Logitech 2013 Annual Report Download - page 23

Eligibility to Participate
The Bonus Plan applies to Logitech’s executive officers and other employees of Logitech who are selected
for participation by the Administrator. As of June 30, 2013, thirteen employees were eligible to participate in the
Bonus Plan.
Performance Periods
Performance periods may consist of a fiscal year or a longer or shorter period. There may be more than one
performance period in effect at the same time, including overlapping performance periods.
Awards and Performance Goals
Under the Bonus Plan, participants will be eligible to receive an award based on performance against
goals determined by the Administrator. For Logitech executive officers, performance goals for fiscal year 2014
performance periods are based on revenue and operating income/contribution margin for Logitech as a whole and,
where applicable, the functional unit, segment, business group, product category, product or region over which
the executive has responsibility. However, under the Bonus Plan the Administrator may choose from a variety of
performance goals in its discretion. The possible performance goals under the Bonus Plan include the following:
(i)brandrecognition/acceptance;(ii)cashfloworcashmanagement;(iii)returnoninvestment,including,butnot
limitedto,cashflowreturnoninvestment;(iv)contributiontoprofitability;(v)costcontrol;(vi)costpositions;
(vii)periodcostsandvariances;(viii)productshipmentcosttargets;(ix)costofcapital;(x)customersatisfaction;
(xi) net promoter score; (xii) development of products; (xiii) product development milestones; (xiv) earnings,
including, but not limited to, earnings per share, net earnings, earnings before interest, taxes and/or depreciation
and/oramortization;(xv)economicprofit;(xvi)economicvalueadded;(xvii)freecashflow;(xviii)incomeornet
income;(xix)incomebeforeorafterincometaxes(includingnetincome);(xx)marketsegmentshare;(xxi)product
or new product innovation; (xxii) operating income or net operating income; (xxiii) margin, including gross
margin,netmargin,operatingmarginorprofitmargin;(xxiv)operatingprofitornetoperatingprofit;(xxv)process
excellence;(xxvi)productcostreduction;(xxvii)productmix;(xxviii)productreleaseschedules;(xxix)product
ship targets; (xxx) quality, including, but not limited to, product quality; (xxxi) return on assets or net assets;
(xxxii)returnoncapital;(xxxiii)returnoncapitalemployed;(xxxiv)returnonequity;(xxxv)returnoninvested
capital;(xxxvi)returnonoperatingrevenue;(xxxvii)returnonsales;(xxxviii)revenue,including,butnotlimited
to,grossrevenueornetrevenue;(xxxix)sales,including,butnotlimitedto,grosssalesornetsales;(xl)shareprice
performance;(xli)strategicalliances,including,butnotlimitedto,mergers,acquisitions,strategicinvestments,
restructurings or reorganizations (including post-integration milestones); (xlii) total shareholder return;
(xliii)workingcapital;(xliv)marketshare;(xlv)productshelfplacement;(xlvi)productshelfspace;(xlvii)capital
expenditures;(xlviii)debtreductionordebtlevels;(xlix)contractwin,renewalorextension;(l)litigation,including,
butnotlimitedto,litigationoutcomes,milestonesormanagement;and(li)workforcediversity.Performancegoals
may differ from participant-to-participant and from award-to-award.
The Administrator may choose to set target goals measured: (a) in absolute terms, (b) in relative terms,
including (without limitation) the passage of time and/or against other companies or metrics, (c) on a per-share basis,
(d) against the performance of Logitech as a whole or against particular functional units, segments, business groups,
product categories, products or regions of Logitech and/or (e) on a pre-tax or after-tax basis. The Administrator also
will determine whether any element(s) will be included in or excluded from the calculations and whether or not such
determinations result in any performance goal being measured on a basis other than generally accepted accounting
principles. For example, the Administrator may decide to ignore the effect of (a) restructurings, discontinued
operations, extraordinary items, and other unusual or non-recurring charges, (b) an event either not directly related
to the operations of Logitech or not within the reasonable control of Logitech’s management, or (c) the cumulative
effects of tax or accounting changes in accordance with U.S. generally accepted accounting principles.
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