Logitech 2014 Annual Report Download - page 114

Named executive officer bonus targets for fiscal year 2014
In fiscal year 2014, the bonus targets as a percentage of base salary for our named executive officers remained
the same as those in fiscal year 2013. The cash bonus target percentages for fiscal year 2014 are summarized in
the table below. For Mr. De Luca and Mr. Darrell the Bonus Plan is designed to pay 100% of their individual target
bonus opportunity for on target performance.
For the Leadership Team, defined as management team members who report directly to Mr. Darrell, the
Bonus Plan was designed to pay 90% of the individual’s bonus target opportunity for on target performance. The
remaining 10% of the total target bonuses of the Leadership Team members was allocated to a bonus pool to be
allocated to members of the Leadership Team at the discretion of Mr. Darrell based on predetermined criteria and
objectives. These recommendations were approved by the Compensation Committee.
The target bonus opportunities for named executive officers in fiscal year 2014 are at the median of our
compensation peer group, based on peer group data provided by the Compensation Committee’s independent
compensation consultant in March 2013.
Named Executive Officer
2014 Annual Target Bonus
Percentage of Base Salary
2013 Annual Target Bonus
Percentage of Base Salary Change 2013 to 2014
Guerrino De Luca ................. 100% 100% 0%
Bracken P. Darrell ................. 100% 100% 0%
Vincent Pilette ................... 80% n/a n/a
Marcel Stolk ..................... 80% 75% n/a(1)
L. Joseph Sullivan ................. 75% 75% 0%
(1) In fiscal year 2013, Mr. Stolk was eligible for an additional special cash incentive bonus of CHF 67,500 which
was guaranteed as part of his fiscal year 2012 employment contract. This element of his compensation was
discontinued for fiscal year 2014.
Performance measures for fiscal year 2014 bonus program
In fiscal year 2014, 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).
Adjusted Operating
Income
Generating an increase in per-share value
for investors is a priority, as operating
profit allows Logitech to re-invest in R&D,
operations and people for future success.
GAAP, excluding restructuring and
one-time transaction charges related to
acquisitions and divestitures.
Business
Group/Region
Metrics
Measures specific to the performance of
the Business Group/Region for which the
executive is responsible.
Varies by the metric.
For all named executive officers, the 2014 Bonus Plan goals were set equal to Logitech’s annual business plan
for fiscal year 2014 as approved by the Board of Directors in March 2013. All named executive officers’ bonuses
were based on achievement against Logitech’s revenue and operating income goals other than the 10% portion that
was pooled to be allocated by the Compensation Committee after the CEO’s recommendations. Please see further
details below under the heading “Bonus Plan performance targets and results for fiscal year 2014.”
For any bonus payment to be made under the fiscal year 2014 Bonus Plan, the minimum performance
requirements must both be met for each of the plan metrics: Logitech Revenue no less than 94% of target performance
and Logitech Operating Income no less than 66% of target performance.
98