on the individual’s experience, seniority, skills, knowledge, performance, and contributions.
Elements of Compensation
Autodesk’s executive compensation program has three major components: fixed base salary, short-
term cash incentives, and long-term incentives. The company also provides a comprehensive benefits
program and termination protection. These programs are designed to attract, retain, and motivate highly
effective executives to achieve the company’s business goals and improve shareholder value.
• Base Salary
Autodesk’s base salary program provides fixed annual cash compensation set at a competitive
level that recognizes the scope, responsibility, and skills required of the position. Salary ranges are
developed for each executive officer based on competitive salary information for the peer group.
The midpoint of each range approximates the competitive labor market 50th percentile for the peer
group.
Base salaries for executive officers are set annually by the Committee with consideration of the
benchmark analysis of the peer group. Each executive officer’s base salary is based on salary levels of
comparable jobs in the peer group as well as experience, skills, and performance level.
Adjustments to base salaries generally are approved annually at the March quarterly Committee
meeting. Promotion or equity adjustments may be approved at other quarterly meetings.
• Cash Incentive Compensation—Executive Incentive Plan (EIP)
The EIP is an annual cash incentive plan available to those executives designated annually by
the Committee. Its purpose is to motivate participants to ensure Autodesk achieves its annual
business goals. Elements of the performance criteria may differ depending on participants’ areas of
responsibility and may include corporate, business, or functional unit and individual management
goals.
Under the EIP, target awards are established for each eligible participant. Each year, a corporate
financial performance matrix is developed at the beginning of the award period. This matrix provides
a guide to determining appropriate award levels based on varying levels of achievement of operating
margin and revenue growth. A participant may receive an actual bonus that is larger or smaller
than the target incentive payout, or may receive no bonus whatsoever. The actual award reflects a
combination of the target award, the Company’s revenue and operating margin performance, and an
assessment of the individual’s performance during the year.
• Participants
Five employees were originally designated to participate for fiscal 2007, all of whom are Named
Executive Officers. When Carol Bartz entered into a new employment agreement in January 2007,
she voluntarily agreed to receive no EIP award for fiscal 2007 and will not participate in the future.
The remaining participants in the EIP for fiscal 2007 were the current Chief Executive Officer
Carl Bass, Chief Financial Officer Al Castino, Sales Executive George Bado, and Human Resources
Executive Jan Becker.
• Target Awards
For each participant, the Committee established an EIP target award equal to a percentage of
base salary as follows: Carl Bass 100 percent, Al Castino 75 percent, Jan Becker 75 percent, and
George Bado 16.7 percent. As leader of the sales organization, George Bado has additional cash
incentive compensation tied to sales commissions. His sales commission target is 50 percent of
his base salary.