Logitech 2015 Annual Report Download - page 71

Compensation Report for Fiscal Year 2015
61 | – Proxy Statement
2015 Annual General Meeting Invitation, Proxy Statement
Executive Compensation Best Practices
We strive to maintain sound executive compensation
policies and practices, including compensation-related
corporate governance standards, consistent with our
executive compensation philosophy. We have the
following executive compensation policies and practices
in place, including both those that we have implemented
to drive performance and policies and practices that
either prohibit or minimize behaviors that we do not
believe serve our shareholders’ long-term interests:
What We Do
 Compensation Committee Independence – Our
Board of Directors maintains a Compensation
Committee comprised solely of independent directors.
 Compensation Committee Advisor Independence
– The Compensation Committee engages and
retains its own advisors. During fiscal year 2015, the
Compensation Committee engaged Radford, an Aon
Hewitt company, Compensia, Inc. and Agnès Blust
Consulting to assist with its responsibilities.
 Annual Compensation Review – The Compensation
Committee conducts an annual review of our executive
compensation philosophy and strategy, including
a review of the compensation peer group used for
comparative purposes.
 Compensation-Related Risk Assessment – The
Compensation Committee conducts an annual
evaluation of our compensation programs, policies,
and practices, which are designed to ensure that
they reflect an appropriate level of risk-taking but do
not encourage our employees to take excessive or
unnecessary risks that could have a material adverse
impact on the Company.
 Emphasize Performance-based Incentive
Compensation – The Compensation Committee
designs our executive compensation program
to use performance-based short-term and long-
term incentive compensation awards to align the
interests of our executive officers with the interests of
our shareholders.
 Emphasize Long-Term Equity Compensation –
The Compensation Committee uses equity awards to
deliver long-term incentive compensation opportunities
to our executive officers. These equity awards vest
or may be earned over multi-year periods, which
better serves our long-term value creation goals and
retention objectives.
 Limited Executive Perquisites – We do not provide
perquisites or other personal benefits to our executive
officers. The executive officers participate in our health
and welfare benefit programs on the same basis as all
of our employees.
 Stock Ownership Policy – We maintain a stock
ownership policy for our directors and executive
officers which requires each of them to own a specified
amount of our registered shares as a multiple of their
salary or annual board retainer.
 Compensation Recovery Policy – We have adopted
a policy that provides for the recoupment of bonus and
other incentive compensation and equity compensation
from our executive officers resulting from fraud or
intentional misconduct of an executive officer or if the
executive officer knew of the fraud or misconduct.
 “Double-Trigger” Change of Control Arrangements
– The post-employment compensation arrangements
for our executive officers are based on a “double-
trigger” arrangement that provides for the receipt of
payments and benefits only in the event of (i) a change in
control of the Company and (ii) a qualifying termination
of employment. To comply with the Ordinance against
excessive compensation in stock exchange listed
companies in Switzerland (the “Minder Ordinance”) by
the end of calendar year 2015, we will be terminating