| Item 5.02. | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
On June 10, 2019, the Compensation and Leadership Development Committee (the “Committee”) of the Board of Directors (the “Board”) of Symantec Corporation (the “Company”) approved the FY20 Senior Executive Annual Incentive Plans (the “Annual Incentive Plans”) for the Company’s named executive officers.
Under the terms of the Annual Incentive Plans, the named executive officers will be eligible to receive performance-based incentive bonuses based on the Company’s achievement of targeted non-GAAP revenue and non-GAAP operating income margin for fiscal year 2020, as detailed below.
For our anticipated named executive officers for fiscal 2019, the target funding under the FY20 Executive Annual Incentive Plans are as follows: for Richard S. Hill, 150% of annual base salary at 100% achievement; for Amy Cappellanti-Wolf, 70% of annual base salary at 100% achievement; for Samir Kapuria, 100% of annual base salary at 100% achievement; for Vincent Pilette, 100% of annual base salary at 100% achievement; and for Scott Taylor, 100% of annual base salary at 100% achievement.
For the non-GAAP revenue metric: (a) at the threshold achievement level of 98.06% of target, the funding level is 0%; (b) above the threshold achievement level, the funding level increases incrementally, up to a level of 100% at 100% achievement; (c) above the target achievement level, funding increases incrementally, up to a cap of a 200% funding based on achievement of 101.94% of target; and (d) there is zero funding if the achievement is below 98.06% of target.
For the non-GAAP operating income metric margin: (a) at the threshold achievement level of 89.41% of target, the funding level is 0%; (b) above the threshold achievement level, the funding level increases incrementally, up to a level of 200% at 105.88% achievement; and (c) there is zero funding if the achievement is below the threshold level.
The non-GAAP operating income margin and non-GAAP revenue metrics are tested and funded independently of each other and are weighted equally. With respect to the above metrics, the calculations will be made assuming that foreign currency is held constant at plan rates. The measurement period for all metrics is the fiscal year ending on April 3, 2020.
With the exception of Richard Hill, the individual payout amount will be determined based on an assessment of individual performance against a set of financial,non-financial, individual, and team-based goals and will be allocated from the bonus pool. The bonus payment for Richard Hill will be calculated based on the company’s financial metrics as described above.
