Logitech 2011 Annual Report Download - page 108

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In fiscal year 2011, the Committee shifted the Bonus Plan for our executive officers, excluding the Chairman
and CEO who were already on an annual plan, from a semi-annual performance period to an annual performance
period. This change was intended to focus and reward our executive team on the execution of Logitech’s annual
financial plan.
Named executive officer bonus targets for fiscal year 2011
In fiscal year 2011 the Committee approved adjustments to the target bonus percentages for Mr. Quindlen and
Mr. Bardman. These actions were based on recommendations made by the Committee’s independent compensation
consultant to move target bonus percentages for these officers to the market median of our peer companies. The
bonus targets as a percentage of base salary for the other named executive officers remained the same as those in
fiscal year 2010. The cash bonus target percentages for fiscal year 2011 are summarized in the table below.
Named Executive Officer 2011 Annual Target Bonus Percentage of Base Salary 2010 Annual Target Bonus Percentage of Base Salary Change 2011 to 2010
Gerald Quindlen .................. 125% 100% 25%
Erik Bardman .................... 75% 65% 15%
Guerrino De Luca ................. 100% 100% 0%
Werner Heid . . . . . . . . . . . . . . . . . . . . . 75% 75% 0%
Junien Labrousse . . . . . . . . . . . . . . . . . 67% 67% 0%
The target bonus opportunities for named executive officers in fiscal year 2011 are in aggregate below the
median of the peer group, based on peer group data available in March 2011.
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.
Performance measures for fiscal year 2011 bonus program
In fiscal year 2011 the bonus program was based on the following performance measures:
Performance Measure Why It is Used Measurement Basis
Adjusted Revenue Revenue growth is an essential component of
long-term success and viability and enables
future strategic investments.
Generally Accepted Accounting Principles
(GAAP), with adjustments for over/under
performance in key strategic focus areas.
Operating Income/
Contribution
Margin
Generating an increase in per-share value
for investors is a priority, as operating
profit allows Logitech to re-invest in R&D,
operations and people for future success.
Generally Accepted Accounting Principles
(GAAP).
For all named executive officers, the 2011 Bonus Plan goals were set equal to Logitech’s annual business plan
for fiscal year 2011 as approved by the Board in May 2010. In addition to 50% of bonus being tied to Logitech’s
annual adjusted revenue and operating income goals, Mr. Labrousse had 50% of his bonus based on the annual
performance of the Product Group and Mr. Heid had 50% of his bonus based on the annual performance of
the Worldwide Sales & Marketing function. All other named executive officers’ bonuses were based 100% on
achievement against Logitech’s adjusted revenue and operating income goals. Please see further details below
under the heading “Bonus Plan performance targets and results for fiscal year 2011.”
The minimum performance required before any bonus payment is made under the fiscal year 2011 bonus
program was 80% of the target performance.