Lenovo 2014 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2014 Lenovo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 199

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199

79
2013/14 Annual Report Lenovo Group Limited
General Employees
As at March 31, 2014, the Group had a headcount of approximately 54,000 worldwide.
Lenovo believes that employees are its most important strategic resource and recognizes that each employee must
be valued as an individual and treated fairly and equitably. Lenovo’s compensation philosophy supports this value and
targets compensation competitively within the relevant competitive market, with significant opportunity for increased
pay based on performance. Through the compensation program, Lenovo seeks to identify and reward exceptional
performance in ways that send clear messages about the Company’s priorities and values.
EMPLOYEE
COMPENSATION
PACKAGE
Fixed
Compensation
Performance
Bonus
Long-Term
Incentive Program
Similar to senior management, employees at Lenovo are eligible for fixed compensation including base salary,
allowances and benefits-in-kind. Eligible employees would also receive performance bonus based on individual and
performance group-based performance. In addition, selected top-performing employees are eligible to participate in
the LTI Program.
REMUNERATION REVIEWS
The Committee regularly reviews the Company’s compensation programs to ensure alignment with its stated objectives
as well as competitiveness in the talent market. Typically, reviews for base salary, performance bonus, and LTI awards
are conducted on a yearly basis. Non-executive Directors’ fees are reviewed for alignment with market practice on an
annual basis as well.
Fiscal year 2013-14 Non-executive Directors Review
In May 2013, the Committee engaged an independent international compensation consulting firm to conduct an
analysis of the compensation package of the 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. Final recommendations as subsequently approved by the Board (comprising
executive director of the Company only) based on the delegation from shareholders of the Company are summarized in
the table below:
Compensation Element 2013/14 2012/13
Cash Retainer $87,500 USD $82,500 USD
LTI Award $200,000 USD $180,000 USD
Total Remuneration $287,500 USD $262,500 USD
* The LTI award consists of SARs and RSUs which can be settled in either Lenovo shares or their cash equivalent upon exercise. SARs and RSUs are
subject to a three-year vesting period and are otherwise subject to the same terms and conditions of the SAR and RSU schemes described below.