Lenovo 2010 Annual Report Download - page 40

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2009/10 Annual Report Lenovo Group Limited
38
CORPORATE GOVERNANCE
The Company reserves the right, at its discretion, to pay any awards under the LTI Program in cash or ordinary
shares. The Company has created and funded a trust to pay shares to eligible recipients. In the case of SARs,
awards are due after exercise by the recipient. In the case of RSUs, awards are due after the employee satisfies
any vesting conditions.
The number of units that are awarded under the plan is set and reviewed annually, reflecting competitive
market positioning, market practices, especially those among Lenovo’s competitors, as well as the Company’s
performance and an individual’s actual and expected contribution to the business. In certain circumstances,
awards under the LTI Program may be made to support the attraction of new hires. Award levels and mix may
vary.
During the year, CEO, senior management and selected employees received an annual award comprised of SARs
and RSUs.
Awards outstanding for executive and non-executive directors as of March 31, 2010 under the LTI Program are
presented below.
Share Option Scheme
The Company operates two share option schemes, the “New Option Scheme” and the “Old Option Scheme”.
Details of the programs are set out in the Directors’ Report on pages 51 to 54. Options outstanding for executive
and non-executive directors as of March 31, 2010 under these schemes are presented in the Directors’ Report on
page 53.
No options were granted under these schemes during the year.
Retirement Bene ts
The Company operates a number of retirement schemes for its employees, including executive directors and senior
management. These schemes are reviewed regularly and intended to deliver benefit levels that are consistent with
local market practices. Details of the programs are set out in the Directors’ Report on pages 63 to 65.
Long-Term Incentive Awards
The total number of awards of the members of the Board, including the Chairman of the Board and CEO, under
the LTI Program as disclosed pursuant to Securities and Futures Ordinance is set out below:
Number of units
Name Award type
Fiscal Year of
Award Effective price
As at
April 1, 2009
Awarded
during the year
Vested during
the year
Exercised
during the year
Cancelled/
lapsed during
the year
As at
March 31, 2010
Total
outstanding
as at
March 31, 2010
Max no. of
shares subject
to conditions Vesting period
(HK$) (unvested) (unvested) (mm.dd.yyyy)
Mr. Liu Chuanzhi SAR 05/06 3.15 – – – – – – 564,000 564,000 05.01.2006-05.01.2008
SAR 06/07 2.99 130,000 – 130,000 – – – 390,000 390,000 06.01.2007-06.01.2009
SAR 07/08 3.94 198,000 – 99,000 – – 99,000 297,000 297,000 06.01.2008-06.01.2010
SAR 08/09 5.88 195,980 – 65,326 – – 130,654 195,980 195,980 06.01.2009-06.01.2011
SAR 09/10 3.17 – 18,500,000 – – – 18,500,000 18,500,000 18,500,000 05.25.2010-05.25-2013
RSU 06/07 2.99 43,334 – 43,334 –––––06.01.2007-06.01.2009
RSU 07/08 3.94 66,000 – 33,000 – – 33,000 33,000 33,000 06.01.2008-06.01.2010
RSU 08/09 5.88 78,390 – 26,130 – – 52,260 52,260 52,260 06.01.2009-06.01.2011