Lenovo 2012 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2012 Lenovo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 180

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180

2011/12 Annual Report Lenovo Group Limited 63
COMPENSATION POLICY
Overall Principles
Lenovo recognizes the importance of attracting and
retaining top-caliber talent and is strongly committed
to effective corporate governance. Consistent with this
philosophy, the Company has a formal, transparent and
performance-driven compensation policy covering its
Directors, senior management and general employees.
Generally, Lenovo’s compensation should serve to support
the Company’s business strategy, assist the attraction
and retention of top talent, reinforce the Company’s
performance driven culture, and in the meanwhile
reflect market practices of other leading international
IT enterprises, with particular focus on Lenovo’s close
competitors in the PC sector.
The Committee makes regular reviews of Lenovo’s
compensation practices to ensure they reflect the overall
principles and objectives stated above.
Non-executive Directors
The Committee regularly reviews the compensation of
Non-executive Directors to ensure its appropriateness
considering the Non-executive Directors’ time commitment,
workload, job requirements and responsibilities versus
Lenovo’s peer companies and the broader market. Details
of the current package and the review carried out in this
fiscalyeararesetoutinthesectionheaded“Remuneration
Reviews”below.
Chairman/CEO and Senior Management
To ensure Lenovo’s compensation for the Chairman/CEO
and senior management reflect the policy and principles
described above, the Committee considers a number of
relevant factors in the determination of their compensation.
Such factors include: salaries and total compensation
paid by peer companies, job responsibilities and scope,
employment conditions elsewhere in the Company,
location and market practices, the Company’s business
performance and individual performance.
The compensation structure of Lenovo’s Chairman/
CEO and senior management consists of base salaries,
allowances, performance bonus, long-term incentives,
retirement benefits, and benefits-in-kind. These
components are described below in greater detail as well
as a graphical overview of the average pay mix.
LTI
0%
20%
40%
60%
80%
100%
Target Bonus
Base
Chairman/CEO
LTI
Target Bonus
Base
SeniorManagement
0%
20%
40%
60%
80%
100%