Logitech 2013 Annual Report Download - page 65

As part of the annual personnel review and succession planning process, Mr. De Luca also provided the
Board and the Compensation Committee with his perspective on the performance of Logitech’s executive officers.
This performance feedback provided additional input to the Committee when making its decisions on fiscal year
2013 compensation.
Once the Compensation Committee received the analysis and recommendations from both Radford and
Logitech’s management, who were in agreement on the recommended actions, the Committee made all decisions
regarding executive officer fiscal year 2013 compensation without Mr. De Luca or any other executive officer
present. The Committee considered, but was not in any way bound by, the recommendations made by management.
Overview of Factors Considered by Committee
The Compensation Committee considers a variety of factors when determining total executive
compensation, including:
• Competitive considerations.
• Subjective elements, such as the scope of the executive’s role, experience and skills and the individual’s
performance during the prior fiscal year and potential for future contribution to Logitech.
• The performance of Logitech in the prior fiscal year.
• Logitech’s performance relative to the Company’s compensation peer group and the overall
technology industry.
• Accrued and realized gains from past equity incentive awards.
• The need to retain key executives during Logitech’s challenging turnaround period.
Competitive considerations
We attempt to compensate our executive officers competitively relative to industry peers. Both peer group
and broader industry compensation survey data is used by our Compensation Committee when setting Logitech’s
executive compensation, as well as to assist the Compensation Committee in the evaluation of the design of bonus
plan and equity compensation programs.
The companies in Logitech’s peer group were selected in February 2011, and are reviewed annually, in
partnership with Radford Consulting, based on (i) involvement in the PC-based consumer electronics industry,
or(ii)revenuesapproximatelyequaltoLogitech’sandapresencenearSiliconValleyintheSanFranciscoBay
Area. Although Logitech is a Swiss company, Logitech primarily competes for executive management talent with
technologycompaniesintheUnitedStates,andparticularlyinthehigh-technologyareaofSiliconValley.Asa
result, the peer group consists primarily of U.S. public technology companies. For fiscal year 2013, the compensation
peer group consisted of:
Activision Blizzard, Inc. Electronic Arts, Inc. Plantronics
Agilent Technologies, Inc. Intuit, Inc. Polycom, Inc.
Analog Devices, Inc. Lexmark International, Inc. SanDisk Corporation
Autodesk, Inc. NetApp, Inc. Take-Two Interactive
BMC Software, Inc. Nuance Communications, Inc. VeriFoneSystems,Inc.
Brocade Communications Systems, Inc. NVIDIACorporation
The Compensation Committee believes the compensation peer group is representative of the companies with
which Logitech competes for talent and, accordingly, benchmarks its compensation against.
PROX Y STATEMENT
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