Autodesk 2013 Annual Report Download - page 43

2013 Proxy Statement 35
an actual award in an amount that exceeds or is less than
his or her target award opportunity depending upon
Autodesk's performance and the individual's performance
against goals.
Corporate Performance Measures
The minimum funding level for the Fiscal 2013 EIP was
based on Autodesk's financial performance as measured by
revenue growth and non-GAAP operating margin for fiscal
2013. Each of these performance measures was to be
equally considered to determine whether the objectives
were met. The Committee set the target funding level for
revenue growth from fiscal 2012 at 7%, and the target level
for non-GAAP operating margin at 20%. Collectively,
these target levels made up the target performance for the
Fiscal 2013 EIP.
Similarly, the Committee set financial performance goals
for the AIP Targets that set funding for the Autodesk
Incentive Plan at 100% where Autodesk met a combination
of several targeted revenue targets and non-GAAP
operating margin goals. Anything below the set AIP
Targets results in less than 100% funding and anything at
or above the target performance for the AIP Targets results
in more than 100% funding.
For purposes of both the Fiscal 2013 EIP and the AIP
Target, “non-GAAP operating margin” meant operating
margin excluding certain costs and expenses, including
stock-based compensation expense, amortization of certain
purchased intangibles, restructuring charges, and goodwill
impairment charges. The Committee determined that using
a non-GAAP, rather than a GAAP-based, formulation of
operating margin would better focus the executive officers
on the ongoing operations of the business and encourage
the development of long-term growth strategies, such as
acquisitions and in-process research and development
investments.
Individual Performance Objectives
For fiscal 2013, the individual performance objectives for
each Named Executive Officer involved:
• Supporting the achievement of the corporate
performance measure target levels as described above;
• Reinventing the customers' experience in all of their
interactions with Autodesk;
• Making Autodesk a great place to work; and
• Making Autodesk the recognized leader in 3D design,
engineering, and entertainment software.
Short-Term Incentive Award Decisions
Awards are based not only on the financial performance
targets discussed above, but also on an evaluation of each
individual participant's performance. The Committee
makes these determinations using its discretion, without
weighing any particular factor or applying any prescribed
formula in determining the amount of the actual awards.
For fiscal 2013, the Committee assessed each executive
officer's individual goals, including management
effectiveness, achievement of the broad corporate goals
and performance of Autodesk's Common Stock relative to
compensation peer group companies. At its March 2013
meeting, the Committee reviewed Autodesk's absolute and
relative financial performance and the individual
performance of each of the Named Executive Officers for
fiscal 2013. The achievement of the absolute financial
performance targets resulted in overall annual short-term
cash incentive funding at 92.3% of the AIP Target short-
term cash incentive amounts. While minimum Fiscal 2013
EIP thresholds were not met, given Autodesk's relative
TSR, and the overall achievement of a 92.3% funding level
for the AIP Target, the Committee determined to pay each
Named Executive Officer at the funded level which was
approximately 1,340 basis points lower than the short-term
cash incentive funding level in 2012.
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