Autodesk 2010 Annual Report Download - page 44

Accordingly, at its March 2010 meeting, the Compensation Committee approved EIP payouts for
Named Executive Officers approximately as follows:
Participant
Approved EIP Payout
percent of Base Salary*
Carl Bass ........................................................ 90.0%
Mark J. Hawkins .................................................. 66.7%
George M. Bado .................................................. 10.4%
Jay Bhatt ........................................................ 85.7%
Robert L. Kross ................................................... 55.6%
* 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.
Details of these amounts can be found in the “Executive Compensation—Summary Compensation
Table and Narrative Disclosure” below.
Short-term Cash Incentive—Autodesk Sales Compensation Plan
In addition to at-risk compensation under the EIP, Mr. Bado, our Executive Vice President, 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. For fiscal 2010, his commission-based cash incentive target
was set at approximately 38% of his overall targeted cash compensation, which includes base salary (without
taking into account the temporary base salary reduction in effect during a portion of fiscal 2010) and short term
cash incentives (EIP and commission-based cash incentive). Of this 38% target, approximately 34% related to
the achievement of a specific revenue objective, and approximately 4% related to specific contribution margin
objective. Payouts for the revenue objective target set for Mr. Bado did not have a pre-set maximum limit,
although the payouts for the contribution margin objective did have a preset maximum limit equal to the target
amount. For fiscal 2010, the Company’s revenue exceeded the target set for Mr. Bado, which was the target set
for our EIP, noted above. In addition, Mr. Bado exceeded the contribution margin target set for him. The
contribution margin target set for Mr. Bado in fiscal 2010 was lower than the contribution margin set for
Mr. Bado in fiscal 2009. Given the financial challenges that the Company faced in fiscal 2010, the Company
believes that targets set for Mr. Bado’s commission-based cash incentive represented a reasonable but achievable
target. As a result of Mr. Bado exceeding these targets, Mr. Bado’s actual commission-based cash incentive was
approximately 54% of his overall actual cash compensation. Details of the amounts paid to Mr. Bado as sales
commissions can be found in the table below, as well as in the “Executive Compensation—Summary
Compensation Table and Narrative Disclosure” below.
Target Short
Term Cash
Incentive
Compensation
Percent of
Target Short
Term Cash
Incentive
Compensation
Actual Short
Term Cash
Incentive
Compensation
Percent of
Actual Short
Term Cash
Incentive
Compensation
Sales commissions—revenue .................... $300,000 71.5% $527,281 85.4%
Sales commissions—contribution margin .......... 40,000 9.5% 40,000 6.5%
EIP* ....................................... 80,000 19.0% 50,000 8.1%
$420,000 100.0% $617,281 100.0%
* Mr. Bado made an election in December 2009 to defer 50% of his fiscal 2010 EIP bonus under the Equity
Incentive Deferral program. Although Mr. Bado’s target EIP is based on a cash amount, the actual amount he
was paid was split into $25,000 and 1,129 restricted stock units in accordance with the Equity Incentive
Deferral program. See the discussion of the Equity Incentive Deferral Plan on page 41 for further details.
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