Logitech 2013 Annual Report Download - page 68

The RSU, stock option and PSU award agreements for named executive officers other than Guerrino De Luca
provide for the acceleration of vesting of the RSUs, options and PSUs subject to the award agreements under the
samecircumstancesandconditionsasundertheChangeofControlAgreements;namely,ifthenamedexecutive
officer is subject to an involuntary termination within 12 months after a change of control because his or her
employment is terminated without cause or the executive resigns for good reason (a “double trigger”). In the event
of such an involuntary termination:
• All shares subject to the RSUs and ordinary stock option grants will vest.
• 100% of the shares subject to the PSUs will vest if the change of control occurred within 1 year after the
grant date of the PSUs. If the change of control occurs more than 1 year after the grant date of the PSUs,
the number of shares subject to the PSU that will vest will be determined by applying the performance
criteria under the PSUs as if the performance period had ended on the date of the change of control.
The PSO award agreements for named executive officers provide for the acceleration of the time-based
vesting of the PSOs subject to the award agreements if the named executive officer resigns for good reason with
12 months after a change of control. In addition, the PSO award agreements for named executive officers, including
Mr. De Luca, provide for the acceleration of the time-based vesting of the PSOs if the named executive officer is
terminated for any reason other than cause. In any case, the PSO award agreements will not vest except to the extent
that the performance-based vesting conditions have been attained.
To determine the level of benefits to be provided under each change of control agreement and other
agreements, the Committee considered the circumstances of each type of severance, the impact on shareholders,
and market practices.
Perquisites
Logitech’s executive officer benefit programs are substantially the same as for all other eligible employees
except as set out below.
In fiscal year 2013, Logitech paid a total of approximately $202,780 in costs associated with Mr. Darrell’s
relocation from Switzerland to the United States, which was initiated in fiscal year 2013 under the terms of the
relocation policy applicable to executive international transfers. The aggregate amount of the fiscal year 2013
relocation costs for Mr. Darrell, including tax consulting services associated with his relocation, is reflected in the
Summary Compensation Table below under the heading “All Other Compensation.”
Upon Mr. De Luca’s appointment to the Chief Executive Officer role after the resignation of Mr. Quindlen,
he was provided with the occasional use of a company car and driver, including during part of fiscal year 2013.
Expenses related to these services are imputed as income to Mr. De Luca and the additional tax liabilities are
paid by Logitech as a gross-up payment. Mr. De Luca has received no other compensation for his assumption of
the Chief Executive Officer role. The aggregate amount of Mr. De Luca’s benefits is reflected in the Summary
Compensation Table below under the heading “All Other Compensation.”
In fiscal year 2013, Logitech paid a total of approximately $53,000 in costs associated with Mr. Labrousse’s
relocation, including tax consulting services associated with his relocation. Mr. Labrousse’s move from the United
States to Switzerland was initiated in fiscal year 2011 under the terms of the relocation policy applicable to executive
international transfers. The aggregate amount of the fiscal year 2013 relocation costs for Mr. Labrousse is reflected
in the Summary Compensation Table below under the heading “All Other Compensation.”
Other Benefits
Logitech’s executive officers are eligible to receive the same benefits as all other employees, including
the following:
• Company contributions to retirement programs are based on the location of employing company, such as
the Logitech Inc. 401(k) in the United States and the Logitech Employee Pension Fund in Switzerland.
• Health, welfare and life insurance benefits.
• Opportunity for participation in the Logitech Employee Share Purchase Plans.
66