Autodesk 2007 Annual Report Download - page 33

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Proxy Materials
• Performance of the Participant
The actual award reflects a combination of the target award, AIP funding based on the
performance of the Company and the individual’s group, and manager assessment of the
individual’s performance during the year. As a result, an individual may receive an actual AIP
payout that is larger or smaller than the AIP amount based on the performance matrix and his or
her target award or may receive no AIP payout whatsoever.
• Cash Incentive Compensation—Autodesk Sales Compensation Plan
As the top sales executive, George M. Bado has a portion of his targeted cash compensation tied
to sales commissions based on achievement of specific revenue and contribution margin objectives.
George M. Bado’s On-Target-Earnings (OTE) is the amount that he will receive if he achieves his annual
financial performance objectives, such as his annual quota. His OTE consists of two components:
base salary and target incentive. His commission-based cash incentive target is set at 50 percent of
his base salary. As described earlier, he has an additional cash incentive target of 16.7 percent of his
base salary as a participant in Autodesk’s EIP.
• Equity-Based Compensation
Equity awards provide employees and executives the perspective of an owner with a stake in
the success of Autodesk, thus increasing alignment with shareholder interests. Stock options are
currently the equity-based component of Autodesk’s compensation program. This component is
intended to direct executive attention to the importance of sustained, long-term revenue growth
and profitability. In addition, stock options are required to compete effectively for talent in the
software and technology industry. Vesting periods encourage employees and executives to remain
with Autodesk and to focus on longer-term results.
• Perquisites and Other Benefits
• Benefits Program
Autodesk offers a variety of benefits programs to executives and regular employees alike.
For example in the United States, benefits include medical (with prescription coverage), vision,
dental, employee and dependent life insurance, employee and dependent accidental death and
dismemberment insurance, short-term disability, long-term disability, and financial programs such
as a 401(k) plan and flexible spending accounts. Autodesk also provides a variety of relocation
benefits to eligible participants.
• Nonqualified Deferred Compensation
US-based executives are eligible to participate in Autodesk’s Nonqualified Deferred
Compensation Plan. The plan is designed to allow eligible employees to make pretax contributions
through compensation deferrals to the plan and receive tax-deferred investment returns on the
contributions similar to the 401(k) plan. This benefit is incremental to the 401(k) plan and is
available to a limited group of Autodesk U.S.–based senior management employees. Similar to
the 401(k) plan, earnings are not guaranteed.
Investment options are a subset of those available in the Autodesk 401(k) plan and include 22
funds. See the chart in the Summary Compensation Tables section on page 31.
• Perquisites
Carol A. Bartz is provided a personal driver for her business transportation needs. George
M. Bado has been provided a local apartment on an extended basis as part of his relocation
assistance. Otherwise, the Company does not as a general practice provide benefits or special
considerations to its executives that it does not provide to other employees.