Logitech 2010 Annual Report Download - page 97

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ENglISH
The bonus program in fiscal year 2010 for named executive officers was measured on a semi-annual basis,
although for the Chairman and the CEO the payout under the program was on an annual, and not semi-annual,
basis. For all named executive officers the operating income and cash flow from operations goals in the 2010 bonus
program were set equal to Logitech’s semi-annual business plans for fiscal year 2010 as approved by the Board in
May and October, 2009, except that part of the goals for Junien Labrousse were based on the performance of the
product group and part of the goals for Werner Heid were based on the performance of the sales and marketing
function. The market share goal was determined by the Committee in May 2009 based on a review of historical
market share data and expected product performance and introductions. Please see further details below under the
heading “Bonus Plan performance targets and results for fiscal year 2010.”
Timing of bonus payments
If earned, the bonus is paid to the Chairman and the Chief Executive Officer in one installment in May for the
fiscal year ended March 31, and the semi-annual bonuses are generally paid to the other named executive officers
in November and May for the two fiscal six-month performance periods. Bonus amounts were earned and paid to
the named executive officers as set out in the Summary Compensation Table and the Grants of Plan-Based Awards
Table below.
Formula used
The formula for determining the bonus awards in fiscal year 2010 was as follows:
Executive’s eligible
wages XExecutive’s target bonus percentage(1) XBonus Plan funding percentage(2) =Annual or semi-annual bonus award
(1) Expressed as a percentage of base salary.
(2) Based on achievement against target performance measures.
The target performance measures under the Bonus Plans for fiscal year 2010 are disclosed in the table below
under the heading “Bonus Plans performance targets and results for fiscal year 2010.”
Named executive officer bonus targets
Each of Guerrino De Luca, our Chairman, and Gerald Quindlen, our CEO, was eligible for an annual target
bonus of 100% of his base salary under the fiscal year 2010 bonus program. The maximum possible bonus for both
Mr. De Luca and Mr. Quindlen was 269% of base salary.
All of Logitech’s other named executive officers were eligible for annual target bonuses ranging from 40%
to 75% of their base salaries, depending on their positions, with a maximum possible bonus of 300% of their base
salaries in the first performance period and 238% in the second performance period. In each case, the annual
target bonus was divided into semi-annual bonus targets.
The minimum performance required before any bonus payment is made under the fiscal year 2010 bonus program
was generally 80% of the target performance, except that the minimum performance for Logitech operating income
in the first half of fiscal year 2010 was 85% of the target performance, and the minimum performance for Logitech
market share in fiscal year 2010 was 97% of the target performance. In addition, it was a minimum performance
condition for the payout of any bonus to Mr. De Luca or Mr. Quindlen that Logitech have positive operating income in
at least two of the four fiscal quarters during fiscal year 2010. For all other named executive officers, it was a minimum
performance condition for the payout of any bonus in respect of a six-month performance period that Logitech have
positive operating income in one of the two fiscal quarters during the performance period.
The target bonus opportunities for named executive officers in fiscal year 2010 are in aggregate below the
median of the peer group, based on peer group data available in March 2010.