VMware 2012 Annual Report Download - page 138

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Exhibit 10.17
- 1 -
September 14, 2012
Patrick Gelsinger
Dear Pat,
We are pleased to offer you this compensation package and description of the terms of your employment in connection with your
election, effective September 1, 2012, as Chief Executive Officer of VMware, Inc. (the “ Company ” or “ VMware ”) by the
Company’s Board of Directors (the “ Board ”).
SALARY: Your annual salary of $850,000 will be paid semi-monthly in accordance with the Company’s normal payroll procedures.
As a full-time exempt employee you will be eligible to participate in the Company's benefit plans and programs, which may be
amended from time to time.
BONUS: You will be eligible to participate in VMware’s Executive Bonus Program as it may be amended from time to time. You will
be eligible for an annual target bonus opportunity of 135.3% of your eligible compensation. Pursuant to the terms and conditions set
forth in VMware’s Executive Bonus Program, any bonus for which you become eligible will be measured and funded on a semi-
annual basis, with the actual payout based on achievement of VMware financial goals and your individual performance, as
approved by the Compensation and Corporate Governance Committee of the Board (the “ Committee ”). VMware reserves the
right to modify or discontinue your bonus opportunity at any time.
EQUITY GRANTS: A recommendation will be made to the Committee that you be granted Restricted Stock Units (“ RSUs ”) and
Performance Stock Units (“ PSUs ”), as detailed below, at a meeting of the Committee after your date of hire. Any equity awards
granted to you will be governed by the terms and conditions of the applicable grant agreement and the VMware 2007 Equity and
Incentive Plan (the “ 2007 Plan ”).
Each RSU and PSU discussed in this letter will have the target values set forth below (the “ Target Value ”). The number of RSUs
and PSUs granted to you will be determined by dividing the Target Value by the average of the closing sale price per share of
VMware Class A Common Stock for the 45 trading days ending on (and inclusive of) the last trading day of the month in which your
employment commenced.
The details of the grant recommendations are as follows:
Restricted Stock Unit Award
Vesting in your RSUs will commence on the first day of the month in which the Committee approves your grant (the “
Vesting Base Date ”).
RSU Grant : The RSUs will have a Target Value of $7,000,000 (the “ Initial RSU Grant ”).
Subject to the terms of the 2007
Plan, these RSUs will vest over four years, with 37.5% of the RSUs vesting on the 18-month anniversary of the Vesting
Base Date, and the remaining shares vesting 12.5% on each subsequent semi-annual anniversary of the Vesting Base
Date.