Autodesk 2015 Annual Report Download - page 45

2015 Proxy Statement 39
EXECUTIVE COMPENSATION
Compensation Discussion and Analysis
Throughout this proxy statement, the individuals included in the Summary Compensation Table on page 56 are referred to as
our “named executive officers” or “NEOs”. For fiscal 2015, our NEOs were:
• Carl Bass, Chief Executive Officer and President;
• R. Scott Herren, Senior Vice President and Chief Financial Officer;
• Jan Becker, Senior Vice President, Human Resources and Corporate Real Estate;
• Steven M. Blum, Senior Vice President, Worldwide Sales and Services; and
• Pascal W. Di Fronzo, Senior Vice President, General Counsel and Secretary.
Mark Hawkins, our former Chief Financial Officer who resigned from the Company effective July 31, 2014, also is a NEO.
Following Mr. Hawkins’ resignation, Mr. Bass assumed the position of interim Chief Financial Officer until Mr. Herren joined
the Company as Chief Financial Officer on November 1, 2014.
The information in this discussion provides perspective and narrative analysis relating to, and should be read along with, the
executive compensation tables beginning on page 56.
Executive Summary
Fiscal 2015 Business Summary
The software industry is undergoing a transition from the personal computer to cloud, social, and mobile computing. In fiscal
2015 our executive officers continued to successfully implement the strategic transition of our business model announced the
year prior. Autodesk accelerated its move to the cloud and expanded its flexible product license offerings. Autodesk introduced
Desktop Subscription (formerly known as rental) for a broader range of our product portfolio, expanded our new token-based
(consumption-based) licensing program to more enterprise customers, and continued to expand our industry leading cloud
based offerings. These offerings are designed to give our customers even more value and flexibility to use our products, and
also to attract new types of customers, such as project-based users and small businesses that have more variable needs. Further,
to support our transition, Autodesk announced that it is discontinuing licensing upgrades after fiscal 2015 and, on February 4,
2015, Autodesk also announced that new commercial seats of most standalone software products will be available only by
desktop subscription beginning February 1, 2016. Collectively, these measures helped increase many of our performance
metrics including billings, deferred revenue, and subscriptions, which will result in more predictable and ratable revenue over
time.
By design, implementing the business model transition resulted in an increase in deferred revenue that otherwise would have
been recognized in fiscal 2015; this had a negative impact on both operating margin and earnings per share in fiscal 2015.
Despite these impacts and the ongoing work of transitioning our business model, Autodesk delivered solid financial results
relative to initial targets. The following summarizes the relevant performance factors considered by the Compensation and
Human Resources Committee (the “Committee”) in reaching its decisions regarding pay for the NEOs for fiscal 2015.
• The stock price was $54.01 per share on January 31, 2015, compared to $51.25 per share on January 31, 2014. Our
Total Stockholder Return (“TSR”) for the year was 5%, and our 5-year compounded annual stock price growth was
17.8%.
• Billings increased 18.1% in fiscal 2015, compared to the prior year.
• Subscriptions were 2.23 million at the end of fiscal 2015, an increase of 21%, compared to 1.8 million at the end of
fiscal 2014.
• Total deferred revenue was a record $1.16 billion at the end of the fiscal 2015, an increase of 28%, compared to
$900.6 million at the end of fiscal 2014.
• Revenue was $2.5 billion, an increase of 10%, compared to $2.3 billion in fiscal 2014.
• Cash flow from operating activities was $708.1 million, an increase of 26%, compared to $563.5 million in fiscal
2014.
• GAAP operating margin was 5%, compared to 13% fiscal 2014.
• Non-GAAP operating margin was 15%, compared to 22% in fiscal 2014.*
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