Logitech 2014 Annual Report Download - page 121

VINCENT PILETTE’S NEW HIRE PACKAGE
In September 2013, Mr. Pilette joined Logitech as Chief Financial Officer. When establishing Mr. Pilette’s
compensation package, the Compensation Committee based its decisions on competitive market data for chief
financial officer positions provided by the Compensation Committee’s independent compensation consultant, as
well as the compensation and benefits package Mr. Pilette had with his previous employer and the Compensation
Committee’s perception of what was required to secure and maintain his employment.
The Compensation Committee positioned Mr. Pilette’s target cash compensation package at the 50th percentile
of the market for chief financial officers. Mr. Pilette’s base salary is $500,000 and his annual bonus target percentage
is 80%.
Mr. Pilette’s equity package consisted of (i) 175,000 RSUs to provide a meaningful upside for success in
managing costs to provide for profitability and operating leverage (as of September 15, 2014, 116,666 shares from
this grant remain unvested); (ii) 195,000 RSUs to offset a portion of the earned, but unvested long-term incentives
Mr. Pilette lost when leaving his former employer (this grant is fully vested); (iii) 147,500 performance stock units,
or PSUs, that vest when Logitech’s average closing price per share on the Nasdaq Global Select Market over a
90 calendar day period meets or exceeds $12.00 (this grant is fully vested); and (iv) 147,500 performance stock
units, or PSUs, that vest when Logitech’s average closing price per share on the Nasdaq Global Select Market over
a 90 calendar day period meets or exceeds $14.00 (this grant is fully vested).
FORMER OFFICERS FOR FISCAL YEAR 2014
Erik K. Bardman, Former Senior Vice President, Finance and Chief Financial Officer
Mr. Bardman resigned his employment with us effective as of April 26, 2013. He was only with the Company
for the first three weeks of fiscal year 2014 and was paid a base salary of $38,462 for his service during the period
based on an annual base salary of $484,000. Upon Mr. Bardman’s termination of employment, he received $57,694 as
payment for the value of his accrued but unused Personal Time Off Leave balance. In addition, Mr. Bardman
received a 401(k) match of $5,063 and premiums of $201 were paid on his behalf for Group Term Life Insurance.
Michael Doktorczyk, Former Interim Principal Financial Officer and Principal Accounting Officer
Mr. Doktorczyk served as interim Principal Financial Officer and Principal Accounting Officer from
May 29, 2013 until September 3, 2013. Mr. Doktorczyk was the Company’s Vice President of Finance and
Corporate Controller throughout fiscal year 2014, but he was not an executive officer. As a result, the Compensation
Committee was not responsible for determining Mr. Doktorczyk’s fiscal year 2014 compensation. For fiscal
year 2014 his base salary was $255,555, and he received an annual incentive plan bonus of $60,504. In addition,
Mr. Doktorczyk was granted a stock award valued at $69,109. Because Mr. Doktorczyk was not an executive officer,
he was not eligible to participate in any of the compensation programs for our other named executive officers that
are set forth above. Mr. Doktorczyk’s compensation was not influenced by his interim roles.
OTHER COMPENSATION POLICIES
Derivatives
We do not permit certain persons designated by the Company as insiders, including executive officers and
directors, to trade in puts, calls, warrants or other derivative Logitech securities traded on an exchange or in any
other organized securities market.
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