Logitech 2015 Annual Report Download - page 86

Compensation Report for Fiscal Year 2015
– Proxy Statement | 76
2015 Annual General Meeting Invitation, Proxy Statement
Performance Share Units
The PSU awards granted to our executive officers in
fiscal year 2015 were subject to Logitech’s relative total
shareholder return (“TSR”) versus the TSR of companies
included in the Nasdaq-100 Index.
The PSUs are “at-risk” compensation because Logitech’s
relative total shareholder return performance must be at
or above the minimum threshold percentile against the
Nasdaq-100 Index over the performance period of three
years in order for the executive to receive any shares
from the PSU grant. If, at the end of the performance
period, threshold performance is achieved, the number
of shares in which the executive officer vests is pro-rated
according to performance.
The Compensation Committee believes this measure
reflects Logitech’s operational and financial performance,
because it focuses on relative performance against other
mid- to large-size technology companies.
For purposes of the PSUs, relative TSR reflects (i) the
aggregate change in the 30-day average closing of
Logitech shares against the companies in the Nasdaq-100
Index, and (ii) the value (if any) returned to shareholders in
the form of dividends or similar distributions, assumed to
be reinvested in shares when paid, each at the beginning
and the end of a three-year performance period.
The vesting structure of the PSUs granted in fiscal year
2015 is summarized in the table below:
Percentile Rank of Logitech TSR Against Nasdaq-100 Index TSR
Percentage of
Shares that Vest
Below 30th Percentile Rank (threshold) 0%
30th Percentile Rank 50%
50th Percentile Rank (target) 100%
75th Percentile Rank and Above (maximum) 150%
The vested percentage attributable to a TSR Percentile
Rank between the 30th and 50th percentiles, or between
the 50th and 75th percentiles, will be determined by
straight-line interpolation.
Restricted Stock Unit Awards
The RSU awards granted to our executive officers in
fiscal year 2015 were subject to a time-based vesting
requirement and have our typical four-year vesting period
which vest in four equal annual installments based on the
continued service of the executive officer on each such
vesting date.
The equity awards granted to our executive officers in
fiscal year 2015 are set forth in the “2015 Summary
Compensation Table” and the “2015 Grants of Plan-
Based Awards Table” below.
Welfare and Health Benefits
We maintain a tax-qualified retirement plan under Section
401(k) of the Internal Revenue Code of 1986, as amended
(the “Code”), for our employees in the U.S., including our
executive officers, that provides them with an opportunity
to save for retirement on a tax-advantaged basis. We
intend for this plan to qualify under Sections 401(a) and
501(a) of the Code so that contributions by employees to
the plan, and income earned on plan contributions, are
not taxable to employees until distributed from the plan.
In addition, all contributions are deductible by us when
made.
All participants’ interests in their deferrals are 100%
vested when contributed under the plan. In fiscal year
2015, we made matching contributions into the Section
401(k) plan for our employees, including our executive