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91
2014/15 Annual Report Lenovo Group Limited
COMPENSATION COMMITTEE REPORT
THE COMPENSATION COMMITTEE
The compensation committee (defined as “Committee” in this section) of the board of directors (the “Board”) of
Lenovo Group Limited (the “Company”) as at the date of this annual report is comprised of five members, all of
whom are non-executive directors of the Company (the “Non-executive Directors”) and majority of whom including
the Committee chairman are independent non-executive directors of the Company (the “Independent Non-
executive Directors”).
The members who held office during the year and up to the date of this annual report are:
Chairman Ms. Ma Xuezheng Independent Non-executive Director
Member Mr. Ting Lee Sen Independent Non-executive Director
Member Mr. William Tudor Brown Independent Non-executive Director
Member Mr. William O. Grabe Independent Non-executive Director and Lead
Independent Director
Member Mr. Zhu Linan Non-executive Director
TERMS OF REFERENCE
The Committee is responsible for considering (i) the Company’s structure and aggregate value of compensation
programs for Chairman of the Board, CEO, other Directors and senior management; and (ii) 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, other Directors and senior
management and reviewing the recommendation from independent consultant on the compensation of Non-
executive Directors. 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, 2015, the Committee held four meetings. The attendance record of the
Committee’s members is set out in the Corporate Governance Report on page 66.
During the year, the Committee:
Review of Company and Market Information
• Reviewed the analysis and the recommendations of its independent consultant on the FY2014/15 Non-
executive Directors’ compensation package and submitted the same to the Board for approval
• Reviewed the market data and relevant trends for mobile and internet-related businesses and the broader
technology industry
• Reviewed the market positioning for the compensation of CEO and senior management
• Reviewed the updates on long-term incentives (“LTI”) spend versus budget
• Reviewed the holding power and share ownership positions of both executives and Non-executive Directors
• Reviewed degree of alignment between CEO pay and performance
• Analysed Lenovo performance versus peer companies on a range of relevant financial metrics