Logitech 2011 Annual Report Download - page 106

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94
Our executive officers are also eligible to participate in our health and benefits plans, retirement savings
plans, and our employee share purchase plans, which are generally available to our employees. We also provide
limited perquisites, as described below.
The following table outlines our objectives for each of the principal components of executive compensation.
Element of Compensation Objective
Base salary •Reward individuals’ current contributions to the company
•Compensate individuals for their expected day-to-day performance
Performance-based cash compensation •Align executive compensation with Logitech’s annual performance
goals
•Make a significant portion of the executive’s yearly cash
compensation variable and subject to the achievement of company
business goals
•Motivate and reward the executive for above-target performance
Long-term equity incentive awards •Deliver the majority of total compensation via long-term equity
incentives
•Directly align executive and shareholder interests
•Provide a direct incentive for future performance
•Support retention of the executive
Pay Mix
In determining how we allocate an executive’s total compensation package among base salary, performance-
based cash compensation and long-term equity incentives, we emphasize compensation elements that reward
performance against measures that correlate closely with increases in shareholder value. Accordingly, the majority
of our executive compensation is at-risk, including the annual performance-based cash bonus and the majority of
our long-term equity incentive awards. Our CEO and other executive officers have a higher percentage of at-risk
compensation (and thus greater upside potential and downside risk) relative to Logitech’s other employees. We
believe this is appropriate because our executive officers have the greatest influence on Logitech’s performance.
The charts below indicate the percentage of total compensation costs in fiscal year 2011 represented by
base salary, performance-based cash compensation, and long-term equity incentive awards for Gerald Quindlen,
Guerrino De Luca and all other named executive officers. All underlying amounts are taken from the Summary
Compensation Table.
Performance-based
cash compensation
29%
Base salary
28%
Equity
incentive
awards
43%
Guerrino De Luca
Gerald Quindlen
Performance-
based cash
compensation
14%
Base salary
11%
Equity
incentive
awards
75%
All Other Named Executive Officers
Performance-
based cash
compensation
19%
Base salary
22%
Equity
incentive
awards
59%