Logitech 2010 Annual Report Download - page 93

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• Subjective elements, such as the scope of the executive’s role, experience and skills, the individual’s
performance during the fiscal year and potential for future contribution to Logitech.
• The performance of Logitech.
• Accrued and realized gains from past equity incentive awards.
Competitive considerations
We attempt to compensate our executive officers competitively relative to industry peers. Both peer group
and broader industry compensation survey data is used by our Compensation Committee to develop Logitech’s
executive compensation, as well as to assist the Compensation Committee in the evaluation of the design of bonus
plan and equity compensation programs.
The companies in Logitech’s peer group were selected in March 2008 based on (i) involvement in the PC-
based consumer electronics industry, or (ii) revenues approximately equal to Logitech’s and a presence near Silicon
Valley in the San Francisco Bay Area. Based on the most recent completed four fiscal quarters as of March 2010,
Logitech ranked at approximately the 25th percentile among the peer group for revenues, operating income and
market capitalization.
Fred Cook reviewed the peer group composition in March 2010 and recommended, and the Committee
determined, that it remains appropriate for Logitech.
The peer group consists of the following companies:
3Com Corporation
Activision Blizzard, Inc. Cypress Semiconductor Corporation NVIDIA Corporation Polycom, Inc.
Agilent Technologies, Inc. Electronic Arts, Inc. SanDisk Corporation
Advanced Micro Devices, Inc. Intuit Inc. Sybase, Inc.
Autodesk, Inc. Lexmark International, Inc. Symantec Corporation
BMC Software, Inc. McAfee, Inc. Teradata Corporation
Brocade Communications Systems, Inc. NCR Corporation Verisign, Inc.
Cadence Design Systems, Inc. NetApp, Inc. Western Digital Corporation
Novell, Inc.
Although Logitech is a Swiss company, Logitech primarily competes for executive management talent with
technology companies in the United States, and particularly in the high-technology area of Silicon Valley. As a
result, the peer group consists primarily of U.S. public technology companies.
In addition, to assist the Committee in its review of executive compensation, Logitech’s compensation
department provides compensation data compiled from widely recognized high-technology executive compensation
surveys.
We generally seek to be at the median for total compensation, and for each of the elements of compensation,
for our executives against the companies with whom we compete for executive talent, based on peer group and
survey data.
Effect of individual performance
The differences in compensation among the individual named executive officers, as disclosed in the Summary
Compensation Table below, were primarily related to market compensation in each position, based on peer group
and survey data reviewed in prior fiscal years, a subjective assessment of the executive’s impact on the Company’s
past and future performance, succession planning and retention. The Compensation Committee does not review
executive officers’ individual performance against pre-established individual performance metrics devised by the
Compensation Committee, between the Compensation Committee and the respective executive, or otherwise.