Lenovo 2013 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2013 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 188

  • 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
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188

2012/13 Annual Report Lenovo Group Limited 71
Others
• Reviewed and approved the compensation disclosure
in the FY2011/12 annual report
• Reviewed the annual agenda of the Committee
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.
Chairman and CEO Pay Mix
18%
LTI Bonus Target Base
9%
73%
Senior Management Pay Mix (Average)
22%
Average LTI Average Bonus Target Average Base
33%
45%
Fixed Compensation
Fixed compensation includes base salary, allowances and
benefits-in-kind (e.g. medical, dental and life insurance,
etc.). Base salary and allowances are set and reviewed
annually for each position, reflecting competitive market
positioning for comparable positions, market practices,
as well as the Company’s performance and individual
contribution to the business. Allowances are provided
to facilitate temporary and permanent staff relocations.
Benefits-in-kind are reviewed regularly taking into
consideration relevant industry and local market practices.