DEF 14A 1 tm2110167-2_def14a.htm DEF 14A tm2110167-2_def14a - none - 13.0625648s
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934
(Amendment No.      )
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Preliminary Proxy Statement

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Soliciting Material under §240.14a-12
FireEye, Inc.
(Name of Registrant as Specified In Its Charter)
   
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FIREEYE, INC.
601 McCarthy Blvd.
Milpitas, California 95035
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
To Be Held at 9:00 a.m. Pacific Time on Friday, June 11, 2021
Dear FireEye Stockholder:
You are cordially invited to attend the 2021 annual meeting of stockholders (the “Annual Meeting”) of FireEye, Inc., a Delaware corporation (“FireEye”). The Annual Meeting will be held in a virtual meeting format only with no physical location on Friday, June 11, 2021 at 9:00 a.m. Pacific Time, for the following purposes, as more fully described in the accompanying proxy statement:
1.
To elect three Class II directors to serve until the 2024 annual meeting of stockholders and until their successors are elected and qualified;
2.
To ratify the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2021;
3.
To conduct an advisory vote to approve the compensation of our named executive officers for our fiscal year ended December 31, 2020, as described in the proxy statement; and
4.
To transact such other business as may properly come before the Annual Meeting or any adjournments or postponements thereof.
Our board of directors has fixed the close of business on April 13, 2021 as the record date for the Annual Meeting. Only stockholders of record on April 13, 2021 are entitled to notice of and to vote at the Annual Meeting. Further information regarding voting rights and the matters to be voted upon is presented in the accompanying proxy statement.
On or about April 27, 2021, we expect to mail to our stockholders a Notice of Internet Availability of Proxy Materials (the “Notice”) containing instructions on how to access our proxy statement and our annual report. The Notice provides instructions on how to vote via the Internet or by telephone and includes instructions on how to receive a paper copy of our proxy materials by mail. The accompanying proxy statement and our annual report can be accessed directly at the Internet address listed on the Notice.
The Annual Meeting will be hosted in a virtual format only online via live webcast. You will not be able to attend the Annual Meeting in person. If your FireEye shares are held in your own name in the records of FireEye’s transfer agent, American Stock Transfer & Trust Company, LLC (“AST”) (i.e., you are a stockholder of record), you will be able to attend and participate in the Annual Meeting online, vote your shares electronically at the Annual Meeting and submit your questions prior to and during the Annual Meeting by visiting https://web.lumiagm.com/287951276 and entering both the 11-digit control number previously provided to you in your proxy materials and the meeting password. The password for the meeting is fireeye2021. If you are a stockholder of record and you have misplaced your 11-digit control number, please call AST at (800) 937-5449.
If your shares are held in “street name” through a bank, broker or other nominee, you must register in advance in order to attend the Annual Meeting. To register, obtain a “legal proxy” from the bank, broker or other nominee that is the record holder of your shares. Then submit the legal proxy, along with your name and email address, to AST to receive an 11-digit control number that may be used to access the virtual Annual Meeting website provided above. Requests for registration and submission of legal proxies should be labeled as “Legal Proxy” and must be received by AST no later than 5:00 p.m. Eastern Time on June 1, 2021. Submit your registration request and legal proxy by: (1) email to proxy@astfinancial.com; (2) facsimile to 718-765-8730, or (3) mail to American Stock Transfer & Trust Company, LLC, Attn: Proxy Tabulation Department, 6201 15th Avenue, Brooklyn, NY 11219. Obtaining a legal proxy may take several days and you are advised to register as far in advance as possible. Once you have obtained your 11-digit control number from AST, please follow the steps set forth above for stockholders of record to attend the Annual Meeting.
 

 
YOUR VOTE IS IMPORTANT.   Whether or not you plan to attend the Annual Meeting, we urge you to submit your vote via the Internet, telephone or mail as soon as possible so that your shares can be voted at the Annual Meeting in accordance with your instructions.
Thank you for your continued support of FireEye.
By order of the Board of Directors,
[MISSING IMAGE: sg_kevinrmandia-bw.jpg]
Kevin R. Mandia
Chief Executive Officer
Milpitas, California
April 27, 2021
 

 
TABLE OF CONTENTS
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PROXY SUMMARY
YOUR VOTE IS IMPORTANT
This proxy summary highlights information contained within this proxy statement. You should read the entire proxy statement carefully and consider all information before voting. Page references are supplied to help you find further, more detailed information within the proxy statement.
VOTE RECOMMENDATIONS AND RATIONALE
Voting Matter
Board Vote
Recommendation
Proposal #1: Election of Class II Directors (page 34)
Our Board of Directors and our Nominating and Corporate Governance Committee believe the three director nominees possess the skills and experience to effectively monitor performance, provide oversight, and advise management on our long-term business strategy.
FOR
Proposal #2: Ratification of Appointment of Independent Registered Public Accounting Firm (page 35)
Our Board of Directors and our Audit Committee believe that the continued retention of Deloitte & Touche LLP for the fiscal year ending December 31, 2021 is in the best interests of the Company and its stockholders. Although not required by our bylaws, stockholders are asked to ratify the appointment of Deloitte & Touche LLP as a matter of good corporate governance.
FOR
Proposal #3: Advisory Vote to Approve Named Executive Officer Compensation (page 37)
Our 2020 executive compensation program demonstrates the continued evolution of our “pay for performance” philosophy, and reflects industry standards and the intense competition for executive talent in the San Francisco Bay Area. The changes we have made to our executive compensation program reflect feedback received through our ongoing stockholder outreach and investor communications programs.
FOR
FISCAL 2020 BUSINESS HIGHLIGHTS
In 2020, we continued our evolution from a pioneer in advanced security control products to a leading provider of a comprehensive controls-agnostic security platform that blends our innovative technologies, threat intelligence, and expertise gained on the front lines of cyber conflict. In spite of the many challenges of the year, we introduced innovation across our portfolio of products and solutions while continuing to generate growth and improved operating performance. The shift in our revenue mix to our strategic Platform, Cloud Subscription and Managed Services solutions accelerated through the year. Our services business, including our Mandiant incident response, red team engagements and strategic cybersecurity assessment services, remained strong as we pivoted to a remote delivery model in response to the COVID-19 pandemic. In October 2020, we launched Mandiant Advantage, our controls-agnostic threat management platform. In November 2020, we acquired Respond Software, Inc., an innovator in artificial intelligence-based extended detection and response (XDR) software. The Respond solution complements our validation software and further operationalizes our threat intelligence and expertise by automating cyber incident discovery and investigation. We believe the Mandiant Advantage and Respond offerings will be important growth drivers for our business in 2021 and beyond.
 
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Highlights of our 2020 financial performance included:

Revenue was $941 million, an increase of 6% compared to 2019. Revenue from our Platform, cloud subscription and managed services category increased 25% from 2019 and accounted for 32% of our revenue in 2020. Revenue from professional services increased 20% from 2019 and accounted for 23% of our revenue in 2020. Our Product and related subscription and support revenue decreased 10% from 2019 and accounted for 43% of our revenue in 2020, compared to 53% of our revenue in 2019. The decline in our Product and related subscription and support category reflects a decrease the sales of appliance-based cybersecurity solutions as customers migrated to virtual and cloud-based solutions.

Billings were $920 million, a decrease of 1% compared to 2019.* Billings from our Platform, cloud subscription, and managed services category increased 17% from 2019 and accounted for 36% of our billings in 2020. Billings for Professional services increased 10% from 2019 and accounted for 25% of our billings in 2020. Product and related subscription and support billings decreased 18% from 2019 and accounted for 39% of our billings in 2020, compared to 47% of our billings in 2019. Growth in our strategic Platform, cloud subscription and managed services category and Professional services categories continued to outpace growth in billings from Product and related subscription and support in 2020, reflecting our efforts to accelerate the transformation of our business.

Annualized recurring revenue (“ARR”) was $637 million at the end of 2020, an increase of 8% compared to the end of 2019. ARR for our Platform, cloud subscription and managed services category increased 20% from the end of 2019 to $340 million at the end of 2020. ARR for our Product and related subscription and support category declined from the end of 2019 to $298 million at the end of 2020.

Non-GAAP operating income was $78 million, compared to $12 million in 2019, an increase of 557%. The increase in our non-GAAP operating profit compared to 2019 reflected our restructuring in the first half of the year to accelerate our transformation, as well as lower travel and facilities costs due to the COVID-19 pandemic. Our profitability improved through the year, and we achieved record operating profits in the second, third and fourth quarters. Fourth quarter non-GAAP operating income increased 83% from the fourth quarter of 2019 to a record $31 million.*

Cash flow generated by operations was $95 million, compared to cash flow generated by operations of $67 million in 2019. Free cash flow (a non-GAAP metric calculated as cash flow generated by operations less capital expenditures) was $69 million, compared to $22 million in 2019.*
 
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The charts below illustrate our quarterly performance in 2020 for our revenue, billings, ARR, non-GAAP operating profitability and cash flow metrics.
[MISSING IMAGE: tm2110167d2-bc_billingbw.jpg]
*
Billings, non-GAAP operating income and free cash flow are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is provided in Annex A included at the end of this proxy statement.
**
Annualized recurring revenue (ARR) represents the annualized revenue run-rate of active term licenses, subscriptions, and support contracts at the end of a reporting period.
CORPORATE GOVERNANCE
We believe that strong corporate governance strengthens board and management accountability, leads to better business performance and aligns the long-term interests of our management team with our stakeholders, including our stockholders, our customers and our employees. We adopted numerous corporate governance “best practices” before our initial public offering, and we have continued to enhance our governance practices consistent with the highest standards since then. The Board of Directors and Corporate Governance section begins on page 16 and describes our policies and practices in detail.
 
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Highlights of our current corporate governance policies and practices include:

100% independent committee members in Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee

Recognition of the importance of diverse viewpoints when nominating and evaluating directors

Separate Chairperson and CEO roles

Stock ownership requirements for directors and executive officers

Independent Chairperson

Adoption of formal Corporate Governance Guidelines and Code of Business Conduct and Ethics policies for directors, officers and employees

Regularly scheduled executive sessions for independent directors without management present.

Periodic review of committee charters and governance policies

Board risk oversight by full board and committees, including strategic, financial, business and operational, legal and compliance and reputational risks.

Active and ongoing stockholder outreach/engagement activities

Majority voting for election of directors

Director and executive officer succession planning
STOCKHOLDER ENGAGEMENT
We believe that effective corporate governance includes regular, constructive conversations with our stockholders on a broad range of governance and business topics, including business strategy and execution, board diversity and refreshment, executive compensation practices, risk oversight, sustainability, culture and human capital management, and we value our stockholders’ continued opinions and feedback. We are committed to maintaining an active dialogue to understand the priorities and concerns of our stockholders. In the last 12 months, as part of our ongoing stockholder engagement program, we participated in more than 250 virtual meetings with our institutional stockholders, during which we engaged in substantive discussions on our corporate strategy, financial performance, executive compensation, environmental, social and governance (ESG) initiatives, and the impact of the COVID-19 pandemic on our business. These discussions covered a variety of topics, including our compensation philosophy, the composition of our board of directors, our commitment to diversity and inclusion, and our strategies to accelerate our transformation and achieve and sustain profitable growth in the future.
Maintaining an active dialogue with our stockholders is consistent with our corporate values of transparency and accountability, and we intend to continue these efforts in the future.
CORPORATE RESPONSIBILITY
We believe that corporate citizenship and sustainable business practices go hand-in-hand with our mission to protect our customers from cyber threats. As an innovator and leader in the cybersecurity industry, we recognize that everything we do has an effect on the global economy, society, and the environment. Corporate citizenship, sustainability and diversity are embedded in our corporate values, which in turn define our corporate culture and guide decision-making at all levels within our organization.
Consistent with our values, we are constantly seeking new ways, both large and small, to engage our employees and improve our performance on environmental and social issues. We focus our efforts on:
1.
Enabling a safer cyber environment for our employees, our customers, and the global cyber community;
2.
Creating a diverse and inclusive corporate culture and workforce with high levels of engagement and a commitment to excellence; and
3.
Promoting responsible global citizenship.
 
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EXECUTIVE COMPENSATION
To succeed in the rapidly evolving and competitive cybersecurity industry, we must attract and retain a highly talented executive team. We designed our executive compensation program to foster a “pay for performance” environment that aligns the long term-interests of our executives with those of our stockholders.
In response to stockholder feedback, as well as the views expressed by the major proxy advisory firms, we have continued to revise and enhance our executive compensation program while remaining consistent with our stated compensation objectives and corporate values. For example, in response to our 2019 say-on-pay vote, as well as feedback from our stockholders received through our ongoing stockholder engagement efforts and commentary from the major proxy advisory firms in their annual compensation analysis and voting recommendations, we made the following changes to our 2020 executive compensation program:

For our 2020 annual cash incentive program, we added annualized recurring revenue (“ARR”) as an additional corporate performance measure. This change responded to specific feedback we received that we add ARR as a performance measure for our executive compensation program because investors generally place a higher relative value on companies with significant recurring revenues, and ARR aligns with how our customers are increasingly purchasing our solutions and services and how we are managing our business as we offer more and more solutions through subscriptions and services.

For time-based equity awards granted in 2020 to our existing executive officers, but not any time-based equity awards granted in 2020 to any new executive officers, we provided that the awards are scheduled to vest quarterly in 16 equal installments over four years. This differs from our prior practice where 25% of the awards were scheduled to vest after one year, with the remaining portion being scheduled to vest quarterly in 12 equal installments thereafter over the following three years. This change was to help make our “follow-on” time-based equity awards more competitive with the practices of our competitors and is consistent with the practices of many companies in our compensation peer group.
At our 2020 annual meeting of stockholders, our “say on pay” proposal received support from approximately 95% of the votes cast. As a result, we believe that our stockholders favorably viewed the structure of our executive compensation program. However, in response to feedback from our stockholders received through our ongoing stockholder engagement efforts, and due to competitive market conditions, we have made the following additional changes to our executive compensation program for 2021:

For the performance-based equity awards granted in 2021, we used the general framework that we used in 2020 except we replaced the billings performance measure with a revenue performance measure and equally weighted the revenue and non-GAAP operating income performance measures. The change in financial metrics responded to feedback we received that our revenue performance may be a better indicator than our billings performance for our progress on our transformation journey.

For our 2021 annual cash incentive program, we removed revenue as one of the corporate performance measures, since we added revenue as a corporate performance measure for the performance-based equity awards granted in 2021. The removal responded to specific feedback we received that we refrain from using the same performance measure for both our short-term and long-term incentive compensation programs.
 
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Our executive compensation program is designed to (1) allow us to attract and retain highly qualified executive talent, (2) motivate our executives to achieve our short-term and long-term objectives for growth and profitability, and (3) reflect a “pay for performance” philosophy that aligns the long-term interests of our executive officers with those of our stockholders. Highlights of our executive compensation policies and practices include:
What we do:
What we don’t do:

Provide for performance-based cash and equity incentives, with approximately 50% of total compensation “at risk,” based on achievement of corporate and individual performance measures

No “single trigger” change of control payments or benefits

Maintain a clawback policy for recovery of incentive compensation in the event of fraud or intentional misconduct

No tax gross-up for change in control payments or benefits

Maintain stock ownership guidelines for executive officers and non-employee directors

No perquisites or other personal benefits to executive officers unless they serve a sound business purpose

Maintain 100% independence of Compensation Committee members

No short sales, hedging or transactions involving derivatives of our securities by any FireEye personnel, and no pledging of stock ownership positions by any executive officers or non-employee directors

Regularly review target total direct compensation of executive officers relative to peer companies of similar size and with similar operating characteristics

No strict benchmarking of compensation to a specific percentile of our peer group

Engage an independent compensation consultant to advise the Compensation Committee

No guaranteed incentive compensation, indefinite contracts, or excessive severance payments

Establish single and multi-year performance requirements that reflect our near- and long-term objectives of balanced growth, profitability and cash flow generation

No repricing or reissuance of stock options without stockholder approval

Require multi-year vesting periods for a significant portion of equity awards, consistent with current market practices and long-term value creation goals

No pension, defined benefit retirement plans or non-qualified deferred compensation plans

Align long-term interests of executive officers and stockholders and encourage value creation with a high percentage of target total direct compensation in the form of performance-based and time-based equity awards
 
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The charts below show the components of the 2020 target total direct compensation for our CEO and illustrate the mix of “at-risk” and performance-based pay. 2020 target total direct compensation for our other Named Executive Officers, as a group, was similar to that of our CEO with respect to the ratio of “at risk” to total compensation and the weighting of individual and corporate performance objectives.
[MISSING IMAGE: tm2110167d2-pc_ceoneobw.jpg]
* Average for all of our Named Executive Officers as a group.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This proxy statement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements are all statements (and their underlying assumptions) included in this proxy statement that refer, directly or indirectly, to future events or outcomes and, as such, are inherently not factual, but rather reflect only our current projections for the future. Consequently, forward-looking statements usually include words such as “estimate,” “intend,” “plan,” “predict,” “seek,” “may,” “will,” “should,” “would,” “could,” “anticipate,” “expect,” “believe,” or similar words, in each case, intended to refer to future events or circumstances. Our future results may differ materially from our past results and from those projected in the forward-looking statements due to various uncertainties and risks, including, but not limited to, those included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K, as filed with the SEC on February 26, 2021. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based upon information available to us at this time. These statements are not guarantees of future performance. We disclaim any obligation to update information in any forward-looking statement. Actual results could vary from our forward-looking statements due to the factors described in our Annual Report on Form 10-K, as well as other important factors.
 
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FIREEYE, INC.
PROXY STATEMENT
FOR 2021 ANNUAL MEETING OF STOCKHOLDERS
To Be Held at 9:00 a.m. Pacific Time on Friday, June 11, 2021
This proxy statement and the enclosed form of proxy are furnished in connection with the solicitation of proxies by our board of directors for use at our 2021 annual meeting of stockholders (the “Annual Meeting”), and any postponements, adjournments or continuations thereof. The Annual Meeting will be held on Friday, June 11, 2021 at 9:00 a.m. Pacific Time, in a virtual meeting format only with no physical location. The Notice of Internet Availability of Proxy Materials (the “Notice”) containing instructions on how to access this proxy statement and our annual report is first being mailed on or about April 27, 2021 to all stockholders entitled to receive notice of and to vote at the Annual Meeting.
QUESTIONS AND ANSWERS ABOUT THE ANNUAL MEETING
The information provided in the “question and answer” format below addresses certain frequently asked questions but is not intended to be a summary of all matters contained in this proxy statement. Please read the entire proxy statement carefully before voting your shares.
What matters am I voting on?
You will be voting on:

the election of three Class II directors to hold office until the 2024 annual meeting of stockholders and until their successors are elected and qualified;

a proposal to ratify the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2021;

an advisory vote to approve named executive officer compensation; and

any other business that may properly come before the Annual Meeting or any adjournments or postponements thereof.
How does our board of directors recommend that I vote?
Our board of directors recommends that you vote:

FOR the three nominees for election as Class II directors;

FOR the ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2021; and

FOR the approval, on an advisory basis, of named executive officer compensation.
Will there be any other items of business on the agenda?
If any other items of business or other matters are properly brought before the Annual Meeting, your proxy gives discretionary authority to the persons named on the proxy card with respect to those items of business or other matters. The persons named on the proxy card intend to vote the proxy in accordance with their best judgment. Our board of directors does not intend to bring any other matters to be voted on at the Annual Meeting, and we are not currently aware of any matters that may be properly presented by others for consideration at the Annual Meeting.
Who is entitled to vote at the Annual Meeting?
Holders of our common stock and our 4.5% Series A Convertible Preferred Stock (our “convertible preferred stock”) at the close of business on April 13, 2021, the record date for the Annual Meeting (the “Record Date”), are entitled to notice of and to vote at the Annual Meeting, or any postponement or adjournment of the Annual Meeting. As of the Record Date, there were 238,443,465 shares of our common
 
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stock outstanding and there were 400,000 shares of our convertible preferred stock outstanding which were convertable into 23,510,827 shares of our common stock. Each holder of our common stock is entitled to cast one vote per share on each matter to be voted upon. Each holder of our convertible preferred stock is entitled to vote on each matter to be presented at the annual meeting on an as converted basis equal to the number of shares of common stock into which each such share of convertible preferred stock is convertible on the Record Date. Our common stock and convertible preferred stock will vote together as a single class for all proposals at the Annual Meeting. Stockholders are not permitted to cumulate votes with respect to the election of directors.
Are there any requirements on how the holders of convertible preferred stock must vote?
Pursuant to the Blackstone Agreement (as defined elsewhere in this proxy statement) and the ClearSky Agreement (as defined elsewhere in this proxy statement) entered into in connection with the issuance and sale of our convertible preferred stock, for so long as Blackstone has the right to designate or nominate a director to the board of directors, Blackstone (as defined elsewhere in this proxy statement) and ClearSky (as defined elsewhere in this proxy statement) have agreed to take such action as may be required so that all of the shares of convertible preferred stock and shares of common stock issuable upon conversion of the convertible preferred stock, owned, directly or indirectly, of record or beneficially by Blackstone and ClearSky and entitled to vote are voted (a) in favor of our “say-on-pay” proposal and any proposal by us relating to equity compensation that has been approved by our board of directors or the compensation committee (or any successor committee, however denominated), (b) in favor of our proposal for ratification of the appointment of our independent registered public accounting firm and (c) in favor of any proposal by us for amendment of our organizational documents in a manner that does not have an adverse effect on the holders of convertible preferred stock to increase number of authorized shares of our capital stock. For additional information, see “Related Person Transactions” in this proxy statement.
What is the difference between holding shares as a stockholder of record and as a beneficial owner?
Stockholder of Record: Shares Registered in Your Name.   If, at the close of business on the Record Date, your shares were registered directly in your name with American Stock Transfer & Trust Company, LLC (“AST”), our transfer agent, then you are considered the stockholder of record with respect to those shares. As the stockholder of record, you have the right to grant your voting proxy directly to the individuals listed on the proxy card or to vote electronically at the Annual Meeting.
Beneficial Owners: Shares Registered in the Name of a Broker, Bank or Other Nominee.   If, at the close of business on the Record Date, your shares were held, not in your name, but rather in a stock brokerage account or by a bank or other nominee on your behalf, then you are considered the beneficial owner of shares held in “street name.” As the beneficial owner, you have the right to direct your broker, bank or other nominee how to vote your shares by following the voting instructions your broker, bank or other nominee provides. If you do not provide your broker, bank or other nominee with instructions on how to vote your shares, your broker, bank or other nominee may, in its discretion, vote your shares with respect to routine matters but may not vote your shares with respect to any non-routine matters. Please see “What if I do not specify how my shares are to be voted?” later in this section for additional information.
How do I attend the Annual Meeting?
Stockholders of Record: Shares Registered in Your Name.   If you were a holder of record of FireEye stock at the close of business on April 13, 2021 (i.e., your shares were held in your own name in the records of AST, FireEye’s transfer agent), you can attend the virtual Annual Meeting by visiting https://web.lumiagm.com/287951276 and entering both the 11-digit control number previously provided to you in your proxy materials and the meeting password. The password for the meeting is fireeye2021. If you are a stockholder of record and you have misplaced your 11-digit control number, please call AST at (800) 937-5449.
Beneficial Owners: Shares Registered in the Name of a Broker, Bank, or Other Nominee.   If you were a beneficial owner of FireEye stock at the close of business on April 13, 2021 (i.e., you held your shares in “street name” through an intermediary, such as a bank, broker or other nominee), you must register in advance in order to attend the Annual Meeting. To register, obtain a “legal proxy” from the bank, broker or other nominee that is the record holder of your shares. Then submit the legal proxy, along with your name and email address, to AST to receive an 11-digit control number that may be used to access the virtual Annual Meeting
 
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website provided above. Any control number that was previously provided with your proxy materials, likely a 16-digit number, will not provide access to the virtual Annual Meeting website. Requests for registration and submission of legal proxies should be labeled as “Legal Proxy” and must be received by AST no later than 5:00 p.m. Eastern Time on June 1, 2021. Submit your registration request and legal proxy by: (1) email to proxy@astfinancial.com; (2) facsimile to 718-765-8730, or (3) mail to American Stock Transfer & Trust Company, LLC, Attn: Proxy Tabulation Department, 6201 15th Avenue, Brooklyn, NY 11219. Obtaining a legal proxy may take several days and you are advised to register as far in advance as possible. Once you have obtained your 11-digit control number from AST, please follow the steps set forth above for stockholders of record to attend the Annual Meeting.
The virtual Annual Meeting website will be active one hour prior to the start of the Annual Meeting and stockholders are encouraged to log in to the virtual Annual Meeting website early. Only stockholders who have an 11-digit control number may attend and vote during the Annual Meeting. Stockholders experiencing technical difficulties accessing the Annual Meeting may visit https://go.lumiglobal.com/faq for assistance.
Why is this Annual Meeting being held virtually?
Our board of directors annually considers the appropriate format of our annual meeting of stockholders. As part of our effort to maintain a safe and healthy environment for our directors, members of management and stockholders who wish to attend the Annual Meeting, and in light of the COVID-19 pandemic, our board of directors believes that hosting a virtual meeting is in the Company’s and the stockholders’ best interests and enables increased stockholder attendance and participation during a time when many travel and gathering restrictions are in place and may limit attendance at the Annual Meeting. We believe that the virtual meeting format will provide stockholders a similar level of transparency to the traditional in-person meeting format and we will take steps to ensure such an experience.
How do I vote and what are the voting deadlines?
Stockholder of Record: Shares Registered in Your Name. If you are a stockholder of record, you can vote in one of the following ways:

You may vote via the Internet or by telephone.   To vote via the Internet or by telephone, follow the instructions provided in the Notice of Internet Availability of Proxy Materials. If you vote via the Internet or by telephone, you do not need to return a proxy card by mail. Internet and telephone voting are available 24 hours a day. Votes submitted through the Internet or by telephone must be received by 11:59 p.m. Eastern Time on June 10, 2021. Alternatively, you may request a printed proxy card by telephone at 888-Proxy-NA (888-776-9962) or 718-921-8562 (for international callers), over the Internet at https://us.astfinancial.com/OnlineProxyVoting/ProxyVoting/RequestMaterials, or by email at info@astfinancial.com.

You may vote by mail.   If you have received printed proxy materials by mail and would like to vote by mail, you need to complete, date and sign the proxy card that accompanies this proxy statement and promptly mail it to the tabulation agent in the enclosed postage-paid envelope so that it is received no later than June 10, 2021. You do not need to put a stamp on the enclosed envelope if you mail it from within the United States. The persons named in the proxy card will vote the shares you own in accordance with your instructions on the proxy card you mail. If you return the proxy card, but do not give any instructions on a particular matter to be voted on at the Annual Meeting, the persons named in the proxy card will vote the shares you own in accordance with the recommendations of our board of directors. Our board of directors recommends that you vote FOR the three nominees for election as Class II directors, FOR the ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2021, and FOR the approval, on an advisory basis, of named executive officer compensation.
 
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You may vote at the Annual Meeting.   If you have not voted your shares in advance of the Annual Meeting, or if you wish to change your vote at the Annual Meeting, you will be able to vote your shares electronically during the Annual Meeting by clicking on the link on the virtual Annual Meeting website. Whether or not you plan to attend the Annual Meeting, you are encouraged to vote your shares prior to the meeting by one of the methods described in the proxy materials for the meeting. If you have already voted, you do not need to vote again.
Beneficial Owners: Shares Registered in the Name of a Broker, Bank or Other Nominee.   If you are the beneficial owner of shares held of record by a broker, bank or other nominee, you will receive voting instructions from your broker, bank or other nominee. You must follow the voting instructions provided by your broker, bank or other nominee in order to instruct your broker, bank or other nominee how to vote your shares. The availability of Internet and telephone voting options will depend on the voting process of your broker, bank or other nominee. As discussed above, if you wish to attend the Annual Meeting and vote your shares during the Annual Meeting, you must follow the steps to attend the Annual Meeting and obtain an 11-digit control number from AST (please see “How do I attend the Annual Meeting?” above).
Can I change my vote or revoke my proxy?
Stockholder of Record: Shares Registered in Your Name.   If you are a stockholder of record, you may revoke your proxy or change your proxy instructions at any time before your proxy is voted at the Annual Meeting by:

entering a new vote by Internet or telephone;

signing and returning a new proxy card with a later date;

delivering a written revocation to our Secretary at FireEye, Inc., 601 McCarthy Blvd., Milpitas, California 95035, by 11:59 p.m. Eastern Time on June 10, 2021; or

attending the Annual Meeting and voting electronically.
Beneficial Owners: Shares Registered in the Name of a Broker, Bank or Other Nominee.   If you are the beneficial owner of your shares, you must contact the broker, bank or other nominee holding your shares and follow their instructions to change your vote or revoke your proxy.
What is the effect of giving a proxy?
Proxies are solicited by and on behalf of our board of directors. The persons named in the proxy have been designated as proxy holders by our board of directors. When a proxy is properly dated, executed and returned, the shares represented by the proxy will be voted at the Annual Meeting in accordance with the instructions of the stockholder. If no specific instructions are given, however, the shares will be voted in accordance with the recommendations of our board of directors. If any matters not described in this proxy statement are properly presented at the Annual Meeting, the proxy holders will use their own judgment to determine how to vote your shares. If the Annual Meeting is postponed or adjourned, the proxy holders can vote your shares on the new meeting date, unless you have properly revoked your proxy, as described above.
What if I do not specify how my shares are to be voted?
Stockholder of Record: Shares Registered in Your Name.   If you are a stockholder of record and you submit a proxy but you do not provide voting instructions, your shares will be voted:

FOR the three nominees for election as Class II directors (Proposal No. 1);

FOR the ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2021 (Proposal No. 2);

FOR the approval, on an advisory basis, of named executive officer compensation (Proposal No. 3); and

In the discretion of the named proxy holders regarding any other matters properly presented for a vote at the Annual Meeting.
 
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Beneficial Owners: Shares Registered in the Name of a Broker, Bank or Other Nominee.   If you are a beneficial owner and you do not provide your broker, bank or other nominee that holds your shares with voting instructions, then your broker, bank or other nominee will determine if it has discretion to vote on each matter. Brokers do not have discretion to vote on non-routine matters. Proposal No. 1 (election of directors) and Proposal No. 3 (advisory vote to approve named executive officer compensation) are non-routine matters, while Proposal No. 2 (ratification of appointment of independent registered public accounting firm) is a routine matter. As a result, if you do not provide voting instructions to your broker, bank or other nominee, then your broker, bank or other nominee may not vote your shares with respect to Proposal No. 1 and Proposal No. 3, which would result in a “broker non-vote,” but your broker, bank or other nominee may, in its discretion, vote your shares with respect to Proposal No. 2. For additional information regarding broker non-votes, see “What are the effects of abstentions and broker non-votes?” below.
What is a quorum?
The presence at the Annual Meeting (in person via attendance at the Annual Meeting or by proxy) of the holders of a majority of the voting power of our common stock and convertible preferred stock outstanding on the Record Date will constitute a quorum. A quorum is required for the Annual Meeting to be properly held under our bylaws and Delaware law. If there is no quorum, the holders of a majority of the voting power of the shares of our common stock and convertible preferred stock present at the Annual Meeting (in person via attendance at the Annual Meeting or by proxy) may adjourn the meeting to a later date or time.
What are the effects of abstentions and broker non-votes?
An abstention represents a stockholder’s affirmative choice to decline to vote on a proposal. If a stockholder indicates on its proxy card that it wishes to abstain from voting its shares, or if a broker, bank or other nominee holding its customers’ shares of record causes abstentions to be recorded for shares, these shares will be considered present and entitled to vote at the Annual Meeting. As a result, abstentions will be counted for purposes of determining the presence or absence of a quorum and will also count as votes against a proposal in cases where approval of the proposal requires the affirmative vote of a majority of the shares present and entitled to vote at the Annual Meeting (e.g., Proposal No. 2 and Proposal No. 3). However, because the outcome of Proposal No. 1 (election of directors) will be determined by the affirmative vote of shares representing a majority of the votes cast for each Class II director nominee, abstentions will have no impact on the outcome of such proposal as long as a quorum exists given abstentions are not considered as votes cast.
A broker non-vote occurs when a broker, bank or other nominee holding shares for a beneficial owner does not vote on a particular proposal because the broker, bank or other nominee does not have discretionary voting power with respect to such proposal and has not received voting instructions from the beneficial owner of the shares. Broker non-votes will be counted for purposes of calculating whether a quorum is present at the Annual Meeting but will not be counted for purposes of determining the number of votes cast. Therefore, a broker non-vote will make a quorum more readily attainable but will not otherwise affect the outcome of the vote on any proposal.
How many votes are needed for approval of each proposal?

Proposal No. 1: To be elected, each Class II director nominee must receive the affirmative vote of shares representing a majority of the votes cast, meaning the number of votes “FOR” that nominee must exceed the number of votes “AGAINST” that nominee. You may vote FOR, AGAINST or ABSTAIN with respect to each nominee. If you ABSTAIN from voting on the election of any nominee, the abstention will have no effect on the election of that nominee.

Proposal No. 2: The ratification of the appointment of Deloitte & Touche LLP requires an affirmative vote of a majority of the shares of our common stock present in person or by proxy at the Annual Meeting and entitled to vote thereon to be approved. You may vote FOR, AGAINST or ABSTAIN. If you ABSTAIN from voting on Proposal No. 2, the abstention will have the same effect as a vote AGAINST the proposal.
 
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Proposal No. 3: The approval, on an advisory basis, of named executive officer compensation requires an affirmative vote of a majority of the shares of our common stock present in person or by proxy at the Annual Meeting and entitled to vote thereon to be approved. You may vote FOR, AGAINST or ABSTAIN. If you ABSTAIN from voting on Proposal No. 3, the abstention will have the same effect as a vote AGAINST the proposal.
What happens if a director nominee who is duly nominated does not receive a majority vote?
Our board of directors only nominates for election candidates who have tendered, in advance of such nomination, an irrevocable, conditional resignation that will be effective only upon both (i) the failure to receive the required vote at the next stockholders’ meeting at which they face reelection and (ii) our board of directors’ acceptance of such resignation. In an uncontested election, our board of directors, after taking into consideration the recommendation of our nominating and corporate governance committee, will determine whether or not to accept the pre-tendered resignation of any nominee for director who receives a greater number of votes “AGAINST” such nominee’s election than votes “FOR” such nominee’s election. In the event of a contested election, the director nominee who receives the largest number of votes cast “FOR” his or her election will be elected as director.
How are proxies solicited for the Annual Meeting and who is paying for such solicitation?
Our board of directors is soliciting proxies for use at the Annual Meeting by means of the proxy materials. We will bear the entire cost of proxy solicitation, including the preparation, assembly, printing, mailing and distribution of the proxy materials. Copies of solicitation materials will also be made available upon request to brokers, banks and other nominees to forward to the beneficial owners of the shares held of record by such brokers, banks or other nominees. The original solicitation of proxies may be supplemented by solicitation by telephone, electronic communication, or other means by our directors, officers and employees. No additional compensation will be paid to these individuals for any such services, although we may reimburse such individuals for their reasonable out-of-pocket expenses in connection with such solicitation. We may also reimburse brokerage firms, banks and other agents for the cost of forwarding proxy materials to beneficial owners. We have hired Alliance Advisors, LLC (“Alliance Advisors”) to help us solicit proxies. We expect to pay Alliance Advisors a solicitation fee of $13,500 plus reimbursement of reasonable out-of-pocket expenses.
If you choose to access the proxy materials and/or vote over the Internet, you are responsible for Internet access charges you may incur. If you choose to vote by telephone, you are responsible for telephone charges you may incur.
Why did I receive a Notice of Internet Availability of Proxy Materials instead of a full set of proxy materials?
In accordance with the rules of the Securities and Exchange Commission (the “SEC”), we have elected to furnish our proxy materials, including this proxy statement and our annual report, primarily via the Internet. Stockholders may request to receive proxy materials in printed form by mail or electronically by e-mail by following the instructions contained in the Notice. We encourage stockholders to take advantage of the availability of our proxy materials on the Internet to help reduce the environmental impact of our annual meetings of stockholders.
What does it mean if I received more than one Notice?
If you receive more than one Notice, your shares may be registered in more than one name or in different accounts. Please follow the voting instructions on each Notice to ensure that all of your shares are voted.
Is my vote confidential?
Proxy instructions, ballots and voting tabulations that identify individual stockholders are handled in a manner that protects your voting privacy. Your vote will not be disclosed either within FireEye or to third parties, except as necessary to meet applicable legal requirements, to allow for the tabulation of votes and certification of the vote, or to facilitate a successful proxy solicitation.
 
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Will members of the board of directors attend the Annual Meeting?
We encourage, but do not require, our board members to attend the Annual Meeting.
Will I be able to ask questions at the Annual Meeting?
Stockholders who attend the Annual Meeting will have an opportunity to submit questions electronically during the question and answer period after the conclusion of the formal business of the meeting. Questions that are substantially similar may be grouped and answered together to avoid repetition.
Will the list of stockholders of record be available for inspection?
Access to the list of stockholders of record entitled to vote at the virtual Annual Meeting for any purpose germane to the virtual Annual Meeting will be available for inspection, during the 10-day period immediately prior to the date of the virtual Annual Meeting, by any stockholder of record upon request by emailing Investor.Relations@fireeye.com with “Annual Meeting Stockholder List” in the subject line. Stockholders submitting any such request must include their 11-digit control number referred to above. In addition, during the Annual Meeting, the list of stockholders will be available at https://web.lumiagm.com/287951276 to stockholders who attend the virtual Annual Meeting.
I share an address with another stockholder, and we received only one paper copy of the proxy materials. How may I obtain an additional copy of the proxy materials?
We have adopted an SEC-approved procedure called “householding,” under which we can deliver a single copy of the proxy materials and annual report to multiple stockholders who share the same address unless we received contrary instructions from one or more of the stockholders. This procedure reduces our printing and mailing costs. Stockholders who participate in householding will continue to be able to access and receive separate proxy cards. Upon written or oral request, we will promptly deliver a separate copy of the proxy materials and annual report to any stockholder at a shared address to which we delivered a single copy of any of these documents. To receive a separate copy, or, if you are receiving multiple copies, to request that we only send a single copy of next year’s proxy materials and annual report, you may contact us as follows:
FireEye, Inc.
Attention: Secretary
601 McCarthy Blvd.
Milpitas, CA 95035
(408) 321-6300
Stockholders who hold shares in street name may contact their brokerage firm, bank, broker-dealer or other nominee to request information about householding.
How can I find out the results of the voting at the Annual Meeting?
Preliminary voting results will be announced at the Annual Meeting. In addition, final voting results will be published in a current report on Form 8-K that we expect to file within four business days after the Annual Meeting. If final voting results are not available to us at that time, we intend to file a Form 8-K to publish preliminary results and, within four business days after the final results are known to us, file an amendment to the Form 8-K to publish the final results.
What is the deadline to propose actions for consideration at next year’s annual meeting of stockholders or to nominate individuals to serve as directors?
Stockholder Proposals
Stockholders may present proper proposals for inclusion in our proxy statement and for consideration at the next annual meeting of stockholders by submitting their proposals in writing to our Secretary in a timely manner. For a stockholder proposal to be considered for inclusion in our proxy statement for our 2022 annual meeting of stockholders, our Secretary must receive the written proposal at our principal executive offices not later than December 28, 2021. In addition, stockholder proposals must comply with the requirements of
 
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Rule 14a-8 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), regarding the inclusion of stockholder proposals in company-sponsored proxy materials. Stockholder proposals should be addressed to:
FireEye, Inc.
Attention: Secretary
601 McCarthy Blvd.
Milpitas, CA 95035
Our bylaws also establish an advance notice procedure for stockholders who wish to present a proposal before an annual meeting of stockholders but do not intend for the proposal to be included in our proxy statement. Our bylaws provide that the only business that may be conducted at an annual meeting is business that is (i) specified in our proxy materials with respect to such meeting, (ii) otherwise properly brought before the annual meeting by or at the direction of our board of directors, or (iii) properly brought before the annual meeting by a stockholder of record entitled to vote at the annual meeting who has delivered timely written notice to our Secretary, which notice must contain the information specified in our bylaws. To be timely for our 2022 annual meeting of stockholders, our Secretary must receive the written notice at our principal executive offices:

not earlier than February 11, 2022; and

not later than March 13, 2022.
In the event that we hold our 2022 annual meeting of stockholders more than 30 days before or more than 60 days after the first anniversary of the date of this Annual Meeting, then notice of a stockholder proposal that is not intended to be included in our proxy statement must be received no earlier than the close of business on the 120th day before such annual meeting and no later than the close of business on the later of the following two dates:

the 90th day prior to such annual meeting; or

the 10th day following the day on which public announcement of the date of such annual meeting is first made.
If a stockholder who has notified us of his, her or its intention to present a proposal at an annual meeting does not appear to present his, her or its proposal at such annual meeting, we are not required to present the proposal for a vote at such annual meeting.
Nomination of Director Candidates
You may propose director candidates for consideration by our nominating and corporate governance committee. Any such recommendations should include the nominee’s name and qualifications for membership on our board of directors and should be directed to our Secretary at the address set forth above. For additional information regarding stockholder recommendations for director candidates, see the section titled “Board of Directors and Corporate Governance — Stockholder Recommendations for Nominations to the Board of Directors.”
In addition, our bylaws permit stockholders to nominate directors for election at an annual meeting of stockholders. To nominate a director, the stockholder must provide the information required by our bylaws. In addition, the stockholder must give timely notice to our Secretary in accordance with our bylaws, which, in general, require that the notice be received by our Secretary within the time period described above under “Stockholder Proposals” for stockholder proposals that are not intended to be included in a proxy statement.
Availability of Bylaws
A copy of our bylaws may be obtained by accessing our public filings on the SEC’s website at www.sec.gov. You may also contact our Secretary at our principal executive office for a copy of the relevant bylaw provisions regarding the requirements for making stockholder proposals and nominating director candidates.
 
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BOARD OF DIRECTORS AND CORPORATE GOVERNANCE
Our business affairs are managed under the direction of our board of directors, which is currently composed of nine members. Eight of our directors are independent within the meaning of the independent director requirements of The NASDAQ Stock Market. Our board of directors is divided into three classes with staggered three-year terms. At each annual meeting of stockholders, a class of directors will be elected for a three-year term to succeed the same class whose term is then expiring. In addition, pursuant to our bylaws, at any time before, on or after the day of the Annual Meeting, our board of directors may increase the authorized number of directors and fill the vacancy or vacancies created thereby with one or more new directors.
On December 11, 2020, we issued to investment vehicles of funds affiliated with The Blackstone Group Inc. (collectively, “Blackstone”) an aggregate of 370,000 shares of our convertible preferred stock at $1,000 per share, for an aggregate purchase price of $370 million, pursuant to a Securities Purchase Agreement between us and Blackstone, dated November 18, 2020 (as amended, the “Blackstone Agreement”). Pursuant to the Blackstone Agreement, Blackstone has the right to nominate for election one member to our board of directors (the “Series A Director”) for so long as Blackstone and ClearSky (as defined elsewhere in this proxy statement) hold 65% in the aggregate of our convertible preferred stock issued to Blackstone and ClearSky pursuant to the Blackstone Agreement and the ClearSky Agreement (as defined elsewhere in this proxy statement), respectively. Viral Patel was designated by Blackstone as the Series A Director in accordance with the terms of the Blackstone Agreement.
There are three Class II directors whose current term of office expires at the Annual Meeting: Sara C. Andrews, Adrian McDermott and Robert E. Switz. Our board of directors has nominated Ms. Andrews and Messrs. McDermott and Switz for re-election at the Annual Meeting to serve as Class II directors until the 2024 annual meeting of stockholders and until their successors are elected and qualified.
The following table sets forth the names, ages as of April 13, 2021, and certain other information for the directors whose term expires at the Annual Meeting and for each of the directors whose terms do not expire at the Annual Meeting:
Name
Class
Age
Position(s)
Director
Since
Current
Term
Expires
Expiration
of Term
For Which
Nominated
1. Directors Whose Terms Expire at the Annual Meeting
Sara C. Andrews(1)(2)
II 57 Director
2020
2021
2024
Adrian McDermott(1)
II 52 Director
2019
2021
2024
Robert E. Switz(2)(3)
II 74 Director
2017
2021
2024
2. Directors Whose Terms Do Not Expire at the Annual Meeting
Kimberly Alexy(2)(3)
I 50 Director
2015
2023
Arthur W. Coviello, Jr.(4)
I 67 Director
2020
2023
Viral Patel(4)
I 41 Director
2020
2023
Ronald E. F. Codd(1)(2)(3)
III 65 Director
2012
2022
Kevin R. Mandia(4)(5)
III 50
Chief Executive Officer and Director
2016
2022
Enrique Salem(1)(5)
III 55 Chairman of the Board
2013
2022
(1)
Member of our compensation committee
(2)
Member of our nominating and corporate governance committee
(3)
Member of our audit committee
(4)
Member of our special committee
(5)
Member of our government classified information and security committee
Nominees for Director
Sara C. Andrews has served as a member of our board of directors since August 2020. Ms. Andrews has served as Senior Vice President and Chief Information Security Officer at PepsiCo, Inc. since July 2014. Prior
 
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to joining PepsiCo, Inc., Ms. Andrews served as Chief Network Security Officer of Verizon Communications, Inc. from June 1997 to July 2014. She previously served on the board of directors of LogMeIn, Inc. from April 2018 to August 2020. Ms. Andrews holds a B.I.E. from Auburn University and an M.B.A. from Brenau University. Our board of directors believes that Ms. Andrews possesses specific attributes that qualify her to serve as a director, including her extensive knowledge and expertise regarding technology, cybersecurity and risk management.
Adrian McDermott has served as a member of our board of directors since February 2019. Mr. McDermott has served as the President of Products of Zendesk, Inc. since October 2016. He previously served as the Senior Vice President, Product Development of Zendesk, Inc. from July 2010 until October 2016. Mr. McDermott holds a B.Sc. in computer science from De Montfort University. Our board of directors believes that Mr. McDermott possesses specific attributes that qualify him to serve as a director, including his extensive product management, engineering and general business experience in technology markets as well as his expertise developed as a senior executive at a large public company in the technology industry.
Robert E. Switz has served as a member of our board of directors since September 2017. Mr. Switz served as the President and Chief Executive Officer of ADC Telecommunications, Inc. (“ADC”), a supplier of network infrastructure products and services, from August 2003 until December 2010, when Tyco Electronics Ltd. (now TE Connectivity Ltd.) acquired ADC. Mr. Switz served as Chairman of the Board of Directors of ADC from June 2008 to December 2010 and served on the board of directors of ADC from August 2003 until December 2010. From 1994 until August 2003, he served in various positions at ADC, including as Chief Financial Officer. Prior to ADC, he served in various positions at Burr-Brown Corporation, a multi-national manufacturer of precision micro-electronics and systems products, including as Chief Financial Officer, Vice President of European Operations, Ventures and Finance, and Director of the Ventures and Systems Business. Mr. Switz has served on the board of directors of Micron Technology, Inc. since February 2006, and the board of directors of Marvell Technology Group Ltd. since May 2016. He previously served on the board of directors of Broadcom Corporation from May 2003 to February 2016, the board of directors of Cyan, Inc. from March 2011 to August 2015, the board of directors of GT Advanced Technologies Inc. from May 2011 to March 2016, the board of directors of Leap Wireless International, Inc. from July 2011 to March 2014, the board of directors of Pulse Electronics Corporation from June 2014 to April 2015, and the board of directors of Gigamon, Inc. from June 2015 to December 2017. Mr. Switz holds a B.S. in Business Administration from Quinnipiac University and an M.B.A. from the University of Bridgeport. Our board of directors believes that Mr. Switz possesses specific attributes that qualify him to serve as a director, including his extensive global operations, financial and general management experience and expertise developed as a senior executive at large public companies operating in the technology industry as well as his considerable directorial and governance experience developed through his service on several public company boards.
Other Directors
Kimberly Alexy has served as a member of our board of directors since January 2015. Ms. Alexy has served as the Principal of Alexy Capital Management, a private investment management firm that she founded, since June 2005. Ms. Alexy has served on the board of directors of Five9, Inc. since October 2013, the board of directors of Alteryx, Inc. since February 2017 and the board of directors of Western Digital Corporation since November 2018. She previously served on the board of directors of CalAmp Corp. from May 2008 to July 2019, the board of directors of SMART Modular Technologies (WWH), Inc. from September 2009 to August 2011, the board of directors of SouthWest Water Company from August 2009 to September 2010, the board of directors of Dot Hill Systems Corp. from December 2005 to May 2010, the board of directors of Maxtor Corporation from June 2005 to May 2006, and the board of directors of Microsemi Corporation from September 2016 to May 2018. From 2012 to 2014, Ms. Alexy served as an Adjunct Lecturer at San Diego State University in the Graduate School of Business. From 1998 to 2003, she served as Senior Vice President and Managing Director of Equity Research for Prudential Securities, where she served as principal technology hardware analyst for the firm. Prior to joining Prudential, Ms. Alexy served as Vice President of Equity Research at Lehman Brothers, where she covered the computer hardware sector, and Assistant Vice President of Corporate Finance at Wachovia Bank. Ms. Alexy is a Chartered Financial Analyst (CFA), and holds a B.A. from Emory University and an M.B.A. with a concentration in Finance and Accounting from the College of William and Mary. Our board of directors believes that Ms. Alexy possesses specific attributes that qualify her
 
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to serve as a director, including her accounting expertise, extensive experience on public company boards and her experience in the financial services industry as an investment professional.
Ronald E. F. Codd has served as a member of our board of directors since July 2012. Mr. Codd has been an independent business consultant since April 2002. From January 1999 to April 2002, Mr. Codd served as President, Chief Executive Officer and a director of Momentum Business Applications, Inc., an enterprise software company. From September 1991 to December 1998, Mr. Codd served as Senior Vice President of Finance and Administration and Chief Financial Officer of PeopleSoft, Inc., a provider of human resource management systems. Mr. Codd has served on the board of directors of Veeva Systems Inc. since February 2012. Mr. Codd previously served on the board of directors of ServiceNow, Inc. from February 2012 to June 2019, the board of directors of Rocket Fuel Inc. from February 2012 to September 2017, and the boards of directors of numerous other technology companies, including most recently DemandTec, Inc., Interwoven, Inc. and Data Domain, Inc. Mr. Codd holds a B.S. in Accounting from the University of California, Berkeley and an M.M. in Finance and M.I.S. from the Kellogg Graduate School of Management at Northwestern University. Our board of directors believes that Mr. Codd possesses specific attributes that qualify him to serve as a director, including his extensive management and software industry experience, and his experience in finance.
Arthur W. Coviello, Jr. has served as a member of our board of directors since December 2020. Mr. Coviello has served as a venture partner at Rally Ventures since May 2015. Previously, Mr. Coviello served as executive vice president at EMC Corporation, a data storage and information management company, from February 2011 to February 2015, and as executive vice president and president of RSA, the security division of EMC Corporation, from September 2006 to January 2011. Mr. Coviello served as chief executive officer and a member of the board of directors of RSA Security, Inc., a network security company, from January 2000 until its acquisition by EMC Corporation in September 2006, as its president from March 1999 until its acquisition and as its acting chief financial officer from December 2005 to May 2006. Mr. Coviello has served on the board of directors of Synchrony Financial since November 2015, the board of directors of Tenable Holdings, Inc. since February 2018 and the board of directors of Epiphany Technology Acquisition Corp. since October 2020. Mr. Coviello previously served on the board of directors of EnerNOC, Inc. from June 2008 to August 2017 and the board of directors of Gigamon Inc. from April 2017 to December 2017. Mr. Coviello holds a B.B.A. in Accounting from the University of Massachusetts. Our board of directors believes that Mr. Coviello possesses specific attributes that qualify him to serve as a director, including his extensive leadership experience, including as CEO of a publicly-traded company, his extensive financial expertise and accounting background and his considerable experience in technology and cybersecurity.
Kevin R. Mandia has served as our Chief Executive Officer since June 2016 and as a member of our board of directors since February 2016. He previously served as our President from February 2015 to June 2016 and as our Senior Vice President and Chief Operating Officer from the date of FireEye’s acquisition of Mandiant Corporation (“Mandiant”), in December 2013 through February 2015. Prior to joining FireEye, Mr. Mandia was the Chief Executive Officer of Mandiant and had served in that capacity since he founded Mandiant in 2004. Prior to forming Mandiant, Mr. Mandia served as the Director of Computer Forensics at Foundstone (later acquired by McAfee Corporation) from 2000 to 2003 and as the Director of Information Security for Sytex (later acquired by Lockheed Martin) from 1998 to 2000. From 1993 to 2000, Mr. Mandia was an officer in the United States Air Force, where he served in various capacities, including as a computer security officer in the 7th Communications Group at the Pentagon, and later as a special agent in the Air Force Office of Special Investigations (AFOSI). Mr. Mandia holds a B.S. in Computer Science from Lafayette College and an M.S. in Forensic Science from The George Washington University. In 2011, Mr. Mandia was named Ernst & Young Entrepreneur of the Year for the Greater Washington area. He completed the Harvard Business School’s Owner/President Management Program in February 2013. Mr. Mandia has taught graduate level courses at Carnegie Melon University and The George Washington University and has co-authored two books on responding to security breaches: Incident Response: Performing Computer Forensics (McGraw-Hill, 2003) and Incident Response: Investigating Computer Crime (McGraw-Hill, 2001). Our board of directors believes that Mr. Mandia possesses specific attributes that qualify him to serve as a director, including the perspective and experience he brings as our Chief Executive Officer and his extensive senior management expertise in the network security industry.
Viral Patel is a Blackstone director designee and has served as a member of our board of directors since December 2020. Mr. Patel has served as a Senior Managing Director in the Tactical Opportunities Group at
 
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The Blackstone Group, Inc. since April 2015. Prior to joining the Tactical Opportunities Group of Blackstone in 2012, Mr. Patel was a Managing Director with Blackstone Securities Partners. Before joining Blackstone, Mr. Patel was a member of the Credit Suisse and Donaldson, Lufkin & Jenrette Structured Products businesses. Mr. Patel holds a B.S. from Cornell University. Our board of directors believes that Mr. Patel possesses specific attributes that qualify him to serve as a director, including his significant knowledge and expertise in finance, business, and strategic investments and his extensive knowledge regarding our operations from leading the day-to-day management of Blackstone’s investment in our company.
Enrique Salem has served as a member of our board of directors since February 2013 and as our Chairman of the Board since March 2017. Mr. Salem previously served as our Lead Independent Director from February 2016 to March 2017. He has been a managing director of Bain Capital Ventures, a venture capital firm, since July 2014. Mr. Salem was president, Chief Executive Officer and a director of Symantec Corporation, a provider of information security, storage and systems management solutions, from April 2009 until July 2012. Mr. Salem was Chief Operating Officer of Symantec Corporation from January 2008 to April 2009, group President, Worldwide Sales and Marketing from April 2007 to January 2008, group President, Consumer Products from May 2006 to April 2007, Senior Vice President, Consumer Products and Solutions from February 2006 to May 2006, Senior Vice President, Security Products and Solutions from January 2006 to February 2006, and Senior Vice President, Network and Gateway Security Solutions from June 2004 to February 2006. Prior to Symantec, from April 2002 to June 2004, Mr. Salem served as President and Chief Executive Officer of Brightmail, Inc., an email filtering company, prior to its acquisition by Symantec in 2004. Mr. Salem also held senior leadership roles at Oblix Inc., Ask Jeeves Inc., Peter Norton Computing, Inc. and Security Pacific Merchant Bank. In March 2011, he was appointed to President Barack Obama’s Management Advisory Board. Mr. Salem has served on the board of directors of Atlassian Corporation Plc since July 2013 and the board of directors of DocuSign, Inc. since August 2013. He previously served on the board of directors of ForeScout Technologies, Inc. from September 2013 to August 2020, the board of directors of Automatic Data Processing, Inc. from January 2010 to November 2013 and the board of directors of Symantec Corporation from April 2009 to July 2012. Mr. Salem also currently serves on the board of directors of multiple private companies. He received the Estrella Award from the Hispanic IT Executive Council in 2010 and was named Entrepreneur of the Year in 2004 by Ernst & Young. Mr. Salem holds an A.B. in Computer Science from Dartmouth College. Our board of directors believes that Mr. Salem possesses specific attributes that qualify him to serve as a director, including his extensive leadership experience, including oversight of global operations, as well as a strong background in information technology, data security, compliance and systems management.
Director Independence
Our common stock is listed on The NASDAQ Global Select Market. Under the rules of The NASDAQ Stock Market, independent directors must comprise a majority of a listed company’s board of directors. In addition, the rules of The NASDAQ Stock Market require that, subject to specified exceptions, each member of a listed company’s audit, compensation, and nominating and corporate governance committees be independent. Under the rules of The NASDAQ Stock Market, a director will only qualify as an “independent director” if, in the opinion of the listed company’s board of directors, the director does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.
Audit committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Exchange Act and the listing requirements of The NASDAQ Stock Market. In addition, compensation committee members must satisfy the independence criteria set forth in Rule 10C-1 under the Exchange Act and the listing requirements of The NASDAQ Stock Market.
Our board of directors has undertaken a review of the independence of each director and considered whether such director has a material relationship with us that could compromise his or her ability to exercise independent judgment in carrying out his or her responsibilities. As a result of this review, our board of directors has determined that Mses. Alexy and Andrews and Messrs. Codd, Coviello, McDermott, Patel, Salem and Switz are “independent directors” as defined under the applicable rules and regulations of the SEC and the listing requirements and rules of The NASDAQ Stock Market.
 
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Board Leadership Structure
Our board of directors does not view any particular leadership structure as preferred and routinely reviews and considers the appropriate leadership structure. This consideration includes the pros and cons of alternative leadership structures in light of our operating and governance environment at the time, with the goal of achieving the optimal model for board leadership and effective oversight of management by our board of directors.
Our board of directors consists of seven directors. Our only management director is Mr. Mandia, our Chief Executive Officer. Enrique Salem, an independent director, holds the role of Chairman of the Board. Our board of directors believes this structure benefits the board of directors and us by enabling our Chief Executive Officer to focus on operational and strategic matters while enabling the Chairman of the Board to focus on board and governance matters.
In addition, each committee of our board of directors has a designated chairperson and, other than our government classified information and security committee, is comprised solely of independent directors.
Board Meetings and Committees
During 2020, our board of directors held 27 meetings (including regularly scheduled and special meetings), and each director attended at least 75% of the aggregate of (i) the total number of meetings of our board of directors held during the period for which he or she served as a director and (ii) the total number of meetings held by all committees of our board of directors on which he or she served during the periods for which he or she served.
It is the policy of our board of directors to regularly have separate meeting times for independent directors without management.
Although we do not have a formal policy regarding attendance by members of our board of directors at annual meetings of stockholders, we encourage, but do not require, our directors to attend. Each of the seven directors who served on the date of our 2020 annual meeting of stockholders attended the meeting.
Our board of directors has five standing committees: an audit committee, a compensation committee, a nominating and corporate governance committee, a special committee and a government classified information and security committee. The composition and responsibilities of each of the committees of our board of directors are described below. Members will serve on these committees until their resignation or until otherwise determined by our board of directors.
Audit Committee
Our audit committee is comprised of Kimberly Alexy, Ronald E. F. Codd and Robert E. Switz, each of whom is a non-employee member of our board of directors. Ms. Alexy is the chair of our audit committee. Our board of directors has determined that each of the members of our audit committee satisfies the requirements for independence and financial literacy under the rules and regulations of the SEC, including Rule 10A-3 under the Exchange Act, and the listing requirements of The NASDAQ Stock Market. Our board of directors has also determined that each of Ms. Alexy and Messrs. Codd and Switz qualify as an “audit committee financial expert” as defined in the SEC rules and satisfy the financial sophistication requirements of The NASDAQ Stock Market. This designation does not impose on Ms. Alexy and Messrs. Codd and Switz any duties, obligations or liabilities that are greater than those generally imposed on members of our audit committee and our board of directors. Our audit committee is responsible for, among other things:

selecting and hiring our independent registered public accounting firm;

evaluating the performance and independence of our independent registered public accounting firm;

pre-approving any audit and non-audit services to be performed by our independent registered public accounting firm;

reviewing the adequacy and effectiveness of our internal control policies and procedures and our disclosure controls and procedures;
 
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overseeing procedures for the treatment of complaints on accounting, internal accounting controls or audit matters;

reviewing and discussing with management and the independent registered public accounting firm the results of our annual audit, our quarterly financial statements and our publicly filed reports;

reviewing significant risk exposures and our processes around the management and monitoring of such risks, including but not limited to reviewing our programs, policies, practices and safeguards for information technology, cybersecurity and data security and reviewing periodic updates on such matters by our chief security officer;

reviewing and approving related person transactions; and

preparing the audit committee report that the SEC requires in our annual proxy statements.
Our audit committee operates under a written charter that satisfies the applicable rules and regulations of the SEC and the listing requirements of The NASDAQ Stock Market. A copy of the charter of our audit committee is available on our website at www.FireEye.com in the Governance section of our Investor Relations webpage. During 2020, our audit committee held 10 meetings.
Compensation Committee
Our compensation committee is comprised of Sara C. Andrews, Ronald E. F. Codd, Adrian McDermott and Enrique Salem, each of whom is a non-employee member of our board of directors. Mr. Salem is the chair of our compensation committee. Our board of directors has determined that each member of our compensation committee meets the requirements for independence under the rules and regulations of the SEC, including Rule 10C-1 under the Exchange Act, and the listing requirements of The NASDAQ Stock Market, and is a “non-employee director” within the meaning of Rule 16b-3 under the Exchange Act. Our compensation committee is responsible for, among other things:

reviewing and approving our Chief Executive Officer’s and other executive officers’ annual base salaries; incentive compensation plans, including the specific goals and amounts; equity compensation, employment agreements, severance arrangements and change in control agreements; and any other executive officer benefits, compensation or arrangements; provided that any approvals relating to our Chief Executive Officer’s compensation will be subject to the ratification of our entire board of directors, with any non-independent directors not voting;

administering our equity compensation plans; and

overseeing our overall compensation philosophy, compensation plans and benefits programs.
Our compensation committee may form subcommittees and may delegate to such subcommittees such power and authority as our compensation committee deems appropriate. Our compensation committee operates under a written charter that satisfies the applicable rules and regulations of the SEC and the listing requirements of The NASDAQ Stock Market. A copy of the charter of our compensation committee is available on our website at www.FireEye.com in the Governance section of our Investor Relations webpage. During 2020, our compensation committee held five meetings.
Nominating and Corporate Governance Committee
Our nominating and corporate governance committee is comprised of Kimberly Alexy, Sara C. Andrews, Ronald E. F. Codd and Robert E. Switz, each of whom is a non-employee member of our board of directors. Mr. Codd is the chair of our nominating and corporate governance committee. Our board of directors has determined that each member of our nominating and corporate governance committee meets the requirements for independence under the listing requirements of The NASDAQ Stock Market. Our nominating and corporate governance committee is responsible for, among other things:

evaluating and making recommendations regarding the composition, organization, and governance of our board of directors and its committees;

evaluating and making recommendations regarding the creation of additional committees or the change in mandate or dissolution of committees;
 
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reviewing and making recommendations with regard to our corporate governance guidelines and compliance with laws and regulations; and

reviewing and approving conflicts of interest of our directors and corporate officers, other than related person transactions reviewed by the audit committee.
Our nominating and corporate governance committee operates under a written charter that satisfies the listing standards of The NASDAQ Stock Market. A copy of the charter of our nominating and corporate governance committee is available on our website at www.FireEye.com in the Governance section of our Investor Relations webpage. During 2020, our nominating and corporate governance committee held seven meetings.
Special Committee
Our special committee was formed by our board of directors on December 11, 2020 in accordance with the provisions of the Blackstone Agreement and the ClearSky Agreement, which requires our special committee to consist of three directors, one of whom shall always be either, at the election of Blackstone, the Series A Director or another director acceptable to Blackstone. Our special committee is comprised of Arthur W. Coviello, Jr., Kevin Mandia and Viral Patel, who is the Series A Director. Mr. Patel is the chair of our special committee. Our special committee oversees transformational initiatives and evaluates strategic alternatives and reports all deliberations and non-binding recommendations to our board of directors. During 2020, our special committee held one meeting.
Government Classified Information and Security Committee
Our government classified information and security committee is comprised of Kevin R. Mandia and Enrique Salem. Mr. Mandia is the chair of our government classified information and security committee. Our government classified information and security committee is responsible for, among other things:

reviewing and making recommendations to our board of directors on matters concerning the Company that involve or relate to (i) information or activities that have been classified for purposes of national security by an agency or instrumentality of the government and (ii) the security of the Company’s personnel, data and facilities; and

assisting our board of directors in fulfilling its oversight responsibilities relating to such matters.
Our government classified information and security committee operates under a written charter. During 2019, our government classified information and security committee did not hold any meetings.
Compensation Committee Interlocks and Insider Participation
During 2020, Ronald E. F. Codd, Adrian McDermott, Stephen Pusey and Enrique Salem served as members of our compensation committee. None of the members of our compensation committee is or has been an officer or employee of our company. None of our executive officers currently serves, or in the past year has served, as a member of the board of directors or compensation committee, or other board committee performing equivalent functions, of any entity that has one or more executive officers serving on our compensation committee or our board of directors. We have had a compensation committee since November 2012. Prior to establishing the compensation committee, our full board of directors made decisions relating to the compensation of our executive officers.
Considerations in Evaluating Director Nominees
Except with respect to the Series A Director designated by Blackstone pursuant to the Blackstone Agreement, as described above, our nominating and corporate governance committee uses a variety of methods for identifying and evaluating director nominees. In its evaluation of director candidates, our nominating and corporate governance committee will consider the composition of our board of directors, including, without limitation, issues of character, integrity, judgment, diversity, age, independence, expertise, length of service, understanding of our business and other commitments. Members of our board of directors are expected to prepare for, attend, and participate in all board of director and applicable committee meetings.
 
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Our nominating and corporate governance committee requires the following minimum qualifications to be satisfied by any nominee for a position on the board of directors: (i) the highest personal and professional ethics and integrity, (ii) proven achievement and competence in the nominee’s field and the ability to exercise sound business judgment, (iii) skills that are complementary to those of the existing board of directors, (iv) the ability to assist and support management and make significant contributions to our success, and (v) an understanding of the fiduciary responsibilities that are required of a member of the board of directors and the commitment of time and energy necessary to diligently carry out those responsibilities. Other than the foregoing, there are no other stated minimum criteria for director nominees, although our nominating and corporate governance committee may also consider such other factors as it may deem, from time to time, are in our and our stockholders’ best interests.
Although our board of directors does not maintain a specific policy with respect to board diversity, our board of directors believes that our board of directors should be a diverse body, and our nominating and corporate governance committee considers a broad range of backgrounds and experiences. In making determinations regarding nominations of directors, our nominating and corporate governance committee may take into account the benefits of diverse viewpoints. Our nominating and corporate governance committee also considers these and other factors as it oversees periodic board of director and committee evaluations. After completing its review and evaluation of director candidates, our nominating and corporate governance committee recommends to our full board of directors the director nominees for selection.
Stockholder Recommendations for Nominations to the Board of Directors
Our nominating and corporate governance committee will consider candidates for directors recommended by stockholders holding at least one percent (1%) of the fully diluted capitalization of the company continuously for at least 12 months prior to the date of the submission of the recommendation. Our nominating and corporate governance committee will evaluate such recommendations in accordance with its charter, our bylaws, our policies and procedures for director candidates, as well as the regular director nominee criteria described above. This process is designed to ensure that our board of directors includes members with diversity of experience, skills and experience, including appropriate financial and other expertise relevant to our business. Stockholders wishing to recommend a candidate for nomination should contact our Secretary in writing. Such recommendations must include the candidate’s name, home and business contact information, detailed biographical data, relevant qualifications, a signed letter from the candidate confirming willingness to serve on our board of directors, information regarding any relationships between the candidate and FireEye and evidence of the recommending stockholder’s ownership of our common stock. Such recommendations must also include a statement from the recommending stockholder in support of the candidate, particularly within the context of the criteria for board of directors membership. Our nominating and corporate governance committee has discretion to decide which individuals to recommend for nomination as directors.
A stockholder can nominate a candidate directly for election to our board of directors by complying with the procedures in Section 2.4(ii) of our bylaws and the rules and regulations of the SEC. Any eligible stockholder who wishes to submit a nomination should review the requirements in the bylaws on nominations by stockholders. Any nomination should be sent in writing to our Secretary at FireEye, Inc., 601 McCarthy Blvd., Milpitas, California 95035. To be timely for our 2022 annual meeting of stockholders, our Secretary must receive the nomination no earlier than February 11, 2022 and no later than March 13, 2022. The notice must state the information required by Section 2.4(ii) of our bylaws and otherwise must comply with applicable federal and state law.
Communications with the Board of Directors
We have a practice of regularly engaging with our stockholders to seek their feedback, as further described in the section titled “Stockholder Engagement” below. Additionally, stockholders wishing to communicate with our board of directors or with an individual member of our board of directors may do so by writing to our board of directors or to the particular member of our board of directors, and mailing the correspondence to our General Counsel at FireEye, Inc., 601 McCarthy Blvd., Milpitas, CA 95035. Our General Counsel will review all incoming stockholder communications (excluding mass mailings, product complaints or inquiries, job inquiries, business solicitations and patently offensive or otherwise inappropriate material), and if deemed appropriate, the stockholder communications will be forwarded to the appropriate member or members of
 
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our board of directors, or if none is specified, to the chairman of our board of directors. This procedure does not apply to stockholder proposals submitted pursuant to Rule 14a-8 under the Exchange Act.
Corporate Governance Guidelines and Code of Business Conduct and Ethics
Our board of directors has adopted Corporate Governance Guidelines. These guidelines address items such as the qualifications and responsibilities of our directors and director candidates and corporate governance policies and standards applicable to us in general. In addition, our board of directors has adopted a Code of Business Conduct and Ethics that applies to all of our employees, officers and directors, including our Chief Executive Officer, Chief Financial Officer, and other executive and senior financial officers. The full text of our Corporate Governance Guidelines and our Code of Business Conduct and Ethics is posted on our website at www.FireEye.com in the Governance section of our Investor Relations webpage. We intend to post any amendments to our Code of Business Conduct and Ethics, and any waivers of our Code of Business Conduct and Ethics for directors and executive officers, on the same website.
Risk Management
Risk is inherent with every business, and we face a number of risks, including strategic, financial, business and operational, legal and compliance, and reputational. We have designed and implemented processes to manage risk in our operations. Management is responsible for the day-to-day management of risks the company faces, while our board of directors, as a whole and assisted by its committees, has responsibility for the oversight of risk management. In its risk oversight role, our board of directors has the responsibility to satisfy itself that the risk management processes designed and implemented by management are appropriate and functioning as designed.
Our board of directors believes that open communication between management and our board of directors is essential for effective risk management and oversight. Our board of directors meets with our Chief Executive Officer and other members of the senior management team at quarterly meetings of our board of directors, where, among other topics, they discuss strategy and risks facing the company, as well as at such other times as they deem appropriate.
While our board of directors is ultimately responsible for risk oversight, our board committees assist our board of directors in fulfilling its oversight responsibilities in certain areas of risk. Our audit committee assists our board of directors in fulfilling its oversight responsibilities with respect to risk management in the areas of internal control over financial reporting and disclosure controls and procedures, legal and regulatory compliance, and discusses with management and the independent auditor guidelines and policies with respect to risk assessment and risk management. Our audit committee also reviews our major financial, cybersecurity, information technology and data security risk exposures and the steps our management has taken to monitor and control these exposures, including the review of any programs and policies, as well as oversight of our enterprise risk management program. In addition, our audit committee monitors certain key risks on a regular basis throughout the fiscal year, such as risks associated with internal control over financial reporting, liquidity, cybersecurity, information technology and data security. Furthermore, our audit committee monitors compliance with legal and regulatory requirements and oversees the performance of our internal audit function. Our nominating and corporate governance committee assists our board of directors in fulfilling its oversight responsibilities with respect to the management of risk associated with board organization, membership and structure, and corporate governance. Our compensation committee assesses risks created by the incentives inherent in our compensation programs, policies and practices. Finally, our full board of directors reviews strategic and operational risk in the context of reports from the management team, receives reports on all significant committee activities at each regular meeting, and evaluates the risks inherent in significant transactions.
Stockholder Engagement
We believe that effective corporate governance includes regular, constructive conversations with our stockholders on a broad range of governance and business topics, including business strategy and execution, board diversity and refreshment, executive compensation practices, risk oversight, sustainability, culture and human capital management, and we value our stockholders’ continued opinions and feedback. We are committed to maintaining an active dialogue to understand the priorities and concerns of our stockholders.
 
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In the last 12 months, as part of our ongoing stockholder engagement program, we participated in more than 250 virtual meetings with our institutional stockholders, during which we engaged in substantive discussions on our corporate strategy, financial performance, executive compensation, environmental, social and governance (ESG) initiatives, and the impact of the COVID-19 pandemic on our business. These discussions covered a variety of topics, including our compensation philosophy, the composition of our board of directors, our commitment to diversity and inclusion, and our strategies to accelerate our transformation and achieve and sustain profitable growth in the future.
Maintaining an active dialogue with our stockholders is consistent with our corporate values of transparency and accountability, and we intend to continue these efforts in the future.
Corporate Responsibility
We believe that corporate citizenship and sustainable business practices go hand-in-hand with our mission to protect our customers from cyber threats. As an innovator and leader in the cybersecurity industry, we recognize that everything we do has an effect on the global economy, society, and the environment. Corporate citizenship, sustainability and diversity are embedded in our corporate values, which in turn define our corporate culture and guide decision-making at all levels within our organization.
Consistent with our values, we are constantly seeking new ways, both large and small, to engage our employees and improve our performance on environmental and social issues. We focus our efforts on:
1.
Enabling a safer cyber environment for our employees, our customers, and the global cyber community;
2.
Creating a diverse and inclusive corporate culture and workforce with high levels of engagement and a commitment to excellence; and
3.
Promoting responsible global citizenship.
Enabling a Safer Cyber Environment
As we live connected and technology becomes more deeply entwined with our most basic human activities, the impact of cyberattacks will continue to grow. Without a coordinated global response, there are few risks or repercussions for attackers. Annual losses due to ransomware and other attacks are in the billions, and recent cyber attacks on hospitals, democratic elections around the world, and U.S. government institutions demonstrate the destructive potential of unchecked cybercrime and espionage.
We believe we must address the security gap between attackers and their targets before the consequences become so dire that we begin to mistrust the very technology that vastly improves our lives. When we empower organizations to protect themselves — with our threat intelligence, our expertise, and our technology — we become a partner in progress toward greater global equality and a more sustainable future. This is our mission and the cause that inspires us daily.
We achieve our mission by:

Collecting, producing, and leveraging the best threat intelligence on a global scale;

Making our knowledge and expertise readily available to the global cyber community through our Mandiant Advantage platform;

Innovating continually to deliver agile technologies that adapt and respond to rapidly changing threats;

Addressing the shortage of cybersecurity talent by recruiting and training the professionals who join us on the front lines of the cyber battlefield;

Collaborating with law enforcement and governments to increase the risks and repercussions to attackers; and

Being the cybersecurity experts that the experts turn to in times of complexity or duress.
 
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When our customers depend on our technology and services to modernize their cybersecurity programs and mitigate the impact of all known cyber threats, we are well on our way to accomplishing our mission.
Protecting Ourselves to Maintain Customer Trust
We believe information privacy and data protection is a critical element of corporate responsibility for every organization. Customer trust — in our products, our services and our business practices — is a foundational to our mission. We recognize that we cannot protect our customers and achieve our mission without a deep commitment to information security and data privacy ourselves. As cybersecurity requirements evolve in response to work from home mandates, changes in the threat environment, digital transformation and other factors, we strive to follow the same cybersecurity best practices we recommend to our customers in our consulting engagements.
Product Compliance and Certifications
We believe our pursuit of technology certifications and industry compliance in general is critical to building customer trust and maintaining a robust and stalwart security profile. Because of this, FireEye is dedicated to ensuring its security products and technologies meet or exceed critical industry certifications and compliance requirements. Current certifications, including FedRamp certification, are listed on our Compliance and Certifications page on www.fireeye.com.
Information Security and Data Privacy
Our data privacy programs prioritize:

Ethics.   Our position as “trusted advisor” to our customers during times of complexity or duress often means our employees have access to confidential information related to cyber incidents. We maintain a strict confidentiality policy regarding our business relationships with our customers, as well as other customer-related data. We remind employees of our policy through regular internal communications and require annual data privacy and security training for all employees. Our Code of Business Conduct and Ethics, which every employee must agree to as a condition of employment, outlines each individual’s responsibilities to protect our company’s, our customers’ and our colleagues’ data.

Compliance.   FireEye complies with the requirements of the EU-U.S. Privacy Shield Framework and the Swiss-U.S. Privacy Shield Framework, as set forth by the U.S. Department of Commerce regarding the collection, use, and retention of personal information from European Union member countries and Switzerland. FireEye adheres to the Privacy Shield Principles of notice, choice, onward transfer, security, data integrity and purpose limitation, access and recourse, enforcement and liability with respect to all personal information transferred from the EU or Switzerland to the US within the scope of its Privacy Shield certification. To learn more about the Privacy Shield program, and to view our certification, please visit https://www.privacyshield.gov/list. While Privacy Shield is not currently recognized as a legal mechanism of transfer for data originating from the EU to the US, FireEye maintains its compliance as the program is still active in the United States. It is possible that a successor framework will emerge as the change in U.S. administrations may lead to new arrangements with EU regulators.

Transparency.   We publish a detailed Online Privacy Statement outlining the principles governing our information practices and other privacy aspects of our websites. We also provide a direct email link to our data privacy team for any questions not answered in the Online Privacy Statement and for data subjects to exercise their rights under applicable data protection law.

Training and education.   All employees are required to attend annual training on data privacy and security. Our InfoSec team also publishes regular internal updates on data privacy, password and security best practices, phishing campaigns, security awareness and other topics related to both physical and cybersecurity.
Creating a Diverse and Inclusive Corporate Culture and Workforce
We believe our ability to attract, engage and retain talent is necessary to drive achievement of our business objectives and ultimately realize our mission and vision. Doing the right thing for our customers and employees
 
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is a core value of our culture that we believe creates value for our shareholders. There are many things that define the culture of an organization — heritage, reputation, attitude, approach to execution, work ethic, and, most importantly, people. We seek out employees with qualities that facilitate high-quality results — those traits that give personal meaning to work and elevate our customers’ experiences. We believe that employees who feel appreciated create more satisfied customers, and we focus on improving and elevating our employees’ experiences at work. This means we are committed to providing a sense of belonging across our company that inspires everyone to respectfully speak-up, contribute their ideas, take action and be accountable. Our fundamental employee experience philosophies are:
— We emphasize our ONE TEAM culture of respect and inclusiveness.
— We make recognition an integral part of our culture.
— We care about our employees and their overall well-being.
— We reward extraordinary performance and results.
Diversity, inclusion and belonging
We believe that diverse teams maximize their potential and bring with them diverse views, experiences and perspectives. We seek to integrate diversity and inclusion into the employee lifecycle, and are committed to providing a work environment that is free of discrimination and harassment, where our employees can do their best work, bring their full self to work, feel supported and in turn support others. We strive to create a working environment where everyone feels included and respected and has an equal opportunity to contribute and to maximize their potential. We have established a framework to drive diverse representation and inclusive behaviors across our company that includes actions to ensure equality of opportunity, increase diversity in our employee base, promote equality of pay across gender and ethnicity, and provide anti-bias training and education. We also seek to promote diversity and inclusion in our communities by supporting organizations that champion diversity and inclusion initiatives.
In addition, we continue to invest in FireEye-sponsored programs such as Elevate, which offers training, mentoring and other resources to women leaders in cybersecurity, and partnerships with military and veterans’ organizations.
As of December 31, 2020, we had approximately 3,400 employees, reflecting a global diversity of identity, background and experience.
[MISSING IMAGE: tm2110167d2-pc_employeebw.jpg]
* Under-represented minorities
Compensation and Benefits
We are committed to providing employees and their families with benefits packages that support physical, mental and financial well-being. Our intent is that any benefit plans offered by FireEye worldwide are regionally appropriate. and competitive with other high-tech companies. In addition to the foundational rewards like competitive pay and benefits, we provide cash incentives, equity-based compensation and employee stock purchase programs where possible, generous paid time-off, including paid parental leave, professional development opportunities, and many other employee perks. We constantly review our pay practices and benefits to ensure we can hire the best employees possible.
 
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We also believe that equal pay is important to further advance diversity, inclusion and belonging in the workplace. In addition, we conduct an internal pay equity review each year which currently encompasses compensation analysis across gender globally as well as race and ethnicity categories in the U.S.
Professional Development and Training
We believe that a culture that encourages continued learning and development creates an environment where great people want to work and contribute their best efforts. We also believe that great leadership is how organizations endure and excel. To help our leaders, individual contributors and teams reach their full potential, we offer extensive training and career development resources internally through our Learning and Development organization. These include leadership, soft skills, and technical training, coaching, and development consulting via traditional and nontraditional learning events, as well as free access to online learning platforms such as LinkedIn Learning. We also offer tuition reimbursement program for employees who wish to further their formal education.
To reinforce our corporate culture of respect, diversity and inclusion, each employee is required to complete anti-harassment and privacy awareness training annually. In 2020, we added a course on Breaking Bias: The Neuroscience of Diversity, Inclusion and Belonging, to build awareness of cognitive bias and how it impacts day-to-day interactions, people, business and life decisions. We are investigating additional training resources to support our diversity, inclusion and belonging programs we expect to implement in 2021.
Communication and Engagement
We strongly believe that our culture depends on our employees’ engagement and understanding of their contribution to the achievement of our strategic imperatives, vision and mission. Communicating powerfully and prolifically is a core competency in our ONE TEAM framework, and our senior leaders communicate regularly through a variety of channels, including quarterly all-hands meetings that are broadcast globally, weekly CEO updates, a monthly newsletter and regular “FireEye on a Mission” updates. We also enabled Yammer, the community and social interaction tool available in Office365, company-wide to address the need for more social and community interaction in our globally diverse workforce. We have many active Yammer communities, including communities hosted by our employee resource groups Eye on Veterans, Eye on Pride, and BOLD: Black Organization for Leadership and Development. In addition to prioritizing regular communications, we conduct regular employee surveys to seek feedback on what is going well and where we can focus our efforts to do more. Our annual company survey continues to surpass 80 percent participation rate each year, representing a wide cross segment of our employee population.
Our Response to COVID-19
As part of our efforts to keep our employees safe and support efforts to slow the spread of COVID-19, we instituted a mandatory work-from-home policy for all but a small number of onsite essential personnel and we restricted travel to essential, “business-critical” needs. With the support and commitment of our employees, we were able to seamlessly pivot to a work-from-home model and continue protecting our customers without interruption. We believe open and on-going communications have been critical to maintaining our culture and productivity during the pandemic, and we hosted weekly update calls and created an internal website designed for this purpose. We also instituted multiple measures to maintain the health and well-being of our employees, while continuing to deliver our essential cybersecurity solutions to customers around the world. Specific measures included regular employee surveys to assess employee attitudes toward work location, “self-care days” to enable rest, volunteering, or family time, online training, wellness and support programs, and a stipend to office-based employees to assist in the functional set-up of their remote working environment. Our Pandemic Response Team continues to monitor conditions and mandates globally to ensure safe practices as the pandemic evolves.
Promoting Responsible Global Citizenship
We believe in making a positive impact in the communities where we live and work, and we embrace the concept of “think globally, act locally” as the most effective framework for implementing our sustainability values in a manner consistent with local practice, culture and needs.
 
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Volunteering and Philanthropy
We strive to empower our local communities throughout the world through regular philanthropic efforts, including food drives, our annual back-to-school backpack program, disaster relief, support for veterans, and other local programs. We also make a donation to Doctors Without Borders on the first anniversary of every employee’s employment start date. Since 2014, we have donated more than $245,000 to this global organization.
We also encourage our employees to volunteer their time or donate money to charitable organizations of their choice and our Total Rewards benefits package includes a paid Philanthropy Day. Each year FireEye employees log thousands of hours supporting local causes individually and through department-level activities. In the wake of the COVID-19 pandemic and multiple natural disasters in 2020, Team FireEye has stepped up to assist in a very big way.
A few of the many recent philanthropic activities championed by our employees included:

A pre-pandemic team Philanthropy Day at a local foodbank in Sydney, Australia where FireEye/Mandiant employees spent the day sorting food donations for delivery to communities those impacted by devastating bushfires. More recently, FireEye stepped up to help those impacted by the wildfires in the California wine region.

Donations from employees and FireEye match for victims of the hurricanes in the southeastern United States.

A virtual food drive and giving campaign with Feeding America in honor of Martin Luther King Day, sponsored by our BOLD employee resource group.
The company plans to continue organizing efforts that will enable employees to open their hearts and pool their resources to benefit others in regions impacted by natural disasters, famine, and other conditions that threaten health and well-being.
Protecting our Environment
We are committed to sustainable business practices for our people and for the environment. This responsibility extends from our internal operations to our diverse eco-system of partners and to our customers. We believe every individual can make a difference and that even small changes can have a big impact.
At the corporate level, our commitment is reflected in our facilities management, our product engineering, our manufacturing relationships and our initiatives to increase efficiency through data center consolidation.
Reducing the environmental footprint of our cybersecurity solutions
We are committed to reducing the environmental impact of our solutions through innovation. Our efforts are focused on increasing efficiency and scalability with cloud-based solutions and engineering-based advancements in our appliances. Although appliance hardware sales accounted for only 10% of our annual sales in 2020, we have many customers with on-premise and hybrid cybersecurity controls and we continue to deliver thousands of new appliances each year.
Sustainability in Hardware Design and Manufacturing

Since the introduction of our first security appliance in 2012, we have continued to innovate to improve the efficiency and scalability of our hardware-based solutions. Today’s 5th and 6th generation appliance support more users, consume less power and require less raw materials in the manufacturing process than prior generations of appliances.

We rearchitected our core detection software and MVX engine to enable distributed and cloud-based deployment of our network, email and endpoint security solutions. The new architecture allowed customers to extend FireEye detection and protection technologies to cloud-based workloads and remote offices without purchasing new hardware.
 
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As we advance the features and functionality of our solutions, we offer appliance trade-in and upgrade programs and encourage customers to implement scalable virtual solutions. These programs help customers update and expand their security controls and ensure obsolete hardware components are recycled or disposed of properly. We exercise the same care and commitment to sustainability in the management of replacement inventory and demonstration units.

We partner with Flextronics for the manufacture of our appliances, a recognized leader in sustainability measurement and reporting. Their commitment to sustainability programs is detailed in the Flextronics 2020 Sustainability Report.
Data Center Sustainability Efforts
We host the majority of our cloud-native solutions on Amazon Web Services (AWS). This allows us to scale the capacity of our threat detection and analysis solutions to meet our service-level commitments to customers without an increase in property, plant and equipment. The global availability of Amazon Web Services (AWS) and their commitment to environmentally friendly business practices and renewable energy is consistent with our own efforts to reduce our energy consumption and carbon footprint.
As part of our business transformation strategy, we launched an initiative in 2019 to migrate our Dynamic Threat Intelligence infrastructure — the system that collects and analyzes real time threat data from our products and delivers near real-time threat intelligence and software updates to our network and email security appliances — to AWS. This initiative will allow us maintain data privacy while building redundancy into our infrastructure, scaling our capacity up or down in response to customer demand, reducing our energy consumption, and limiting our expenditures for new equipment, data center management and co-location fees.
We migrated two data centers in international co-location facilities in 2020 and anticipate migrating two additional data centers to AWS in 2021. We anticipate we will continue to maintain data centers at our Milpitas, CA U.S. headquarters and other locations internationally in compliance with data sovereignty requirements and local data privacy regulations.
Sustainability in our Workplaces
Our commitment to sustainability through innovation extends to our workplaces. We have several initiatives underway, many the result of employee suggestions.
—   LEED and other Environmental Certifications.   We are currently evaluating LEED and Energy Star certifications for our Milpitas, CA facility. The buildings that house our offices in Alexandria, VA, Reston, VA, and San Francisco, CA have been LEED certified. Additionally, the facilities in Alexandria and San Francisco have been awarded Energy Star certification.
—   Energy consumption.   While many of our locations are partial leases of larger complexes, giving us limited control over energy consumption and sources, we are currently evaluating our energy use and sources worldwide. This initiative will allow us to identify new opportunities to conserve energy, access sustainable energy sources and reduce our carbon emissions.
—   Flexible Use Workspaces.   As we prepare to return to our workplaces, we took employees’ responses to our COVID-19 surveys into account. As a result, we are planning for a more flexible/hybrid model of workplace design with more shared workspaces and fewer assigned offices. We expect this initiative to reduce the total square footage of our facilities and lessen commute times for our employees. As we design these new, modern workplaces, we are taking into account the latest innovations and environmental design standards. We believe these efforts will, in turn, increase productivity and contribute to a better work-life balance for our people, help diminish congestion on our roadways, and reduce total carbon emissions.
 
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—   Everyday environmental awareness.   We believe that small steps, when implemented by a large number of people, can have a big impact on our environmental footprint. We have taken measures to conserve water through flow regulators and automatic faucets in our breakrooms and lavatories and reduce electricity use with motion sensors. We also encourage our employees around the world to participate in our environmental sustainability efforts, including programs to reduce the use of disposable plastic water bottles and promote recycling and composting to divert waste from landfills.
Extending Our Policies Globally through our Suppliers
We view fostering basic human rights, sustainable manufacturing processes and ethical business practices around the world as a fundamental responsibility. One of the many dependencies in establishing a solid foundation is establishing and maintaining business arrangements with organizations that share a similar strong commitment to sustainable and ethical business practices.

As part of our on-boarding of new suppliers, we perform an extensive review of suppliers’ compliance with data privacy regulations, information security policies, environmental, health and safety programs and labor practices. When a supplier accepts a purchase order, they agree to comply with our Supplier Code of Conduct, which clearly articulates our vision and expectations for ethical and sustainable business practices. We also encourage our suppliers, partners, and contractors to adopt their own corporate citizenship and sustainability guidelines.

We believe using Diverse Suppliers enhances our competitive advantage, and we are committed to identifying, purchasing from and maintaining relationships with small businesses, as well as businesses owned by women, minorities, veterans, and disabled persons. As part of our Supplier Diversity Policy, we encourage our suppliers to participate in our procurement and sourcing processes and set an annual goal for total annual spending with diverse suppliers.
Our Supplier Code of Conduct, our Modern Slavery Act Statement and our Conflict Minerals Policy are publicly available on our website.
Outside Director Compensation Policy
Members of our board of directors (other than the Series A Director) who are not our employees are eligible for awards under our Outside Director Compensation Policy, which our board of directors approved in August 2014 and last amended in December 2020.
Under our Outside Director Compensation Policy, non-employee directors (other than the Series A Director) receive compensation in the form of equity awards, or a mixture of equity and cash awards, as described below:
Initial Award
Upon joining our board of directors, each eligible non-employee director elected or appointed will automatically receive an equity award of restricted stock units with a total value of $400,000. This award will vest as to 1/3 of the shares subject to the award annually over a three-year period, subject to continued service through each applicable vesting date.
Annual Awards
On the date of each annual meeting of stockholders, each eligible non-employee director who has been a non-employee director for at least six months will be entitled to receive an annual fee with a total value based
 
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on board and other service as set forth in the following table, provided that no award will be granted to any non-employee director who is not continuing as a director following the applicable annual meeting of stockholders:
Annual Fee
Board Member:
$ 200,000
Chairperson of the Board (if applicable):
$ 45,000
Lead Independent Director (if applicable):
$ 20,000
Committee Service:
Chair
Member
Audit:
$ 20,000 $ 7,000
Compensation:
$ 10,000 $ 5,000
Nominating and Corporate Governance:
$ 6,250 $ 2,500
Unless an eligible non-employee director elects to receive all of his or her annual fee in the form of an equity award of restricted stock units, 50% of an eligible non-employee director’s annual fee will be awarded in the form of an equity award of restricted stock units and the other 50% of such non-employee director’s annual fee will be awarded in the form of cash. All of a non-employee director’s equity award of restricted stock units will be granted to him or her on the date of the annual meeting of stockholders and will fully vest upon the earlier of the first anniversary of the grant date or the day prior to the next annual meeting of stockholders, in each case, subject to his or her continued service through the vesting date. All of a non-employee director’s cash, if any, will be paid to him or her in four equal installments on a quarterly basis, with one installment paid on the 15th day of each of the first four calendar quarters following the date of such annual meeting, in each case subject to his or her continued service through the applicable payment date.
For purposes of our Outside Director Compensation Policy, equity awards are valued at the fair market value of the shares subject to the award on the grant date of the award or such other methodology determined by our board of directors or our compensation committee.
2020 Director Compensation Table
The table below shows all compensation awarded to or paid in 2020 to our non-employee directors who served during 2020.
Name
Fees earned or paid in
cash ($)(1)
Stock Awards ($)(2)
Total ($)
All Other
Compensation ($)
Kimberly Alexy(3)
222,500 222,500
Sara C. Andrews(4)
399,998 399,998
Ronald E. F. Codd(5)
109,125 109,118 218,243
Arthur W. Coviello, Jr.(6)
399,991 399,991 900(7)
Adrian McDermott(8)
51,250 102,488 153,738
Viral Patel(9)
Stephen Pusey(10)
102,500 102,488 204,988
Enrique Salem(11)
257,498 257,498
Robert E. Switz(12)
209,491 209,491
(1)
The amounts reported in this column represent the aggregate amount of quarterly cash awards paid in 2020 in accordance with the Outside Director Compensation Policy.
 
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(2)
On May 23, 2020, we granted awards of restricted stock units to Ms. Alexy and Messrs. Codd, McDermott, Pusey, Salem and Switz for service on our board of directors, in accordance with the Outside Director Compensation Policy. Each such award to Ms. Alexy and Messrs. Codd, McDermott, Pusey, Salem and Switz fully vests upon the earlier of the first anniversary of the grant date or the day prior to our next annual meeting of stockholders that follows the grant date, in each case, subject to continued service through the vesting date. Ms. Alexy and Messrs. Salem and Switz elected to receive all of their 2020 annual fees in the form of awards of restricted stock units. On August 10, 2020, we granted an award of restricted stock units to Ms. Andrews upon her appointment to our board of directors, in accordance with the Outside Director Compensation Policy. Such award to Ms. Andrews vests over three years from the date of grant, with one-third of the shares subject to the award vesting on each anniversary of the date of grant, in each case subject to Ms. Andrews’ continued service through the applicable vesting date. On December 11, 2020, we granted an award of restricted stock units to Mr. Coviello upon his appointment to our board of directors, in accordance with the Outside Director Compensation Policy. Such award to Mr. Coviello vests over three years from the date of grant, with one-third of the shares subject to the award vesting on each anniversary of the date of grant, in each case subject to Mr. Coviello’s continued service through the applicable vesting date. The amounts reported in this column represent the aggregate grant date fair value of the awards as computed in accordance with Financial Accounting Standard Board Accounting Standards Codification Topic 718. The assumptions used in calculating the grant date fair value of the awards reported in this column are set forth in the notes to our audited consolidated financial statements included in our Annual Report on Form 10-K, as filed with the SEC on February 26, 2021.
(3)
As of December 31, 2020, Ms. Alexy held 18,627 shares of common stock issuable upon the vesting of restricted stock units.
(4)
As of December 31, 2020, Ms. Andrews held 25,039 shares of common stock issuable upon the vesting of restricted stock units.
(5)
As of December 31, 2020, Mr. Codd held (i) options to purchase 118,000 shares of common stock at an exercise price of $2.48 per share, all of which were fully vested as of December 31, 2020, and (ii) 9,135 shares of common stock issuable upon the vesting of restricted stock units.
(6)
As of December 31, 2020, Mr. Coviello held 28,922 shares of common stock issuable upon the vesting of restricted stock units.
(7)
The amount represents a cash payment made to Mr. Coviello for his service as a consultant prior to him joining our board of directors on December 11, 2020.
(8)
As of December 31, 2020, Mr. McDermott held 15,795 shares of common stock issuable upon the vesting of restricted stock units.
(9)
Mr. Patel is the Series A Director and, accordingly, did not receive any compensation pursuant to the Outside Director Compensation Policy. Mr. Patel did not have any stock award or option awards outstanding as of December 31, 2020.
(10)
On November 18, 2020, Mr. Pusey resigned as a member of our board of directors, effective December 11, 2020. As a result, all of Mr. Pusey’s then unvested equity awards were cancelled on December 11, 2020.
(11)
As of December 31, 2020, Mr. Salem held 21,557 shares of common stock issuable upon the vesting of restricted stock units.
(12)
As of December 31, 2020, Mr. Switz held 17,538 shares of common stock issuable upon the vesting of restricted stock units.
See the section titled “Executive Compensation” for information about the compensation of our Chief Executive Officer, who is both a director and one of our named executive officers for 2020.
 
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PROPOSAL NO. 1
ELECTION OF DIRECTORS
Our board of directors is currently composed of nine members. In accordance with our certificate of incorporation, our board of directors is divided into three classes with staggered three-year terms. At the Annual Meeting, stockholders are being asked to elect three Class II directors for a three-year term to succeed the same class whose term is then expiring. Each director’s term continues until the election and qualification of such director’s successor, or such director’s earlier death, resignation, or removal. This classification of our board of directors may have the effect of delaying or preventing changes in control of our company.
Nominees
Our nominating and corporate governance committee has recommended, and our board of directors has approved, Sara C. Andrews, Adrian McDermott and Robert E. Switz as nominees for election as Class II directors at the Annual Meeting. If elected, each of Ms. Andrews and Messrs. McDermott and Switz will serve as Class II directors until the 2024 annual meeting of stockholders and until their successors are elected and qualified. Each of the nominees is currently a director of our company. For information concerning the nominees, please see the section titled “Board of Directors and Corporate Governance.”
If you are a stockholder of record and you sign your proxy card or vote over the Internet or by telephone but do not give instructions with respect to the voting of directors, your shares will be voted FOR the re-election of Ms. Andrews and Messrs. McDermott and Switz. We expect that Ms. Andrews and Messrs. McDermott and Switz will accept such nomination; however, in the event that a director nominee is unable or declines to serve as a director at the time of the Annual Meeting, the proxies will be voted for any nominee who shall be designated by our board of directors to fill such vacancy. If you are a beneficial owner of shares of our common stock and you do not give voting instructions to your broker, bank or other nominee, then your broker, bank or other nominee will leave your shares unvoted on this matter.
Vote Required
Our bylaws and Corporate Governance Guidelines provide for a majority voting standard in uncontested elections of directors. An uncontested election is one in which the number of nominees for director does not exceed the number of directors to be elected. The director election taking place at this meeting is uncontested, and therefore, the majority voting standard will apply. That means, in order for a nominee to be elected, the votes cast “FOR” such nominee’s election must exceed the votes cast “AGAINST” such nominee’s election. Abstentions and broker non-votes with respect to the election of any nominee will have no effect on such nominee’s election. Under our Corporate Governance Guidelines, each director is required to submit in advance an irrevocable, conditional resignation that will be effective only upon both (1) the failure to receive the required vote at the next stockholders’ meeting at which the director faces reelection and (2) our board of directors’ acceptance of such resignation. If an incumbent director fails to receive the required vote for reelection, our nominating and corporate governance committee will act to determine whether to accept the director’s resignation and will submit its recommendation to our board of directors for consideration.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” THE THREE NOMINEES
NAMED ABOVE.
 
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PROPOSAL NO. 2
RATIFICATION OF APPOINTMENT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Our audit committee has appointed Deloitte & Touche LLP (“Deloitte”), as our independent registered public accounting firm to audit our consolidated financial statements for our fiscal year ending December 31, 2021. Deloitte also served as our independent registered public accounting firm for our fiscal year ended December 31, 2020.
At the Annual Meeting, stockholders are being asked to ratify the appointment of Deloitte as our independent registered public accounting firm for our fiscal year ending December 31, 2021. Stockholder ratification of the appointment of Deloitte is not required by our bylaws or other applicable legal requirements. However, our board of directors is submitting the appointment of Deloitte to our stockholders for ratification as a matter of good corporate governance. In the event that this appointment is not ratified by the affirmative vote of a majority of the shares present in person or by proxy at the Annual Meeting and entitled to vote, such appointment will be reconsidered by our audit committee. Even if the appointment is ratified, our audit committee, in its sole discretion, may appoint another independent registered public accounting firm at any time during our fiscal year ending December 31, 2021 if our audit committee believes that such a change would be in the best interests of FireEye and its stockholders. A representative of Deloitte is expected to be present at the Annual Meeting, will have an opportunity to make a statement if he or she wishes to do so, and is expected to be available to respond to appropriate questions from stockholders.
Fees Paid to the Independent Registered Public Accounting Firm
The following table presents fees for professional audit services and other services rendered to us by Deloitte for our fiscal years ended December 31, 2020 and 2019.
2020
2019
Audit Fees(1)
$ 3,051,261 $ 3,135,628
Audit-Related Fees(2)
Tax Fees(3)
All Other Fees
$ 3,051,261 $ 3,135,628
(1)
“Audit Fees” consist of fees for professional services rendered in connection with the audit of our annual financial statements, review of our quarterly financial statements, and services that are normally provided by Deloitte in connection with statutory and regulatory filings or engagements for those fiscal years. Fees for 2020 also included fees billed for professional services rendered in connection with our acquisition of Respond Software and Form S-8 consent issuances. Fees for 2019 also included fees billed for professional services rendered in connection with our acquisition of Verodin and Form S-8 consent issuances.
(2)
“Audit-Related Fees” consist of fees for professional services for assurance and related services that are reasonably related to the performance of the audit or review of our consolidated financial statements and are not reported under “Audit Fees.”
(3)
“Tax Fees” consist of fees for professional services rendered by Deloitte for tax compliance, tax advice and tax planning.
Auditor Independence
In 2020, there were no other professional services provided by Deloitte that would have required our audit committee to consider their compatibility with maintaining the independence of Deloitte.
Audit Committee Policy on Pre-Approval of Audit and Permissible Non-Audit Services of Independent Registered Public Accounting Firm
Our audit committee has established a policy governing our use of the services of our independent registered public accounting firm. Under the policy, our audit committee is required to pre-approve all audit and permissible non-audit services performed by our independent registered public accounting firm in order
 
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to ensure that the provision of such services does not impair such accounting firm’s independence. All fees paid to Deloitte for our fiscal years ended December 31, 2019 and 2020 were pre-approved by our audit committee.
Vote Required
The ratification of the appointment of Deloitte requires the affirmative vote of a majority of the shares of our common stock present in person or by proxy at the Annual Meeting and entitled to vote thereon. Abstentions will have the effect of a vote AGAINST the proposal.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” THE
RATIFICATION OF THE APPOINTMENT OF DELOITTE & TOUCHE LLP AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR OUR FISCAL YEAR
ENDING DECEMBER 31, 2021.
 
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PROPOSAL NO. 3
ADVISORY VOTE TO APPROVE NAMED EXECUTIVE OFFICER COMPENSATION
In accordance with Section 14A of the Exchange Act and SEC rules, we are providing our stockholders with the opportunity to vote to approve, on an advisory (and non-binding) basis, the compensation of our named executive officers as disclosed in accordance with SEC rules in the “Executive Compensation” section of this proxy statement beginning on page 41 below. This proposal, commonly known as a “say-on-pay” proposal, gives our stockholders the opportunity to express their views on our named executive officers’ compensation as a whole. This vote is not intended to address any specific item of compensation or any specific named executive officer, but rather the overall compensation of all of our named executive officers and the philosophy, policies and practices described in this proxy statement.
The say-on-pay vote is advisory, and therefore not binding on FireEye, our compensation committee or our board of directors. The say-on-pay vote will, however, provide information to us regarding investor sentiment about our executive compensation philosophy, program, policies and practices, which our compensation committee will be able to consider when determining executive compensation for the remainder of the current fiscal year and beyond. Our board of directors and our compensation committee value the opinions of our stockholders and to the extent there is any significant vote against our named executive officers’ compensation as disclosed in this proxy statement, we will consider our stockholders’ concerns and our compensation committee will evaluate whether any actions are necessary to address those concerns.
We believe that the information we have provided in the “Executive Compensation” section of this proxy statement, and in particular the information discussed in “Executive Compensation — Compensation Discussion and Analysis — Compensation Philosophy and Objectives” beginning on page 45 below, demonstrates that our executive compensation program was designed appropriately and is working to ensure the retention of key management talent and that management’s interests are aligned with our stockholders’ interests to support long-term value creation. Accordingly, we ask our stockholders to vote “FOR” the following resolution at the Annual Meeting:
“RESOLVED, that FireEye’s stockholders approve, on an advisory basis, the compensation paid to the named executive officers, as disclosed in FireEye’s proxy statement for the 2021 annual meeting pursuant to the compensation disclosure rules of the SEC, including the compensation discussion and analysis, compensation tables and narrative discussion, and other related disclosure.”
Vote Required
The approval, on an advisory basis, of named executive officer compensation requires an affirmative vote of a majority of the shares of our common stock present in person or by proxy at the Annual Meeting and entitled to vote thereon to be approved. Accordingly, abstentions will have the effect of a vote AGAINST the proposal. Broker non-votes will have no effect on this proposal.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” THE APPROVAL, ON AN ADVISORY BASIS, OF THE COMPENSATION PAID TO OUR NAMED EXECUTIVE OFFICERS AS DISCLOSED IN THIS PROXY STATEMENT.
 
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AUDIT COMMITTEE REPORT
The information contained in the following Audit Committee Report shall not be deemed to be soliciting material or to be filed with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that FireEye, Inc., or the Company, specifically incorporates it by reference in such filing.
The audit committee has reviewed and discussed the Company’s audited consolidated financial statements with management and Deloitte & Touche LLP (“Deloitte”), the Company’s independent registered public accounting firm. The audit committee has discussed with Deloitte the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board and the Securities and Exchange Commission.
The audit committee has received and reviewed the written disclosures and the letter from Deloitte required by the applicable requirements of the Public Company Accounting Oversight Board regarding Deloitte’s communications with the audit committee concerning independence, and has discussed with Deloitte its independence.
Based on the review and discussions referred to above, the audit committee recommended to the board of directors that the Company’s audited consolidated financial statements be included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 for filing with the Securities and Exchange Commission.
Respectfully submitted by the members of the audit committee of the board of directors:
Kimberly Alexy (Chair)
Ronald E. F. Codd
Robert E. Switz
 
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EXECUTIVE OFFICERS
The following table identifies certain information about our executive officers as of April 13, 2021. Each executive officer serves at the discretion of our board of directors and holds office until his or her successor is duly elected and qualified or until his or her earlier resignation or removal. There are no family relationships among any of our directors or executive officers.
Name
Age
Position(s)
Alexa King
53
Executive Vice President, Corporate and Legal Affairs, General Counsel and Secretary
Kevin R. Mandia
50
Chief Executive Officer and Director
William T. Robbins
53
Executive Vice President and Chief Revenue Officer
Frank E. Verdecanna
50
Executive Vice President, Chief Financial Officer and Chief Accounting Officer
John P. Watters
57
President and Chief Operating Officer
Alexa King has served as our General Counsel and Secretary since April 2012 and as our Executive Vice President, Corporate and Legal Affairs since August 2020. She previously served as our Executive Vice President from May 2016 to August 2020 and as our Senior Vice President from April 2012 to May 2016. Prior to joining FireEye, Ms. King was Vice President, General Counsel and Secretary of Aruba Networks, Inc. from December 2005 to April 2012. From 2000 to 2005, Ms. King served as Senior Director of Legal at Siebel Systems, Inc. and her early career included working at Pillsbury Madison & Sutro (now Pillsbury Winthrop) and Fenwick & West. Ms. King has served on the board of directors of Vocera Communications, Inc. since July 2016. Additionally, Ms. King served as founding director of Pathbrite, Inc. (f/k/a RippleSend, Inc.) from 2008 to 2009 and as advisor from 2009 to 2011. Ms. King graduated magna cum laude from Harvard College with a degree in Eastern European Studies and received her J.D. from the University of California, Berkeley, School of Law, where she was named to the Order of the Coif.
Kevin R. Mandia has served as our Chief Executive Officer since June 2016 and as a member of our board of directors since February 2016. He previously served as our President from February 2015 to June 2016 and as our Senior Vice President and Chief Operating Officer from the date of our acquisition of Mandiant in December 2013 through February 2015. Prior to joining FireEye, Mr. Mandia was the Chief Executive Officer of Mandiant and had served in that capacity since he founded Mandiant in 2004. Prior to forming Mandiant, Mr. Mandia served as the Director of Computer Forensics at Foundstone (later acquired by McAfee Corporation) from 2000 to 2003 and as the Director of Information Security for Sytex (later acquired by Lockheed Martin) from 1998 to 2000. From 1993 to 2000, Mr. Mandia was an officer in the United States Air Force, where he served in various capacities, including as a computer security officer in the 7th Communications Group at the Pentagon, and later as a special agent in the Air Force Office of Special Investigations (AFOSI). Mr. Mandia holds a B.S. in Computer Science from Lafayette College and an M.S. in Forensic Science from The George Washington University. In 2011, Mr. Mandia was named Ernst & Young Entrepreneur of the Year for the Greater Washington area. He completed the Harvard Business School’s Owner/President Management Program in February 2013. Mr. Mandia has taught graduate level courses at Carnegie Melon University and The George Washington University and has co-authored two books on responding to security breaches: Incident Response: Performing Computer Forensics (McGraw-Hill, 2003) and Incident Response: Investigating Computer Crime (McGraw-Hill, 2001).
William T. Robbins has served as our Executive Vice President and Chief Revenue Officer since February 2020. He previously served as our General Manager of Products from February 2020 to January 2021 and as our Executive Vice President of Worldwide Sales from November 2016 to February 2020. Prior to joining FireEye, Mr. Robbins was Executive Vice President of Worldwide Sales of Nuance Communications, Inc. from December 2013 to November 2016. From January 2013 to December 2013, Mr. Robbins served as Chief Operating Officer of [24]7. From May 2005 to December 2012, Mr. Robbins held various positions at Symantec Corporation, most recently as Executive Vice President, Worldwide Sales & Services. Mr. Robbins holds both a B.S. in Economics and a B.B.A. in Finance from Southern Methodist University.
Frank E. Verdecanna has served as our Executive Vice President and Chief Financial Officer since February 2017 and as our Chief Accounting Officer since August 2016. He previously served as our Senior Vice President of Finance from November 2015 to February 2017, as our interim Chief Financial Officer
 
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from August 2015 to September 2015 and as our Vice President of Finance from November 2012 to November 2015. Prior to joining FireEye, Mr. Verdecanna was the Chief Financial Officer of Apptera, Inc., a mobile communications and advertising company, from February 2010 to November 2012. From October 2000 to July 2009, Mr. Verdecanna held various finance positions, most recently as Vice President and Chief Financial Officer, at iPass Inc., a publicly traded global provider of mobility software and services. Mr. Verdecanna holds a B.S. in Business Administration from California Polytechnic State University-San Luis Obispo.
John P. Watters has served as our President and Chief Operating Officer since April 2021. He previously served in various roles with us since we acquired iSIGHT Security, Inc. (d/b/a iSIGHT Partners, Inc.) (“iSIGHT Partners”) in 2016, including as a consultant from May 2020 to April 2021, as Chairman of our Advisory Board from April 2020 to April 2021, as Executive Vice President and Chief Strategy Officer from February 2018 to April 2020, as Executive Vice President, Global Services and Intelligence from January 2017 to January 2018, and as President, iSIGHT from March 2016 to January 2017. Prior to FireEye, Mr. Watters served as founder, Chairman, Chief Executive Officer and President of iSIGHT Partners from November 2006 to February 2016. Prior to iSIGHT Partners, Mr. Watters was Chairman and Chief Executive Officer of iDEFENSE, a security intelligence firm acquired by VeriSign in 2005. In addition, Mr. Watters served as an independent business consultant from April 2020 to April 2021, has served as founder, director and President of Dorset Capital Corporation, an investment firm, since 1998, and has served as founder, director and President of the STAIRS Program, a non-profit organization supporting inner-city education, since 2000. Mr. Watters holds a B.S.C degree in Finance from Santa Clara University.
 
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EXECUTIVE COMPENSATION
Compensation Discussion and Analysis
This Compensation Discussion and Analysis provides information regarding the 2020 compensation of our principal executive officer, our principal financial officer, and the three executive officers (other than our principal executive officer and our principal financial officer) who were our most highly-compensated executive officers as of the end of 2020. These individuals were:

Alexa King, our Executive Vice President, Corporate and Legal Affairs, General Counsel and Secretary;

Peter Bailey, our Executive Vice President and Chief Operating Officer;

Kevin R. Mandia, our Chief Executive Officer (our “CEO”);

William T. Robbins, our Executive Vice President, Chief Revenue Officer and General Manager of Products; and

Frank E. Verdecanna, our Executive Vice President, Chief Financial Officer and Chief Accounting Officer.
These individuals (with the applicable titles described above as of the end of 2020) were our named executive officers (our “Named Executive Officers”) for 2020.
Management Changes
After the end of 2020, Mr. Bailey’s title of Executive Vice President was changed to Executive Vice President, Mandiant Solutions, and Mr. Robbins relinquished his title of General Manager of Products, in each case effective January 28, 2021. Effective April 5, 2021, we appointed John P. Watters as our President and Chief Operating Officer, and Mr. Bailey relinquished his title of Chief Operating Officer.
Overview
This Compensation Discussion and Analysis describes the material elements of our executive compensation program during the fiscal year ended December 31, 2020. It also provides an overview of our executive compensation philosophy, as well as our principal compensation policies and practices. Finally, it analyzes how and why the Compensation Committee of our Board of Directors (the “Compensation Committee”) arrived at the specific compensation decisions for our executive officers, including our Named Executive Officers, in 2020, and discusses the key factors that the Compensation Committee and our Board of Directors considered in determining the compensation of our Named Executive Officers.
Executive Summary, Strategic Context and 2020 Business Highlights
We provide a broad portfolio of cybersecurity solutions and services that allow organizations to prepare for, prevent, respond to, investigate and remediate cyber attacks. Since 2013, we have evolved our business from a focus on appliance-based detection and prevention of advanced threats in customers’ on-premise networks by expanding our portfolio of products and services to help our customers improve their resilience to all types of cyber threats across on-premise, cloud, and critical infrastructure environments. Our cybersecurity products and solutions are designed to rapidly incorporate the latest threat intelligence and adapt to new attacker techniques as the threat environment evolves.
We have structured our business under two brands:

FireEye security control products for network, email, endpoint and cloud security, which detect and prevent advanced, targeted attacks. FireEye products are based on our patented detection technologies, including our patented Multi-vector Virtual Execution (“MVX”) engine and our machine learning and behavioral analysis capabilities.
 
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Mandiant Solutions, which include our controls-agnostic software-as-a-service (“SaaS”) security validation platform, threat intelligence and automated extended detection and response (XDR) software. These SaaS solutions are complemented by our technology-enabled managed services and our Mandiant incident response and strategic cybersecurity consulting services. We introduced Mandiant Advantage in October 2020 to enable customers to access all Mandiant Solutions through a single cloud-based platform.
The cybersecurity industry is highly competitive. We believe the market opportunity is substantial, but we must adapt rapidly to changes in the threat environment and the development of new technologies to be successful.
Our long-term business strategy is based on the fundamental belief that our hands-on cybersecurity expertise and threat intelligence, combined with our innovative technologies, can protect our customers from the catastrophic consequences of cyber attacks. Our real-time knowledge of the threat landscape and the tools and techniques used by today’s threat actors allows us to establish trusted advisor relationships with our customers, contributing to high customer retention and follow-on purchases of additional solutions. Additionally, we apply our threat intelligence and the expertise gained on the front lines of cyber conflict in a unique learning system and innovation cycle that guides our product and solutions development efforts and helps our managed services and consulting teams identify, respond to and remediate breaches.
In 2020, we continued to modernize our solutions and transform our business to achieve sustainable growth and profitability. For example, in November 2020, we acquired Respond Software, Inc., an innovator in artificial intelligence-based XDR software. The Respond solution adds significant new capabilities to our portfolio by automating security processes at machine speed and prioritizing high-risk alerts based on our front line intelligence and expertise. We also made our publicly available threat intelligence and analysis accessible at no cost to all security organizations through the Mandiant Advantage platform, and we expanded our services offerings to include security assessments to help organizations build resilient work-from-home infrastructures. As a result of our efforts in 2020, the shift in our revenue mix to our strategic Platform, Cloud, and Services categories continued to accelerate. In addition, we achieved record non-GAAP operating profitability, positive operating cash flow, and free cash flow for the year.
2020-Related Executive Compensation Actions
Consistent with our performance and compensation objectives, the Compensation Committee or our Board of Directors, as applicable, approved the following actions related to the 2020 compensation for our Named Executive Officers:

Base Salary.   Increased the annual base salaries of our Named Executive Officers (other than Mr. Bailey) to reflect competitive market conditions in amounts ranging from 3% to 4%, with our CEO’s annual base salary for 2020 increased 4% from his 2019 level;

Target Cash Incentive Compensation Opportunities.   Increased the target annual cash incentive compensation opportunities of our Named Executive Officers (other than Mr. Bailey) to reflect competitive market conditions in amounts ranging from 3% to 23%, with our CEO’s target annual cash incentive compensation opportunity for 2020 increased 4% from his 2019 level;

Short-Term Incentive Compensation.   Based upon the levels of achievement of the corporate performance objectives and individual performance objectives established under our Employee Incentive Plan for the 2020 target annual cash incentive compensation opportunities of our Named Executive Officers, approved cash payouts ranging from $242,925 to $541,200, with a cash payout for our CEO in the amount of $541,200 (representing 123% of his 2020 target annual cash incentive compensation opportunity);

Long-Term Incentive Compensation.   Continued the practice of providing long-term incentive compensation in the form of restricted stock unit (“RSU”) awards and performance-based restricted stock unit (“PSU”) awards for shares of our common stock;
 
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Equity Awards.   Granted a combination of RSU and PSU awards to our Named Executive Officers, subject to a time-based vesting requirement in the case of the RSU awards and both a performance condition and a time-based vesting requirement in the case of the PSU awards. 20% of the PSU awards granted in 2020 (other than to Mr. Bailey) were tied to a relative Total Shareholder Return (rTSR) performance measure based on our stock performance relative to the stock performance of companies in the Russell 2000 Index over a three-year performance period (2020-2022). The aggregate grant date fair value of the equity awards granted to our Named Executive Officers ranging from $2,022,500 to $6,472,000, with the aggregate grant date fair value of our CEO’s equity awards being $6,472,000; and

Payout of PSU Awards Granted in 2019 and 2020.   Based upon the level of achievement of the performance conditions for the portion of the PSU awards granted in 2019 and 2020 that were tied to 2020 corporate performance measures, determined that 150% of the target number of shares of our common stock subject to such portion of the PSU awards had been earned, subject to the continued service of the applicable Named Executive Officers through the applicable vesting date (i.e., February 2021).
Pay for Performance
A significant portion of the target total direct compensation provided to our Named Executive Officers each year is at-risk and subject to our achieving our operating results as follows:

Our short-term incentive compensation program requires achievement of corporate and/or individual objectives for any payment to be made thereunder.

A significant portion (i.e., 50%) of the equity awards granted in 2020 to our Named Executive Officers were both at-risk and subject to achievement of pre-established performance objectives. If the performance objectives were not achieved at a threshold level, then none of the shares of our common stock subject to the PSU awards would be earned.
Executive Compensation-Related Policies and Practices
We endeavor to maintain sound executive compensation policies and practices, including compensation-related corporate governance standards that are consistent with our executive compensation philosophy. During 2020, we maintained the following executive compensation policies and practices, including both policies and practices we have implemented to drive performance and policies and practices that either prohibit or minimize behavior that we do not believe serve our stockholders’ long-term interests:
What We Do

Independent Compensation Committee.   We maintain a Compensation Committee comprised solely of independent directors who have established effective means for communicating with our stockholders regarding their executive compensation opinions and concerns.

Independent Compensation Advisors.   We enable the Compensation Committee to engage and retain its own advisors. During 2020, the Compensation Committee engaged Compensia, Inc., a national compensation consulting firm, to assist with its responsibilities.

Annual Executive Compensation Review.   We support the Compensation Committee in its annual review of our executive compensation strategy, including its review of the compensation peer group used for comparative purposes and, to help avoid creating compensation-related risks that would be reasonably likely to have a material adverse effect on us, its annual review of our compensation-related risk profile.

Equity-Based Compensation with Multi-Year Vesting Requirements.   The Compensation Committee designs the equity awards granted to our executive officers to be consistent with current market practice. A significant portion of the equity awards vest over multi-year periods, which serves our long-term value creation goals and retention objectives.
 
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Prohibition on Hedging, Pledging, and Short Sales.   We prohibit short sales, hedging and transactions in derivatives of FireEye securities for all FireEye personnel, including directors, officers, employees, independent contractors and consultants. In addition, we prohibit our executive officers and the non-employee members of our Board of Directors from pledging their equity securities or using such securities as collateral for a loan.

Annual Succession Planning.   We support our Board of Directors in its review of the risks associated with our key executive positions on an annual basis so that we have an adequate succession strategy and plans are in place for our most critical positions.

Stock Ownership Guidelines.   We maintain formal stock ownership guidelines for our executive officers and the non-employee members of our Board of Directors to support these individuals acting as owners of the Company.

Clawback Policy.   We maintain a clawback policy which provides that, in the event we are required to prepare an accounting restatement as a result of fraud or intentional misconduct, we may recover from those current and former executive officers who are subject to the reporting requirements of Section 16 of the Exchange Act and were involved in the fraud or misconduct any incentive compensation erroneously paid or awarded in excess of what would have been paid pursuant to the restated financial statements.
What We Do Not Do

No Retirement Plans Other than Standard 401(k) Offered to All Employees.   We do not offer pension arrangements, defined benefit retirement plans, or nonqualified deferred compensation plans to our executive officers.

No Repricing or Reissuance of Stock Options.   We do not reprice or reissue options to purchase shares of our common stock without stockholder approval.

Limited Perquisites.   We do not provide perquisites and other personal benefits to our executive officers unless they serve a sound business purpose.

No “Single Trigger” Change of Control Payments or Benefits.   We do not provide “single trigger” change of control payments or benefits to our executive officers.

No Tax Gross-up for Change in Control Payments or Benefits.   We do not provide tax gross-ups for change in control payments or benefits to our executive officers.

No Strict Benchmarking of Compensation.   We do not benchmark compensation to a specific percentile of our peer group.

No Guaranteed Compensation.   We do not provide guaranteed incentive compensation, indefinite contracts, or excessive severance payments to our executive officers.
Response to Stockholder Advisory Vote on Named Executive Officer Compensation
The Compensation Committee considers the results of the annual stockholder advisory vote on the compensation of our named executive officers, as well as stockholder feedback on our executive compensation program, as part of its annual executive compensation review. In response to stockholder feedback, as well as the views expressed by the major proxy advisory firms in their annual compensation review and voting recommendations, we continue to revise and enhance our executive compensation program while remaining consistent with our compensation objectives, “pay for performance” philosophy and corporate values.
In 2019, we asked our stockholders to approve, on a non-binding advisory basis, the compensation of our named executive officers for the year ended December 31, 2018. This “say on pay” proposal received support from approximately 94% of the votes cast. As a result, we believe that our stockholders favorably viewed the structure of our executive compensation program. However, in response to feedback from our stockholders received through our ongoing stockholder engagement efforts and commentary from the major proxy advisory
 
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firms in their annual compensation analysis and voting recommendations, and due to competitive market conditions, we made the following changes to our 2020 executive compensation program:

For our 2020 annual cash incentive program, we added annualized recurring revenue (“ARR”) as an additional corporate performance measure. This change responded to specific feedback we received that we add ARR as a performance measure for our executive compensation program because investors generally place a higher relative value on companies with significant recurring revenues, and ARR aligns with how our customers are increasingly purchasing our solutions and services and how we are managing our business as we offer more and more solutions through subscriptions and services.

For time-based equity awards granted in 2020 to our existing executive officers, but not any time-based equity awards granted in 2020 to any new executive officers, we provided that the awards are scheduled to vest quarterly in 16 equal installments over four years. This differs from our prior practice where 25% of the awards were scheduled to vest after one year, with the remaining portion being scheduled to vest quarterly in 12 equal installments thereafter over the following three years. This change was to help make our “follow-on” time-based equity awards more competitive with the practices of our competitors and is consistent with the practices of many companies in our compensation peer group.
At our 2020 annual meeting of stockholders, our “say on pay” proposal received support from approximately 95% of the votes cast. As a result, we believe that our stockholders favorably viewed the structure of our executive compensation program. However, in response to feedback from our stockholders received through our ongoing stockholder engagement efforts, and due to competitive market conditions, we have made the following additional changes to our executive compensation program for 2021:

For the performance-based equity awards granted in 2021, we used the general framework that we used in 2020 except we replaced the billings performance measure with a revenue performance measure and equally weighted the revenue and non-GAAP operating income performance measures. The change in financial metrics responded to feedback we received that our revenue performance may be a better indicator than our billings performance for our progress on our transformation journey.

For our 2021 annual cash incentive program, we removed revenue as one of the corporate performance measures, since we added revenue as a corporate performance measure for the performance-based equity awards granted in 2021. The removal responded to specific feedback we received that we refrain from using the same performance measure for both our short-term and long-term incentive compensation programs.
The Compensation Committee will continue to consider best practices from a stockholder and corporate governance perspective when it designs our executive compensation program. Further, the Compensation Committee will continue to consider feedback received through our stockholder engagement efforts, as well as the results of the annual advisory vote on our executive compensation program and policies, and use this feedback in shaping our future executive compensation program.
Compensation Philosophy and Objectives
Compensation Philosophy
As a cybersecurity provider, we operate in a rapidly evolving and intensely competitive industry sector. To succeed in this environment, we must attract and retain a highly talented executive team, including executive officers with strong leadership skills who can run our business functions, achieve results that meet our clients’ objectives, and sell our products, subscriptions and services. We compete with other companies in our industry and other technology companies in the San Francisco Bay Area to attract and retain a skilled management team. We have designed our executive compensation program to accomplish our goals in the highly competitive area for top talent, while at the same time fostering a “pay for performance” environment that aligns the long-term interests of our executive officers with the interests of our stockholders.
Compensation Program Objectives
To be successful in our industry requires that we continually build on our expertise in the cybersecurity space, expand the breadth and quality of our solutions, continuously enhance our technology platforms, and
 
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manage our expanding operations efficiently and effectively. Our executive compensation program is designed to achieve these objectives so that we are able to:

attract and retain talented and experienced executive officers, who possess the knowledge, skills, and leadership criteria critical to our success;

motivate these executive officers to achieve our business objectives and uphold our core values;

promote teamwork within the executive team, while also recognizing the unique role each executive officer plays in our success; and

ensure the alignment of the long-term interests of our executive officers with the interests of our stockholders.
As we continue to grow as a publicly-traded company, we will evaluate our compensation philosophy and program objectives as circumstances require. At a minimum, we expect the Compensation Committee to review executive compensation annually. Further, as part of this review process, we expect the Compensation Committee to apply our values and the objectives described above, while considering the compensation levels needed to ensure that our executive compensation program remains competitive.
Compensation-Setting Process
Role of Compensation Committee
The Compensation Committee oversees our executive compensation and other compensation and benefit programs, administers our equity compensation plans, and reviews, formulates, and determines the design and amount of compensation for our executive officers, including our Named Executive Officers, except that any approvals by the Compensation Committee relating to the compensation of our Chief Executive Officer are subject to the ratification of our Board of Directors (with any non-independent directors abstaining from the vote).
At the beginning of each year, the Compensation Committee reviews our executive compensation program, including any incentive compensation plans and arrangements to determine whether they are appropriate, properly coordinated, and achieve their intended purposes and makes any modifications to existing plans and arrangements or adopts new plans or arrangements. The Compensation Committee also conducts an annual review of our executive compensation strategy to ensure that it is appropriately aligned with our business strategy and the achievement of our desired objectives. Further, the Compensation Committee reviews market trends and changes in competitive compensation practices, as further described below. Based on its review and assessment, the Compensation Committee, from time to time, makes changes in our executive compensation program or recommends changes to our Board of Directors.
The factors considered by the Compensation Committee in determining the compensation of our executive officers and developing its recommendations to our Board of Directors for 2020 included:

the recommendations of our Chief Executive Officer (except with respect to his own compensation) as described below;

our corporate growth and other elements of financial performance;

the individual achievement of each executive officer against his or her management objectives;

a review of the relevant competitive market data (as described below);

the expected future contribution of the individual executive officer; and

internal pay equity based on the impact on our business and performance.
The Compensation Committee does not weigh these factors in any predetermined manner, nor does it apply any formulas in developing its compensation determinations and recommendations. Rather, in making its determinations and recommendations, the members of the Compensation Committee consider all of this information in light of their individual experience, knowledge of the Company, knowledge of the competitive market, knowledge of each executive officer, and business judgment.
 
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The Compensation Committee’s authority, duties, and responsibilities are described in its charter, which is reviewed annually and revised and updated as warranted. The charter is available on our website at www.FireEye.com in the Governance section of our Investor Relations webpage.
Role of Management
Our Chief Executive Officer works closely with the Compensation Committee in determining the compensation of our other executive officers, including our other Named Executive Officers. Typically, our Chief Executive Officer works with the Compensation Committee to recommend the structure of the annual cash incentive compensation opportunities, to identify and develop corporate and individual performance objectives for such cash incentive compensation opportunities, and to evaluate actual performance against the selected measures. Our Chief Executive Officer also makes recommendations to the Compensation Committee as described in the following paragraph and is involved in the determination of compensation for the respective executive officers who report to him.
At the beginning of each year, our Chief Executive Officer reviews the performance of our other executive officers for the previous year, and then shares these evaluations with, and makes recommendations to, the Compensation Committee for each element of compensation. These recommendations concern the base salary, annual cash incentive compensation, and long-term incentive compensation for each of our executive officers (other than himself) based on our results, the individual executive officer’s contribution to these results, and his or her performance toward achieving his or her individual performance objectives. The Compensation Committee then reviews these recommendations and considers the other factors described above and makes decisions as to the target total direct compensation of each executive officer (other than our Chief Executive Officer), as well as each individual compensation element.
While the Compensation Committee considers our Chief Executive Officer’s recommendations, it only uses these recommendations as one of several factors in making its decisions with respect to the compensation of our executive officers. In all cases, the final decisions on compensation matters are made by the Compensation Committee or our Board of Directors (with any non-independent directors abstaining from the vote). Moreover, no executive officer participates in the determination of the amounts or elements of his or her own compensation.
At the request of the Compensation Committee, our Chief Executive Officer typically attends a portion of each Compensation Committee meeting in which executive compensation is discussed, including meetings at which the Compensation Committee’s compensation consultant is present.
Role of Compensation Consultant
Pursuant to its charter, the Compensation Committee has the authority to retain the services of one or more executive compensation advisors, as it determines in its sole discretion, including compensation consultants, legal counsel, accounting, and other advisors, to assist in the creation of our compensation plans and arrangements and related policies and practices. The Compensation Committee makes all determinations regarding the engagement, fees, and services of these external advisors, and any such external advisor reports directly to the Compensation Committee.
During 2020, the Compensation Committee engaged Compensia, Inc., a national compensation consulting firm, to provide information, analysis, and other assistance relating to our executive compensation program on an ongoing basis. The nature and scope of the services provided to the Compensation Committee by Compensia in 2020 were as follows:

conducted a review and updating of the compensation peer group;

conducted an analysis of the levels of overall compensation and each element of compensation for our executive officers;

provided advice with respect to compensation best practices and market trends for our executive officers and the non-employee members of our Board of Directors; and

provided ad hoc advice and support throughout the year.
 
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The Compensation Committee may replace its compensation consultant or hire additional advisors at any time. Representatives of Compensia attend meetings of the Compensation Committee, as requested, and communicate with the Compensation Committee Chair and with management as circumstances warrant. All decisions regarding the compensation of our executive officers, however, are made by the Compensation Committee (provided that any approvals by the Compensation Committee relating to the compensation of our Chief Executive Officer are subject to the ratification of our Board of Directors, with any non-independent directors abstaining from the vote) or our Board of Directors (with any non-independent directors abstaining from the vote).
Compensia reports directly to the Compensation Committee. The Compensation Committee has assessed the independence of Compensia taking into account, among other things, the enhanced independence standards and factors set forth in Exchange Act Rule 10C-1 and the applicable NASDAQ Listing Standards, and concluded that that there are no conflicts of interest with respect to the work that Compensia performs for the Compensation Committee.
Use of Competitive Market Data
As one of many factors in its deliberations on compensation matters, the Compensation Committee considers competitive market data on executive compensation levels and practices and a related analysis of such data, but does not use this data for setting compensation levels to meet specific percentiles. This market data is drawn from a select group of peer companies developed by the Compensation Committee.
At the direction of the Compensation Committee, Compensia developed a revised compensation peer group in October 2019 to ensure that our executive compensation decisions for 2020 were positioned to be competitive with comparable peer companies. This updated peer group was based on an evaluation of companies that the Compensation Committee believed were comparable to us, taking into consideration the size of each company (based on revenues and market capitalization) and the following additional factors:

the comparability of the company’s business model;

the company’s business services focus;

the comparability of the company’s operating history;

the comparability of the company’s organizational complexities and growth attributes;

the stage of the company’s maturity curve (which increases its likelihood of attracting the type of executive talent for whom we compete);

the companies we most often compete with for talent when hiring; and

the comparability of the company’s operational performance (for consistency with our strategy and future performance expectations).
Based on these criteria, the Compensation Committee approved an updated compensation peer group consisting of 20 publicly-traded business services and related technology companies. At the time Compensia updated the peer group, the selected companies had revenues ranging from approximately $351 million to approximately $2.9 billion, with a median of $725 million, and market capitalizations ranging from approximately $1.2 billion to approximately $20.1 billion, with a median of $4.4 billion. The companies comprising the compensation peer group were as follows:
Aspen Technology Guidewire Software Proofpoint
Box LendingClub Splunk
Commvault Systems LogMeIn Twilio
Cornerstone OnDemand Manhattan Associates Verint Systems
CrowdStrike Holdings New Relic Yelp
Envestnet Palo Alto Networks Zendesk
Fortinet Progress Software
Of the 20 companies in our 2020 compensation peer group, 16 were carried over from 2019 (Aspen Technology, Box, Commvault Systems, Cornerstone OnDemand, Envestnet, Fortinet, Guidewire Software,
 
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LendingClub, LogMeIn, Palo Alto Networks, Progress Software, Proofpoint, Splunk, Twilio, Yelp and Zendesk). The turnover of our compensation peer group was a result of the evaluation and selection criteria described above.
The Compensation Committee believes that information regarding the compensation practices at other companies is useful in at least two respects. First, the Compensation Committee recognizes that our compensation policies and practices must be competitive in the marketplace. Second, this information is useful in assessing the reasonableness and appropriateness of individual executive compensation elements and of our overall executive compensation packages. This information is only one of several factors that the Compensation Committee considers, however, in making its decisions with respect to the compensation of our executive officers.
Compensation Elements
Our executive compensation program consists primarily of three elements: base salary, short-term incentive compensation in the form of cash awards, and long-term incentive compensation in the form of equity awards. Our executive officers also participate in several Company-wide welfare and health benefit plans, which are consistent with the arrangements offered to our other employees in the United States. Finally, our executive officers are eligible to receive certain post-employment compensation arrangements.
We use these compensation elements to make up our executive compensation program because (i) they are consistent with the programs of other companies in our competitive market and allow us to effectively compete for highly-qualified talent, (ii) each element supports achievement of one or more of our compensation objectives, and (iii) collectively, they have been and, we believe, will continue to be, effective means for motivating our executive officers. We view the three primary compensation elements as related, but distinct, components of our total compensation program. We do not believe that total compensation should be derived from a single element, or that significant compensation from one element should negate or reduce compensation from other elements.
Each of these compensation elements is discussed in detail below, including a description of the particular element and how it fits into our overall executive compensation and a discussion of the amounts of compensation paid to our Named Executive Officers in 2020 under each of these elements.
Base Salary
We believe that a competitive base salary is necessary to attract and retain a stable executive team. Base salaries for our executive officers are also intended to be competitive with those received by other individuals in similar positions at the companies with which we compete for talent, as well as equitable across the executive team.
Generally, we establish the initial base salaries of our executive officers through arm’s-length negotiation at the time we hire the individual executive officer, taking into account his or her position, qualifications, experience, prior salary level, and the base salaries of our other executive officers.
Thereafter, the Compensation Committee or our Board of Directors reviews the base salaries of our executive officers, including our Named Executive Officers, at least annually and makes adjustments to base salaries as it determines to be necessary or appropriate.
In January 2020, the Compensation Committee reviewed the base salaries of our executive officers, taking into consideration a competitive market analysis performed by Compensia and the recommendations of our CEO (except with respect to his own base salary), as well as the other factors described above. Following this review, the Compensation Committee determined that an adjustment was necessary and appropriate in the case of Ms. King and Messrs. Robbins and Verdecanna to maintain the competitiveness of their target total cash compensation and decided to increase their base salaries compared to their 2019 levels, effective as of January 1, 2020.
In February 2020, our Board of Directors (with our sole non-independent director not present at the meeting) reviewed the base salary of our CEO, taking into consideration a competitive market analysis performed by Compensia and the recommendation of the Compensation Committee, as well as the other
 
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factors described above. Following this review, our Board of Directors (with our sole non-independent director not present at the meeting and therefore not voting) determined that an adjustment was necessary and appropriate to maintain the competitiveness of Mr. Mandia’s target total cash compensation and decided to increase his base salary compared to his 2019 level, effective as of January 1, 2020.
The ending base salaries of our Named Executive Officers for 2020 compared to 2019 levels were as follows:
Named Executive Officer
Ending 2019
Base Salary
Ending 2020
Base Salary
Amount
Increase
Percentage
Increase
Mr. Bailey
$ 400,000 $ 400,000
Ms. King
$ 383,000 $ 395,000 $ 12,000
3%
Mr. Mandia
$ 425,000 $ 440,000 $ 15,000
4%
Mr. Robbins
$ 462,500 $ 475,000 $ 12,500
3%
Mr. Verdecanna
$ 400,000 $ 410,000 $ 10,000
3%
The base salaries earned by our Named Executive Officers for 2020 are set forth in the “Summary Compensation Table for Fiscal Year 2020” below.
Annual Cash Incentive Compensation — Overview
We use annual cash incentive compensation paid under our Employee Incentive Plan (the “Incentive Plan”) to motivate our executive officers, including our Named Executive Officers, and other designated employees to achieve our short-term financial and operational objectives while making progress towards our longer-term growth and other goals. Consistent with our executive compensation philosophy, this annual cash incentive compensation is intended to help us deliver a competitive total direct compensation opportunity to our executive officers.
Under the Incentive Plan, the Compensation Committee or our Board of Directors establishes annual performance measures and related target levels applicable to any cash incentive compensation opportunity under the Incentive Plan each year. Performance objectives that involve our financial results may be determined in accordance with GAAP or may consist of non-GAAP financial measures, and any actual results may be adjusted by the Compensation Committee or our Board of Directors for one-time items or unbudgeted or unexpected items when determining whether the performance objectives have been met. Individual performance objectives may be established on the basis of any factors the Compensation Committee or our Board of Directors determines relevant, and may be adjusted on an individual, divisional, business unit, or Company-wide basis. The performance objectives may differ from participant to participant and from cash incentive compensation opportunity to cash incentive compensation opportunity.
The Compensation Committee or our Board of Directors may, in its sole discretion and at any time, increase, reduce, or eliminate a participant’s actual cash payment, and/or increase, reduce, or eliminate the amount of cash allocated for a particular performance period. The actual cash payment may be below, at, or above a participant’s target cash incentive compensation opportunity, in the Compensation Committee’s or our Board of Directors’ sole discretion. The Compensation Committee or our Board of Directors may determine the amount of any reduction or increase on the basis of such factors as it deems relevant, and it is not required to establish any allocation or weighting with respect to the factors it considers.
Actual cash incentive compensation is paid only after it is earned.
The Compensation Committee and our Board of Directors have the authority to amend, alter, suspend, or terminate annual performance measures and related target levels, provided that such action does not impair the existing rights of any participant with respect to any earned cash incentive compensation.
 
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Target Cash Incentive Compensation Opportunities
The Compensation Committee or our Board of Directors reviews the performance of each executive officer, including each of our Named Executive Officers, relative to his or her target cash incentive compensation opportunity objectives at its regularly scheduled first quarter meeting. Based on this review, the Compensation Committee (with respect to each executive officer other than our CEO) or our Board of Directors determines and approves the cash payment for each of our eligible executive officers.
In January 2020, the Compensation Committee reviewed the annual target cash incentive compensation opportunities of our executive officers, taking into consideration a competitive market analysis performed by Compensia and the recommendations of our CEO (except with respect to his own annual target cash incentive compensation opportunity), as well as the other factors described above. Following its review, the Compensation Committee determined that an adjustment was necessary and appropriate in the case of Ms. King and Messrs. Robbins and Verdecanna to maintain the competitiveness of their target total cash compensation and decided to increase their annual target cash incentive compensation opportunities compared to their 2019 levels, effective as of January 1, 2019.
Additionally, in January 2020, under the terms of the Incentive Plan, the Compensation Committee established annual performance measures and related target levels for potential 2020 cash incentive compensation for our executive officers (the “2020 Incentive Compensation Plan”). The 2020 Incentive Compensation Plan provided the eligible executive officers with an opportunity to receive cash incentive compensation in February 2021, subject to the achievement of corporate and individual performance objectives in 2020.
In February 2020, our Board of Directors (with our sole non-independent director not present at the meeting) reviewed the annual target cash incentive compensation opportunity of our CEO, taking into consideration a competitive market analysis performed by Compensia and the recommendation of the Compensation Committee, as well as the other factors described above. Following this review, our Board of Directors (with our sole non-independent director not present at the meeting and therefore not voting) determined that an adjustment was necessary and appropriate to maintain the competitiveness of Mr. Mandia’s target total cash compensation and decided to increase his annual target cash incentive compensation opportunity compared to his 2019 level, effective as of January 1, 2020.
The annual target cash incentive compensation opportunities of our Named Executive Officers under the 2020 Incentive Compensation Plan were as follows:
Named Executive Officer
2019 Target Cash
Incentive
Compensation
Opportunity
2020 Target Cash
Incentive
Compensation
Opportunity
Amount
Increase
Percentage
Increase
2020 Target Cash
Incentive
Compensation
Opportunity
(as a percentage
of ending 2020
annual base salary)
Mr. Bailey
$ 225,000 $ 225,000
56%
Ms. King
$ 191,500 $ 197,500 $ 6,000
3%
50%
Mr. Mandia
$ 425,000 $ 440,000 $ 15,000
4%
100%
Mr. Robbins
$ 362,500 $ 380,000 $ 17,500
5%
80%
Mr. Verdecanna
$ 200,000 $ 246,000 $ 46,000
23%
60%
 
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Short-Term Incentive Compensation
Weighting of Target Cash Incentive Compensation Opportunities
Under the 2020 Incentive Compensation Plan, the target cash incentive compensation opportunities of our Named Executive Officers were weighted 75% to corporate performance objectives and 25% to individual performance objectives.
The Compensation Committee determined these allocations to be appropriate to focus our executive officers on our short-term financial objectives as reflected in our annual operating plan while, at the same time, recognizing their contributions to the achievement of these objectives and the successful execution of their individual roles and responsibilities.
Corporate Performance Objectives
For 2020, the Compensation Committee selected revenue, ARR and free cash flow as the corporate performance measures for the 2020 Incentive Compensation Plan.1 The Compensation Committee added ARR as an additional corporate performance measure compared to the prior year, in response to specific feedback we received that ARR be added as a performance measure for our executive compensation program because investors generally place a higher relative value on companies with significant recurring revenues, and ARR aligns with how our customers are increasingly purchasing our solutions and services and how we are managing our business as we offer more and more solutions through subscriptions and services. The Compensation Committee believed revenue, ARR and free cash flow performance measures were appropriate for our business because they provided a balance between generating revenue and recurring revenue, generating cash and growing our business, which it believes directly influences long-term stockholder value. At the same time, for each of these measures, the Compensation Committee established target performance levels that it believed would be challenging, but attainable, through the successful execution of our annual operating plan.
In January 2020, the Compensation Committee established the corporate performance measures under the 2020 Incentive Compensation Plan based on revenue, ARR and free cash flow and weighted the three measures equally. In April 2020, the Compensation Committee established the target levels for the three corporate performance measures. Also in April 2020, to provide effect for our transformational initiatives to streamline the company’s operations, the Compensation Committee determined to place a greater emphasis on the free cash flow measure and, accordingly, updated the weightings of the corporate performance measures such that the target cash incentive compensation opportunities of our Named Executive Officers were weighted 20% on the revenue performance measure, 20% on the ARR performance measure and 35% on the free cash flow measure. In July 2020, the Compensation Committee updated the target level for the free cash flow measure to require positive free cash flow to achieve a 100% payout for the measure. The initial and, to the extent applicable, updated target levels and weightings for the corporate performance measures under the 2020 Incentive Compensation Plan were as follows:
Performance Measure
Initial Fiscal
2020 Target Level
Updated Fiscal
2020 Target Level
Initial Percentage
of 2020 Target
Cash Incentive
Compensation
Opportunity
Updated Percentage
of 2020 Target
Cash Incentive
Compensation
Opportunity
Revenue
$910.0 million
25% 20%
Annualized Recurring Revenue
$630.4 million
25% 20%
Free cash flow
$(36.5 million)
$0.0 million
25% 35%
1
Free cash flow is a non-GAAP financial measure. A reconciliation of GAAP to non-GAAP financial measures is provided in Annex A included at the end of this proxy statement.
 
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The actual cash payment with respect to each measure was to be determined independently, in accordance with the payout schedule for the measure. In April 2020, the Compensation Committee established the target levels and payout schedules for the three corporate performance measures. In July 2020, in connection with updating the target level for the free cash flow measure, the Compensation Committee updated the payout schedule for the free cash flow measure to require positive free cash flow to achieve a 100% payout for the measure. The initial and, to the extent applicable, updated payout schedules (each, to the extent updated, a “2020 Incentive Compensation Plan Payout Schedule”) are as follows:
Achievement Level of 2020 Revenue
Payment Factor
105% or greater
150%
At least 101% but less than 105%
10:1 Addition from 101% to 105% achievement
At least 96% through 100%
10:1 Addition from 96% to 100% achievement
95%
50%
Less than 95%
0%
Achievement Level of 2020 ARR
Payment Factor
105% or greater
150%
At least 101% but less than 105%
10:1 Addition from 101% to 105% achievement
At least 96% through 100%
10:1 Addition from 96% to 100% achievement
95%
50%
Less than 95%
0%
Initial Achievement Level of 2020 Free Cash Flow
Updated Achievement Level of 2020 Free Cash Flow
Payment Factor
$0 or greater
$20 million or greater
150%
Less than $0 but not less than ($20 million)
At least $10 million but less than $20 million
125%
Less than ($20 million) but not less than ($36.5 million)
At least $0 but less than $10 million
100%
Less than ($36.5 million) but not less than ($51 million)
Less than $0 but not less than ($15 million)
75%
Less than ($51 million) but not less than ($71 million)
Less than ($15 million) but not less than ($35 million)
50%
Less than ($71 million)
Less than ($35 million)
0%
Under the 2020 Incentive Compensation Plan, our Board of Directors or Compensation Committee could adjust the target or achievement levels for each corporate performance measure in the event a merger, acquisition or other unforeseeable future event occurred.
Individual Performance Objectives
In addition to the corporate performance objectives, the annual cash incentive compensation for our executive officers was also based on each executive officer’s achievement against his or her individual performance objectives. The individual performance objectives for our Named Executive Officers were established by the Compensation Committee in discussions with our CEO (except with respect to his own individual performance objectives). The individual performance objectives could be quantitative or qualitative goals, depending on the organizational priorities for a given year, and typically focused on key departmental or operational objectives or functions. Most of these objectives were intended to provide a set of common goals that facilitated collaborative management and engagement, although our executive officers could also be assigned individual goals. These objectives set expectations for what our Chief Executive Officer and the Compensation Committee anticipated would be the means by which the individual component of cash incentive compensation were determined. In all cases, the individual performance objectives were intended to be challenging, but attainable, and designed to produce annual cash incentive payments that reflect meaningful performance requirements.
The individual performance objectives for our Named Executive Officers under the 2020 Incentive Compensation Plan were established at the beginning of 2020, were qualitative in nature and were closely linked to their roles at the time.

Mr. Bailey:   Mr. Bailey’s specific goals included business strategy activities, and leading our transformational initiatives.

Ms. King:   Ms. King’s specific goals included managing our privacy function, supporting our mergers and acquisition activity, managing our equity program, managing the legal function with respect to commercial, employment, IP, corporate and securities matters, and managing our government affairs function.
 
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Mr. Mandia:   Mr. Mandia’s specific goals included customer engagement activities, participating in media and press engagements, providing product strategy and vision overall, and other goals related to achieving our externally-communicated financial targets.

Mr. Robbins:   Mr. Robbins’ specific goals included driving our global sales efforts, managing our sales, marketing and products functions, assisting with business planning activities, and customer engagement activities.

Mr. Verdecanna:   Mr. Verdecanna’s specific goals included business planning activities, public financial reporting activities, investor relations activities, supporting our mergers and acquisition activity, and identifying additional opportunities for corporate performance optimization.
The evaluation of our CEO under the 2020 Incentive Compensation Plan was based on an assessment by our Board of Directors (with our CEO not present at the meeting) against his individual performance objectives for the year. The evaluation of each of our other executive officers under the 2020 Incentive Compensation Plan was based on an assessment by our CEO against their respective individual performance objectives for the year and his desire to use the individual performance measure as a mechanism to limit the overall payout amounts given our above-target achievement of the corporate performance objectives for the year. Because our CEO is closest to the performance of the other executive officers, he determined if the individual performance objectives were met, how they were met and whether there were other objectives that were more relevant indicators of performance for that individual. Our CEO then made his recommendations about achievement for the individual performance objectives to the Compensation Committee and our Board of Directors, which they then took into consideration. The Compensation Committee and our Board of Directors had complete discretion to accept our CEO’s recommendation, or to increase, reduce, or eliminate this aspect of an executive officer’s cash incentive compensation based on any factors they deemed relevant.
In January 2021, the level of achievement and payment associated with the individual performance objectives established for each executive officer (other than our CEO) were determined by our CEO and then submitted to the Compensation Committee and our Board of Directors for review and approval. Payments for the individual performance component of the 2020 Incentive Compensation Plan could be up to 150% of the portion of each executive officer’s target cash incentive compensation opportunity allocated to individual performance.
2020 Performance Results and Award Decisions
In February 2021, our Board of Directors (with our sole non-independent director not present at the meeting and therefore not voting) determined the levels of our achievement, and corresponding payout levels pursuant to the 2020 Incentive Compensation Plan Payout Schedules, with respect to the corporate performance objectives under the 2020 Incentive Compensation Plan, and approved the following payout levels:
Corporate Performance Objective
2020 Target
Level
Actual 2020
Achievement
Corresponding
Payout Level
Approved
Payout Level
Revenue
$910.0 million
$940.6 million
103%
130%
Annualized Recurring Revenue
$630.4 million
$637.6 million
101%
110%
Free cash flow
$0.0 million
$68.6 million
$20 million or greater
150%
Also in February 2021, our Board of Directors determined (with our sole non-independent director not present at the meeting and therefore not voting) that the individual performance objectives had been attained at the following percentage levels:
Named Executive Officer
Individual Performance
Objectives Attainment Level
Mr. Bailey
90%
Ms. King
90%
Mr. Mandia
90%
Mr. Robbins
90%
Mr. Verdecanna
90%
 
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Additionally, in February 2021, based on its review of our overall performance in 2020 against the corporate performance objectives and, to the extent applicable, the achievement of individual performance objectives of our Named Executive Officers as described above, our Board of Directors determined (with our sole non-independent director not present at the meeting and therefore not voting) to award cash payments under the 2020 Incentive Compensation Plan as follows to our Named Executive Officers:
Named Executive Officer
2020 Target
Cash Incentive
Compensation
Opportunity
Amount
Related to
Corporate
Financial
Objectives
Amount Related
to Individual
Performance
Objectives
Actual Cash
Incentive
Payment
Percentage of
Target Cash
Incentive
Compensation
Opportunity
Mr. Bailey
$ 225,000 $ 168,750 $ 56,250 $ 276,750 123%
Ms. King
$ 197,500 $ 148,125 $ 49,375 $ 242,925 123%
Mr. Mandia
$ 440,000 $ 330,000 $ 110,000 $ 541,200 123%
Mr. Robbins
$ 380,000 $ 285,000 $ 95,000 $ 467,400 123%
Mr. Verdecanna
$ 246,000 $ 184,500 $ 61,500 $ 302,580 123%
The cash amounts paid to our Named Executive Officers under the 2020 Incentive Compensation Plan are set forth in the “Summary Compensation Table for Fiscal Year 2020” below under the heading “Non-Equity Incentive Plan Compensation.”
Long-Term Incentive Compensation
We believe that if our executive officers own shares of our common stock in amounts that are significant to them, they will have an incentive to act to maximize long-term stockholder value. As discussed in the section “Other Compensation Policies” below, we use stock ownership guidelines to complement our long-term incentive compensation arrangements, so our executive officers maintain a strong link to the interests of our stockholders and to the movements in our stock price. We also believe that long-term incentive compensation in the form of equity awards is an integral component of our efforts to attract and retain exceptional executive officers. In the past seven years, we have relied on RSU awards that may be settled for shares of our common stock and PSU awards pursuant to which shares of our common stock may be earned as the principal vehicles for delivering long-term incentive compensation opportunities to our executive officers. We believe this approach enables us to attract and retain key talent in our industry and aligns our executive team’s interests with the long-term interests of our stockholders.
Generally, in determining the size of the equity awards granted to our executive officers, the Compensation Committee or our Board of Directors, as applicable, takes into consideration the recommendations of our Chief Executive Officer (except with respect to his own equity awards), as well as a competitive market analysis performed by Compensia and the factors described above. The Compensation Committee or our Board of Directors, as applicable, also considers the dilutive effect of our long-term incentive compensation practices, and the overall impact that these equity awards, as well as awards to other employees, will have on stockholder value.
2020 Awards
In February 2020, our Board of Directors granted equity awards to Mr. Bailey in connection with his appointment as our Executive Vice President and Chief Operating Officer and also granted equity awards to our other Named Executive Officers, in recognition of our financial results and their individual performance for 2019 and, in the case of our CEO, his continued effectiveness in overseeing the efforts of our executive officers to achieve our short-term and long-term business objectives. In determining the amount of the equity awards for our Named Executive Officers (other than our CEO), our Board of Directors took into consideration the recommendations of our CEO, as well as the factors described above. With respect to the equity awards for our CEO, our Board of Directors took into consideration the factors described above and determined that, given his responsibilities and importance to us, our CEO’s equity awards should be larger than the awards of the other executive officers to reflect his greater role and responsibilities. Our Board of Directors also considered a competitive market analysis performed by Compensia and the existing equity holdings of our Named Executive Officers, including the current economic value of their unvested equity awards and the ability of these unvested holdings to satisfy our retention objectives.
 
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In May 2020, at the request of our CEO and in an effort to remain competitive in retaining our executive officers, the Compensation Committee further reviewed the existing equity holdings of Mr. Robbins, including the RSU and PSU awards granted to him earlier in February 2020. Following this review, the Compensation Committee granted additional equity awards to Mr. Robbins based on its determination that such awards were necessary and appropriate to maintain the competitiveness of his target total direct compensation. In determining the amount of the additional equity awards for Mr. Robbins, the Compensation Committee took into consideration the competitive market analysis performed by Compensia, the recommendation of our CEO, the current economic value of Mr. Robbins’ unvested equity awards and the ability of these unvested holdings to satisfy our retention objectives.
The equity awards granted to our Named Executive Officers in February 2020 and May 2020 consisted of both RSU and PSU awards, and the total number of shares of our common stock underlying all of the RSU awards and the target and maximum number of shares of our common stock underlying all of the PSU awards granted in 2020 were as follows:
RSU Awards
PSU Awards
Named Executive Officer
Month Award
Granted
Number of Shares
Target Number of
Shares under PSU
Awards
Maximum Number
of Shares (assuming
overachievement)
Mr. Bailey
February 2020
100,000 100,000 150,000
Ms. King
February 2020
62,500 62,500 93,750
Mr. Mandia
February 2020
200,000 200,000 300,000
Mr. Robbins
February 2020
112,500 112,500 168,750
May 2020
37,500 37,500 56,250
Mr. Verdecanna
February 2020
87,500 87,500 131,250

Details of 2020 Awards Granted to Mr. Bailey
The RSU award granted to Mr. Bailey in 2020 was subject to a time-based vesting requirement. Pursuant to this vesting requirement, one-fourth of the shares of our common stock subject to the RSU award will vest on February 15, 2020, and the remaining shares subject to the RSU award will vest quarterly thereafter in 12 generally equal installments, in each case subject to Mr. Bailey’s continued service with us through the applicable vesting date.
The PSU award granted to Mr. Bailey in 2020 was subject to both performance conditions and time-based vesting requirements, and had two components:

50% of the target number of shares of our common stock that could be earned under the PSU award was based on our billings performance over four separate consecutive annual performance periods (e.g., for the 50% portion, 1/4 was tied to 2020 performance, 1/4 was tied to 2021 performance, 1/4 was tied to 2022 performance and 1/4 was tied to 2023 performance), with any shares earned for a performance period vesting in the February following the completion of that performance period (so that the 50% portion, to the extent earned, will vest 1/4 per year), subject to Mr. Bailey’s continued service with us through the applicable vesting date.

50% of the target number of shares of our common stock that could be earned under the PSU award was based on our non-GAAP operating income performance over four separate consecutive annual performance periods (e.g., for the 50% portion, 1/4 was tied to 2020 performance, 1/4 was tied to 2021 performance, 1/4 was tied to 2022 performance and 1/4 was tied to 2023 performance), with any shares earned for a performance period vesting in the February following the completion of that performance period and determination of the performance results by the Compensation Committee (so that the 50% portion, to the extent earned, will vest 1/4 per year), subject to the executive officer’s continued service with us through the applicable vesting date.
Pursuant to the performance conditions under the PSU award granted to Mr. Bailey in 2020, the number of shares of our common stock that could be earned with respect to a performance measure for a performance year was based on pre-established threshold, target, and maximum performance levels for such performance measure for such performance year.
 
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The PSU award granted to Mr. Bailey in 2020 provided that, for the performance period commencing on January 1, 2020 and ending on December 31, 2020, the number of shares of our common stock earned with respect to the 2020 billings performance measure or the 2020 non-GAAP operating income performance measure would be determined independently, in accordance with the following payout schedules (the “2020 PSU Payout Schedules”):
Achievement Level of 2020 Billings
Payment Factor
105% or greater
150%
At least 101% but less than 105%
10:1 Addition from 101% to 105% achievement
At least 96% through 100%
10:1 Addition from 96% to 100% achievement
95%
50%
Less than 95%
0%
Achievement Level of 2020 Non-GAAP Operating Income
Payment Factor
150% or greater
150%
At least 101% but less than 150%
1:1 Addition from 101% to 150% achievement
At least 76% through 100%
2:1 Addition from 76% to 100% achievement
At least 51% through 75%
1:1 Addition from 51% to 75% achievement
50%
25%
Less than 50%
0%
In April 2020, the Compensation Committee established the following target achievement levels (the “2020 PSU Target Achievement Levels”) for the 2020 performance measures under the PSU award granted to Mr. Bailey:
2020 Performance Measure2
Fiscal 2020 Target
Achievement Level
Billings
$ 880.0 million
Non-GAAP operating income
$ 50.0 million

Details of 2020 Awards Granted to Named Executive Officers (other than Mr. Bailey)
The RSU awards granted to our Named Executive Officers (other than Mr. Bailey) in 2020 were subject to a time-based vesting requirement. Pursuant to this vesting requirement, the shares of our common stock subject to the RSU awards will vest quarterly in 16 generally equal installments, with the first vesting date on May 15, 2020, in each case subject to the executive officer’s continued service with us through the applicable vesting date.
The PSU awards granted to our Named Executive Officers (other than Mr. Bailey) in 2020 were subject to both performance conditions and time-based vesting requirements, and had three components:

50% of the target number of shares of our common stock that could be earned under each PSU award was based on our billings performance over three separate consecutive annual performance periods (e.g., for the 50% portion, 1/3 was tied to 2020 performance, 1/3 was tied to 2021 performance and 1/3 was tied to 2022 performance), with any shares earned for a performance period vesting in the February following the completion of that performance period (so that the 50% portion, to the extent earned, will vest 1/3 per year), subject to the executive officer’s continued service with us through the applicable vesting date.

30% of the target number of shares of our common stock that could be earned under each PSU award was based on our non-GAAP operating income performance over three separate consecutive annual performance periods (e.g., for the 30% portion, 1/3 was tied to 2020 performance, 1/3 was tied to 2021 performance and 1/3 was tied to 2022 performance), with any shares earned for a performance period vesting in the February following the completion of that performance period and determination of the performance results by the Compensation Committee (so that the 30% portion, to the extent earned, will vest 1/3 per year), subject to the executive officer’s continued service with us through the applicable vesting date.
2
Billings and non-GAAP operating income are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is provided in Annex A included at the end of this proxy statement.
 
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20% of the target number of shares of our common stock that could be earned under each PSU award was based on a relative Total Shareholder Return (“rTSR”) performance measure. The rTSR measure is based on our stock performance relative to the stock performance of companies in the Russell 2000 Index over a three-year performance period (2020-2022). Any shares earned will vest shortly after the completion of the performance period (so that the 20% portion, to the extent earned, will vest on February 2023), subject to the executive officer’s continued service with us through the vesting date.
The following table summarizes the performance measures and related target share percentages by performance period underlying the PSU awards granted to our Named Executive Officers (other than Mr. Bailey) in 2020:
Performance Measure
Target
Number of
Shares under
PSU Awards
Tied to 2020
Performance
Target
Number of
Shares under
PSU Awards
Tied to 2021
Performance
Target
Number of
Shares under
PSU Awards
Tied to 2022
Performance
Target
Number of
Shares under
PSU Awards
Tied to rTSR
for 2020-2022
Total
Billings
17%
17%
17%
50%
Non-GAAP operating income
10%
10%
10%
30%
Relative Total Shareholder Return
20%
20%
Total
27%
27%
27%
20%
100%
Pursuant to the performance conditions under each PSU award granted to our Named Executive Officers (other than Mr. Bailey) in 2020, the number of shares of our common stock that could be earned with respect to a performance measure for a performance year or three-year performance period, as applicable, was based on pre-established threshold, target, and maximum performance levels for such performance measure for such performance year or three-year performance period, as applicable.
The PSU awards granted to our Named Executive Officers (other than Mr. Bailey) in 2020 provided that, for the performance period commencing on January 1, 2020 and ending on December 31, 2020, the number of shares of our common stock earned with respect to the 2020 billings performance measure or the 2020 non-GAAP operating income performance measure would be determined independently, in accordance with the 2020 PSU Payout Schedules and measured against the 2020 PSU Target Achievement Levels.
The PSU awards granted to our Named Executive Officers (other than Mr. Bailey) in 2020 further provided that, for the three-year performance period commencing on January 1, 2020 and ending on December 31, 2022, the number of shares of our common stock earned with respect to the rTSR performance measure would be determined independently, in accordance with the following payout schedule:
3-Year (2020-2022) rTSR Performance
Relative to Indexed Companies
Payment Factor*
At or above 75th percentile
150%
Above 55th percentile but below 75% percentile
2.5:1 Addition from 56th to 75th percentile
55th percentile
100%
Above 25th percentile but below 55% percentile
3.33:1 Addition from 26th to 55th percentile
At or below 25th percentile
0%
*
Payment factor is capped at 100% if rTSR is negative.
 — 
Payout of 2020 PSU Awards for 2020 Performance
In February 2021, our Board of Directors determined that, with our actual billings in 2020 being $919.8 million, the 2020 billings performance measure under the PSU awards granted in 2020 was achieved at the 105% level, equating to 150% of the target number of shares of our common stock being earned pursuant to the performance requirements for the portions of the PSU awards tied to 2020 billings performance.
Our Board of Directors also determined that, with our actual non-GAAP operating income in 2020 being $77.9 million, the 2020 non-GAAP operating income performance measure under the PSU awards granted in 2020 was achieved at the 156% level, equating to 150% of the target number of shares of our
 
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common stock being earned pursuant to the performance requirements for the portions of the PSU awards tied to 2020 non-GAAP operating income performance.
For the portions of the PSU awards which were measured on 2020 billings performance (i.e., 17% of the total PSU awards) and 2020 non-GAAP operating income performance (i.e., 10% of the total PSU awards), the blended payout for both measures represented 150% of the target number of shares of our common stock under such portions of the PSU awards being earned.
The following table sets forth the number of shares earned and approved for settlement and release, and the corresponding number of shares cancelled, for the portion of the PSU awards granted in 2020 to our Named Executive Officers that were tied to 2020 performance:
Named Executive Officer
Month Award
Granted
Target Number of
Shares under 2020
PSU Awards Tied
to 2020 Billings
Performance and
2020 Non-GAAP
Operating Income
Performance
Approved Payout
Level for 2020 PSU
Awards Tied to
2020 Billings
Performance and
2020 Non-GAAP
Operating Income
Performance
Actual Number of
Shares Approved for
Release under 2020
PSU Awards Tied
to 2020 Billings
Performance and 2020
Non-GAAP Operating
Income Performance
Mr. Bailey
February 2020
25,000 150% 37,500
Ms. King
February 2020
16,667 150% 25,000
Mr. Mandia
February 2020
53,334 150% 80,001
Mr. Robbins
February 2020
30,000 150% 45,000
May 2020
10,000 150% 15,000
Mr. Verdecanna
February 2020
23,334 150% 35,001
The equity awards granted in 2020 to our Named Executive Officers are set forth in the “Summary Compensation Table for Fiscal Year 2020” and the “Grants of Plan-Based Awards Table for Fiscal Year 2020” below.
2019 Awards
In February 2019, our Board of Directors granted PSU awards to our Named Executive Officers (other than Mr. Bailey, who was not an employee at the time). Pursuant to the performance condition under each PSU award, 62.5% of the number of shares of our common stock that could be earned for the 2020 performance year was based on pre-established threshold, target, and maximum performance levels for our billings in 2020, and 37.5% of the number of shares of our common stock that could be earned for the 2020 performance year was based on pre-established threshold, target, and maximum performance levels for our non-GAAP operating income in 2020.
Each PSU award provided that, for the 2020 performance year, the number of shares earned would be determined in accordance with the 2020 PSU Payout Schedules and measured against the 2020 PSU Target Achievement Levels. Pursuant to the vesting requirement, the PSU award provided that the shares earned for the 2020 performance year would vest in February 2021, subject to the applicable executive officer’s continued service with us through the vesting date.
In February 2021, our Board of Directors determined that, with our actual billings in 2020 being $919.8 million, the 2020 billings performance measure under each PSU award was achieved at the 105% level, equating to 150% of the target number of shares of our common stock being earned pursuant to the performance requirements for the portion of each PSU award tied to 2020 billings performance. Our Board of Directors also determined that, with our actual non-GAAP operating income in 2020 being $77.9 million, the 2020 non-GAAP operating income performance measure under each PSU award was achieved at the 156% level, equating to 150% of the target number of shares of our common stock being earned pursuant to the performance requirements for the portion of each PSU award tied to 2020 non-GAAP operating income performance.
 
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The following table sets forth the number of shares earned and approved for settlement and release, and the corresponding number of shares cancelled, for the portion of the PSU awards granted in 2019 to our Named Executive Officers that were tied to 2020 performance:
Named Executive Officer
Target Number of
Shares under 2019
PSU Awards Tied
to 2020 Billings
Performance and
2020 Non-GAAP
Operating Income
Performance
Approved Payout
Level for 2019
PSU Awards Tied
to 2020 Billings
Performance and
2020 Non-GAAP
Operating Income
Performance
Actual Number of
Shares Approved for
Release under 2019
PSU Awards Tied
to 2020 Billings
Performance and 2020
Non-GAAP Operating
Income Performance
Mr. Bailey
Ms. King
18,000 150% 27,000
Mr. Mandia
50,000 150% 75,000
Mr. Robbins
30,000 150% 45,000
Mr. Verdecanna
28,667 150% 43,000
2016 Award for Mr. Robbins
In December 2016, in connection with Mr. Robbins joining FireEye, the Compensation Committee granted him a PSU award with a target of 50,000 shares of our common stock to be earned based on 2020 company performance. While the entire award originally was based on a billings performance measure, in April 2018 it was amended to instead be based half on our billings in 2020 and the other half on our non-GAAP operating income in 2020 in order to align with the two performance measures and payout schedules for the PSU awards granted in 2018 to our executive officers. The PSU award was further amended in February 2019 to replace the payout tables with the payout tables approved by the Compensation Committee in 2020 (i.e., the 2020 PSU Payout Schedules), so that the payout schedules for all of Mr. Robbins’ PSU awards tied to 2020 performance would be consistent.
Pursuant to the performance condition under the PSU award, half of the number of shares of our common stock that could be earned for the 2020 performance year was based on pre-established threshold, target, and maximum performance levels for our billings in 2020, and the other half of the number of shares of our common stock that could be earned for the 2020 performance year was based on pre-established threshold, target, and maximum performance levels for our non-GAAP operating income in 2020.
The PSU award provided that, for the 2020 performance year, the number of shares earned would be determined in accordance with the 2020 PSU Payout Schedules and measured against the 2020 PSU Target Achievement Levels. Pursuant to the vesting requirement, the PSU award provided that the shares earned for the 2020 performance year would vest in February 2021, subject to Mr. Robbin’s continued service with us through the vesting date.
In February 2021, our Board of Directors determined that, with our actual billings in 2020 being $919.8 million, the 2020 billings performance measure under the PSU award was achieved at the 105% level, equating to 150% of the target number of shares of our common stock being earned pursuant to the performance requirements for the portion of the PSU award tied to 2020 billings performance. Our Board of Directors also determined that, with our actual non-GAAP operating income in 2020 being $77.9 million, the 2020 non-GAAP operating income performance measure under the PSU award was achieved at the 156% level, equating to 150% of the target number of shares of our common stock being earned pursuant to the performance requirements for the portion of the PSU award tied to 2020 non-GAAP operating income performance. As a result, the approved payout under the PSU award for both measures was 75,000 shares of our common stock, which represented 150% of the target number of shares of our common stock under the PSU award being earned.
Welfare and Health Benefits
We maintain a tax-qualified retirement plan (the “FireEye 401(k) plan”) under Section 401(k) of the Internal Revenue Code (the “Code”) for our executive officers and other employees who satisfy certain eligibility requirements, including requirements relating to age and length of service. The FireEye 401(k) plan provides eligible employees with an opportunity to save for retirement on a tax-advantaged basis. This plan is
 
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intended to qualify under Sections 401(a) and 501(a) of the Code so that contributions by employees to the plan, and income earned on plan contributions, are not taxable to employees until distributed from the plan. In addition, all contributions are deductible by us when made.
All participants’ interests in their deferrals are 100% vested when contributed under the FireEye 401(k) plan. Pre-tax contributions are allocated to each participant’s individual account and are then invested in selected investment alternatives according to the participants’ directions. In 2019, we made no matching contributions into the FireEye 401(k) plan.
In addition, we provide other benefits to our executive officers on the same basis as all of our full-time employees. These benefits include health, dental and vision benefits, health and dependent care flexible spending accounts, short-term and long-term disability insurance, accidental death and dismemberment insurance, and basic life insurance coverage. We also provide flexible time off and other paid holidays to all employees, including our executive officers. We do not offer our employees a non-qualified deferred compensation plan or defined benefit pension plan.
We design our employee benefits programs to be affordable and competitive in relation to the market, as well as compliant with applicable laws and practices. We adjust our employee benefits programs as needed based upon regular monitoring of applicable laws and practices, the competitive market and our employees’ needs.
Perquisites and Other Personal Benefits
Currently, we do not view perquisites or other personal benefits as a significant component of our executive compensation program. Accordingly, we do not provide perquisites to our executive officers, except in situations where we believe it is appropriate to assist an individual in the performance of his or her duties, to make our executive officers more efficient and effective, for recruitment and retention purposes, or consistent with benefits provided to our other full-time employees. For example, we may ask executive officers and their spouses to participate in our annual President’s Club events offered as rewards to certain other employees for excellent sales or other performance. We treat the expenses of spouses as taxable income to the executive officers. Because spousal participation is at our request and can be disruptive to other plans they may have, we provide a tax “gross up” payment on that imputed income.
In the future, we may provide perquisites or other personal benefits to our executive officers in limited circumstances, such as where we believe it is appropriate to assist an individual executive officer in the performance of his or her duties, to make our executive officers more efficient and effective, for recruitment, motivation or retention purposes, or consistent with benefits provided to our other full-time employees. We do not expect that these perquisites or other personal benefits will be a significant aspect of our executive compensation program. All future practices with respect to perquisites or other personal benefits will be approved and subject to periodic review by the Compensation Committee.
Employment Arrangements
We have entered into written employment offer letters with each of our Named Executive Officers. Each of these arrangements was approved on our behalf by our Board of Directors or the Compensation Committee, as applicable. We believe that these arrangements were appropriate to induce these individuals to forego other employment opportunities or leave their current employer for the uncertainty of a demanding position in a new and unfamiliar organization.
In filling these executive positions, our Board of Directors or the Compensation Committee, as applicable, was aware that it would be necessary to recruit candidates with the requisite experience and skills to manage a growing business in a dynamic and ever-changing industry. Accordingly, it recognized that it would need to develop competitive compensation packages to attract qualified candidates in a highly-competitive labor market. At the same time, our Board of Directors or the Compensation Committee, as applicable, was sensitive to the need to integrate new executive officers into the executive compensation structure that it was seeking to develop, balancing both competitive and internal equity considerations.
Each of these employment offer letters provides for “at will” employment and sets forth the initial compensation arrangements for our Named Executive Officer, including an initial base salary, an annual target cash incentive compensation opportunity, and, in some instances, a recommendation for an equity award.
 
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For a summary of the material terms and conditions of the employment offer letters with each of our Named Executive Officers, see the section titled “— Employment Agreements for Executive Officers” below.
Post-Employment Compensation
Prior to July 2013, the employment offer letters that we entered into with certain of our executive officers provided for certain payments and benefits in the event of their termination of employment under specified circumstances, including following a change in control of the Company. We believed that these arrangements were significant factors in the recruitment of these executive officers and would help these individuals maintain continued focus and dedication to their responsibilities to help maximize stockholder value if there was a potential transaction that could involve a change in control of the Company.
In July 2013, the Compensation Committee adopted a Change of Control Severance Policy for Officers (the “Severance Policy”), a standardized approach for the payment of severance and change in control benefits to our executive officers. Under the Severance Policy, the rights of our executive officers upon an involuntary termination of employment, including an involuntary termination of employment following a change in control of the Company, were established on a uniform basis. In addition, the post-employment compensation and benefits of our executive officers were established separately from their other compensation elements. The Severance Policy is applicable to all new executive officers hired since July 2013. In addition, our executive officers were given the opportunity to waive the existing severance and change in control protections in their employment offer letters in favor of the Severance Policy. Ms. King, our only Named Executive Officer who was an executive officer at July 2013, agreed to relinquish the severance payments and benefits otherwise provided in her employment offer letter in exchange for eligibility to receive payments and benefits under the Severance Policy.
We believe the Severance Policy serves several objectives. First, it eliminates the need to negotiate separation payments and benefits on a case-by-case basis. It also helps assure an executive officer that his or her severance payments and benefits are comparable to those of other executive officers with similar levels of responsibility. Further, it acts as an incentive for our executive officers to remain employed and focused on their responsibilities during the threat or negotiation of a change-in-control transaction, which we believe will help preserve our value and the potential benefit to be received by our stockholders in any such transaction. Finally, the Severance Policy is easier for us to administer, as it requires less time and expense.
The Severance Policy contemplates that the payments and benefits in the event of a change in control of the Company are payable only upon a “double trigger”; that is, only following a change in control and a qualifying termination of employment, including a termination of employment without cause or a resignation for good reason, and in each case requires that the executive officer execute a general release of claims in favor of the Company. In addition, the Severance Policy provides payments and benefits to our executive officers for qualified terminations of employment unrelated to a change in control of the Company.
For a summary of the material terms and conditions of the Severance Policy, as well as an estimate of the potential payments and benefits that our Named Executive Officers would have been eligible to receive if a hypothetical change in control or other trigger event had occurred on December 31, 2020, see the sections titled “— Change of Control Severance Policy for Officers” and “— Potential Payments upon a Change of Control, upon Termination or upon Termination Following a Change of Control” below.
Other Compensation Policies
Stock Ownership Guidelines
We believe that stock ownership by our executive officers and the non-employee members of our Board of Directors is important to link the risks and rewards inherent in stock ownership of these individuals and our stockholders. Our Board of Directors has adopted formal stock ownership guidelines that require our executive officers and the non-employee members of our Board of Directors (other than the Series A Director, who does not receive compensation from the Company for his service on the Board of Directors) to own a minimum number of shares of our common stock. These mandatory ownership levels are intended to create a clear standard that ties a portion of these individuals’ economic interests to the performance of our stock price. Compliance is evaluated on an annual basis, as determined by the Compensation Committee, and not
 
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on an ongoing basis. Shares of our common stock underlying time-based RSU awards, shares of our common stock that have been earned under PSU awards, and the shares of our common stock subject to vested stock options (on a net exercise basis) count toward meeting the requirements. The current required ownership levels are as follows:
Individual Subject to Ownership Guidelines
Minimum Required Level of Stock Ownership
Chief Executive Officer
6x base salary
Other Executive Officers
1x base salary
Non-employee members of Board of Directors (other than the Series A Director)
3x annual retainer
During any year in which an individual’s required ownership level is not met, he or she is required to retain at least 50% of the net shares following the exercise of stock options, the vesting of RSU awards or the vesting of PSU awards until the required ownership level has been met. The guidelines provide that in the event the annual retainer (or any portion thereof) is paid to a non-employee member of our Board of Directors in equity instead of cash, the annual retainer (or applicable portion thereof) means the grant date fair value of the annual equity award (or applicable portion thereof) for regular service on our Board of Directors.
In March 2021, the Compensation Committee evaluated executive officer and director compliance with the guidelines for 2020 and determined that our CEO, each of our other executive officers and five non-employee members of our Board of Directors had satisfied his or her required stock ownership level. Ms. Andrews and Mr. Coviello, who are non-employee members of our Board of Directors, are within a grace period, defined as five years from the date of first becoming subject to the guidelines, and, thus, are still in the process of satisfying their required stock ownership level. Mr. Patel is not subject to the stock ownership guidelines because he is the Series A Director and does not receive compensation from us for his service on our Board of Directors.
Clawback Policy
Our Board of Directors has adopted a clawback policy allowing it to require the repayment or forfeiture of all or part of any performance-based cash incentive compensation, performance-based equity award or other performance-based award paid or granted to our executive officers where the payment, grant or vesting of such compensation or award was based on the achievement of financial results that were subsequently the subject of a financial restatement and where the restatement was intended to correct the result of fraud or intentional misconduct. This policy only applies to current and former executive officers subject to the reporting requirements of Section 16 of the Exchange Act who were involved in the fraud or misconduct. In addition to the foregoing, our Chief Executive Officer and our Chief Financial Officer are subject to the compensation recovery provisions of Section 304 of the Sarbanes-Oxley Act.
Equity Award Grant Policy
We maintain an Equity Award Grant Policy that provides the following guidelines to be observed by the Compensation Committee and our Board of Directors when granting equity awards under the Company’s equity compensation plans:

Any equity awards granted by the Compensation Committee to our Chief Executive Officer are subject to the ratification of our Board of Directors (with any non-independent directors abstaining from the vote).

Generally, equity awards for new hires will be granted on a monthly basis. An equity award granted to a new hire may not have a grant date prior to such individual’s first date of bona fide employment or service.

The Compensation Committee, our Board of Directors, and/or the Equity Award Committee (a committee, consisting of our Chief Financial Officer and our General Counsel, to which the Compensation Committee has delegated non-exclusive authority to grant equity awards to employees below Vice President level where the award falls within prescribed guidelines approved by the Compensation Committee) has the authority to grant occasional retention, promotion, or merit equity awards during the year in a manner that is consistent with the terms of this policy.
 
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Equity awards should not be timed in relation to the release of material non-public information, and it is the intent of the policy to specify the timing of effectiveness of equity award grants to avoid such timing.
Under our current equity compensation plan, the exercise price of any option to purchase shares of our common stock may not be less than the fair market value of our common stock on the date of grant.
Derivatives Trading, Hedging, and Pledging Policies
Our insider trading policy prohibits short sales, hedging and transactions in derivatives of FireEye securities for all FireEye personnel, including directors, officers, employees, independent contractors and consultants. In addition, our insider trading policy prohibits our executive officers and the non-employee members of our Board of Directors from pledging their equity securities or using such securities as collateral for a loan.
Risk Assessment and Compensation Practices
Our management assesses and discusses with the Compensation Committee our compensation policies and practices for our employees as they relate to our risk management, and based upon this assessment, we believe that, for the following reasons, any risks arising from such policies and practices are not reasonably likely to have a material adverse effect on us in the future:

Our annual incentive plan considers a multiple of corporate and individual performance factors and allows the Compensation Committee to review performance on a holistic basis minimizing risk related to our short-term variable compensation; and

Our equity awards include multi-year vesting and/or performance schedules requiring a long-term employee commitment.
Tax and Accounting Considerations
Deductibility of Executive Compensation
Section 162(m) of the Code limits the amount of compensation that we may deduct in any one year for compensation paid to the Chief Executive Officer and certain other highly compensated executive officers (including the Chief Financial Officer for compensation earned after 2017) to $1 million. While the Compensation Committee considers the deductibility of compensation as a factor in making compensation decisions, the Compensation Committee retains the flexibility to provide compensation that is consistent with our goals for our executive compensation program even if such compensation is not fully tax deductible. Accordingly, the Compensation Committee may make decisions that result in compensation expense that is not fully deductible under Section 162(m) of the Code.
Taxation of Nonqualified Deferred Compensation
Section 409A of the Code requires that amounts that qualify as “nonqualified deferred compensation” satisfy requirements with respect to the timing of deferral elections, timing of payments, and certain other matters. Generally, the Compensation Committee intends to administer our executive compensation program and design individual compensation components, as well as the compensation plans and arrangements for our employees generally, so that they are either exempt from, or satisfy the requirements of, Section 409A. From time to time, we may be required to amend some of our compensation plans and arrangements to ensure that they are either exempt from, or compliant with, Section 409A.
Taxation of “Parachute” Payments
Sections 280G and 4999 of the Code provide that executive officers and directors who hold significant equity interests and certain other service providers may be subject to significant additional taxes if they receive payments or benefits in connection with a change in control of the Company that exceeds certain prescribed limits, and that the Company (or a successor) may forfeit a deduction on the amounts subject to this additional tax. We are not obligated to provide any Named Executive Officer with a “gross-up” or other reimbursement
 
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payment for any tax liability that he or she may owe as a result of the application of Sections 280G or 4999 in the event of a change in control of the Company.
Accounting for Stock-Based Compensation
The Compensation Committee takes accounting considerations into account in designing compensation plans and arrangements for our executive officers and other employees. Chief among these is Financial Accounting Standards Board Accounting Standards Codification Topic 718 (“ASC Topic 718”), the standard which governs the accounting treatment of stock-based compensation awards.
ASC Topic 718 requires us to recognize in our financial statements all share-based payment awards to employees, including grants of options to purchase shares of our common stock and restricted stock awards that may be settled for shares of our common stock to our executive officers, based on their fair values. For certain performance-based stock awards, we also must apply judgment in determining the periods when, and if, the achievement of the related performance targets becomes probable.
ASC Topic 718 also requires us to recognize the compensation cost of our share-based payment awards in our income statement over the period that an employee, including our executive officers, is required to render service in exchange for the award (which, generally, will correspond to the award’s vesting schedule).
Compensation Committee Report
The information contained in the following Compensation Committee Report shall not be deemed to be soliciting material or to be filed with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the Company specifically incorporates it by reference in such filing.
Our compensation committee has reviewed and discussed the Compensation Discussion and Analysis required by 402(b) of Regulation S-K with management. Based on this review and discussion, our compensation committee recommended to our board of directors that the Compensation Discussion and Analysis be included in this proxy statement and incorporated by reference into our Annual Report on Form 10-K for the fiscal year ended December 31, 2020.
Respectfully submitted by the members of the compensation committee of our board of directors:
Enrique Salem (Chair)
Sara C. Andrews
Ronald E. F. Codd
Adrian McDermott
 
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Summary Compensation Table for Fiscal Year 2020
The following table provides information regarding the compensation awarded to, or earned by, our Named Executive Officers (with the applicable titles described below as of the end of 2020) during 2018, 2019 and 2020.
Name and Principal Position
Year
Salary
($)
Bonus
($)
Stock
Awards
($)(1)
Option
Awards
($)
Non-Equity
Incentive Plan 
Compensation
($)(2)
All Other
Compensation
($)
Total
($)
Peter Bailey,
Executive Vice President and Chief Operating Officer(3)
2020 400,000 3,208,000 276,750 1,218 3,885,968
2019
2018
Alexa King,
Executive Vice President, Corporate
and Legal Affairs, General Counsel
and Secretary
2020 395,000 2,022,500 242,925 1,518 2,661,943
2019 383,000 2,521,530 133,571 2,212 3,040,313
2018 366,667 1,417,000 183,333 1,518 1,968,518
Kevin R. Mandia,
Chief Executive Officer
2020 440,000 6,472,000 541,200 1,518 7,454,718
2019 425,000 7,004,250 296,438 2,478 7,728,166
2018 418,750 5,668,000 425,000 32,918 6,544,668
William T. Robbins,
Executive Vice President, Chief Revenue Officer and General Manager of Products
2020 475,000 4,479,375 467,400 1,746 5,423,521
2019 462,500 4,202,550 252,844 9,511 4,927,405
2018 461,458 3,220,280 362,500 17,678 4,061,916
Frank E. Verdecanna,
Executive Vice President, Chief Financial Officer and Chief Accounting Officer
2020 410,000 2,831,500