SanDisk 2012 Annual Report Download - page 11

Proxy Statement
TABLE OF CONTENTS
PROXY STATEMENT ................................................................. 1
General ........................................................................... 1
Important Notice Regarding Internet Availability of Proxy Materials and Annual Report ........... 1
Voting Rights ...................................................................... 1
Stockholders Sharing the Same Last Name and Address ..................................... 3
Revocability of Proxies ............................................................... 3
Solicitation of Proxies ................................................................ 3
Annual Meeting Admission ........................................................... 3
Stockholder Proposals to be Presented at the 2014 Annual Meeting of Stockholders ............... 4
PROPOSAL NO. 1—ELECTION OF DIRECTORS ......................................... 5
Business Experience and Qualifications of Nominees for Election as Directors ................... 5
Board Governance ................................................................... 8
Board Leadership Structure and Risk Oversight ........................................... 12
Consideration of Director Nominees .................................................... 13
Director Compensation ............................................................... 15
PROPOSAL NO. 2—APPROVAL OF THE SANDISK CORPORATION 2013 INCENTIVE
PLAN .............................................................................. 19
Overview .......................................................................... 19
Why Stockholders Should Vote for the Adoption of the 2013 Plan ............................. 19
Summary Description of 2013 Incentive Plan ............................................. 24
Summary of Federal Income Tax Consequences ........................................... 33
New Plan Benefits ................................................................... 35
PROPOSAL NO. 3—RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM ........................................................ 36
ANNUAL REPORT ON FORM 10-K ..................................................... 38
AUDIT COMMITTEE REPORT ......................................................... 38
PROPOSAL NO. 4—ADVISORY RESOLUTION TO APPROVE THE COMPENSATION OF
THE NAMED EXECUTIVE OFFICERS OF SANDISK CORPORATION .................... 39
COMPENSATION DISCUSSION AND ANALYSIS ......................................... 40
Executive Summary ................................................................. 40
Executive Compensation Program Objectives and Overview ................................. 41
Elements of the Current Executive Compensation Program .................................. 45
Clawback Policy on Cash-Based Incentive Awards ......................................... 48
Stock Ownership Guidelines ........................................................... 52
Insider Trading Policy ................................................................ 53
Section 162(m) Policy ................................................................ 53
Say-on-Pay ........................................................................ 53
COMPENSATION COMMITTEE REPORT ............................................... 54
EXECUTIVE COMPENSATION ......................................................... 55
Summary Compensation Table—Fiscal 2010—2012 ....................................... 55
Grants of Plan-Based Awards in Fiscal 2012 .............................................. 57
Outstanding Equity Awards at Fiscal 2012 Year-End ....................................... 60
Options Exercises and Stock Vested in Fiscal 2012 ......................................... 63
Potential Payments Upon Termination or Change in Control ................................. 63
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT ....... 66
COMPLIANCE WITH SECTION 16(A) OF THE SECURITIES EXCHANGE ACT OF 1934 ...... 69
EQUITY COMPENSATION INFORMATION FOR PLANS OR INDIVIDUAL ARRANGEMENTS
WITH EMPLOYEES AND NON-EMPLOYEES .......................................... 69
CERTAIN TRANSACTIONS AND RELATIONSHIPS ...................................... 71
OTHER BUSINESS .................................................................... 72
ANNEX A—SANDISK CORPORATION 2013 INCENTIVE PLAN ............................ A-1