Autodesk 2011 Annual Report Download - page 28

While the basic elements of our compensation program for fiscal 2011—base salary, short-term incentives
and long-term incentives—were generally consistent with the elements of our programs in previous fiscal years,
the Compensation Committee sought to be conservative in its compensation approach while providing
meaningful incentives to achieving our financial goals.
Financial Performance in Fiscal 2011 and its Effect on Executive Compensation Paid for Fiscal 2011
Despite a continued difficult business and economic environment, we experienced an increase in demand for
our products and services in all of the geographies and industries we serve during fiscal 2011 as compared to
fiscal 2010. This positively impacted our financial results and stock price. In addition, we continued to make
progress in controlling our operating costs, which led to year over year improvements in our non-GAAP
operating margin. We believe that the improvements in these areas are indications of a broad-based stabilization
of our business. The table below sets forth the improvements in our revenue, non-GAAP income from operations
and non-GAAP operating margin from fiscal 2010 to fiscal 2011:
Fiscal 2011 Fiscal 2010 Change
(in millions, except percentages)
Revenue .............................................. $1,951.8 $1,713.7 14%
Non-GAAP income from operations ........................ $ 418.8 $ 286.8 46%
Non-GAAP operating margin ............................. 21% 17% 28%
Our total stockholder return during fiscal 2011 was 71%, with the Company’s stock price appreciating from
$23.81 on the first day of fiscal 2011 to $40.68 on the last day of fiscal 2011, with the stock price reaching its
highest price of $42.03 and its lowest price of $22.95 during that period.
Our revenue increased 14% during fiscal 2011 as compared to fiscal 2010, and our non-GAAP operating
margin (which excludes stock-based compensation, amortization of certain purchased intangible assets,
restructuring charges and impairment of goodwill) increased 28% during fiscal 2011 as compared to fiscal 2010.
Although our financial results in fiscal 2011 have not returned to the levels that we achieved several years ago,
they exceeded our expectations and the financial targets set at the beginning of fiscal 2011. As a result of our
financial results for fiscal 2011, our Named Executive Officers’ compensation increased from fiscal 2010 levels.
Specifically:
• As a direct result of the Company exceeding its financial targets, our short-term cash incentive plan
paid out well above the 75% of the target funding level set at the beginning of fiscal 2011. Short-term
cash incentive, in aggregate, for our Named Executive Officers increased 35% over the amount paid in
fiscal 2010 while the Company’s revenue and non-GAAP operating margin increased 14% and 28%,
respectively.
• Long-term equity incentives in fiscal 2011 continued to constitute a significant portion of each of our
Named Executive Officers’ compensation. The cost to the Company of this compensation is reported in
the compensation tables beginning on page 31. The value to our executives of this type of
compensation is directly linked to the performance of our stock price (“over time”), aligning our
executives’ interests with our stockholders’ interests. As described above in this section, our stock
price appreciated 71% during fiscal 2011, and as a result the intrinsic value of equity granted to our
Named Executive Officers prior to fiscal 2011 increased.
Compensation Governance Practices
A number of fundamental elements of our compensation programs support our overall philosophy, which in
practice are reflected in a number of our programs and practices, such as:
• Pay-for-performance.
• Mix of short- and long-term focused compensation.
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