Logitech 2012 Annual Report Download - page 132

(4) Product Group Contribution Margin consists of Standard Margin less Product Group Cost of Goods Sold less
Product Group Operating Expenses (excluding PC&V).
(5) Period Costs & Variances consists of period costs that are not included in the standard cost and variances
regarding the standard cost and the actual cost.
(6) Total Supply Chain Costs consists of elements included in the standard cost and costs that are not included in
standard cost but are a part of the Total Cost of Goods Sold.
(7) Compensation Committee resolved that no payouts would be made under the fiscal year 2012 annual cash
incentive plan, even if the funding percentage was greater than zero.
Annual performance-based cash payments
The following table details the fiscal year 2012 and fiscal year 2011 annual performance-based cash payments
for each named executive officer:
Named Executive Officer
2012 Annual Incentive
Plan Bonus Earned ($)
2011 Annual Incentive
Plan Bonus Earned ($) Change 2011 to 2012
Guerrino De Luca .................. $— $ 578,000 -100%
Erik K. Bardman(1) ................. — 331,000 -100%
Junien Labrousse . . . . . . . . . . . . . . . . . . — 535,276(2) -100%
L. Joseph Sullivan .................. — 308,000 -100%
Former Officers:
Gerald P. Quindlen(3) ................ — 1,083,000 -100%
Werner Heid . . . . . . . . . . . . . . . . . . . . . . — 415,000 -100%
(1) Mr. Bardman received a bonus at the discretion of the Compensation Committee, outside of the Bonus Plan,
of $25,000 in recognition of his contributions in fiscal year 2012.
(2) Mr. Labrousse’s fiscal year 2011 bonus was paid in Swiss francs. The amount reported above was converted
to U.S. dollars at a rate of 1.0924 Swiss francs per dollar, the exchange rate as of March 31, 2011.
(3) Mr. Quindlen did not receive a bonus under the Bonus Plan for fiscal year 2012 given his resignation from the
Company in July 2011.
Long-term equity incentive awards
During fiscal year 2012 the Compensation Committee granted our named executive officers long-term equity
incentive awards in the form of performance-based stock units, or PSUs, and time-based restricted stock units, or
RSUs, in order to align their incentives with the long- term interests of our shareholders, to support retention of
the executives, to provide competitive total compensation packages, and to provide a direct incentive for future
performance. In fiscal year 2013, the Compensation Committee granted Logitech’s new President, Mr. Darrell,
a mix of stock options, RSUs, and premium-priced stock options, or PPOs. We believe this equity package, and
use of the PPOs in particular, will serve to motivate and reward Mr. Darrell to lead the Company in delivering
significantly higher stock value for our shareholders.
PSUs. The majority (60%) of the value of the fiscal year 2012 equity awards were in the form of PSUs. The
PSUs are “at-risk” compensation because Logitech’s relative total shareholder return performance must be at or
above the minimum threshold percentile against the NASDAQ-100 Index over the performance period of three
years in order for the executive to receive any shares from the PSU grant. If, at the end of the performance period,
threshold performance is achieved, the number of shares in which the executive officer vests is pro-rated according
to performance.
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