Logitech 2010 Annual Report Download - page 221

ANNUAl REPORT
209
(1) Each option provides the right to purchase one share at the exercise price. For executive officers, the options
become exercisable over four years in equal annual installments from the date of grant. For non-executive
Directors, the options become exercisable over three years in equal annual installments from the date of
grant. PRSUs granted to executive officers are performance-based restricted stock units that may vest at
the end of two years from the grant date upon meeting certain minimum share price performance criteria
measured against market conditions. RSUs granted to executive officers are time-based restricted stock units
that vest in equal annual installments from the date of grant. RSUs granted to non-executive Directors vest in
one installment on the grant date anniversary.
(2) Two of the three option grants to Mr. Chua have exercise prices of 13.00 and 14.29 Swiss francs, respectively,
and the other has a U.S. dollar exercise price of $19.43. For those grants denominated in Swiss francs, the U.S.
dollar exercise prices in the range are based on the Swiss francs to U.S. dollar conversion rate on the trading
day immediately preceding the respective grant dates. The range of the U.S. dollar exercise prices as of March
31, 2010 was $12.22 - $19.43.
(3) The exercise price of the option as granted to Ms. Davis is 34.45 Swiss francs. The U.S. dollar exercise price
shown is based on the Swiss francs to U.S. dollar conversion rate on the trading day immediately preceding
the grant date. The U.S. dollar exercise price as of March 31, 2010 was $32.37.
(4) The exercise price of the option as granted to Mr. Laube is 26.18 Swiss francs. The U.S. dollar exercise price
shown is based on the Swiss francs to U.S. dollar conversion rate on the trading day immediately preceding
the grant date. The U.S. dollar exercise price as of March 31, 2010 was $24.60.
(5) The two option grants to Ms. Ribar have exercise prices of 14.68 and 34.45 Swiss francs, respectively. The
U.S. dollar exercise prices in the range are based on the Swiss francs to U.S. dollar conversion rate on the
trading day immediately preceding the respective grant dates. The range of the U.S. dollar exercise prices as
of March 31, 2010 was $13.79 - $32.37.
Risk Assessment
At a company-wide level, Logitech’s internal audit function coordinates management’s risk assessment
process, which encompasses financial and operational risks, and reports to senior management and to the Audit
Committee of the Board of Directors. Material risks are assessed and discussed by the Board of Directors. Financial
risk assessment and management is integrated into the functions of the Company’s Treasury, Finance and Business
divisions operations, with oversight from the executive and treasury committees. Financial reporting risk is
addressed through the Company’s Corporate Accounting, Financial Reporting and SOX Compliance operations
and processes. Operational risk assessment and management is integrated into the functions of the Company’s
Business divisions, with support from specialized departments such as Quality, Supply Chain, Legal and Finance.
Material financial and financial reporting risks are reported to and reviewed with the Audit Committee and the
Board of Directors as appropriate, and material operational risks are reported to and reviewed with the Board of
Directors.