Autodesk 2009 Annual Report Download - page 41

Pay Mix
In order to focus our executives on achieving superior annual and long-term performance, we have
structured our executives’ compensation mix so that the majority of their compensation is contingent on
achieving or surpassing our annual goals and achieving superior returns for our stockholders.
Total Annual Cash Compensation
Total annual cash compensation is made up of a base salary and the short-term cash incentives described
above. The ratio of an executive’s base salary and short-term cash incentive target reflects the strong importance
that we place on superior performance and achievement. Most of our Named Executive Officers have a
significant portion of his or her annual eligible cash compensation contingent on corporate and individual
performance.
Total Equity Compensation
In addition, we want our executives focused on long term achievements that build value for our
stockholders. Consistent and prolonged appreciation of our stock price and the building of Company market
capitalization are key measures of success. We use stock option grants and restricted stock units to align our
executives and their efforts with the goals and interests of our stockholders. Because our executives and their
decisions and judgment are critical to our long term success, we align the majority of their overall compensation
with Company and stockholder value creation.
Actual Pay Mix for Fiscal 2009
For fiscal 2009, the pay mix of our three components of compensation for the Named Executive Officers is
shown below. The pay mix generally reflects our objective of providing a large portion of our executives’
compensation through long term equity compensation. Naturally, this mix varies depending on a number of
factors, including stock price changes, overall Company performance and individual performance. Amounts in
the chart below are based on what was paid or granted during fiscal 2009. Base salary is the amount of each
Named Executive Officer’s annual base salary. Short-term cash incentive is the actual EIP bonus payout and
sales commissions in the case of Mr. Bado. Long term equity incentive amounts represent stock-based
compensation expense recognized during the fiscal year for financial statement reporting purposes in accordance
with FAS 123(R), disregarding an estimate of forfeitures. These amounts do not necessarily correspond to the
actual value that will be realized by the Named Executive Officers upon exercise or sale of the awards.
Other than our former Senior Vice President and Chief Financial Officer, the mix between cash
compensation and long-term equity compensation for our Named Executive Officers was roughly equal to the
mix for fiscal 2008, and reflects that long-term equity incentive compensation constitutes a majority of their
overall compensation. For our Named Executive Officers, excluding our former Executive Chairman and former
Senior Vice President and Chief Financial Officer, overall cash compensation for fiscal 2009 was weighted in
favor of base pay over short-term cash incentives. This mix between fixed base salary and cash incentives is
comparable to that for similar positions reviewed in our peer group and reflects a smaller amount paid under our
short-term cash incentives, notably our EIP, as compared to last year.
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