Autodesk 2010 Annual Report Download - page 43

award for executive officers reflects a combination of the target award, financial performance, and assessment of
the individual’s performance during the year, and reflects the discretionary authority of the Compensation
Committee.
•Target Awards
Each executive officer is assigned a target award based on his or her salary grade. These targets are
percentages of such executive officer’s salary, and range from 100% in the case of our CEO to 16.7% in the
case of our Executive Vice President, Sales and Services. These targets are set against each executive
officer’s standard annualized base salary, without taking into account the temporary base salary reductions
in effect during fiscal 2010. An executive officer may receive amounts below or above this target award.
Target awards and maximum eligible payouts for our Named Executive Officers under the EIP were each
approximately:
Participant
Target EIP
(percent of Base Salary*)
Maximum EIP
(percent of Base Salary*)
Carl Bass, Chief Executive Officer and President ............. 100.0% 190.0%
Mark J. Hawkins, Executive Vice President & Chief Financial
Officer ............................................. 75.0% 142.5%
George M. Bado, Executive Vice President, Sales and
Services ............................................ 16.7% 31.7%
Jay Bhatt, Senior Vice President, Architecture, Engineering and
Construction ........................................ 60.0% 114.0%
Robert L. Kross, Senior Vice President, Manufacturing ........ 60.0% 114.0%
* The term Base Salary refers to an executive’s standard annual base salary without taking into account the
temporary reduction to all executive officers’ base salaries in effect during a portion of fiscal 2010.
•Actual Awards to Individuals
As discussed above, the Compensation Committee determines the actual awards based not only on the
financial performance targets discussed above, but also on an evaluation of each individual’s performance.
The Compensation Committee makes these determinations using its discretion, and the Compensation
Committee does not specifically weight any particular factor nor apply any prescribed formula in
determining the amount of the actual awards.
At its March 2010 meetings, the Compensation Committee reviewed our financial performance and the
individual performance of each of our Named Executive Officers for fiscal 2010. In light of the global
economic slowdown and the resulting negative impact on the Company’s financial results for fiscal 2010,
the Compensation Committee determined that the EIP awards for all Named Executive Officers other than
Mr. Bhatt, would be made at less than the target amounts. The achievement of the financial performance
targets resulted in an overall annual bonus funding at 82% of the target bonus amounts.
In addition, in determining the amount of each executive officer’s individual award, the Compensation
Committee modestly increased payout amounts, by approximately 8% in the aggregate, based upon the
individual performance of each executive officer, the recognition of a challenging fiscal year that required a
significant commitment from executive officers and the successes which resulted in increasing stabilization
of our business as the year progressed. During fiscal 2010, our executive officers were asked to significantly
decrease costs, stabilize revenue and make difficult restructuring and resource allocation decisions while
reversing a revenue decline in a difficult economic environment. The determination that Mr. Bhatt’s EIP
award should be paid above the target amount reflects Mr. Bhatt’s leadership role during the recent difficult
economic period.
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