Autodesk 2013 Annual Report Download - page 35

2013 Proxy Statement 27
To better understand the relationship between the
compensation of the Named Executive Officers and
Autodesk's performance, below is a summary of
Autodesk's performance over the last two fiscal years
followed by a description of the relevant compensation
decisions made for the Named Executive Officers.
Fiscal 2013 Business Summary
In fiscal 2013, Autodesk executed on several of its most
critical business objectives and met a number of its
absolute financial targets. The results reflected a solid
performance despite Autodesk executing on a long-term
business model shift. The following summarizes the
relevant performance factors considered by the Committee
in reaching its decisions regarding pay for the Named
Executive Officers for fiscal 2013 performance.
• Revenue was $2.3 billion, an increase of 4% from
fiscal 2012.
• Autodesk had record total billings and maintenance
billings at the end of fiscal 2013.
• GAAP operating margin decreased 280 basis points to
13%, compared to 16% in fiscal 2012. The decrease
in GAAP operating margin was primarily the result of
restructuring charges in fiscal 2013 stemming from
Autodesk's reorganization.
• Non-GAAP operating margin increased by
approximately 135 basis points to 25% compared to
24% in fiscal 2012.*
• GAAP diluted earnings per share decreased to $1.07,
compared to $1.22 in fiscal 2012. The decrease in
GAAP diluted earnings per share was primarily the
result of restructuring charges in fiscal 2013 stemming
from the reorganization.
• Non-GAAP diluted earnings per share increased to a
record $1.94, compared to non-GAAP diluted earnings
per share of $1.74 in fiscal 2012.*
• Fiscal 2013 ended with record total deferred revenue
of $835 million, an increase of 16% from fiscal 2012.
• Cash flow from operating activities was $559 million,
compared to $574 million in fiscal 2012.
• Autodesk made progress on key initiatives. Among
other things, Autodesk launched cloud-based
initiatives, including Autodesk360, which positions
Autodesk for success in the future.
• The stock price was $38.88 per share at January 31,
2013, compared to $36.00 per share at January 31,
2012.
• TSR for the year was 8%, an improvement over the
comparable performance for fiscal 2012.
The creation of sustainable long-term value for Autodesk's
stockholders depends not only on strong financial
performance in the near-term, but also on Autodesk's
ability over the long-term to identify and develop high-
quality software and services solutions. The Committee
believes that the operational accomplishments achieved
during fiscal 2013 position Autodesk for future success that
should continue to be reflected in long-term value creation.
________________
* A reconciliation of GAAP to non-GAAP financial measures and
other related information is available on pages 46-47 of
Autodesk's Annual Report on Form 10-K for the fiscal year ended
January 31, 2013.
Executive Compensation Decisions for Fiscal 2013
Performance
In recognition of Autodesk's absolute and relative
performance in fiscal 2013, in March 2013, the Committee
determined to reward the executive officers for their
management of the business, while also providing
meaningful incentives to achieve longer term financial
goals and retain key talent. Given the feedback received
from stockholders, the Committee implemented a revised
performance stock unit award plan incorporating multi-
year performance periods and a relative TSR modifier. A
majority (60% for the CEO; 50% for other NEOs) of the
long-term incentive compensation opportunities awarded
in March 2013 for fiscal 2013 were performance-based.
As described above, this compensation structure better
aligns the long-term interests of the stockholders with the
Committee's duty to retain and motivate key talent.
Proxy Materials