Lenovo 2014 Annual Report Download - page 78

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76 Lenovo Group Limited 2013/14 Annual Report
COMPENSATION COMMITTEE REPORT
• Reviewed the long-term incentive (“LTI”) budget request for FY2014/15
• Reviewed the performance bonus and LTI programs, including the impact of acquisitions
Compensation Program
• Reviewed and approved the FY2012/13 bonus payments and FY2013/14 compensation for senior management
• Reviewed and approved the FY2012/13 bonus payments and FY2013/14 compensation for Chairman of the Board
and CEO
• Reviewed and approved the changes on incentive plan
• Reviewed and approved the compensation arrangements relating to senior management
Others
• Reviewed and approved the compensation disclosure in the FY2012/13 annual report
• Reviewed the annual agenda of the Committee
COMPENSATION POLICY
Overall Principles
Lenovo recognizes the importance of attracting and retaining top-caliber talent and is strongly committed to effective
corporate governance. Consistent with this philosophy, the Company has a formal, transparent and performance-
driven compensation policy covering its directors, senior management and general employees.
Generally, Lenovo’s compensation should serve to support the Company’s business strategy, assist the attraction
and retention of top talent, reinforce the Company’s performance driven culture, and in the meanwhile reflect market
practices of other leading international IT enterprises, with particular focus on Lenovo’s closest competitors.
The Committee makes regular reviews of Lenovo’s compensation practices to ensure they reflect the overall principles
and objectives stated above.
Non-executive Directors
The Committee regularly reviews the compensation of Non-executive Directors to ensure its appropriateness
considering the Non-executive Directors’ time commitment, workload, job requirements and responsibilities versus
Lenovo’s peer companies and the broader market. Details of the current package and the review carried out in this
fiscal year are set out in the section headed “Remuneration Reviews” below.
Chairman/CEO and Senior Management
To ensure Lenovo’s compensation for the Chairman/CEO and senior management reflect the policy and principles
described above, the Committee considers a number of relevant factors in the determination of their compensation.
Such factors include: salaries and total compensation paid by peer companies, job responsibilities and scope,
employment conditions elsewhere in the Company, market practices, the Company’s business performance and
individual performance.
The compensation structure of Lenovo’s Chairman/CEO and senior management consists of base salaries, allowances,
performance-based bonuses, LTI, retirement benefits, and benefits-in-kind. These components and their mix are
described below.