Logitech 2012 Annual Report Download - page 130

For all named executive officers, the 2012 Bonus Plan goals were set equal to Logitech’s annual business
plan for fiscal year 2012 as approved by the Board in July 2011, with the exception of the Operating Income
and Contribution Margin goals which were based on the Board approved figures and then adjusted to reflect
the Logitech Revue inventory write-off taken in the first quarter of fiscal year 2012. In addition to 50% of his
bonus being tied to Logitech’s annual revenue and adjusted operating income goals, Mr. Labrousse had 50% of
his bonus based on the annual performance of the Product Group; Mr. Heid had 50% of his bonus based on the
annual performance of the Worldwide Sales & Marketing function; and Mr. Sullivan had 50% of his bonus based
on the annual performance of the Worldwide Operations function, including the Period Costs & Variances and
Total Supply Chain Costs performance measures. All other named executive officers’ bonuses were based 100%
on achievement against Logitech’s revenue and adjusted operating income goals. Please see further details below
under the heading “Bonus Plan performance targets and results for fiscal year 2012.”
The minimum performance required before any bonus payment is made under the fiscal year 2012 Bonus
Plan was 94% of the target performance for all revenue-based metrics, 75% to 85% of the target performance for
profit-based metrics, and 80% of the target performance for the Operations metrics.
Bonus Formula
The formula for determining the bonus awards for fiscal year 2012 was as follows:
Executive’s eligible
wages X Executive’s target bonus percentage(1) X Bonus Plan funding percentage(2) = Annual bonus award
(1) Expressed as a percentage of base salary.
(2) Based on achievement against target performance measures, including the potential for a greater than 1-to-1
acceleration or deceleration of the funding percentage for each percentage by which actual performance
exceeds or falls below target performance thresholds.
If earned, the bonus is paid to the executive in May for the fiscal year ended March 31.
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