Logitech 2012 Annual Report Download - page 129

Named executive officer bonus targets for fiscal year 2012
In fiscal year 2012 the Committee approved an increase to the target bonus percentage for Mr. Labrousse. This
action was based on management’s request to align bonus target percentages for our senior executives reporting
to the Chief Executive Officer, which raised Mr. Labrousse’s target bonus percentage from 67% to 75% of his
base salary. The bonus targets as a percentage of base salary for the other named executive officers remained the
same as those in fiscal year 2011. The cash bonus target percentages for fiscal year 2012 are summarized in the
table below.
Named Executive Officer
2012 Annual Target Bonus
Percentage of Base Salary
2011 Annual Target Bonus
Percentage of Base Salary Change 2011 to 2012
Guerrino De Luca ................. 100% 100% 0%
Erik K. Bardman. . . . . . . . . . . . . . . . . . 75% 75% 0%
Junien Labrousse . . . . . . . . . . . . . . . . . 75% 67% 12%
L. Joseph Sullivan ................. 75% 75% 0%
Former Officers:
Gerald P. Quindlen . . . . . . . . . . . . . . . . 125% 125% 0%
Werner Heid . . . . . . . . . . . . . . . . . . . . . 75% 75% 0%
The target bonus opportunities for named executive officers in fiscal year 2012 are in aggregate at the median
of our compensation peer group, based on peer group data provided by the Committee’s independent compensation
consultant to the Committee in March 2011.
No bonuses were paid to executive officers under the Bonus Plan for fiscal year 2012. The Compensation
Committee paid a discretionary bonus to Mr. Bardman for fiscal year 2012, separate from the Bonus Plan, based
on Mr. Bardman’s contributions during fiscal year 2012.
Performance measures for fiscal year 2012 bonus program
In fiscal year 2012, the Bonus Plan was based on the following performance measures:
Performance Measure Why It is Used Measurement Basis
Revenue Revenue growth is an essential component
of long-term success and viability and
enables future strategic investments.
Generally Accepted Accounting Principles
(GAAP), with adjustments for over/under
performance in key strategic focus areas.
Adjusted Operating
Income/
Contribution
Margin
Generating an increase in per-share value
for investors is a priority, as operating profit
allows Logitech to re-invest in research &
development (R&D), operations and people
for future success.
GAAP, excluding one-time transaction
charges related to acquisitions and
divestitures.
Period Costs &
Variances (PC&V)
PC&V consists of period costs that are not
included in standard cost and variances
regarding standard cost and actual cost.
Lower PC&V results in higher gross margin
and operating income.
GA A P.
Total Supply Chain
Costs
Total Supply Chain costs consist of elements
included in standard cost and costs that are
not included in standard cost but are a part
of Total Cost of Goods Sold. Efficiencies
in Supply Chain increase gross margin and
operating income.
GAAP, with measurement made as a % of
Gross Shipments.
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