Logitech 2006 Annual Report Download - page 51

5.2 Compensation of Directors and Executive Officers
The following table sets forth the compensation Logitech paid to non-executive Directors and Executive
Officers in all capacities for the fiscal year ended March 31, 2006 (in thousands except share and per share
amounts):
Compensation Options
Granted(1)
Exercise
Price
Expiration
Year
Share
Option
Value(2) Other(3)Name of Group Salary Bonus
All non-executive Directors as a group
(6 individuals) (4) ................ $ 365 $ — 60,000 $ 30.83 2016 $ 677 $—
All Executive Officers as a group
(9 individuals) (5)(6) ............. $2,651 $1,927 480,000 $31.01 to $40.50 2016 $6,863 $ 79
(1) Total options granted to non-executive Directors and Executive Officers represent 31% of the options
granted by Logitech in fiscal year 2006. The remainder of the options were granted to 521 of Logitech’s
other employees.
(2) The options granted provide the right to purchase one share per option. For Executive Officers, the options
vest ratably over a 4-year period from the date of grant. For non-executive Directors, the options vest
ratably over a 3-year period from the date of grant. These share options have an estimated value of $11.28
per share (approximately CHF 14.34 per share) for non-executive Directors. Share option grants for all
Executive Officers range from $12.85 to $15.55 per share (approximately CHF 15.37 to CHF 20.11 per
share) for all Executive Officers, based on the Black-Scholes option-pricing model. These numbers are not
necessarily indicative of the Company’s future stock performance. If the price of Logitech’s shares does not
increase above the exercise price, no value will be realizable from these options.
(3) Amounts shown represent matching contributions under Logitech’s 401(k) plan and Logitech’s
contributions under its pension plans.
(4) Mr. Gill has informed the Company of his intention to retire from the Board prior to the end of his term,
which otherwise expires at the 2008 Annual General Meeting. He will not receive any special compensation
upon the end of his service as a director.
(5) In fiscal year 2006, Marcel Stolk, former Senior Vice President of Sales & Marketing, resigned from
Logitech in September 2005 and Gerald Quindlen joined as Mr. Stolk’s replacement in October 2005. The
partial-year compensation, as well as the options granted, share option value and other amounts, of both
Mr. Stolk and Mr. Quindlen is reflected in the compensation of Executive Officers as a group.
(6) On April 3, 2006, Mr. Hawkins was appointed Senior Vice President, Finance and Information Systems, and
Chief Financial Officer, and Mr. Sullivan was appointed Senior Vice President, Worldwide Operation.
Compensation for Mr. Hawkins and Mr. Sullivan is not reflected in the compensation of Executive Officers
for fiscal year 2006.
For further information regarding Mr. De Luca’s compensation, refer to section 5.6 “Option Ownership of
Directors and Executive Officers.”
There were no other Executive Officer resignations or additions during fiscal year 2006. No additional fees
or compensation have been paid during fiscal year 2006 to any Directors or Executive Officers other than as
noted above.
Logitech has entered into indemnification agreements with its Directors and Officers. These agreements
indemnify Directors and Officers to the extent permitted by law against expenses and liabilities incurred in legal
proceedings that may arise by reason of their status or service as Directors or Officers. Logitech believes that
these agreements are necessary to attract and retain qualified Directors and Officers. At present, there is no
pending litigation or proceeding involving any Director or Officer of Logitech as to which indemnification will
be required or permitted. The Company is not aware of any threatened litigation or proceedings that might result
in a claim for indemnification.
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LISA