Autodesk 2016 Annual Report Download - page 34

2016 Proxy Statement 28
Proxy Materials
Contacting the Board
Communications from stockholders to the non-employee directors should be addressed to the non-executive Chairman as
follows: Autodesk, Inc., c/o General Counsel, 111 McInnis Parkway, San Rafael, California 94903, Attention: Non-Executive
Chairman.
EXECUTIVE COMPENSATION
Compensation Discussion and Analysis
Throughout this proxy statement, the individuals included in the Summary Compensation Table on page 45 are referred to as

x Carl Bass, Chief Executive Officer and President;
x R. Scott Herren, Senior Vice President and Chief Financial Officer;
x Andrew Anagnost, Senior Vice President, Industry Strategy and Marketing;
x Steven M. Blum, Senior Vice President, Worldwide Sales and Services; and
x Amar Hanspal, Senior Vice President, Autodesk Product Group.
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 45.
Executive Summary
Fiscal 2016 Business Summary and Business Model Transition
The software industry is undergoing a transition from the personal computer to cloud, social, and mobile computing. Our
strategy is to lead the industries we serve to cloud-based technologies and business models. This entails both a technological
shift and a business model shift from offering one-
Through this transition, we are increasing the lifetime value of our customers, changing the cost structure and the means by
which we reach customers, and building best-in-class cloud-based products and services. 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. In fiscal 2016 our executive officers continued to successfully implement the strategic
transition of both our business model and our flexible, cloud-based product offerings in the following ways:
x Accelerated our move to the cloud and expanded our flexible product license offerings.
x Expanded our token-based (consumption-based) licensing program to more enterprise customers, and continued to
expand our industry leading cloud-based offerings.
x Discontinued licensing upgrades effective March 6, 2015.
x Discontinued selling new perpetual licenses of most standalone software products effective February 1, 2016.
x Announced plans to discontinue selling new perpetual licenses of suites effective August 1, 2016.
Collectively, these measures will result in a more predictable, recurring and profitable business for Autodesk in the years to
come.
As expected, implementing the business model transition resulted in an increase in deferred revenue that otherwise would have
been recognized as revenue in fiscal 2016; while this is positive for the balance sheet this had a negative impact on both
operating margin and earnings per share in fiscal 2016. The following summarizes the relevant performance factors considered
by the Compensation and Human Resources C
NEOs for fiscal 2016.