Autodesk 2011 Annual Report Download - page 42

Perquisites From time to time, when deemed appropriate by the Compensation Committee,
we provide certain executive officers perquisites that we believe are either
competitively prudent or in the Company’s best interest.
In fiscal 2011, we provided Mr. Hawkins, our Executive Vice President and
Chief Financial Officer, with certain living expenses due to the distance between
his home, at the time we hired him in fiscal 2011, and the Company’s
headquarters. Please see “Executive Compensation—Summary Compensation
Table and Narrative Disclosure,” below for the aggregate amount of such
perquisites. In addition, certain other non-material perquisites were provided to
certain Named Executive Officers, as noted in the “Executive Compensation—
Summary Compensation Table and Narrative Disclosure,” below. Otherwise, we
do not, as a general practice, provide material benefits or special considerations
to our executive officers that we do not provide to other employees.
Tax and Accounting Considerations
In designing our compensation programs, we have considered tax and accounting implications, including the
following.
Program Tax and Accounting Consideration
Accounting for Stock-Based
Compensation
We account for stock-based compensation in accordance with the requirements
of ASC 718. We also take into consideration ASC 718 and other generally
accepted accounting principles in determining changes to policies and practices
for our stock-based compensation programs.
Executive Change in Control
Program
We have structured our Executive Change in Control program so that in the
event payment of benefits constitutes a “parachute” payment under
Section 280G of the Internal Revenue Code, we will revise and limit the
payment so that we do not incur additional tax burden on behalf of the
participant. For more information, refer to the “Executive Change in Control
Program” section on page 38.
Short-term Cash Incentive
Plan
The short-term cash incentive plan is structured so that if so desired by the
Committee, the plan can comply with the requirements of Section 162(m) of
Internal Revenue Code, which allow certain payments under the plan to be
deductible for federal income tax purposes
As discussed above, in fiscal 2011, the tax benefits otherwise available under
our short-term cash incentive plan were not available to us, because we did not
meet the conditions required under Section 162(m) of the Internal Revenue
Code
Equity Incentive Deferral
Plan
The Equity Incentive Deferral Plan is structured to comply with the
requirements of Section 409A of the Internal Revenue Code, which imposes
limitations and conditions on nonqualified deferred compensation plans and
arrangements, including requirements relating to when amounts under such
plans may be made, acceleration of benefits, and the timing of elections under
such plans.
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