Item 11. Executive Compensation

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Item 11. Executive Compensation

Executive Compensation and Related Information

COMPENSATION DISCUSSION & ANALYSIS (CD&A)

This compensation discussion and analysis describes the material elements of Symantec’s executive compensation program for fiscal 2016. For fiscal 2016, our named executive officers, or NEOs, include the following current officers:

	•		Michael A. Brown, Chief Executive Officer (*)

	•		Thomas J. Seifert, Executive Vice President and Chief Financial Officer

	•		Balaji Yelamanchili, Executive Vice President and General Manager, Enterprise Security

	•		Scott C. Taylor, Executive Vice President, General Counsel and Corporate Secretary

	•		Francis C. Rosch, Executive Vice President, Norton Business Unit

(*)

Mr. Brown also served as our President through April 28, 2016; in April 2016, we announced that we were initiating a Chief Executive Officer transition process and that Mr. Brown will serve in as our Chief Executive Officer through a period of time ending not later than October 28, 2016. On June 12, 2016, we announced that Blue Coat’s Chief Executive Officer, Gregory Clark, will replace Mr. Brown as our CEO, and join our Board, at the closing of the Blue Coat Acquisition.

Our Compensation Philosophy and Practices

The overriding principle driving our compensation programs continues to be our belief that it benefits our employees, customers, partners and stockholders to have management’s compensation tied to our current and long-term performance. The following factors demonstrate our continued commitment to pay-for-performance and to corporate governance best practices:

	•		*Payouts based on Performance.* We reward performance that meets our predetermined goals. Our compensation plans do not have guaranteed payout levels, and our named executive officers do not receive any payouts under performance-based cash or equity awards if the goals are not met. Our compensation plans are also capped to discourage excessive or inappropriate risk-taking by our executive officers.

	•		*PRUs; no Options.* We continue to grant performance-based restricted stock units (“PRUs”) to our named executive officers as a regular part of our annual executive compensation program. We do not award any stock options to our executives.

	•		*Metrics correspond to Stockholder Value.* Our various incentive plans use multiple, non-duplicative measures that correlate to stockholder value, such that no single metric is overly emphasized in determining payouts.

	•		*Relevant Peer Groups.* Our peer group consists primarily of businesses with a focus on software development, or software and engineering-driven companies that compete with us for talent. Our peer group companies are comparable to us in terms of complexity, global reach, revenue and market capitalization. We reevaluate our peer group on an annual basis.

	•		*Meaningful Stock Ownership Guidelines for Executives.* We have long-standing stock ownership guidelines for our named executive officers, requiring them to hold a significant minimum value in shares such that they have a material financial stake in our company, thereby further aligning the interests of our executive officers with those of our stockholders. We also prohibit the sale of any shares (except to meet tax withholding obligations) if doing so would cause them to fall below the required ownership levels.

	•		*Annual Say-on-Pay Vote Held.* We seek stockholder feedback on our executive compensation through an annual advisory vote and through ongoing stockholder engagement.

	•		*No Gross-ups Permitted.* We do not provide for gross-ups of excise tax values under Section 4999 of the Internal Revenue Code, as amended (the “Code”).

	•		*Limited Severance.* We limit any potential cash severance payments to not more than 1x our executive officers’ total target cash compensation and 3x our CEO’s total target cash compensation.

	•		*Clawback Provisions.* We have clawback provisions in all of our executive compensation plans (providing for the return of any excess compensation received by an executive officer if our financial statements are the subject of a restatement due to error or misconduct).

	•		*Short-selling Prohibited.* Our executive officers are prohibited from short-selling Symantec stock or engaging in transactions involving Symantec-based derivative securities, and are also prohibited from pledging their Symantec stock.

	•		*Stockholder approval required for Repricing or Exchanges.* Our equity incentive plan prohibits the repricing or exchange of equity awards without stockholder approval.

Summary of Compensation Matters During Fiscal 2016

Business Changes in Fiscal 2016

The developments we experienced in fiscal 2016 were in many ways a product of the framework for company transformation we set in fiscal 2015:

	•		On January 29, 2016, we completed the previously-announced sale of our Veritas information management business to Veritas Holdings Ltd., an entity formed and controlled by an affiliate of the private equity firm The Carlyle Group, allowing us to focus on cybersecurity (the “Veritas Sale”). Two of our former executive officers joined the Veritas executive team during fiscal 2016 in connection with this sale.

	•		On February 3, 2016, we entered into an investment agreement with the private equity firm Silver Lake pursuant to which Silver Lake made a $500 million strategic investment in Symantec in March 2016 and Kenneth Hao of Silver Lake joined our Board.

	•		In an effort to strengthen our commitment to return capital to our stockholders as a result of the Veritas and Silver Lake transactions, our Board announced a total capital return program of $5.5 billion which we began implementing in fiscal 2016 through the following actions: (a) we paid a $4.00 per share special dividend in March 2016, resulting in declared and paid aggregate cash dividends of $3.0 billion, or $4.60 per common share, for fiscal 2016 after taking into account payment of our regular quarterly dividends; (b) we returned to stockholders nearly $368 million through the repurchase of 17 million shares of our common stock in open market transactions; and (c) we made upfront payments of $1.5 billion under accelerated stock repurchase agreements we entered into in November 2015 and March 2016 and received and retired, through April 1, 2016, 67.3 million shares of our common stock thereunder.

	•		In connection with our increased focus on cybersecurity and our operational improvement plan, we also announced a cost reduction initiative in fiscal 2016, targeting net cost savings of approximately $400 million to be achieved by the end of fiscal 2018.

	•		In fiscal 2017 we announced a CEO transition process pursuant to which Michael Brown will serve as our CEO through a period of time ending not later than October 28, 2016 (the “CEO Transition”). On June 12, 2016, we subsequently announced that we had entered into a definitive agreement under which Symantec will acquire Blue Coat, Inc. (the “Blue Coat Acquisition”) and that its CEO, Greg Clark, will replace Mr. Brown as our CEO and be appointed and join our Board at the closing of the transaction.

	•		In connection with the Blue Coat Acquisition, we also announced on June 12, 2016 that at the closing of the Blue Coat Acquisition (i) Silver Lake had agreed to make an additional $500 million investment in Symantec, doubling its investment in Symantec to $1 billion, (ii) Bain Capital had agreed to make an investment of $750 million in convertible notes in the Company, and (iii) David Humphrey, a managing director of Bain Capital Private Equity, would be appointed to our Board.

Financial and Compensation Metrics, Performance Achievement and Incentive Plan Earnings

During fiscal 2016, we used three core financial operating metrics as well as total shareholder return (“TSR”) relative to the S&P 500 to assess company performance and determine incentive compensation amounts earned by our executives. The operating metrics used in our executive compensation programs are: non-GAAP operating income, non-GAAP revenue and non-GAAP earnings per share (“EPS”). These metrics were selected because we believe they are closely correlated with enterprise value for companies in our sector and promote the appropriate behaviors for our leadership team while driving company performance. For a significant portion of the long-term equity incentive compensation component of our core executive compensation program, we also used two other metrics that more directly align the interests of our executive officers to those of our stockholders: our stock price and TSR ranking for our company as compared to the S&P 500. Finally, individual performance was a factor in the potential annual incentive awards of our named executive officers under our Executive Annual Incentive Plan.

For fiscal 2016, our Compensation Leadership and Development Committee (“Compensation Committee”) anticipated the spinoff of the Veritas business in establishing the achievement of our operating metrics under our performance-based compensation plans. Although the planned spinoff of Veritas instead became the Veritas Sale, the general timing of the separation remained the same and no significant changes to the metrics were needed and performance was assessed thereunder. Under our fiscal 2016 executive annual incentive plans (the “FY16 Executive Annual Incentive Plans”), we analyzed performance as follows: for the first three quarters of fiscal 2016, non-GAAP revenue and non-GAAP operating income were measured as a combined Symantec/Veritas company; for the fourth quarter of fiscal 2016, these metrics were measured as to Symantec only. For purposes of the fiscal 2016 PRU grants, the fiscal 2016 EPS performance metric was based solely on the combined Symantec/Veritas EPS achievement for the first three quarters of fiscal 2016. Our Compensation Committee believed the assessment of performance for the first three quarters of fiscal 2016 as a combined company allowed for the most equitable assessment of performance for this metric in light of the anticipated separation.

For our fiscal 2016 incentive plans, performance and resulting earning levels are as follows:


Incentive Plan		Fiscal 2016 Performance				Incentive Award Outcome

FY16 Executive Annual Incentive Plans	•	For the first three quarters of fiscal 2016, as a combined Symantec/Veritas company, our non-GAAP operating income(1) was 91.4% of the targeted performance level, and our non-GAAP revenue(1) was 96.6% of the targeted performance level.		•		For the first three quarters of fiscal 2016, as a combined Symantec/Veritas company, our non-GAAP operating income(1) metric funded at 48.2% of target and non-GAAP revenue(1) funded at 79.8% of target.
			•		For the fourth quarter of fiscal 2016
	•	For the fourth quarter of fiscal 2016 for Symantec alone, our non-GAAP operating income(1) was 89.4% of the targeted performance level which was below the 90% threshold level and our non-GAAP revenue(1) was 95.1% of the targeted performance level.				for Symantec alone, our non-GAAP operating income(1) metric funded at 0% of target and non-GAAP revenue(1) funded at 70.4% of target.
			•		For fiscal 2016 in total (Symantec/Veritas for the first three quarters and Symantec alone for the fourth quarter), our total weighted average funding level was 56.8%.
			•		Our named executive officers received individual performance ratings of 50% - 140% that resulted in total payouts of 28-80% of target.

Fiscal 2016 PRU Grants	•	For the first three quarters of fiscal 2016, as a combined Symantec/Veritas company, our non-GAAP EPS(1) was 88.7% of our targeted performance level.		•		81.2% of the targeted number of shares are eligible to be earned, subject to modification on final shares earned based on Symantec’s 1- and 2-year relative TSR versus the S&P 500

(1)

Consistent with the presentation in our quarterly earnings releases and supplemental materials, under our executive compensation programs, we define (i) non-GAAP operating income as gross profit less operating expenses before interest and taxes, adjusted to exclude stock-based compensation expense, charges related to the amortization of intangible assets, certain other income and expense items that management considers unrelated to Symantec’s core operations, and the associated income tax effects of the adjustments; (ii) non-GAAP revenue as adjusted to exclude the EDS & NDI settlement; and (iii) non-GAAP EPS as diluted net income per share as adjusted to exclude the items described above, as well as non-cash interest expense, value-added tax refunds a tax from the China tax bureau, certain other tax benefits, and the related tax impact of these adjustments.

For purposes of calculating achievement of these metrics, consistent with the presentation of non-GAAP operating income in our quarterly supplemental materials, foreign exchange movements were held constant at plan rates, pursuant to the terms of the plans.

Named Executive Officer Compensation

Our named executive officers were compensated in a manner consistent with our core pay-for-performance compensation philosophy. The following are some important elements of our named executive officers’ compensation for fiscal 2016:

	•		Majority of pay at risk. For fiscal 2016, approximately 93% of our CEO’s target total direct compensation was at risk and approximately 89% of the target total direct compensation for our other named executive officers, on average, was at risk.

	•		Short-term incentive compensation linked directly to Symantec financial results. Our executive annual incentive compensation was structured to emphasize performance. Under the FY16 Executive Annual Incentive Plans, the named executive officers were eligible to receive performance-based incentive cash awards based on our company’s achievement of targeted non-GAAP operating income for fiscal 2016 and targeted non-GAAP revenue during fiscal 2016.

	•		Long-term incentive compensation is 100% equity-based. For fiscal 2016, the long-term compensation component of our named executive officers’ compensation packages consisted entirely of long-term equity incentive awards.

	•		Performance measures are designed to reward executives for results that correlate with stockholder value and that they have the ability to influence. In fiscal 2016, the cash annual incentive plan metrics were non-GAAP operating income and non-GAAP revenue, which we believe our executives have a more direct ability to affect.

“Say on Pay” Advisory Vote on Executive Compensation and Stockholder Engagement

We hold an advisory vote on executive compensation, commonly known as “Say-on-Pay,” on an annual basis. While these votes are not binding, we believe that it is important for our stockholders to have an opportunity to express their views regarding our executive compensation programs and philosophy as disclosed in our proxy statement on an annual basis. The Compensation Committee values our stockholders’ opinions and the Board and the Compensation Committee consider the outcome of each vote when making future compensation decisions for our named executive officers. In addition to the annual advisory vote on executive compensation, we are committed to ongoing engagement with our stockholders on executive compensation matters generally. These engagement efforts take place through telephone calls, in-person meetings and correspondence with our stockholders. For example, during fiscal 2016 we engaged in discussions with approximately 155 of our stockholders representing approximately 66% of our then actively managed stockholder base (38% of our then outstanding shares).

We have received approximately 98%, 97%, 97% and 96% of the votes cast on the advisory vote in favor of our executive compensation (in fiscal 2011, fiscal 2012, fiscal 2013 and fiscal 2015, respectively). In fiscal 2014, we received approximately 76% of the votes, which we believe was primarily due to the acceleration of all of our former CEO’s performance-contingent stock units (“PCSUs”) upon his termination in March 2014. As a result of that vote, we no longer award PCSUs and none of our named executive officers’ equity grants accelerate 100% upon termination (except in certain circumstances following a change in control as described in more detail below).

FACTORS WE CONSIDER IN DETERMINING OUR COMPENSATION PROGRAMS

We apply a number of compensation policies and analytic tools in implementing our compensation principles. These policies and tools guide the Compensation Committee in determining the mix and value of the compensation components for our named executive officers, consistent with our compensation philosophy. They include:

Focus on Pay-for-Performance: Our executive compensation program is designed to reward executives for results. As described below, the pay mix for our named executive officers emphasizes variable pay in the form of short-term cash and long-term equity awards. For cash awards, short-term results are measured by annual non-GAAP operating income, annual non-GAAP revenue and, for all our named executive officers individual performance. A significant portion of equity grants for our named executive officers are directly performance based, with base-level grants set by performance versus non-GAAP EPS targets, modified over an extended term by the achievement of the total stockholder return ranking for our company as compared to the S&P 500. The value to the employee of the remainder of the equity grants to our named executive officers depends on the company share price performance.

A Total Rewards Approach: Elements of the total rewards offered to our executive officers include base salary, short- and long-term incentives including equity awards, health benefits, and a deferred compensation program.

Appropriate Market Positioning: Our general pay positioning strategy is to target the levels of base salary, annual short-term cash incentive structure and long-term equity incentive opportunities and benefits for our named executive officers with reference to the relevant market data for each position. The Compensation Committee may set the actual components for an individual named executive officer above or below the positioning benchmark based on factors such as experience, performance achieved, specific skills or competencies, the desired pay mix (e.g., emphasizing short- or long-term results), and our budget.

Competitive Market Assessments: Market competitiveness is one factor that the Compensation Committee considers each year in determining a named executive officer’s overall compensation package, including pay mix. The Compensation Committee relies on various data sources to evaluate the market competitiveness of each pay element, including publicly-disclosed data from a peer group of companies (see discussion below) and published survey data from a broader set of information technology companies that the Compensation Committee, based on the advice of Mercer, an outside consulting firm to the Compensation Committee, believes represent Symantec’s competition in the broader talent market. The peer group’s proxy statements provide detailed pay data for the top five positions. Survey data, which we obtain from the Radford Global Technology Survey, provides compensation information on a broader group of executives and from a broader group of information technology companies, with positions matched based on specific job scope and responsibilities. The Compensation Committee considers data from these sources as a framework for making compensation decisions for each named executive officer’s position.

The information technology industry in which we compete is characterized by rapid rates of change and intense competition from small and large companies, and the companies within this industry have significant cross-over in leadership talent needs. As such, we compete for executive talent with leading software and services companies as well as in the broad information technology industry. We face particularly intense competition with companies located in the geographic areas where Symantec operates, regardless of specific industry focus or company size. Further, consistent with prior years, in part because we believe that stockholders measure our performance against a wide array of technology peers, for fiscal 2016 the Compensation Committee used a peer group that consists of a broad group of high technology companies in different market segments that were of a comparable size to us prior to the Veritas Sale. The Compensation Committee used this peer group, as well as other relevant market data, to evaluate named executive officer pay levels.

The Compensation Committee reviews our peer group on an annual basis, with input from Mercer, and the group may be adjusted from time to time based on, among other factors, a comparison of revenues, market capitalization, industry, peer group performance, M&A activity and stockholder input. The following criteria were used to select our updated FY16 peer group:

	•		Businesses with a software development focus;

	•		Similar breadth of complexity and global reach as Symantec;

	•		Annual revenue of $1.5 billion - $20.0 billion;

	•		Market capitalization of $4.0 billion - $61.0 billion; and

	•		Software and engineering-driven companies in the Silicon Valley or elsewhere with which we compete for executive and broader talent.

Using this criteria, the Compensation Committee did not make any changes to our peer group for fiscal 2016, other than removing one company which is no longer a public company. The Compensation Committee reviewed potential changes to the peer group in fiscal 2016 in light of the then-proposed spinoff of Veritas, but determined, after taking into account the expected timeframe to complete the then-proposed spinoff, the current peer group maintained year-over-year consistency with a balance of size and comparability and that it would revisit the peer group for fiscal 2017 consistent with past practice. The following companies were used in setting the compensation for our named executive officers for fiscal 2016:


Fiscal 2016 Symantec Peer Group
Activision Blizzard, Inc.	eBay Inc.	Nuance Communications, Inc.
Adobe Systems Incorporated	Electronic Arts Inc.	salesforce.com, inc.
Autodesk, Inc.	EMC Corporation	Synopsys, Inc.
CA, Inc.	Intuit Inc.	VMware, Inc.
Citrix Systems, Inc.	NetApp, Inc.	Yahoo! Inc.

The Compensation Committee uses these peer companies for comparative purposes, as discussed above. In fiscal 2016, compensation for individual executive officers was not dependent on how we performed relative to these peers with respect to particular financial metrics. Further information regarding the financial results and performance of the peer companies may be found in periodic reports the companies file with the SEC.

The Compensation Committee reviewed and revised our peer group for fiscal 2017 in light of our reduced revenue size and increased focus on security software after the Veritas Sale. As these changes were made prospectively, they had no impact on compensation decisions for fiscal 2016. The following criteria were used to select our updated peer group to be used to evaluate named executive officer pay levels in connection with setting compensation for fiscal 2017:

	•		Business with software development focus including security related businesses where possible;

	•		Similar breadth, complexity and global reach as Symantec; and

	•		Annual revenue 0.5x to 2.x as a starting point but including companies based on an assessment of geography, engineering focus and executive talent competition landscape.

The Compensation Committee selected the following companies as our fiscal 2017 peer group:


Fiscal 2017 Symantec Peer Group
Activision Blizzard, Inc.	eBay Inc.	PayPal Holdings, Inc.*
Adobe Systems Incorporated	Electronic Arts Inc.	Red Hat Inc.*
Autodesk, Inc.	FireEye, Inc.*	salesforce.com, inc.
Akamai Technologies Inc.*	Intuit Inc.	Synopsys, Inc.
CA, Inc.	LinkedIn Corporation*	VMware, Inc.
Citrix Systems, Inc.	Palo Alto Networks Inc.*	Yahoo! Inc.

*	Denotes companies added for fiscal 2017.

EMC, NetApp and Nuance Communications were removed from our FY17 peer group as a result of the application of our new criteria.

Appropriate Pay Mix: Consistent with our pay-for-performance philosophy, our executive officers’ compensation is structured so that a large portion of their total direct compensation is paid based on the performance of our company (modified by individual achievement). In determining the mix of the various reward elements and the value of each component, the Compensation Committee takes into account the executive’s role, the competitiveness of the market for executive talent, company performance, individual performance, internal pay equity and historical compensation. In making its determinations with regard to compensation, the Compensation Committee reviews the various compensation elements for the CEO and our other named executive officers (including base salary, target annual bonus, and the value of vested and unvested equity awards actually or potentially issued).

The percentage of an executive officer’s compensation opportunity that is “at-risk,” or variable instead of fixed, is based primarily on the officer’s level of influence at Symantec. Executive officers generally have a greater portion of their pay at risk through short- and long-term incentive programs than the rest of our employee population because of their relatively greater responsibility and ability to influence our company’s performance. Typically, a higher proportion of the CEO’s compensation opportunity is at-risk relative to our other named executive officers because of the nature of his role and ability to influence our company’s performance. As illustrated by the following charts, for fiscal 2016, approximately 93% of our CEO’s target total direct compensation (sum of base salary, target annual incentive and grant date fair value of equity award) was at-risk, and on average approximately 89% of our other named executive officers’ compensation opportunity was at-risk.

LOGO

Form and Mix of Long-Term Equity Incentive Compensation: The long-term equity incentive compensation component of our regular annual executive compensation program consists of PRUs and RSUs for all of our named executive officers. The Compensation Committee’s allocation between these two forms of equity is designed to strike the appropriate balance between performance and retention for long-term equity incentive awards.

For fiscal 2016, our CEO received approximately 73% of the value of his target annual equity incentive award in the form of PRUs and 27% in RSUs. Other named executive officers, received on average, approximately 63% of the target annual equity incentive award in the form of PRUs and 37% in RSUs. We view the meaningfully higher weighting of PRUs for the CEO and lower weighting of base salary as part of total direct compensation, as compared to the weighting for the other name executive officers, to be appropriate given both the level of total direct compensation and the broader level of influence over company performance associated with the CEO role.

The percentages described above (and other percentage-based equity award values discussed below) are based on the grant date fair value of the shares of common stock underlying the RSUs, and the grant date fair value of the PRUs at the target level award size. The awards made to our named executive officers, other than the CEO, are determined by the Compensation Committee after reviewing recommendations made by the CEO. In determining its recommendations to the independent directors of the Board (in the case of CEO compensation) and in making compensation decisions with respect to other named executive officers, the Compensation Committee may consider factors such as the individual’s responsibilities, the individual’s performance, industry experience, current pay mix, total compensation competitiveness, long-term equity awards previously granted to the individual, retention considerations, and other factors.

Compensation Risk Assessment: The Compensation Committee, in consultation with Mercer, has conducted its annual risk analysis of Symantec’s compensation policies and practices, and does not believe that our compensation programs encourage excessive or inappropriate risk taking by our executives or are reasonably likely to have a material adverse effect on Symantec.

COMPENSATION COMPONENTS

The major components of compensation for our named executive officers during fiscal 2016 were: (i) base salary, (ii) short-term cash incentive awards, and (iii) long-term equity incentive awards.

I. Base Salary

The Compensation Committee reviews the named executive officers’ salaries annually as part of its overall competitive market assessment and may make adjustments based on talent, experience, performance, contribution levels, individual role, positioning relative to market, and our overall salary budget. The independent members of the Board review the CEO’s salary in executive session (i.e., without any executives present), and changes are considered in light of market pay assessments and the Board’s annual CEO performance evaluation, in each case without the participation of our CEO. In setting the base salaries for the other named executive officers, the Compensation Committee also considers the recommendations of the CEO based upon his annual review of their performance. Although the Compensation Committee takes into account the factors and information described above during its review and determination of the base salary for each executive officer, it does not assign a specific weight to any element and does not measure individual performance against an objective standard in the evaluation of an executive officer’s base salary. Instead, these reviews and determinations are based on the Compensation Committee’s subjective judgment taking into account all available information, including the competitive market assessment.

The following table presents each named executive officer’s base salary for fiscal 2016 as compared to fiscal 2015:


Name of NEO	FY15 Annual Salary ($)			Change in Salary			FY16 Annual Salary ($)	Description
Michael A. Brown		1,000,000	(1)		0	%	1,000,000	Mr. Brown did not receive a base salary increase in fiscal 2016, as it was deemed effective in continuing to achieve the Compensation Committee’s goals for this component of his executive compensation.
Thomas J. Seifert		720,000			0	%	720,000	Mr. Seifert did not receive a base salary increase in fiscal 2016, as it was deemed effective in continuing to achieve the Compensation Committee’s goals for this component of his executive compensation.
Balaji Yelamanchili		700,000	(2)		0	%	700,000	Mr. Yelamanchili did not receive a base salary increase in fiscal 2016, as it was deemed effective in continuing to achieve the Compensation Committee’s goals for this component of his executive compensation.
Scott C. Taylor		575,000			4.35	%	600,000	Mr. Taylor received a 4.35% increase in base salary as part of his annual review in consideration of his performance and contributions.
Francis C. Rosch		440,000	(3)		19.3	%	525,000	Mr. Rosch received a 19.3% increase in base salary as part of his annual review in consideration of his performance and contributions.

(1)

Mr. Brown received a salary of $100,000 per month until June 1, 2015 when the Board increased his base salary to $200,000 per month in recognition of his efforts and increased time commitment in his interim President and Chief Executive Officer role during fiscal 2015. This higher base salary was also designed to compensate him for serving without any variable compensation or equity award while he served as interim CEO. Following his appointment as our permanent President and Chief Executive Officer in September 2014, he earned a prorated portion of his $1,000,000 annual base salary for the remainder of fiscal 2015.

(2)	Mr. Yelamanchili received a prorated salary of $281,345 based on his period of employment as our Executive Vice President and General Manager, Enterprise Security.

(3)	Mr. Rosch received a prorated salary of $435,923 in fiscal 2015, as his adjusted salary went into effect following the beginning of fiscal 2015.

II. Executive Annual Incentive Plan

The Executive Annual Incentive Plans for our executive officers was adopted pursuant to the Senior Executive Incentive Plan (“SEIP”) most recently approved by our stockholders in 2013. The Executive Annual Incentive Plans adopted under the SEIP are annual cash incentives designed to reward named executive officers (and other participants) for generating strong financial results for our Company in the short term. To align our senior executives’ incentive awards with key drivers of the Company’s financial performance, all named executive officers earn incentive compensation based on performance against pre-determined corporate goals described below. The Compensation Committee typically measures the achievement of named executive officers against individual performance targets as well.

Executive Annual Incentive Plan Target Opportunities: Under the Executive Annual Incentive Plans for a given fiscal year, each named executive officer has a target award opportunity, expressed as a percentage of base salary, with the ability to earn above or below that target based on actual performance. Target award opportunities for our Executive Annual Incentive Plans are established by the Compensation Committee using the various inputs described below. The following table presents each named executive officer’s target bonus opportunity (on an actual and percentage of base salary basis) for fiscal 2016:


Name of NEO	FY16 Target % of Base		FY16 Target ($)
Michael A. Brown		150		1,500,000
Thomas J. Seifert		100		720,000
Balaji Yelamanchili		125		875,000
Scott C. Taylor		70		415,758
Francis C. Rosch		80		403,515

In general, the award opportunities for fiscal 2016 were determined based on the relevant market data, desired market positions, the desired mix between cash and equity-based incentive pay, internal pay equity goals, and the role of the named executive officer.

At the time award opportunities are established, there is no assurance that the amount of the target awards will be realized. As explained below, each named executive officer must achieve threshold performance for each metric established in the named executive officer’s executive annual incentive plan to receive any payment for such metric. The payout under the Executive Annual Incentive Plans is also capped at different levels based on the relevant performance metric.

Executive Annual Incentive Plan Performance Measures and Target Setting: Executive Annual Incentive Plan performance targets are established within the first 90 days of each plan year. Our management develops goals to propose to the Compensation Committee after taking into account a variety of factors, including our historical performance, internal budgets, market and peer performance, and external expectations for our performance. The Compensation Committee reviews, adjusts as necessary, and approves the goals, the range of performance to be rewarded, and the weighting of the goals. Following the end of each fiscal year, the Compensation Committee reviews our actual performance against the performance measures established in the fiscal year’s Executive Annual Incentive Plans (after making any appropriate adjustments to such measures for the effects of corporate events that were not anticipated in establishing the performance measures), determines the extent of achievement and approves the payment of annual cash incentives, if warranted.

The FY16 Executive Annual Incentive Plans were funded by two primary measures: non-GAAP operating income and non-GAAP revenue. We used the above performance metrics because:

	•		over time, we believe that non-GAAP operating income and non-GAAP revenue measures have strongly correlated with stockholder value creation for Symantec;

	•		the non-GAAP operating income and non-GAAP revenue measures are transparent to investors and are included in our quarterly earnings releases and supplemental materials;

	•		the non-GAAP operating income and non-GAAP revenue measures are designed to balance growth and profitability; and

	•		the performance goals used for the individual performance component align with our operational and strategic objectives.

The non-GAAP operating income metric was also selected because it can be measured at various sub-business unit levels within our company.

The determination of achievement of the non-GAAP operating income and non-GAAP revenue metrics is formulaic, while the individual performance metric is determined based on a qualitative evaluation of the individual’s performance against pre-established objectives with input from our CEO. In rating the individual’s performance, the Compensation Committee gives weight to the input of our CEO, but final decisions about the compensation of our named executive officers are made solely by the Compensation Committee. Although the Compensation Committee has discretion to adjust awards as appropriate, it did not exercise such discretion for fiscal 2016.

For the non-GAAP operating income and non-GAAP revenue metrics: (a) at the threshold achievement level of 90% of target, the funding level is 40%; (b) above the threshold achievement level, the funding level increases incrementally, up to a funding level of 100% at a target achievement level of 100%; (c) above the target achievement level, funding increases incrementally, up to a cap of a 200% funding based on a maximum achievement level of at least 106.5% of target; and (d) there is zero funding below the threshold achievement level of 90%. The non-GAAP operating income and non-GAAP revenue metrics are tested and funded independently of each other and are weighted equally. With the exception of our CEO, the actual individual payouts are further modified based on the individual performance factor generally in the range of 0-140% (35-140% for FY16) based on the performance achievement against pre-established goals for the fiscal year. The following illustrates the calculation used to determine the individual payout amount, if any:

LOGO

The following table summarizes the foregoing discussion of threshold, target and maximum performance levels and the relative funding levels at each level under the FY16 Executive Annual Incentive Plans:


	Non-GAAP Operating Income (%)		Non-GAAP revenue (%)		Individual Performance Modifier (%)		Total Payout as a Percentage of Target (%)
Threshold		40		40		35		14
Target		100		100		100		100
Maximum		200		200		140		280

Non-GAAP operating income and non-GAAP revenue performance targets were established based on a range of inputs without giving effect to the then-proposed spinoff of Veritas, including external market economic conditions, growth outlooks for our product portfolio, the competitive environment, our internal budgets, and market expectations.

The individual award is determined based on an assessment of individual performance results and impact against both quantitative and qualitative expectations for the executive’s role. The individual performance modifier does not apply to the CEO’s payout opportunity.

An executive’s performance is evaluated based on both quantitative and qualitative results in the following key areas:

	•		financial and operational goals for their area of responsibility and the entire company;

	•		leadership qualities as well as functional competencies and knowledge for their area of responsibility; and

	•		development and management of their team of employees.

Leadership skills are a common component to each of these objectives and are a significant factor in the assessment of individual performance. The executive’s willingness to contribute to cross-functional initiatives outside his or her primary area of responsibility, and the executive’s contribution to our company’s performance-based culture, are also extremely important aspects of the individual performance assessment.

The CEO evaluates the level of each named executive officer’s performance against the pre-determined goals following the end of fiscal year and then makes a recommendation to the Compensation Committee. The Compensation Committee then reviews the CEO’s compensation recommendations for the other named executive officers, makes any appropriate adjustments, and approves their compensation, if warranted.

Achievement of Fiscal Year 2016 Performance Metrics:

As presented in the tables below, the Compensation Committee designed and established the operating metric under the FY16 Executive Annual Incentive Plans to take into account the then-anticipated Veritas spinoff. Although the planned spinoff of Veritas instead became the Veritas Sale in fiscal 2016, the general timing of the separation remained the same and no change was made to the original design and the Compensation Committee assessed achievement thereunder accordingly. For the first three fiscal quarters of fiscal 2016, achievement was based on the combined Symantec and discontinued operations (Veritas) results, as legal separation of Veritas occurred on January 29, 2016. For the fourth quarter of fiscal 2016, achievement was based only on Symantec’s performance.

Fiscal 2016 Q1-Q3 Period (Symantec + Veritas)


	Target (in millions)		Actual (in millions)		Achievement			Funding
Operating Income	$	1,397	$	1,276		91.4	%		48.2	%
Revenue	$	4,690	$	4,532		96.6	%		79.8	%
Q1-Q3 Funding									64.0	%

Fiscal 2016 Q4 Period (Symantec Only)


	Target (in millions)		Actual (in millions)		Achievement			Funding
Operating Income	$	244	$	219		89.4	%		0.0	%
Revenue	$	926	$	880		95.1	%		70.4	%
Q4 Funding									35.2	%

64% (Q1-Q3 Funding) x 75% + 35.2% (Q4 Funding) x 25% = 56.8% (Fiscal 2016 Funding)

For fiscal 2016, the individual performance payout level for our named executive officers reflected performance assessment as measured by the objectives for the key areas described above. Our named executive officers’ fiscal 2016 annual incentive payout level by performance metric, total payout as percentage of target opportunity and total payout amounts are provided in the table below:


	Weighted Average Non-GAAP Operating Income Funding & Non-GAAP revenue Funding (%)		Individual Performance Modifier Funding (%)		Total Payout as % of Target Opportunity (%)		Payout Amount ($)
Michael A. Brown		56.8		n/a		56.8		852,000
Thomas J. Seifert		56.8		110		62.5		449,856
Balaji Yelamanchili		56.8		50		28.4		248,500
Scott C. Taylor		56.8		120		62.5		283,380
Francis C. Rosch		56.8		140		79.5		320,875

III. Equity Incentive Awards

The primary purpose of our equity incentive awards is to align the interests of our named executive officers with those of our stockholders by rewarding the named executive officers for creating stockholder value over the long term. By compensating our executives with equity incentive awards, our executives hold a stake in Symantec’s financial future. The gains realized in the long term depend on our executives’ ability to drive the financial performance of Symantec. Equity incentive awards are also a useful vehicle for attracting and retaining executive talent in the highly competitive market for talent in which we compete.

Our 2013 Equity Incentive Plan provides for the award of stock options, stock appreciation rights, restricted stock, and restricted stock units (including PRUs). For fiscal 2016, the equity incentive component of our executive compensation program consisted of PRUs and RSUs for all of our named executive officers. We also offer all employees the opportunity to participate in the 2008 Employee Stock Purchase Plan, which allows for the purchase of our stock at a discount to the fair market value through payroll deductions. This plan is designed to comply with Section 423 of the Code. During fiscal 2016, two of the named executive officers participated in the 2008 Employee Stock Purchase Plan.

We seek to provide equity incentive awards that are competitive with companies in our peer group and the other information technology companies that the Compensation Committee includes in its competitive market assessment. As such, we establish target equity incentive award grant guideline levels for the named executive officers based on competitive market assessments. When making annual equity awards to named executive officers, we consider corporate results during the past year, the role, responsibility and performance of the individual named executive officer, the competitive market assessment described above, prior equity awards, and the level of vested and unvested equity awards then held by each named executive officer. In making equity awards, we also generally take into consideration gains recognizable by the executive from equity awards made in prior years. Mercer provides the Compensation Committee with market data on these matters, as well as providing to the Compensation Committee summaries of the prior grants made to the individual named executive officers.

As discussed below, the Compensation Committee believes that for fiscal 2016, a mix of PRUs and time-vested RSUs is the appropriate long-term equity incentive for named executive officers. For fiscal 2016, approximately 73% of our CEO’s equity incentive award value was granted in the form of PRUs and approximately 27% in the form of RSUs, reflecting our philosophy to allocate a significantly larger portion of the value of the CEO’s target total long-term equity incentive award in the form of PRUs than time-vested RSUs. We maintained our philosophy to allocate significantly larger portion of the value of the target total long-term equity incentive award in the form of PRUs than time-vested RSUs with our other named executive officers as well. On average 63% of the other named executive officers’ equity incentive award value was granted in the form of PRUs and approximately 37% in the form of RSUs.

Restricted Stock Units (RSUs): RSUs represent the right to receive one share of Symantec common stock for each RSU vested upon the settlement date, which is the date on which certain conditions, such as continued employment with us for a pre-determined length of time, are satisfied. The Compensation Committee believes that RSUs align the interests of the named executive officers with the interests of our stockholders because the value of these awards appreciates if the trading price of our common stock appreciates, and these awards also have retention value even during periods in which our trading price does not appreciate, which supports continuity in the senior management team.

Shares of our stock are issued to RSU holders as the awards vest. The vesting schedule for RSUs granted to our named executive officers in fiscal 2016 as part of the annual review process provide that each award vests in three installments: 30% in June 2016, 30% in June 2017 and 40% in June 2018. (Details of RSUs granted to our named executive officers in fiscal 2016 are disclosed in the Grants of Plan-Based Awards table on page 34 and summarized in the last table within the next subsection below.)

Performance-based Restricted Stock Units (PRUs): The Compensation Committee grants PRUs in furtherance of our pay for performance philosophy. Our Compensation Committee established this program to enhance our pay for performance culture with a component directly linked to our total stockholder return over

two- and three-year periods. Unlike our RSU awards, the shares underlying the PRUs awarded for fiscal 2016 are eligible to be earned only if we achieve a threshold of non-GAAP EPS. For the reasons discussed in the summary section of this CD&A, due to the Veritas Sale, the fiscal 2016 payout level was based on the combined Symantec/Veritas non-GAAP EPS achievement for the first three quarters of fiscal 2016. Depending on our achievement of this metric, 0% to 133% of the target shares will be eligible to be earned at the end of fiscal 2017 and fiscal 2018, based on, and subject to further adjustment as a result of, the achievement of the TSR ranking for our company as compared to the S&P 500. If any target shares become eligible (the “eligible shares”) to be earned in fiscal 2017 and fiscal 2018 as a result of achievement of the non-GAAP EPS metric for fiscal 2016, then 50% to 150% of one-half of the eligible shares may be earned based on the achievement of the TSR goal for the two years ended March 31, 2017 and 50% to 150% of one-half of the eligible shares (plus any eligible shares not earned on March 31, 2017 if less than 100% of the TSR goal is achieved for the two-year period then ended) may be earned based on the achievement of the TSR goal for the three years ended March 30, 2018. Subject to certain exceptions (including acceleration of vesting upon a change in control of our company under the terms of the Symantec Executive Retention Plan, as amended), the award shall vest, if at all, only at the end of the third year of the performance period (i.e., fiscal 2018), and the named executive officer must be employed by us at the end of such period in order to vest in the award. The following table summarizes the foregoing discussion of threshold, target and maximum performance levels and payouts at each level:


	EPS Performance as a Percentage of Target (%)			EPS Payout as a Percentage of Target (%)			TSR Percentile Rank against S&P500		TSR Payout as a Percentage of Target (%)
Threshold Level Payout %		70	%		50	%		35th		50	%
Target Level Payout %		100	%		100	%		50th		100	%
Maximum Payout %		120	%		133	%		75th		150	%

For the first three fiscal quarters of fiscal 2016, our non-GAAP EPS target under the PRUs was $1.46 per share. The Compensation Committee determined that we achieved 88.7% of this metric, resulting in 81.2% of the target shares becoming eligible to be earned based on achievement of the multi-year relative TSR performance goals under the PRUs. Pursuant to the terms of these awards, each named executive officer will be eligible to receive at least half of the eligible shares if he remains employed by Symantec through the last day of fiscal 2018 even if we fail to achieve those TSR performance goals (median of S&P 500), and could receive up to 150% of such shares, depending upon the degree to which we achieve of those goals and the same employment condition is met.

Below is the summary of our PRU performance metrics achievements since fiscal 2014. The PRU awards granted in fiscal 2014 finished the 3-year performance period at the end of fiscal 2016 resulting in an overall payout of 61.25% of the target award level.


	Non-GAAP EPS						2-Year TSR					3-Year TSR
Grant Year	Performance as % of Target			Eligible Shares as % of Target Shares			S&P 500 Percentile Ranking		Payout as % of Target			S&P 500 Percentile Ranking		Payout as % of Target			Overall Payout
Fiscal 2014 Award		99.0	%		98.0	%		11th		50	%		14th		50	%		61.25	%
Fiscal 2015 Award		99.8	%		98.3	%		53rd		106	%		TBD
Fiscal 2016 Award		88.7	%		81.2	%		TBD

The following table summarizes the number of shares granted in fiscal 2016, value of each award and the total value of the equity awards for each named executive officer as of the Grant Date (all values of restricted stock unit awards are based upon the closing price for a share of our common stock of $23.78 on June 10, 2015).


Name of NEO	Target PRUs (#)		PRU Value at Grant Date ($)		RSUs (#)		RSU Value at Grant Date ($)		Total Target Equity Incentive Awards Value at Grant Date($)
Michael A. Brown		335,436		9,067,506		143,758		3,417,846		12,485,352
Thomas J. Seifert		107,819		2,914,563		71,879		1,708,923		4,623,486
Balaji Yelamanchili		119,799		3,238,407		79,866		1,898,814		5,137,221
Scott C. Taylor		71,879		1,943,033		47,919		1,139,274		3,082,307
Francis C. Rosch		119,799		3,238,407		79,866		1,898,814		5,137,221

Burn Rate and Dilution: We closely manage how we use our equity to compensate employees. We think of “gross burn rate” as the total number of shares granted under all of our equity incentive plans during a period divided by the weighted average number of shares of common stock outstanding during that period and expressed as a percentage. We think of “net burn rate” as the total number of shares granted under all of our equity incentive plans during a period, minus the total number of shares returned to such plans through awards cancelled during that period, divided by the weighted average number of shares of common stock outstanding during that period, and expressed as a percentage. “Overhang” we think of as the total number of shares underlying options and awards outstanding plus shares available for issuance under all of our equity incentive plans at the end of a period divided by the weighted average number of shares of common stock outstanding during that period and expressed as a percentage. The Compensation Committee determines the percentage of equity to be made available for our equity programs with reference to the companies in our market composite. In addition, the Compensation Committee considers the accounting costs that will be reflected in our financial statements when establishing the forms of equity to be granted and the size of the overall pool available. For fiscal 2016, our gross burn rate was 2.167%, our net burn rate was 0.237%, and our overhang was 12.02%.

Roles of Our Compensation Committee, Independent Directors, Executive Officers and Consultants in our Compensation Process

The Compensation Committee, which is comprised entirely of independent directors, is responsible for overseeing all of Symantec’s compensation programs, including the review and recommendation to the independent directors of our Board of all compensation arrangements for our CEO and the review and approval of the compensation payable to our other named executive officers.

The independent directors of the Board evaluate the CEO’s performance and the Compensation Committee then reviews and recommends to the independent members of the Board all compensation arrangements for the CEO. After discussion, the independent members of the Board determine the CEO’s compensation. The Compensation Committee also discusses the performance of the other named executive officers with the CEO, reviews the compensation recommendations that the CEO submits for the other named executive officers, makes any appropriate adjustments, and approves their compensation. While our CEO provides input and makes compensation recommendations with respect to executive officers other than himself, our CEO does not make recommendations with respect to his own compensation or participate in the deliberations regarding the setting of his own compensation by the Board or the Compensation Committee.

Since fiscal 2004, the Compensation Committee has engaged Mercer, an outside consulting firm, to provide advice and ongoing recommendations on executive compensation matters. The Compensation Committee oversees Mercer’s engagement. Mercer representatives meet informally with the Compensation Committee Chair and the Chief Human Resources Officer and also with the Compensation Committee during its regular meetings, including in executive sessions from time to time without any members of management present.

As part of its engagement in fiscal 2016, Mercer provided, among other services, advice and recommendations on the amount and form of executive and director compensation. For example, Mercer evaluated and advised the Compensation Committee on the peer group that the Compensation Committee uses to develop a market composite for purposes of establishing named executive officer pay levels (as described below), the competitiveness of our executive and director compensation programs, the design of awards and proposed performance metrics and opportunity ranges for incentive plans, compensation-related trends and developments in our industry and the broader talent market and regulatory developments relating to compensation practices.

We paid Mercer approximately $192,000 for executive compensation services in fiscal 2016. In addition, with the Compensation Committee’s approval, management engaged and Symantec paid Mercer and its affiliates for other services, including approximately $5.532 million for other unrelated consulting and business services. We also reimbursed Mercer and its affiliates for reasonable travel and business expenses. The Compensation Committee did not review or approve the other services provided by Mercer and its affiliates to Symantec, as those services were approved by management in the normal course of business. Based in part on policies and procedures implemented by Mercer to ensure the objectivity of its executive compensation consultants and the Compensation Committee’s assessment of Mercer’s independence pursuant to the SEC rules, the Compensation Committee concluded that the consulting advice it receives from Mercer is objective and not influenced by Mercer and its affiliates’ other relationships with Symantec and that no conflict of interest exists that will prevent Mercer from being independent consultants to the Compensation Committee.

The Compensation Committee establishes our compensation philosophy, approves our compensation programs and solicits input and advice from several of our executive officers and Mercer. As mentioned above, our CEO provides the Board and the Compensation Committee with feedback on the performance of our executive officers and makes compensation recommendations (other than with respect to his own compensation) that go to the Compensation Committee for their approval. Our CEO, Chief Human Resources Officer and General Counsel regularly attend the Compensation Committee’s meetings to provide their perspectives on competition in the industry, the needs of the business, information regarding Symantec’s performance, and other advice specific to their areas of expertise. In addition, at the Compensation Committee’s direction, Mercer works with our Chief Human Resources Officer and other members of management to obtain information necessary for Mercer to make their own recommendations as to various matters as well as to evaluate management’s recommendations.

Equity Grant Practices: The Compensation Committee generally approves grants to the named executive officers at its first meeting of each fiscal year, or shortly thereafter through subsequent action. The grant date for all equity grants made to employees, including the named executive officers, is generally the 10th day of the month following the applicable meeting. If the 10th day is not a business day, the grant is generally made on the previous business day. The Compensation Committee does not coordinate the timing of equity awards with the release of material, nonpublic information. RSUs may be granted from time to time throughout the year, but all RSUs generally vest on either March 1, June 1, September 1 or December 1 for administrative reasons. PRUs are currently granted once a year and, subject to certain exceptions, vesting occurs only after a three-year performance period.

Change of Control and Severance Arrangements: The vesting of certain stock options, RSUs and PRUs held by our named executive officers will accelerate if they experience an involuntary (including constructive) termination of employment under certain circumstances. For additional information about these arrangements, including arrangements pertaining to Mr. Brown in connection with the CEO Transition, see “—Other Benefits—Change of Control and Severance Arrangements” below and “Potential Payments Upon Termination or Change in Control,” below.

Other Awards

Certain business conditions may warrant using additional compensation approaches to attract, retain or motivate executives. Such conditions include acquisitions and divestitures, attracting or retaining specific or unique talent, and recognition for exceptional contributions. In these situations, the Compensation Committee considers the business needs and the potential costs and benefits of special rewards.

Other Benefits

All named executive officers are eligible to participate in our 401(k) plan (which includes our matching contributions), health and dental coverage, life insurance, disability insurance, paid time off, and paid holidays on the same terms as are available to all employees generally. These rewards are designed to be competitive with overall market practices, and are in place to attract and retain the talent needed in the business. In addition, named executive officers are eligible to participate in the deferred compensation plan, and to receive other benefits described below.

Deferred Compensation: Symantec’s named executive officers are eligible to participate in a nonqualified deferred compensation plan that provides management employees on our U.S. payroll with a base salary of $150,000 or greater (including our named executive officers) the opportunity to defer up to 75% of base salary and 100% of cash bonuses for payment at a future date. This plan is provided to be competitive in the executive talent market, and to provide executives with a tax-efficient alternative for receiving earnings. None of our named executive officers participated in this plan during fiscal 2016. The plan is described further under “Non-Qualified Deferred Compensation in Fiscal 2016,” on page 36.

Additional Benefits: Symantec’s named executive officers typically do not receive perquisites, except in limited circumstances when deemed appropriate by the Compensation Committee. For example, an additional benefit available to named executive officers is reimbursement for up to $10,000 for financial planning services. In addition, Mr. Seifert received reimbursement for certain relocation expenses associated with his move to the San Francisco Bay Area in 2014, a portion of which was paid to him in fiscal 2015 and fiscal 2016. The Compensation Committee provides certain perquisites because it believes they are for business-related purposes or are prevalent in the marketplace for executive talent. The value of the perquisites we provide is taxable to the named executive officers and the incremental cost to us for providing these perquisites is reflected in the Summary Compensation Table. (These benefits are disclosed in the All Other Compensation column of the Summary Compensation Table on page 31).

Change of Control and Severance Arrangements: Our Executive Retention Plan provides (and, in the case of PRUs, the terms of the PRUs provide) participants with double trigger acceleration of equity awards and, if applicable, become immediately exercisable, where equity vesting and exercisability is accelerated only in the event the individual’s employment is terminated without cause, or is constructively terminated, within 12 months after a change in control of our company (as defined in the plan). In the case of PRUs, PRUs will vest at target if the change in control occurs prior to the first performance period, will vest as to eligible shares if the change in control occurs following the first performance period but before achievement is determined with respect to the second performance period, and will vest as to the sum of the eligible shares determined to be earned for the second performance period plus 50% of the eligible shares if the change in control occurs following the second performance period but before achievement is determined with respect to the third performance period.

We believe that the double trigger acceleration provision appropriately achieves the intent of the applicable plan without providing an undue benefit to executives who continue to be employed following a change in control transaction. The intent of the plan is to enable named executive officers to have a balanced perspective in making overall business decisions in the context of a potential acquisition of our company, as well as to be competitive with market practices. The Compensation Committee believes that change in control benefits, if structured appropriately, serve to minimize the distraction caused by a potential transaction and reduce the risk that key talent would leave our company before a transaction closes.

In connection with the CEO Transition and in consideration for the role Mr. Brown would play in connection with the CEO Transition, we amended Mr. Brown’s employment agreement in April 2016 to provide him with, among other things, the cash severance and equity acceleration benefits to which he would have been entitled under his employment agreement, prior to its amendment, had he been involuntarily terminated or resigned for Good Reason (as defined in his amended employment agreement), and ensures that he will be entitled to receive his existing compensation through the October 28, 2016, even if he terminates earlier. We anticipate Mr. Brown will be entitled to certain of these benefits upon the closing of the Blue Coat Acquisition. For more information on these benefits, see “Potential Payments Upon Termination or Change in Control” below.

The change in control and severance benefits described above do not influence and are not influenced by the other elements of compensation as these benefits serve different objectives than the other elements. We do not provide for gross-ups of excise tax values under Section 4999 of the Code. Rather, we allow the named executive officer to reduce the benefit received or waive the accelerated vesting of options to avoid excess payment penalties.

Details of each individual named executive officer’s benefits, including estimates of amounts payable in specified circumstances in effect as of the end of fiscal 2016, are disclosed under “Potential Payments Upon Termination or Change in Control” below.

SUPPLEMENTARY POLICIES AND CONSIDERATIONS

We use several additional policies to ensure that the overall compensation structure is responsive to stockholder interests and competitive with the market. Specific policies include:

Stock Ownership Requirements

We believe that in order to align the interests of our executive officers with those of our stockholders, our executive officers should have a financial stake in our company. We have maintained stock ownership requirements for our executive officers since October 2005. For fiscal 2016, our executive officers were required to hold the following minimum number of shares:

	•		CEO: 5x base salary;

	•		CFO, COO and President, Products and Services: 3x base salary; and

	•		Executive Vice Presidents: 2x base salary.

Stock options and unvested RSUs and PRUs do not count toward stock ownership requirements.

The executive officer is required to acquire and thereafter maintain the stock ownership required within four years of becoming an executive officer of Symantec (or four years following the adoption date of these revised guidelines). During the four-year transitional period, each executive officer must retain at least 50% of all net (after-tax) equity grants until the required stock ownership level has been met.

As of July 1, 2016, each of our named executive officers has reached the stated ownership requirements for fiscal 2016. See the table below for individual ownership levels relative to the executive’s ownership requirement.


Named Executive Officer	Ownership Requirement(1) (# of shares)		Holdings as of July 1, 2016
Michael A. Brown		244,379		209,971
Thomas J. Seifert		105,572		41,374
Balaji Yelamanchili		68,426		114,096
Scott C. Taylor		58,651		161,622
Francis C. Rosch		51,320		95,132

(1)	Based on the closing price for a share of our common stock of $20.46 on July 1, 2016.

Recoupment Policies (Clawbacks)

Since fiscal 2009, we have included provisions within our executive annual incentive plans to the effect that we will seek reimbursement of excess incentive cash compensation if our financial statements are the subject of a restatement due to error or misconduct.

Insider Trading, Hedging and Pledging Policies

Our Insider Trading Policy prohibits all directors and employees from short-selling Symantec stock or engaging in transactions involving Symantec-based derivative securities, including, but not limited to, trading in Symantec-based option contracts (for example, buying and/or writing puts and calls). It also prohibits pledging Symantec stock as collateral for a loan.

In addition, our Insider Trading Policy prohibits our directors, officers, employees and contractors from purchasing or selling Symantec securities while in possession of material, non-public information. It also requires that each of our directors, our Chief Executive Officer and our Chief Financial Officer conduct open market sales of our securities only through use of stock trading plans adopted pursuant to Rule 10b5-1 of the Exchange Act. Rule 10b5-1 allows insiders to sell and diversify their holdings in our stock over a designated period by adopting pre-arranged stock trading plans at a time when they are not aware of material nonpublic information about us, and thereafter sell shares of our common stock in accordance with the terms of their stock trading plans without regard to whether or not they are in possession of material nonpublic information about the Company at the time of the sale. All other executives are strongly encouraged to trade using 10b5-1 plans.

Tax and Accounting Considerations on Compensation

The financial reporting and income tax consequences to the Company of individual compensation elements are important considerations for the Compensation Committee when it reviews compensation practices and makes compensation decisions. While structuring compensation programs that result in more favorable tax and financial reporting treatment is a general principle, the Compensation Committee balances these goals with other business needs that may be inconsistent with obtaining the most favorable tax and accounting treatment for each component of its compensation.

Deductibility by Symantec. Under Section 162(m) of the Code, we may not receive a federal income tax deduction for compensation that is not performance-based (as defined in the Section 162(m) rules) paid to the Chief Executive Officer and the next three most highly compensated executive officers (other than our Chief Financial Officer) to the extent that any of these persons receives more than $1,000,000 in nonperformance-based compensation in any one year. However, we strive to maximize the tax deductibility of our compensation awards since our philosophy is to provide the largest proportion of compensation as performance-based. While the Compensation Committee considers the deductibility of awards as one factor in determining our executive compensation, it also looks at other factors in making its executive compensation decisions and retains the flexibility to grant awards or pay compensation the Compensation Committee determines to be consistent with its goals for Symantec’s executive compensation program even if the awards may not be deductible by Symantec for tax purposes.

Tax Implications for Officers. Section 409A of the Code imposes additional income taxes on executive officers for certain types of deferred compensation that do not comply with Section 409A. The Company attempts in good faith to structure compensation so that it either conforms with the requirements of or qualifies for an exception under Code Section 409A. Section 280G of the Code imposes an excise tax on payments to executives of severance or change of control compensation that exceed the levels specified in the Section 280G rules. Our named executive officers could receive the amounts shown in the section entitled “Potential Payments Upon Termination or Change in Control” (beginning on page 36 below) as severance or change of control payments that could implicate this excise tax. As mentioned above, we do not offer our officers as part of their change of control benefits any gross-ups related to this excise tax under Code Section 4999.

Accounting Considerations. The Compensation Committee also considers the accounting and cash flow implications of various forms of executive compensation. In its financial statements, the Company records salaries and performance-based compensation incentives as expenses in the amount paid, or to be paid, to the named executive officers. Accounting rules also require the Company to record an expense in its financial statements for equity awards, even though equity awards are not paid as cash to employees. The accounting expense of equity awards to employees is calculated in accordance with the requirements of FASB Accounting Standards Codification Topic 718. The Compensation Committee believes, however, that the many advantages of equity compensation, as discussed above, more than compensate for the non-cash accounting expense associated with them.

Compensation Committee Interlocks and Insider Participation

The members of the Compensation Committee during fiscal 2016 were Geraldine B. Laybourne, David L. Mahoney, Robert S. Miller and Daniel H. Schulman. Kenneth Y. Hao was appointed to the Compensation Committee by the Board in fiscal 2017 on May 10, 2016. None of the members of the Compensation Committee in fiscal 2016 were at any time during fiscal 2016 or at any other time an officer or employee of Symantec or any of its subsidiaries, and none had or have any relationships with Symantec that are required to be disclosed under Item 404 of Regulation S-K. None of Symantec’s executive officers has served as a member of the board of directors, or as a member of the compensation or similar committee, of any entity that has one or more executive officers who served on our Board or Compensation Committee during fiscal 2016.

Compensation Committee Report

The information contained in the following report of Symantec’s Compensation Committee is not considered to be “soliciting material,” “filed” or incorporated by reference in any past or future filing by Symantec under the Securities Exchange Act of 1934 or the Securities Act of 1933 unless and only to the extent that Symantec specifically incorporates it by reference.

The Compensation Committee has reviewed and discussed with management the Compensation Discussion and Analysis (“CD&A”) contained in this proxy statement. Based on this review and discussion, the Compensation Committee has recommended to the Board that the CD&A be included in this proxy statement and our Annual Report on Form 10-K for the fiscal year ended April 1, 2016.

By: The Compensation and Leadership Development Committee of the Board:

Robert S. Miller (Chair)

Geraldine B. Laybourne

David L. Mahoney

Daniel H. Schulman

Kenneth Y. Hao (member since May 2016)

Summary of Compensation

The following table shows for the fiscal year ended April 1, 2016, compensation awarded to or paid to, or earned by, our Chief Executive Officer, Chief Financial Officer and the three most highly compensated executive officers who were serving as executive officers (other than as our Chief Executive Officer or Chief Financial Officer) at the end of fiscal 2016 (the “named executive officers”).

Summary Compensation Table for Fiscal 2016


Name and Principal Position	Fiscal Year		Salary ($)			Bonus ($)			Stock Awards ($)(1)(2)		Option Awards ($)		Non-Equity Incentive Plan Compensation ($)			All Other Compensation ($)			Total ($)
Michael A. Brown Chief Executive Officer		2016		1,000,000			—			12,485,352		—		852,000	(3)		54,449	(4)		14,391,801
	2015		1,473,077	(5)		—			14,177,180		—		658,176	(6)		22,000	(7)		16,330,433
	2014		36,364	(8)		—			—		—		—			340,000	(9)		376,364

Thomas J. Seifert Executive Vice President, Chief Financial Officer		2016		720,000			—			4,623,486		—		449,856	(3)		222,439	(10)		6,015,781
	2015		720,000			—			4,394,834		—		612,000	(6)		174,055	(11)		5,900,889
	2014		30,000	(12)		1,800,000	(13)		—		—		—			14,702	(14)		1,844,702

Balaji Yelamanchili Executive Vice President and General Manager, Enterprise Security		2016		536,750			500,000	(15)		5,137,221		—		248,500	(3)		110,173	(16)		9,544,115
	2015		281,345	(17)		500,000	(15)		7,042,854		—		342,125	(6)		13,531	(18)		8,179,855

Scott C. Taylor Executive Vice President, General Counsel and Corporate Secretary		2016		593,939	(19)		—			3,082,307				283,380	(3)		86,028	(20)		4,045,654
	2015		536,250	(19)		—			2,326,081		—		392,900	(6)		63,323	(21)		3,318,554
	2014		420,000			—			2,136,428		—		—			28,443	(22)		2,584,871

Francis C. Rosch Executive Vice President, Norton Business Unit		2016		504,394	(24)					5,137,221				320,750	(3)		97,334	(23)		6,059,699
	2015		435,923	(24)		—			2,190,974		—		409,715	(6)		54,885	(25)		3,091,497

(1)

Amounts shown in this column reflect the aggregate full grant date fair calculated in accordance with FASB Accounting Standards Codification (“FASC”) Topic 718 for restricted stock unit awards (“RSU“s) and performance-based restricted unit awards (“PRU“s) in fiscal years 2014-2016. The grant date fair values for RSUs were determined based on the closing share price of our common stock on the date of grant. For a discussion of the valuation methodology used to value the PRUs awarded during the fiscal years 2014-2016, see footnote 2 to the Summary Compensation Table, below.

(2)

The PRUs awarded in fiscal years 2014-2016 are based on a three-year performance period. The PRUs are eligible to be earned if we achieve at least 70% of the target level non-GAAP EPS performance. Depending on our achievement of this metric, 0% to 133% of the target shares will be eligible to be earned at the end of the fiscal year of grant, based on, and subject to further adjustment as a result of, the achievement of the TSR goal for our company as compared to the S&P 500 (the market-related component) in the subsequent fiscal years. If any target shares become eligible (the “eligible shares”) to be earned at the end of the fiscal year of grant as a result of achievement of the performance-related component, then 50% to 150% of one-half of the eligible shares may be earned based on the achievement of the TSR goal for the first and second fiscal years and 50% to 150% of one-half of the eligible shares (plus any eligible shares not earned at the end of the second fiscal year if less than 100% of the TSR goal is achieved for the two-year period then ended) may be earned based on the achievement of the TSR goal for the first, second and third fiscal years. Because the performance-related component is based on separate measurements of our financial performance only in the first year of the three-year performance period, FASC Topic 718 requires the grant date fair value to be calculated at the commencement of the performance period. Consistent with FASC Topic 718, the full grant date fair value for the market-related component, or the TSR adjustment, for the entire three-year performance cycle is included in the amounts shown for the year of grant and was determined using a Monte Carlo simulation option pricing model (“Monte Carlo model”) on the date the PRUs were awarded in fiscal years 2014-2016.

The table below sets forth the grant date fair value determined in accordance with FASC Topic 718 principles established in fiscal years 2014-2016 for the performance-related component of these awards (i) based upon the probable outcome of the fiscal years 2014-2016 performance-related component as of the grant date, and (ii) based upon achieving the maximum level of performance under the fiscal years 2014-2016 performance-related component as of the grant date. Also set forth below are the grant date fair values pertaining to the market-related component or the TSR adjustment and significant inputs and assumptions used in the Monte Carlo model, determined upon grant in fiscal years 2014-2016, and which is not subject to probable or maximum outcome assumptions.


Name	Fiscal Year		Probable Outcome of Performance Conditions Grant Date Fair Value ($)		Maximum Outcome of Performance Conditions Grant Date Fair Value ($)		Market- Related Component Grant Date Fair Value ($)
Michael A. Brown		2016		8,469,051		12,059,783		9,067,506
		2015		9,017,952		14,110,442		10,609,355
Thomas J. Seifert		2016		2,722,202		3,876,369		2,914,563
		2015		2,540,404		3,312,488		2,490,592
Balaji Yelamanchili		2016		3,024,672		4,307,081		3,238,407
Scott C. Taylor		2016		1,814,793		2,584,234		1,943,033
		2015		1,427,183		1,860,935		1,399,199
		2014		606,769		849,476		638,704
Francis C. Rosch		2016		3,024,672		4,307,081		3,238,407
		2015		1,427,183		1,860,935		1,399,199


Grant Date	Grant Date Fair Value ($)		Volatility (%)		Risk-Free Interest Rate (%)
5/20/2013		26.03		28.80		0.38
6/10/2014		25.08		26.20		0.84
9/24/2014		30.78		22.89		0.84
6/10/2015		27.03		22.55		1.07

(3)	Represents the executive officer’s annual bonus under the FY16 Executive Annual Incentive Plans, which was earned in fiscal 2016 and paid in fiscal 2017.

(4)	Represents (a) $26,593 for dividend equivalent payment on stock awards, (b) $15,834 for reimbursement for tax and financial services, (c) $6,000 for the Company’s contributions to Mr. Brown’s account under its 401(k) plan, (d) $5,612 for the Company’s contributions to Mr. Brown’s Company sponsored life insurance policy and (e) $410 for membership fees.

(5)	This amount reflects payments based on Mr. Brown’s interim President and Chief Executive Officer base salary for the first six months of fiscal 2015 and Mr. Brown’s adjusted salary for the remainder of fiscal 2015.

(6)	Represents the executive officer’s annual bonus under the Executive Annual Incentive Plans for fiscal 2015, which was earned in fiscal 2015 and paid in fiscal 2016.

(7)	Represents (a) $12,000 for the Company’s contributions to Mr. Brown’s account under its 401(k) plan, and (b) $10,000 for reimbursement for tax services.

(8)	Represents the prorated salary of $36,364 that Mr. Brown received based on his period of employment as our interim President and Chief Executive Officer in fiscal 2014.

(9)	Represents the following non-employee director compensation paid to Mr. Brown prior to his becoming our interim President and Chief Executive Officer in March 2014:


Fees Earned or Paid in Cash ($)*		Stock Awards ($)†				Total ($)
105,023††			234,978				340,000

	*	Mr. Brown received the following annual fees: (i) $50,000 annual retainer fee; (ii) $15,000 for serving on the Compensation Committee; (ii) $15,000 for serving on the Nominating and Governance Committee; and (iii) $25,000 for chairing the Compensation Committee.

	†	Amounts shown in this column reflect the aggregate full grant date fair value calculated in accordance with FASC Topic 718 for awards granted during the fiscal year.

	††	Includes cash payout of $22.50 for fractional share from non-employee director stock award grant.

(10)

Represents (a) $176,942 in relocation expenses incurred in fiscal 2016, (b) $25,835 for reimbursement for tax services, (c) $9,930 for dividend equivalent payment on stock awards, (d) $6,000 for the Company’s contributions to Mr. Seifert’s account under its 401(k) plan, (e) $2,877 for the Company contributions to Mr. Seifert’s Company-sponsored life insurance plan and (d) $855 for the Company’s contributions under Mr. Seifert’s Company-sponsored long term disability plan.

(11)	Represents (a) $154,730 in relocation expenses incurred in fiscal 2015, (b) $11,400 for the Company’s contributions to Mr. Seifert’s account under its 401(k) plan and (c) $7,925 for reimbursement for tax services.

(12)	Represents the prorated salary of $30,000 Mr. Seifert received based on his period of employment as our Executive Vice President and Chief Financial Officer in fiscal 2014.

(13)	Represents a one-time sign-on bonus, which Mr. Seifert is obligated to repay all or a portion of the sign-on bonus if he voluntarily leaves the Company or is terminated for cause prior to March 17, 2017.

(14)	Represents relocation expenses incurred in fiscal 2014.

(15)	Represents half of a one-time sign-on bonus of $1,000,000 as an inducement to accept our offer of employment. Mr. Yelamanchili received $500,000 on March 31, 2016 and received the other $500,000 on August 31, 2016.

(16)	Represents (a) $82,808 for dividend equivalent payment on stock awards, (b) $18,570 in compensation earned by Mr. Yelamanchili’s child who was employed by the Company in fiscal 2016, (c) $6,000 for the Company’s contributions to Mr. Yelamanchili’s account under its 401(k) plan and (d) $2,795 for the Company’s contributions to Mr. Yelamanchili’s Company-sponsored life insurance policy.

(17)	Represents the prorated salary of $281,345 Mr. Yelamanchili received based on his period of employment as our Executive Vice President and General Manager, Enterprise Security in fiscal 2016.

(18)	Represents (a) $8,281 for dividend equivalent payment on stock awards, and (b) $5,250 for the Company’s contributions to Mr. Yelamanchili’s account under its 401(k) plan.

(19)	This amount includes a prorated increase in base salary as part of Mr. Taylor’s annual review.

(20)

Represents (a) $60,816 for dividend equivalent payment on stock awards, (b) $15,834 for reimbursement for tax services, (c) $6,188 for the Company’s contributions to Mr. Taylor’s account under its 401(k) plan, (d) $2,335 for the Company’s contributions to Mr. Taylor’s Company-sponsored life insurance policy, and (e) $855 for the Company’s contributions to Mr. Taylor’s Company-sponsored long term disability insurance.

(21)	Represents (a) $36,817 for dividend equivalent payment on stock awards, (b) $13,357 for reimbursement for tax services, (c) $7,688 for the Company’s contributions to Mr. Taylor’s account under its 401(k) plan, (d) $4,284 for coverage of expenses related to attendance at the FY14 sales achiever’s trip, and (e) $1,178 for membership fees.

(22)	Represents (a) $7,350 for dividend equivalent payment on stock awards, (b) $1,121 for membership fees, (c) $13,971 for reimbursement for tax services, and (d) $6,000 for the Company’s contributions to Mr. Taylor’s account under its 401(k) plan.

(23)

Represents (a) $55,763 for dividend equivalent payment on stock awards, (b) $23,853 for coverage of expenses related to attendance at the FY15 sales achiever’s trip, (c) $6,638 for the Company’s contributions to Mr. Rosch’s account under its 401(k) plan, (d) $6,211 for spousal medical benefits, (e) $2,955 for reimbursement for tax services, and (f) $1,914 for the Company’s contributions to Mr. Rosch’s Company-sponsored life insurance policy.

(24)	Mr. Rosch received a prorated salary of $435,923 based on his period of employment as our Executive Vice President, Norton Business Unit in fiscal 2016. Mr. Rosch’s base annual salary increased from $400,000 to $440,000 in July 2014 in connection with his promotion to our Executive Vice President, Norton Business Unit.

(25)	Represents (a) $32,030 for dividend equivalent payment on stock awards, (b) $12,145 for coverage of expenses related to attendance at the FY14 sales achiever’s trip, (c) $6,800 for the Company’s contributions to Mr. Rosch’s account under its 401(k) plan, (d) $2,070 for spousal medical benefits, (e) $1,800 for reimbursement for tax services, and (f) $40 for an appreciation award.

The following table shows for the fiscal year ended April 1, 2016, certain information regarding grants of plan-based awards to our named executive officers from our incentive plans:

Grants of Plan-Based Awards in Fiscal 2016


			Estimated Future Payouts Under Non-Equity Incentive Plan Awards(2)						Estimated Future Payouts Under Equity Incentive Plan Awards(3)						All Other Stock Awards: Number of Shares of Stock or		Grant Date Fair Value of Stock and Option
Name	Grant Date(1)		Threshold ($)		Target ($)		Maximum ($)		Threshold (#)		Target (#)		Maximum (#)		Units(4) (#)		Awards ($)
Michael A. Brown		06/10/15		600,000		1,500,000		3,000,000		—		—		—		143,758		3,417,846
		06/10/15								167,718		335,436		669,194		—		9,067,506
Thomas J. Seifert		06/10/15		100,800		720,000		2,016,000		—		—		—		71,879		1,708,923
		06/10/15								53,909		107,819		215,098				2,914,563
Balaji Yelamanchili		06/10/15		122,500		875,000		2,450,000		—		—		—		79,866		1,898,814
		06/10/15								59,899		119,799		238,999				3,238,407
Scott C. Taylor		06/10/15		58,206		415,758		1,164,121		—		—		—		47,919		1,139,274
		06/10/15								35,939		71,879		143,398				1,943,033
Francis C. Rosch		06/10/15		56,492		403,515		1,129,842		—		—		—		79,866		1,898,814
		06/10/15								59,899		119,799		238,999				3,238,407

(1)	Represents grant date of stock awards.

(2)	Represents threshold, target and maximum payouts with respect to each applicable metric under the FY16 Executive Annual Incentive Plans.

(3)

The amounts shown in these rows reflect, in share amounts, the threshold, target, and maximum potential eligible shares to be earned (based on performance for the fiscal 2016 period) at the end of fiscal 2017 and fiscal 2018, based on, and subject to further adjustment as a result of, the achievement of the TSR ranking for our company as compared to the S&P 500, as further described in the CD&A section beginning on page 13. In June 2015 all named executive officers were awarded a PRU under the 2013 Equity Incentive Plan, eligible to be earned if we achieve at least 70% of the target level non-GAAP EPS performance, with a threshold award equal to 50% of the target eligible shares and a maximum award equal to 200% of the target eligible shares. For fiscal 2016, the Compensation Committee determined that we achieved 88.7% of our non-GAAP EPS target under the PRUs, resulting in 81.2% of the target eligible shares becoming eligible to be earned based on achievement of the TSR performance goals under the PRUs. Pursuant to the terms of these awards, each named executive officer will be eligible to receive at least half of the eligible shares if he remains employed by us through the last day of fiscal 2018 even if we fail to achieve those TSR performance goals, and could receive up to 150% of such shares, depending upon the degree to which we achieve of those goals and the same employment condition is met. For additional detail on the grant date fair value of the PRUs, see footnote 2 to the Summary Compensation Table, above.

(4)	This RSU grant was granted under 2013 Equity Incentive Plan, is settled in shares on the vesting date and vests: 30% to vest approximately 1 year from grant date, 30% to vest approximately 2 years from grant date. The remaining 40% will vest approximately 3 years from grant date.

For a summary of the terms of the FY16 Executive Annual Incentive Plans, see “Compensation Discussion & Analysis (CD&A) — Compensation Components — Executive Annual Incentive Plans” above. Details of acceleration of the equity awards described are disclosed under “Compensation Discussion & Analysis (CD&A) — Other Benefits — Change in Control and Severance Arrangements” above and “Potential Payments Upon Termination or Change in Control” below.

The following table shows for the fiscal year ended April 1, 2016, certain information regarding outstanding equity awards at fiscal year end for our named executive officers.

Outstanding Equity Awards At Fiscal Year-End 2016


	Option Awards									Stock Awards
Name	Grant Date		Number of Securities Underlying Unexercised Options (#) Exercisable		Number of Securities Underlying Unexercised Options (#) Unexercisable	Option Exercise Price ($)		Option Expiration Date		Number of Shares or Units of Stock That Have Not Vested (#)			Market Value of Shares or Units of Stock That Have Not Vested ($)*		Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights that Have Not Yet Vested (#)			Equity Incentive Plan Awards: Value of Unearned Shares, Units or Other Rights that Have Not Yet Vested ($)*
Michael A. Brown		9/24/2014									103,415	(1)		1,903,870		433,735	(2)		7,985,061
		6/10/2015									143,758	(3)		2,646,585		272,374	(4)		5,014,405
Thomas J. Seifert		6/10/2014									49,649	(5)		914,038		124,939	(2)		2,300,127
		6/10/2014									23,244	(6)		427,922
		6/10/2015									71,879	(7)		1,323,292		87,549	(4)		1,611,777
Balaji Yelamanchili		12/10/2014									82,808	(8)		1,524,495
		6/10/2015									79,866	(9)		1,470,333		97,276	(4)		1,790,851
Scott C. Taylor		6/10/2010		72,000			10.44		6/10/2017
		5/10/2012									6,875	(10)		126,569
		5/20/2013									12,270	(11)		225,891
		2/10/2014									21,662	(12)		398,797
		6/10/2014									27,892	(13)		513,492		70,190	(2)		1,292,198
		6/10/2014									3,173	(14)		58,415
		6/10/2015									47,919	(15)		882,189		58,365	(4)		1,074,500
Francis C. Rosch		9/10/2010		28,000			10.86		9/10/2017
		6/10/2011		40,000			14.50		6/10/2018
		5/10/2012									4,166	(16)		76,696
		7/10/2012									2,500	(17)		46,025
		5/20/2013									10,225	(18)		188,242
		6/10/2013									4,176	(19)		76,880
		10/10/2013									19,867	(20)		365,751
		2/10/2014									21,662	(12)		398,797
		6/10/2014									27,892	(13)		513,492		70,190	(2)		1,292,198
		6/10/2015									79,866	(9)		1,470,333		97,276	(4)		1,790,851

*	The market value of the equity awards that have not vested is calculated by multiplying the number of units that have not vested by the closing price of our common stock on April 1, 2016, which was $18.41.

(1)	44,321 shares to vest on 9/1/2016 and 59,094 shares to vest on 9/1/2017.

(2)

Vests on 3/31/2017 based on, and subject to further adjustment as a result of, the achievement of the TSR ranking for our company as compared to the S&P 500. The number of shares and the payout value for the fiscal 2015 PRUs reflect the target potential payout which represents 98.3% of the target number of PRUs. Each PRU is subject to the Compensation Committee’s certification when approving the settlement thereof.

(3)	43,128 shares to vest on 6/1/2016, 43,127 shares to vest on 6/1/2017, and 57,503 shares to vest on 6/1/2018.

(4)

Vests on 3/30/2018 based on, and subject to further adjustment as a result of, the achievement of the TSR ranking for our company as compared to the S&P 500. The number of shares and the payout value for the fiscal 2016 PRUs set forth above reflect the target potential payout which represents 81.2% of the target number of PRUs. Each PRU is subject to the Compensation Committee’s certification when approving the settlement thereof.

(5)	16,550 shares to vest on 6/1/2016, 16,550 shares to vest on 6/1/2017, and 16,549 shares to vest on 6/1/2018.

(6)	11,622 shares to vest on 6/1/2016, 5,811 shares to vest on 6/1/2017, and 5,811 shares to vest on 6/1/2018.

(7)	21,564 shares to vest on 6/1/2016, 21,564 shares to vest on 6/1/2017, and 28,751 shares to vest on 6/1/2018.

(8)	41,404 shares to vest on 12/1/2016, and 41,404 shares to vest on 12/1/2017.

(9)	23,960 shares to vest on 6/1/2016, 23,960 shares to vest on 6/1/2017, and 31,946 shares to vest on 6/1/2018.

(10)	6,875 shares to vest on 6/1/2016.

(11)	6,135 shares to vest on 6/1/2016, and 6,135 shares to vest on 6/1/2017.

(12)	10,831 shares to vest on 3/1/2017, and 10,831 shares to vest on 3/1/2018.

(13)	9,298 shares to vest on 6/1/2016, 9,297 shares to vest on 6/1/2017, and 9,297 shares to vest on 6/1/2018.

(14)	3,173 shares to vest on 6/1/2016.

(15)	14,376 shares to vest on 6/1/2016, 14,376 shares to vest on 6/1/2017, and 19,167 shares to vest on 6/1/2018.

(16)	4,166 shares to vest on 6/1/2016.

(17)	2,500 shares to vest on 6/1/2016.

(18)	5,113 shares to vest on 6/1/2016, and 5,112 shares to vest on 6/1/2017.

(19)	2,088 shares to vest on 6/1/2016, and 2,088 shares to vest on 6/1/2017.

(20)	9,934 shares to vest on 9/1/2016, and 9,933 shares to vest on 9/1/2017.

The following table shows for the fiscal year ended April 1, 2016, certain information regarding option exercises and stock vested during the last fiscal year with respect to our named executive officers:

Option Exercises and Stock Vested in Fiscal 2016


	Option Awards				Stock Awards
Name	Number of Shares Acquired on Exercise (#)		Value Realized on Exercise ($)		Number of Shares Acquired on Vesting (#)		Value Realized on Vesting ($)
Michael A. Brown		—		—		44,321		883,318
Thomas J. Seifert		—		—		16,550		408,702
Balaji Yelamanchili		—		—		138,014		2,724,396
Scott C. Taylor		26,000		183,820		51,343		1,099,022
Francis C. Rosch		—		—		56,457		1,198,154

Non-Qualified Deferred Compensation in Fiscal 2016

In fiscal 2016, certain management employees on our U.S. payroll with a base salary of $150,000 or greater, including each of the named executive officers, were eligible to participate in the Symantec Corporation Deferred Compensation Plan. The plan provides the opportunity for participants to defer up to 75% of base salary and 100% of variable pay each year. Variable pay includes all bonus and commission payments. Deferral elections must be made prior to the beginning of a calendar year and cannot be revoked as of the day immediately prior to commencement of that year. The plan is “unfunded” and all deferrals are general assets of Symantec. Amounts deferred by each participant under the plan are credited to a bookkeeping account maintained on behalf of each participant. The bookkeeping account under the plan will then be adjusted based on the performance of the measurement funds that have been selected by the participant. The measurement funds available under the plan are substantially identical to the investment funds available under our 401(k) plan. Each participant may change their measurement fund selections on a daily basis. The plan requires that benefits accumulated in the bookkeeping accounts for each participant not meeting a 5-year service requirement to be distributed to the participant following his or her termination of employment with us for any reason. If a 5-year service requirement has been met, accumulated benefits will be distributed according to the participant’s designated payment election. The plan permits us to terminate the plan and make such a distribution in the event of a change in control of Symantec. We intend to take such action in the event of a change in control of Symantec.

None of our named executive officers participated in the Symantec Deferred Compensation Plan for the fiscal year ended April 1, 2016.

Potential Payments Upon Termination or Change-In-Control

Set forth below is a description of the plans and agreements that could result in potential payouts to our named executive officers in the case of their termination of employment and/or a change in control of Symantec.

Symantec Executive Retention Plan

In January 2001, the Board approved the Symantec Executive Retention Plan, to deal with employment termination resulting from a change in control of the Company. The plan was modified by the Board in July 2002, April 2006, June 2007, April 2012 and February 2016. Under the terms of the plan, all equity compensation awards (including, among others, stock options, RSUs and PRUs) granted by the Company to the Company’s Section 16(b) officers (including our named executive officers) would become fully vested (at target or to the extent of achievement for PRUs) and, if applicable, exercisable following a change in control of the Company (as defined in the plan) after which the officer’s employment is terminated without cause or constructively terminated by the acquirer within 12 months after the change in control. In the case of PRUs, PRUs will vest at target if the change in control occurs prior to the first performance period, will vest as to eligible shares if the change in control occurs following the first performance period but before achievement is determined with respect to the second performance period, and will vest as to the sum of the eligible shares determined to be earned for the second performance period plus 50% of the eligible shares if the change in control occurs following the second performance period but before achievement is determined with respect to the third performance period. Additionally, in accordance with the terms of the PRU award agreement, in the case that an executive’s employment with the Company terminates by reason of the executive’s death, total and permanent disability or an involuntary termination by the Company other than for cause (as defined in the award agreement) after the end of the first year

of the performance period but prior to the end of the third year of the performance period, then the executive will be entitled to payment of a prorated number of PRUs based on the number of months in the three-year performance period during with the executive was employed by the Company, provided that the Company’s performance met at least the threshold level of non-GAAP EPS performance during the first year of the performance period.

In April 2012, the Compensation Committee revised the plan to provide for the payment of a cash severance benefit for our named executive officers equal to one times such officer’s base salary and target payout under the Executive Annual Incentive Plan applicable to such named executive officer in the circumstances described above (i.e., following a change in control of the Company after which the officer’s employment is terminated without cause or constructively terminated by the acquirer within 12 months after the change in control.)

Symantec Executive Severance Plan

In April 2012, the Compensation Committee adopted the Symantec Executive Severance Plan to provide severance benefits to specified officers of Symantec, including our named executive officers. The executive officers must meet certain criteria in order to participate in the plan, including, among other criteria, (i) the executive officer was involuntarily terminated from active employment other than for cause (as defined in the plan); (ii) the executive officer was not terminated due to the sale of a business, part of a business, divestiture or spin-off and offered employment upon terms and conditions substantially identical to those in effect immediately prior to such sale, divestiture or spin-off; and (iii) the executive officer is not entitled to severance under any other plan, fund, program, policy, arrangement or individualized written agreement providing for severance benefits that is sponsored or funded by Symantec.

Under the terms of the plan, the executive officer will receive severance payments equal to one times the sum of his or her base salary in effect at the time of his or her involuntary termination. The executive officer will also receive a one-time bonus of $15,000, minus taxes and other legally required deductions. The executive officer is also entitled to receive six months of outplacement services, including counseling and guidance. The executive officer is solely responsible for all COBRA premiums for his or her continuation coverage.

In fiscal 2016, the Compensation Committee revised the plan to provide an additional payment equivalent to 75% of the executive officer’s prorated target incentive bonus under the Executive Annual Incentive Plan in effect for such fiscal year to the executive officer who was terminated in the second half of such fiscal year and was employed in good standing for a minimum of six (6) months prior to his or her termination date. This payment was added to standardize benefits to all of our executive officers and to be competitive with overall market practices.

Payment of severance payments, one-time bonus payment, outplacement services and 75% of the prorated target bonus under the Executive Annual Incentive Plan pursuant to the Symantec Executive Severance Plan is subject to the applicable executive officer returning a release of claims against Symantec.

Thomas J. Seifert

The following table summarizes the value of the payouts to Mr. Seifert pursuant to the Symantec Executive Retention Plan and the Symantec Executive Severance Plan, assuming a qualifying termination as of April 1, 2016:


	Severance Pay		RSU Vesting		PRU Vesting
Involuntary Termination Because of Market Conditions or Division Performance	$	1,279,200		—	$	1,807,126
Termination Without Cause or Constructive Termination Within 12 Months of a Change of Control	$	1,440,000	$	2,665,253	$	3,408,759
Termination Without Cause	$	1,279,200		—	$	1,807,126
Termination Due to Death or Disability		—		—	$	1,807,126

Balaji Yelamanchili

The following table summarizes the value of the payouts to Mr. Yelamanchili pursuant to the Symantec Executive Retention Plan and the Symantec Executive Severance Plan, assuming a qualifying termination as of April 1, 2016:


	Severance Pay		RSU Vesting		PRU Vesting
Involuntary Termination Because of Market Conditions or Division Performance	$	1,375,450		—	$	596,944
Termination Without Cause or Constructive Termination Within 12 Months of a Change of Control	$	1,575,000	$	2,994,828	$	1,790,851
Termination Without Cause	$	1,375,450		—	$	596,944
Termination Due to Death or Disability		—		—	$	596,944

Scott C. Taylor

The following table summarizes the value of the payouts to Mr. Taylor pursuant to the Symantec Executive Retention Plan and the Symantec Executive Severance Plan, assuming a qualifying termination as of April 1, 2016:


	Severance Pay		RSU Vesting		PRU Vesting
Involuntary Termination Because of Market Conditions or Division Performance	$	931,018		—	$	1,071,554
Termination Without Cause or Constructive Termination Within 12 Months of a Change of Control	$	1,020,000	$	2,205,352	$	2,084,030
Termination Without Cause	$	931,018		—	$	1,071,554
Termination Due to Death or Disability		—		—	$	1,071,554

Francis C. Rosch

The following table summarizes the value of the payouts to Mr. Rosch pursuant to the Symantec Executive Retention Plan and the Symantec Executive Severance Plan, assuming a qualifying termination as of April 1, 2016:


	Severance Pay		RSU Vesting		PRU Vesting
Involuntary Termination Because of Market Conditions or Division Performance	$	846,836		—	$	1,310,332
Termination Without Cause or Constructive Termination Within 12 Months of a Change of Control	$	945,000	$	3,136,217	$	2,800,382
Termination Without Cause	$	846,836		—	$	1,310,332
Termination Due to Death or Disability		—		—	$	1,310,332

Michael A. Brown

As discussed above, in connection with the CEO Transition and in consideration for the role Mr. Brown would play in connection with the CEO Transition, we entered into an amendment to Mr. Brown’s employment agreement on April 28, 2016 which governs the payouts to Mr. Brown upon certain termination scenarios (the “Brown Amended Agreement”). Under the Brown Amended Agreement, Mr. Brown is entitled to the cash severance and equity acceleration benefits to which he would have been entitled under his employment agreement, prior to its amendment, had he been involuntarily terminated or resigned for Good Reason (as defined in the Brown Amended Agreement), and provides that he will be entitled to receive his existing compensation through October 28, 2016, even if his employment terminates earlier. We anticipate Mr. Brown will be entitled to certain of these benefits upon the closing of the Blue Coat Acquisition, at which time he will cease to serve as our Chief Executive Officer. As set forth in the Brown Amended Agreement, the Symantec Executive Retention Plan and the Symantec Executive Severance Plan will apply to Mr. Brown.

Under the Brown Amended Agreement, upon (a) an involuntary termination of Mr. Brown’s employment by Symantec for any reason other than Cause (as defined therein), death or Disability (as defined therein), (b) Mr. Brown’s resignation for Good Reason (as defined therein), or (c) Mr. Brown’s otherwise automatic termination on October 28, 2016 under the Brown Amended Agreement, Mr. Brown shall be entitled to (u) a cash payment equal to three times (3x) his base salary and target bonus, (v) eligible family COBRA benefits for up to 18 months following his termination, (w) a pro-rated portion of his annual base salary between April 28, 2016 and October 28, 2016, (x) the prorated portion of Mr. Brown’s target bonus for fiscal 2017, (y) acceleration of vesting on Mr. Brown’s RSUs through October 28, 2016, and (z) vesting of any PRUs held by Mr. Brown pursuant to the applicable PRU agreement through October 28, 2016.

The following table summarizes the value of the payouts to Mr. Brown pursuant to the Symantec Executive Retention Plan and the Symantec Executive Severance Plan, assuming a qualifying termination as of April 1, 2016. The payouts below would be the same under the Brown Amended Agreement assuming the Brown Amended Agreement were in effect as of April 1, 2016:


	Severance Pay		COBRA Premiums		RSU Vesting		PRU Vesting
Involuntary Termination Because of Market Conditions or Division Performance	$	7,504,200		—		—	$	6,079,884
Termination Without Cause or Constructive Termination Within 12 Months of a Change of Control	$	5,000,000	$	37,521	$	4,550,455	$	11,252,744
Termination Without Cause	$	7,504,200	$	37,521		—	$	6,079,884
Termination Due to Death or Disability		—		—	$	4,550,455	$	6,079,884

Director Compensation

The following table provides information for fiscal year 2016 compensation for all of our non-employee directors:

Fiscal Year 2016 Director Compensation


Name	Fees Earned or Paid in Cash ($)(1)(2)			Stock Awards ($)(3)(4)			Total ($)
Frank E. Dangeard		85,014			234,986			320,000
Kenneth Y. Hao		3,984	(5)		—			3,984
Geraldine B. Laybourne		65,014			234,986			300,000
David L. Mahoney		95,014			234,986			330,000
Robert S. Miller		75,014			234,986	(6)		310,020
Anita M. Sands		70,014			234,986			305,000
Daniel H. Schulman		180,014			234,986			415,000
V. Paul Unruh		95,014			234,986			330,000
Suzanne M. Vautrinot		70,014			234,986			305,000

(1)

Non-employee directors receive an annual retainer fee of $50,000 plus an additional annual fee of $15,000 (Compensation Committee and Nominating and Governance Committee) or $20,000 (Audit Committee) for membership on each committee. The chair of each committee receives an additional annual fee of $15,000 (Nominating and Governance Committee) or $25,000 (Audit Committee and Compensation Committee).

(2)	Except for Mr. Hao, includes cash payout of $17.50 for fractional share from stock awards granted to each non-employee director.

(3)	Amounts shown in this column reflect the aggregate full grant date fair value calculated in accordance with FASC Topic 718 for awards granted during the fiscal year.

(4)	Each non-employee director other than Mr. Hao was granted 9,362 RSUs on May 19, 2015, with a per share fair value of $25.10 and an aggregate grant date fair value of $234,986.

(5)	Mr. Hao joined the Symantec Board on March 4, 2016 and received a pro-rated portion of the $50,000 annual cash retainer fee for his service for fiscal 2016. Mr. Hao did not receive an RSU grant for his service during fiscal 2016.

(6)

In lieu of cash, Mr. Miller received 100% of his annual retainer fee of $50,000 in the form of our common stock. Accordingly, pursuant to the terms of the 2000 Director Equity Incentive Plan, he was granted 1,992 shares at a per share fair value of $25.10 and an aggregate grant date fair value of $49,992. The balance of his fee was paid in cash as reported in the “Fees Earned or Paid in Cash” column in the table above.

The policy of the Board is that compensation for independent directors should be a mix of cash and equity-based compensation. Symantec does not pay employee directors for Board service in addition to their regular employee compensation. Independent directors may not receive consulting, advisory or other compensatory fees from the Company. The Compensation Committee, which consists solely of independent directors, has the primary responsibility to review and consider any revisions to directors’ compensation.

Director Stock Ownership Guidelines: Prior to fiscal 2017, the Compensation Committee has maintained the following stock ownership guidelines to better align our directors’ interests with those of our stockholders:

	•		Directors must maintain a minimum holding of 10,000 shares of Company stock;

	•		New directors will have three years to reach the minimum holding level; and

	•		Notwithstanding the foregoing, directors may sell enough shares to cover their income tax liability on vested grants.

Effective April 2, 2016, the Compensation Committee instituted the following revised stock ownership guidelines for our non-employee directors to better align our directors’ interests with those of our stockholders:

	•		Directors must maintain a minimum holding of Company stock with a fair market value equal to ten times (10x) such director’s total annual cash retainer;

	•		In the event the annual retainer (or any portion thereof) is paid to a non-employee director in equity instead of cash, the value of such annual retainer for purposes of calculating the minimum holding requirement means the grant date fair value of the annual equity award (or applicable portion thereof);

	•		New directors will have three years to reach the minimum holding level; and

	•		Notwithstanding the foregoing, directors may sell enough shares to cover their income tax liability on vested grants.

Annual Fees: In accordance with the recommendation of the Compensation Committee, the Board determined the non-employee directors’ compensation for fiscal year 2016 as follows:

	•		$50,000 annual cash retainer

	•		$15,000 annual fee for committee membership ($20,000 for Audit membership)

	•		$25,000 annual fee for chairing a committee of the Board ($15,000 for chairing the Nominating and Governance Committee)

	•		$100,000 annual fee for the Lead Independent Director/Independent Chairman

The payment of the annual cash retainer is subject to the terms of the 2000 Director Equity Incentive Plan, as amended, which allows directors to choose to receive common stock in lieu of cash for all or a portion of the retainer payable to each director for serving as a member. We pay the annual retainer fee and any additional annual fees to each director at the beginning of the fiscal year. Directors who join the Company after the beginning of the fiscal year receive a prorated cash payment in respect of their annual retainer fee and fees. These payments are considered earned when paid. Accordingly, we do not require them to be repaid in the event a director ceases serving in the capacity for which he or she was compensated.

Annual Equity Awards. Pursuant to a Non-Employee Director Grant Policy adopted by our Board, each non-employee member of the Board receives an annual award of fully-vested restricted stock under the 2013 Equity Incentive Plan having a fair market value on the grant date equal to a pre-determined dollar value, which was $235,000. The restricted stock awards granted for fiscal year 2016 were granted on May 19, 2015 and are fully vested. Effective for fiscal 2017, the value of the restricted stock award under this policy was increased to $275,000.

Symantec stock ownership information for each of our directors is shown under the heading “Security Ownership of Certain Beneficial Owners and Management” in Item 12 of this annual report.

Previous: Item 10. Directors, Executive Officers and Corporate Governance · Next: Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 11. Executive Compensation

Item 11. Executive Compensation

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