Logitech 2013 Annual Report Download - page 57

Named Executive Officer
2013 Annual Base
Salary ($)
2012 Annual Base
Salary ($)
Change 2012 to
2013
Guerrino De Luca .................... 500,000 500,000 0%
Bracken P. Darrell(1) .................. 750,000 n/a n/a
L. Joseph Sullivan .................... 402,000 402,000 0%
Former Officers:
Erik K. Bardman(2) ................... 484,000 440,000 10%
Werner Heid(3) ....................... 570,000 570,000 0%
Named Executive Officer
2013 Annual Base
Salary (CHF)
2012 Annual Base
Salary (CHF)
Change 2012 to
2013
Junien Labrousse .................... 625,000(5) 710,000(4) -12%
(1) Mr. Darrell joined the Company as President on April 9, 2012. Mr. Darrell assumed the role of Chief Executive
Officer of the Company in January 2013.
(2) Mr.BardmanresignedasSeniorVicePresident,FinanceandChiefFinancialOfficerinApril2013.
(3) Mr. Heid resigned as an executive officer of the Company in April 2012.
(4) Mr. Labrousse’s fiscal year 2012 base salary was set in Swiss francs. The base salary in U.S. dollars was
$804,135, which was based on converting from Swiss francs to U.S. dollars using an average monthly
exchange rate.
(5) Mr. Labrousse ceased to be an executive officer of the Company in April 2012, which also resulted in
Mr. Labrousse’s base salary decreasing from CHF 710,000 to CHF 625,000.
As part of Logitech’s fiscal year 2013 first quarter restructuring, Mr. Labrousse’s role of Executive Vice
Presidentofthe Products Groupwas eliminated,and he assumed the role of SeniorVicePresident,Consumer
Computing Platform Group. Given this change, the Committee approved a 12% reduction to Mr. Labrousse’s
annual salary from CHF 710,000 to CHF 625,000 and a reduction in his target annual bonus percentage from 75%
to 65% of annual salary, to bring him closer to 50th percentile of market compensation for his new position.
Performance-based cash compensation
Logitech’s annual performance-based bonuses, under the Logitech Management Performance Bonus Plan,
“Bonus Plan”, compensate executives based on achievement against the key financial metrics of revenue and
operating income, which are equally weighted. These metrics address both ‘‘top line’’ (revenue) and ‘‘bottom
line’’ (operating income) corporate financial goals, both of which the Committee believes are critical to driving
long-term shareholder value. In fiscal year 2013, the Committee believed that, in addition to executing against our
fiscal year 2013 plan, it was important to provide value to our shareholders by delivering a stock price growth that
was at least in line with the overall market. Therefore, the Committee added a market-based metric to the plan that
required Logitech’s stock price performance over the fiscal year to be equal to or greater than the performance of
the NASDAQ 100 Index for any bonus payout to be made.
The Bonus Plan is designed to motivate and reward executives for above-target performance. The annual
performance-based bonuses represent a significant portion of each executive’s potential annual cash compensation,
ranging from 40% to 50% of annual targeted cash compensation. Payout under the incentive plan is variable, based
on the achievement against Logitech’s financial goals, and for fiscal year 2013 can range from 0% to 150% of the
executive’s target incentive.
PROX Y STATEMENT
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