Autodesk 2008 Annual Report Download - page 40

At its March 2008 meeting, the Compensation Committee reviewed our revenue growth and non-GAAP
operating margin for fiscal 2008 and the individual performance of our Named Executive Officers and approved
EIP payouts for Named Executive Officers approximately as follows:
Participant
Approved EIP Payout
percent of Base Salary
Carl Bass, Chief Executive Officer and President ......................... 100percent
Carol Bartz, Executive Chairman ...................................... NotApplicable
Al Castino, Senior Vice President and Chief Financial Officer ............... 69percent
George M. Bado, Executive Vice President Worldwide Sales and Services ..... 17percent
Jan Becker, Senior Vice President Human Resources ...................... 74percent
The Compensation Committee determined that, based on the achievement of our financial targets, EIP
payouts would be made at the target amounts as described above. The Compensation Committee, based on an
assessment of individual performance, adjusted EIP payouts downward slightly for the Named Executive
Officers, except for Mr. Bass. Details of these amounts can be found in the “Summary Compensation Table and
Narrative Discussion” below. Pursuant to her employment agreement with Autodesk, Ms. Bartz does not
participate in the EIP.
Autodesk Sales Compensation Plan
In addition, George M. Bado, our Executive Vice President, Worldwide Sales and Services has a portion of
his targeted cash compensation tied to sales commissions based on achievement of specific revenue and
contribution margin objectives. On-Target-Earnings (OTE) is the amount that he will receive if he achieves his
annual financial performance objectives, such as his annual quota. OTE consists of two components: base salary
and target incentive. For fiscal year 2008, his commission-based cash incentive target was set at 50 percentage of
his base salary. As described earlier, he has an additional cash incentive target of approximately 17 percent of his
base salary as a participant in our EIP.
Long-term Incentives—Equity-based Compensation
Equity awards provide employees and executives the opportunity to be rewarded for increases in our stock
price, which we believe aligns the interests of our employees and executives with those of our stockholders.
Stock options were the equity-based component of Autodesk’s fiscal year 2008 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 and other equity awards 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.
In determining actual grants to executives, the Compensation Committee considers several factors including
the unvested option position of each executive, the value of those options compared to other Autodesk senior
executives, competitive pay practices within the peer group of companies and the individual performance of the
executive.
The Compensation Committee uses “new hire,” “promotion” and “ongoing” stock grant guidelines in
determining the appropriate size of these grants. The stock grant guidelines reflect the range of typical
competitive practices of our peer group. The Compensation Committee has authority to exceed these guidelines
within the limits prescribed under the stock plan approved by stockholders. The current plan limits any individual
option grant to 1,500,000 shares, except grants to individuals in their first fiscal year of service. In that case, the
limit is 3,000,000 shares.
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