Logitech 2004 Annual Report Download - page 32

5.2 Compensation of Directors and Executive Officers
The following table sets forth the compensation Logitech paid to non-executive Directors and Executive
Officers in all capacities for the fiscal year ended March 31, 2004 (in thousands except share and per share
amounts):
Compensation Options
Granted
(1) Exercise Price
Expiration
Year
Share
Option
Value
(2)
Other
(3)Name of Group Salary Bonus
All non-executive Directors as a group
(6 individuals) (4) .................. $ 195 $ — 10,000 $38.56 2014 $ 169 $—
All Executive Officers as a group
(9 individuals) ..................... $2,542 $1,613 215,000 $31.04 to $32.08 2014 $3,255 $ 66
(1) Total options granted to non-executive Directors and Executive Officers represent 18% of the options
granted by Logitech in fiscal year 2004. The remainder of the options was granted to 498 of Logitech’s
other employees.
(2) The options granted provide the right to purchase one share per option. For Executive Officers, the options
vest ratably over a 4
1
⁄ 2 -year period from the date of grant. For non-executive Directors, the options vest
ratably over a 3-year period from the date of grant. These share options have an estimated value of $16.90
per share (approximately CHF 22.79 per share) for non-executive Directors and $15.14 per share
(approximately CHF 21.86 per share) for all Executive Officers, based on the Black-Scholes option-pricing
model. These numbers are not necessarily indicative of the Company’s future stock performance. If the
price of Logitech’s shares does not increase above the exercise price, no value will be realizable from these
options.
(3) Amounts shown represent matching contributions under Logitech’s 401(k) plan and Logitech’s
contributions under its pension plans.
(4) The terms of two non-executive Directors will expire as of the date of the Annual General Meeting in June
2004. They will not receive any special compensation upon the end of their term. In fiscal year 2004,
Logitech did not terminate the employment of any of its Executive Officers.
For further information regarding Mr. De Luca’s compensation, refer to section 5.6 “Option Ownership of
Directors and Executive Officers.”
No additional fees or compensation have been paid during fiscal year 2004 to any Directors or Executive
Officers other than as noted above.
Logitech has entered into indemnification agreements with its Directors and Officers. These agreements
indemnify Directors and Officers to the extent permitted by law against expenses and liabilities incurred in legal
proceedings that may arise by reason of their status or service as Directors or Officers. Logitech believes that
these agreements are necessary to attract and retain qualified Directors and Officers. At present, there is no
pending litigation or proceeding involving any Director or Officer of Logitech as to which indemnification will
be required or permitted. The Company is not aware of any threatened litigation or proceeding that might result
in a claim for indemnification.
Logitech currently maintains Director and Officer liability insurance to insure its Directors and Officers
against certain liabilities arising from their status or service as Directors or Officers.
5.3 Compensation to Former Directors and Executive Officers
During fiscal year 2004, Logitech did not grant, directly or indirectly, compensation such as fees, salaries,
credits, bonuses or benefits in kind to former non-executive Directors or Executive Officers.
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