Lenovo 2015 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 of the 2015 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 215

  • 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
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215

94 Lenovo Group Limited 2014/15 Annual Report
COMPENSATION COMMITTEE REPORT
The Company reserves the right to pay any awards under the LTI Program in cash or in ordinary shares at its
discretion. The Company has created and funded a trust to pay shares to eligible recipients. In the case of SARs,
shares are due after exercise by the recipient. In the case of RSUs, shares are due after the employee satisfies any
vesting conditions.
The number of units that are awarded under the LTI Program is set and reviewed annually, reflecting competitive
market positioning, market practices, especially those among Lenovo’s competitors, as well as the Company’s
performance and each individual’s actual and expected contribution to the business. In certain circumstances,
awards under the LTI Program may be made to support the attraction of new hires. Award levels and mix may vary
by individual, role, and level.
Prior to the adoption of LTI Program in 2005, the Company granted its employees, including directors and senior
management, share options. No further options have been granted since 2004. Details of the Share Option Scheme
are set out on pages 130 to 131 of the Directors’ Report.
Retirement Benefits
The Company operates a number of retirement schemes for its employees, including executive directors and senior
management. These schemes are reviewed regularly and are intended to deliver benefit levels that are consistent
with local market practices. Details of the programs are set out in the Directors’ Report on pages 132 to 135.
General Employees
As at March 31, 2015, the Group had a headcount of more than 60,000 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
Performance
Bonus
Long-Term
Incentive Program
Fixed
Compensation
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.