Lenovo 2016 Annual Report Download - page 118
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116 Lenovo Group Limited 2015/16 Annual Report
COMPENSATION COMMITTEE REPORT
OTHER SHAREHOLDER ORIENTED FEATURES
Share Ownership Guidelines
Lenovo maintains share ownership guidelines for selected executives, including the Chairman/CEO and
senior management. The guidelines help to align executives with shareholders and focus executives on
the long-term performance of Lenovo by requiring certain levels of share ownership. The guidelines
(expressed as a multiple of base salary) vary by role and level and are expected to be achieved within 5
years of becoming an eligible executive. If the guideline is not achieved, executives are required to retain
a minimum portion of vested shares delivered through Lenovo’s incentive plans until the guideline is
met. The guideline is then expected to be maintained throughout the executive’s remaining employment.
As of fiscal year end, 86% of executives covered by the guidelines have achieved the targeted level of
ownership, and with the upcoming annual LTI grant in June 2016, 100% of executives covered by the
guidelines will achieve the targeted level of ownership. Additionally, the Non-executive Directors are
subject to similar guidelines and are in full compliance.
Claw Back Policy
Lenovo maintains a claw back policy for selected executives, including the Chairman/CEO and senior
management. The policy states that in the event of a restatement of the Company’s previously issued
financial statements as a result of errors, omission, fraud or non-compliance, the Board may, in its
discretion, attempt to recover all or a portion of compensation, with respect to any fiscal year in which
the Company’s financial results are negatively affected by such restatement.
PERFORMANCE AND EFFECTIVENESS
The Board undertook an annual review of its committees’ performance and effectiveness. The review
concluded that overall the Committee was effective in carrying out its duties. Details of the Board and
Board committees’ review can be found under “Board and Board Committees’ Effectiveness Review” as
set out in the Corporate Governance Report on pages 74 to 76.
Members of the Compensation Committee
Ms. Ma Xuezheng (Chairman)
Mr. William Tudor Brown
Mr. William O. Grabe
Mr. Zhu Linan