Logitech 2010 Annual Report Download - page 91

81
ENglISH
COMPENSATION REPORT 2010
INTRODUCTION
This Compensation Report contains information on Logitech compensation philosophy and practices, the
background for decisions, and the results of decisions with respect to Logitech’s named executive officers and its
Board members.
This Compensation Report has been designed to comply with the proxy statement rules under U.S. securities
laws as well as Swiss regulations and best corporate governance practices. This Report is an integrated part of our
Invitation and Proxy Statement for our 2010 Annual General Meeting.
Compensation Discussion and Analysis
EXECUTIVE COMPENSATION OBJECTIVES AND PHILOSOPHY
Logitech’s executive compensation programs have been designed to:
• be competitive with comparable companies in the industry and in the region where the executive is
based;
• maintain a balance between fixed and variable compensation and place a significant portion of total
compensation at risk based on the Company’s performance, while maintaining controls over inappropriate
risk-taking;
• align executive compensation with shareholders’ interests by tying a significant portion of compensation
to increasing share value;
• support a performance-oriented environment that rewards superior performance; and
• reflect the Compensation Committee’s assessment of an executive’s role and past performance through
base salary and short-term cash incentives, and his or her potential for future contribution to Logitech
through long-term equity incentive awards.
An important component of Logitech’s executive compensation philosophy is to pay executives at or
near the median of other companies that compete for similar executive talent, and that individual performance
and importance to Logitech should be reflected in the compensation of individual executives. However, while
compensation is a central part of attracting, retaining and motivating the best executives and employees, we believe
it is not the sole or exclusive reason why exceptional executives or employees choose to join and stay at Logitech,
or why they work hard to achieve results for shareholders. In this regard, both the Compensation Committee and
management believe that providing a working environment and opportunities in which executives and employees
can develop, express their individual potential, and make a difference, are also a key part of Logitech’s success in
attracting, retaining and motivating executives and employees.
TERM USED IN THIS COMPENSATION REPORT
In this Compensation Report, we refer to our “named executive officers” in many places. This term includes
the following individuals:
• Gerald Quindlen, our Chief Executive Officer.
• Erik Bardman, our Chief Financial Officer starting October 2009.