Lenovo 2013 Annual Report Download - page 75

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2012/13 Annual Report Lenovo Group Limited 73
General Employees
As of March 31, 2013, the Group had approximately 35,026 regular employees worldwide.
Lenovo believes that employees are its most important strategic resource and recognizes that each employee must be
valued as an individual and treated fairly and equitably. Lenovo’s compensation philosophy supports this value and targets
compensation competitively within the relevant competitive market, with significant opportunity for increased pay based on
performance. Through the compensation program, Lenovo seeks to identify and reward exceptional performance in ways
that send clear messages about the Company’s priorities and values.
EMPLOYEE COMPENSATION PACKAGE
Fixed
Compensation
Performance
Bonus
Long Term
Incentive Program
Similar to senior management, employees at Lenovo are eligible for fixed compensation including base salary, allowances
and benefits-in-kind. Eligible employees would also receive performance bonus based on individual and performance
group-based performance. In addition, selected top-performing employees are eligible to participate in the LTI Program.
REMUNERATION REVIEWS
The Committee regularly reviews the Company’s compensation programs to ensure alignment with its stated objectives
as well as competitiveness in the talent market. Typically, reviews for base salary, performance bonus, and Long Term
Incentives (“LTI”) awards are conducted on a yearly basis. Non-executive Directors’ fees are reviewed for alignment with
market practice on an annual basis as well.
Fiscal year 2012-13 Non-executive Directors Review
In May 2012, the Committee engaged an independent international compensation consulting firm to conduct an analysis
of the compensation package of the 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. Final recommendations as subsequently approved by the Board (comprising executive director of the
Company only) based on the delegation from shareholders of the Company are summarized in the table below:
Compensation Element 2012/13 2011/12
Cash Retainer $82,500 USD $80,000 USD
LTI Award $180,000 USD $180,000 USD
Total Remuneration $262,500 USD $260,000 USD
* The LTI award consists of SARs and RSUs which can be settled in either Lenovo shares or their cash equivalent upon exercise. SARs and RSUs are
subject to a three-year vesting period and are otherwise subject to the same terms and conditions of the SAR and RSU schemes described below.