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2011/12 Annual Report Lenovo Group Limited
62
COMPENSATION COMMITTEE REPORT
THE COMPENSATION COMMITTEE
TheCompensationCommittee(definedas“Committee”
in this section) is comprised of three members, all of whom
are Independent Non-executive Directors. The current
members are Mr. William O. Grabe (Committee Chairman),
Professor Woo Chia-Wei and Mr. Ting Lee Sen while Ms.
Ma. Xuezheng and Mr. Zhu Linan are observers.
TERMS OF REFERENCE
The Committee is responsible for considering and making
recommendation to the Board on (i) the Company’s
structure and aggregate value of compensation programs
for Chairman of the Board, CEO and other Directors and
senior management; (ii) the compensation of the Non-
executive Directors; and (iii) the establishment of a formal
and transparent procedure for developing policy on
compensation. It is also responsible for the determination
of the compensation level and package paid to the
Chairman of the Board, CEO and other Directors and
senior management. The Committee shall ensure that no
Director is involved in deciding his or her own individual
compensation. The Committee is authorized to obtain
outside independent professional advice to support its
function.
SUMMARY OF WORK DONE
In the fiscal year ended March 31, 2012, the Committee
held six meetings. The attendance record of the
Committee’s members is set out in the Corporate
Governance Report on page 45.
During the year, the Committee:
Review of Company and Market Information
• ReviewedtheperformanceoftheCompanyin
FY2010/11 and market compensation levels for
CEO and senior management at similar technology
companies
• Reviewedtheanalysisandtherecommendationof
an independent consultant on the FY2011/12 Non-
executive Directors’ compensation package and
submitted the same to the Board for approval
• ReviewedtheCompany’stotalpayanalysis
• ReviewedtheCompany’spaycompetitivenesswith
market
Compensation Program
• ReviewedandapprovedtheFY2010/11bonus
payments and FY2011/12 compensation for senior
management
• ReviewedandapprovedtheFY2010/11bonus
payments and FY2011/12 compensation for Chairman
of the Board and CEO
• Reviewedandapprovedadjustmentstothe
FY2010/11 and FY2011/12 long-term incentive
program(“LTI Program”)budgets
• Reviewedtheremunerationarrangementsrelatingto
cessation of employment of senior management
• ReviewedandapprovedFY2011/12annualLTI
Program awards for senior management
• ReviewedandapprovedFY2011/12annualLTI
Program awards for Chairman and CEO
• ReviewedandapprovedFY2012/13LTIProgram
budget
Others
• Reviewedandapprovedthecompensationdisclosure
in the FY2010/11 annual report
• ReviewedtheannualagendaoftheCommittee
• ReviewedandrecommendedtotheBoardon
amendments to the terms of reference of the
Committee