Logitech 2015 Annual Report Download - page 73

Compensation Report for Fiscal Year 2015
63 | – Proxy Statement
2015 Annual General Meeting Invitation, Proxy Statement
Compensation Philosophy and Guiding Principles
We have designed our executive compensation
program to:
• Provide compensation sufficient to attract and retain
the level of talent needed to create and manage an
innovative, high growth global company in highly
competitive and rapidly evolving markets;
• Support a performance-oriented culture;
• Maintain a balance between fixed and variable
compensation and place a significant portion of
total compensation at risk based on the Company’s
performance, while maintaining controls over
inappropriate risk-taking by factoring in both annual
and long-term performance;
• Provide a balance between short-term and long-term
objectives and results;
• Align executive compensation with shareholders’
interests by tying a significant portion of compensation
to increasing share value; and
• Reflect the executive’s role and past performance
through base salary and short-term cash incentives,
and his or her potential for future contribution through
long-term equity incentive awards.
However, while compensation is a central part of
attracting, retaining, and motivating the best executives
and employees, we believe it is not the sole or exclusive
reason why exceptional executives or employees choose
to join and stay at Logitech, or why they work hard to
achieve results for our shareholders. In this regard, both
the Compensation Committee and management believe
that providing a working environment and opportunities
in which executives and employees can develop, express
their individual potential, and make a difference are also
a key part of Logitech’s success in attracting, motivating,
and retaining executives and employees.
The Compensation Committee periodically reviews and
analyzes market trends and the prevalence of various
compensation delivery vehicles and adjusts the design
and operation of our executive compensation program
from time to time as it deems necessary and appropriate.
In designing and implementing the various elements of
our executive compensation program, the Compensation
Committee considers market and industry practices,
as well as our compensation structure’s tax efficiency
and its impact on our financial condition. While the
Compensation Committee considers all of these factors
in its deliberations, it places no formal weighting on any
one factor.
The Compensation Committee evaluates our
compensation philosophy and program objectives
as circumstances require. At a minimum, we expect
the Compensation Committee to review executive
compensation annually.
Compensation-Setting Process
Role of the Compensation Committee
The Compensation Committee, among its other
responsibilities, establishes our overall compensation
philosophy and reviews and approves our executive
compensation program, including the specific
compensation of our executive officers. The
Compensation Committee has the authority to
retain special counsel and other advisors, including
compensation consultants, to assist in carrying out
its responsibilities. The Compensation Committee’s
authority, duties, and responsibilities are described in
its charter, which is reviewed annually and updated as
warranted. The charter is available on our Company
website at ir.logitech.com.