Autodesk 2016 Annual Report Download - page 42

2016 Proxy Statement 36
Proxy Materials
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 recruiting and retention tool. 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 2015, the Committee considered an analysis of the base salar

Board to conduct a similar assessment of his experience, skills and perfor
base salaries were increased by approximately 0% to 5% for fiscal 2016.
In December 2015, the base salary for Mr. Hanspal was increased by 20% to $550,000 as a result of market data, internal equity
and his increased responsibilities in leading the Autodesk Product Group.
In March 2016, the Committee considered an analysis of the base salary for each role, but ultimately elected to keep base salary
ucturing and a desire to keep spending flat.
Annual Short-Term Incentive Compensation
At the beginning of each fiscal year, the Committee establishes target award opportunities, payout metrics and performance
targets for the annual cash incentive plans. These plans are intended to motivate and reward participants for achieving
company-wide annual financial and non-financial objectives as well as individual objectives.
Target Award Opportunities
The Committee sets the target annual cash incentive award opportunity for each eligible executive officer based on competitive

factors, the Committee set the fiscal 2016 cash incentive target for each of the NEOs at the same percentage as it was in fiscal
2015. 
Mr. Blum (who also is eligible for commission payments) to 125% for Mr. Bass. A NEO may receive an actual award that is

Executive Incentive Plan
In fiscal 2016, bonus awards for each of our NEOs were funded under the Autodesk, Inc. Ex
-based
 162(m) of the Internal Revenue Code. At the beginning of the fiscal year,
the Committee established funding performance thresholds, which, if achieved, would establish maximum Fiscal 2016 EIP
funding at 190% of target. For fiscal 2016, the Committee selected billings growth, subscriptions and absolute TSR as the
fund 2.578 million in subscriptions exceeded the
funding threshold while a -18.3% TSR (based on a 31-day average stock price at the beginning and at the end of fiscal 2016)
did not exceed the funding thresholds. Overachievement of the billings and subscriptions metrics resulted in the maximum
bonus award funding for each executive. The Committee then exercised its negative discretion to reduce the actual bonus
awards for each of the participants based on pre-established performance measures (as described below).
Company Performance Measures and Performance

opport
of negative discretion, the Committee considered the performance attainment versus specific targets to determine payouts. For
the CEO, the Committee assessed the financial and operational performance of the Company based 56% on billings, 24% on
subscriptions, and 20% on deferred revenue against targets set at the beginning of the fiscal year; the final award could range
from 0% to 150% of target, depending on achieved performance level. This calculation yielded a bonus payout of 100.6% of
target, as shown below: