Autodesk 2013 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2013 Autodesk annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 176

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176

2013 Proxy Statement 34
The Principal Elements of the Executive Compensation Program
The principal elements of Autodesk's executive compensation program are as follows:
Compensation Element Source Purpose Features
Cash compensation Base salary Forms basis for competitive
compensation package and rewards
individual performance and
experience
Fixed compensation; base salary level reflects
competitive market conditions, individual
performance, and internal equity
Short-term cash
award
opportunities
Motivate achievement of specific
growth and profitability objectives
and maintain a high level of team
and individual performance
Variable compensation; payments based upon
achievement of revenue growth and non-GAAP
operating margin targets for the fiscal year (for fiscal
2014 the CEO annual incentive metric is non-GAAP
earnings per share relative to a target)
Equity compensation Performance
Stock Unit awards Align compensation with key drivers
of the business and stockholder
returns
Encourage focus on long-term
strategic objectives
Initial target award determined by competitive market
practices and corporate and individual performance in
prior fiscal year
Vesting over three years after meeting pre-established
revenue growth and non-GAAP operating margin
performance levels (fiscal 2013 award; for fiscal
2014, relative TSR was added as an additional
metric)
In the case of the CEO, vesting after meeting pre-
established strategic performance objectives set by
the Board
Time-based
restricted stock
unit awards
Encourage focus on long-term
strategic objectives
Further align the interests of
executive officers and stockholders
Award amount determined by competitive market
practices and corporate and individual performance in
fiscal year
Vesting over three years
Base Salary
Base salary is used to provide the executive officers with a
fixed amount of annual cash compensation. The
Committee views base salary as a reliable source of
income for the executive officers and an important
retention tool that is not subject to the variability - and risk
- associated with the short-term and long-term incentive
elements of the executive compensation program. The
Committee sets base salaries at a competitive level that
recognizes the scope, responsibility and skills required of
each position, as well as market conditions and internal pay
equity.
In March 2012, the Committee considered a base salary
analysis of the compensation peer group, the CEO's
assessment of each executive officer's experience, skills
and performance level, the general state of the economy
and Autodesk's performance. For the CEO, the Committee
consulted the full Board to conduct a similar assessment of
his experience, skills and performance. Based on those
factors in the aggregate, the executive officers' base
salaries were increased, on average by 6% for fiscal 2013.
Annual Short-Term Incentive Compensation
At the beginning of each fiscal year, the Committee adopts
performance targets and payout metrics for the annual cash
incentive plans for the fiscal year. The annual cash
incentive plans are intended to motivate and reward
participants for achieving company-wide annual financial
and non-financial objectives as well as individual
objectives. On March 8, 2012, the Committee adopted
minimum performance benchmarks for funding bonuses
for the executive officers under the stockholder-approved
Autodesk, Inc., Executive Incentive Plan for fiscal 2013
(the “Fiscal 2013 EIP”) and approved targets for the
Autodesk Incentive Plan, the bonus plan established for all
other employees of Autodesk, based on targeted revenue
growth and non-GAAP operating margin (the “AIP
Targets”).
Target Award Opportunities
The Committee sets the target annual cash incentive award
opportunity for each eligible executive officer based on his
or her salary grade. These target opportunities are
expressed as a percentage of the executive officer's
annualized base salary, and range from 125% in the case of
the CEO to 40% in the case of the Senior Vice President,
Worldwide Sales and Services (who is also eligible for
commission payments). An executive officer may receive