Logitech 2012 Annual Report Download - page 128

Named Executive Officer 2012 Base Salary ($) 2011 Base Salary ($) Change 2011 to 2012
Guerrino De Luca .................... 500,000 550,000 -9%
Erik K. Bardman. . . . . . . . . . . . . . . . . . . . . 440,000 420,000 5%
L. Joseph Sullivan .................... 402,000 390,000 3%
Former Officers:
Gerald P. Quindlen . . . . . . . . . . . . . . . . . . . 825,000(1) 825,000 0%
Werner Heid . . . . . . . . . . . . . . . . . . . . . . . . 570,000 570,000 0%
Named Executive Officer 2012 Base Salary (CHF) 2011 Base Salary (CHF) Change 2011 to 2012
Junien Labrousse . . . . . . . . . . . . . . . . . . . . 710,000(2) 710,000(3) 0%
(1) The base salary of Mr. Quindlen, our former President and Chief Executive Officer who resigned from the
Company in July 2011, was annualized based on salary earned through July 2011.
(2) Mr. Labrousse’s fiscal year 2012 base salary was set in Swiss francs. The base salary in U.S. dollars was
$804,135, which was based on converting from Swiss francs to U.S. dollars using an average monthly
exchange rate.
(3) Mr. Labrousse’s fiscal year 2011 base salary was set by the Compensation Committee in U.S. dollars at
$700,000. Mr. Labrousse subsequently relocated to Switzerland during fiscal year 2011 and his base salary
was set to be equivalent at CHF 710,000 based on converting from U.S. dollars to Swiss francs using the
conversion rate of 1.0111 on September 6, 2010, the date on which his relocation was announced.
When evaluating salaries at the start of fiscal year 2013, the Committee took into consideration Logitech’s
disappointing performance in fiscal year 2012 and the relative market position of our executive officers’ salaries.
The Committee authorized an increase only for Mr. Bardman, as his salary was well below the median CFO salary
of our compensation peer group, and the Committee viewed his contributions as important to the financial health
of the Company.
As part of Logitech’s fiscal year 2013 first quarter restructuring, Mr. Labrousse’s role of Executive Vice
President of the Products Group was eliminated, and he assumed the role of Senior Vice President, Consumer
Computing Platform Group. Given this role change, the Committee approved a 12% reduction to Mr. Labrousse’s
annual salary from CHF 710,000 to CHF 625,000. In addition, Mr. Labrousse’s target annual bonus percentage
decreased from 75% to 65% of annual salary, resulting in an annual targeted cash compensation reduction
of 17%.
Performance-based cash compensation
Logitech’s annual performance-based bonuses, under a program established under the Logitech Management
Performance Bonus Plan, or Bonus Plan, compensate executives based on achievement against the key financial
metrics of revenue and adjusted operating income, each of which is equally weighted. These metrics address both
‘‘top line’’ (revenue) and ‘‘bottom line’’ (adjusted operating income) corporate financial goals, both of which the
Committee believes are critical to driving long-term shareholder value.
The Bonus Plan is designed to motivate and reward executives for above-target performance. These annual
performance-based bonuses represent a significant portion of each executive’s potential annual cash compensation,
ranging from 40% to 50% of annual targeted cash compensation. Payout under the incentive plan is variable,
based on the achievement against Logitech financial goals, and can range from 0% to 200% of the executive’s
target incentive.
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