Lenovo 2014 Annual Report Download - page 82

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80 Lenovo Group Limited 2013/14 Annual Report
COMPENSATION COMMITTEE REPORT
Consistent with prior practice, the Chairman of the Audit Committee received an additional cash payment equal to
US$27,500 (approximately HK$215,000), and the Chairman of the Compensation Committee received an additional
cash payment of US$10,500 (approximately HK$81,500). In addition during the most recent fiscal year, a Lead
Independent Director was appointed and will receive an additional cash payment equal to US$35,000 (approximately
HK$273,600) per year.
Further details of the compensation of the Non-executive Directors are included in note 11 to the financial statements.
SAR and RSU awards outstanding for Non-executive Directors as of March 31, 2014 under this scheme are presented
in the “Long-Term Incentive Schemes” section of this report.
Fiscal year 2013-14 Chairman/CEO and Senior Management Review
Fixed Compensation
As a part of its annual review process, the Committee had reviewed and approved base pay changes for the Chairman/
CEO and senior management in May 2013, effective July 1, 2013.
To ensure the Chairman/CEO’s compensation package remains competitive with the market, base salary for the
Chairman/CEO was increased by 5% to RMB7,989,855 (approximately US$1,304,903) (actual pay delivered in local
currency). Base salaries for senior management were increased by 3% to 15% to account for changes in role, scope,
and market pay levels and in consideration of individual performance and contributions.
Performance Bonus
Chairman/CEO and senior management’s fiscal year 2013/14 performance bonus payouts were approved in the May
2014 Committee meeting. Final bonus payouts for Chairman/CEO and senior management were determined based on
individual bonus targets, the Company’s final pre-tax income, and revenue, as well as individual performance.
Approved performance bonus payments for the fiscal year 2013/14 will be delivered in June 2014.
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LTI Program
The most recent full cycle of LTI awards including both SARs and RSUs was made in February 2013. Selected
executives, including the Chairman/CEO and senior management also received performance-based RSU awards based
on Lenovo’s pre-tax income during the most recent fiscal year. The next cycle of LTI awards including SARs and RSUs
is expected to be in June 2014.