Logitech 2010 Annual Report Download - page 101

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Stock option exercise price
The exercise price of a newly granted option (i.e., not an option assumed or granted in relation to an acquisition)
is Logitech’s closing share price on Nasdaq on the date of grant, for options denominated in U.S. dollars, or the
closing share price on the SIX Swiss Exchange on the date of grant, for options denominated in Swiss francs.
Options granted to executive officers are typically denominated in U.S. dollars. The grant date may be the day
of the Compensation Committee meeting or consent, or a subsequent date shortly after the date of the meeting or
consent, but not a date prior to the date of the meeting or consent. The grant date is specified by the Compensation
Committee at the time of its approval.
Stock option vesting
Options granted to executive officers and employees vest 25% per year over four years, in equal increments
on each annual anniversary of the original grant date or, in the case of grants made to newly-hired employees in
connection with their hiring, the grants vest on each annual anniversary of the employee hire date.
Restricted stock unit vesting
RSUs issued to executive officers and other employees have a four-year vesting period, with the RSUs vesting
in four equal annual increments.
PRSU Performance Measure
The performance measure for the performance-based restricted stock units granted in fiscal year 2009 and
2010 is the relative total shareholder return (“TSR”), expressed as a percentile rank, of Logitech shares against the
TSR of companies included in the Nasdaq 100 Index. The Compensation Committee believes this measure is a key
reflection of Logitech’s operational and financial performance, because it focuses on relative performance against
other mid- to large-size technology companies.
For purposes of the PRSUs, relative TSR reflects (i) the aggregate change in the 30-day average closing
price of Logitech shares against the companies in the Nasdaq 100 Index, and (ii) the value (if any) returned to
shareholders in the form of dividends or similar distributions, assumed to be reinvested in shares when paid, each
at the beginning and the end of a two-year performance period.
Structure of the PRSUs
The structure of the PRSUs is summarized in the table below:
Percentile Rank of Logitech TSR against Nasdaq 100 Index TSR
Vested
percentage of
shares subject to
PRSU
Below 40th Percentile Rank (threshold) . . . . . . . . . . . . . . . . 0%
40th Percentile Rank ............................... 50%
60th Percentile Rank (target) ......................... 100%
75th Percentile Rank and Above . . . . . . . . . . . . . . . . . . . . . . 200%
If the minimum performance threshold of a 40th percentile rank of Logitech TSR against the Nasdaq 100 Index
TSR over the two-year performance period is not met, no shares subject to the PRSUs will vest. For a percentile
rank between the 40th and 60th percentiles, or between the 60th and 75th percentiles, the percent of shares subject to
the PRSU that will vest will be determined by straight-line interpolation.
The Compensation Committee set the minimum performance threshold, and the vested percentages against
the corresponding TSR percentile ranks, based on the historical TSR of Logitech shares against the Nasdaq 100
Index.