Lenovo 2016 Annual Report Download - page 113

Download and view the complete annual report

Please find page 113 of the 2016 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 247

  • 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
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247

111
2015/16 Annual Report Lenovo Group Limited
General Employees
As at March 31, 2016, 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.
Long-Term
Incentive
Program
Performance
Bonus
Fixed
Compensation
EMPLOYEE COMPENSATION PACKAGE
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 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 2015-16 Non-executive Directors Review
In May 2015, 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. Overall, the cash
retainer increased by 5.7% to US$92,500, and annual LTI award remained constant at US$200,000*. 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 2015/16 2014/15
Cash Retainer $92,500 USD $87,500 USD
LTI Award $200,000 USD $200,000 USD
Total Remuneration $292,500 USD $287,500 USD
* The LTI award consists of SARs and RSUs which can be settled in either Lenovo shares or 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 above.