Logitech 2015 Annual Report Download - page 74

Compensation Report for Fiscal Year 2015
– Proxy Statement | 64
2015 Annual General Meeting Invitation, Proxy Statement
While the Compensation Committee determines our
overall compensation philosophy and approves the
compensation of our executive officers, it relies on its
compensation consultants and legal counsel, as well
as our CEO, our CFO, our Vice President of People &
Culture, and our compensation department to formulate
recommendations with respect to specific compensation
actions. The Compensation Committee makes all final
decisions regarding executive compensation, including
base salary levels, target annual cash bonus opportunities,
actual cash bonus payments, and long-term incentives in
the form of equity awards. The Compensation Committee
meets on a regularly-scheduled basis and at other times
as needed. The Compensation Committee periodically
reviews compensation matters with our Board of Directors.
The chair of the Compensation Committee reports to the
Board of Directors on the activities of the Compensation
Committee at quarterly board meeting and the minutes of
the Compensation Committee meetings are available to
the members of the Board of Directors.
At the beginning of each year, the Compensation
Committee reviews our executive compensation program
to assess whether our compensation elements, actions,
and decisions (i) are properly coordinated, (ii) are
aligned with our vision, mission, values, and corporate
goals, (iii) provide appropriate short-term and long-term
incentives for our executive officers, (iv) achieve their
intended purposes, and (v) are competitive with the
compensation of executives in comparable positions
at the companies with which we compete for executive
talent. Following this assessment, the Compensation
Committee makes any necessary or appropriate
modifications to our existing plans and arrangements or
adopts new plans or arrangements.
The Compensation Committee also conducts an annual
review of our executive compensation strategy to
ensure that it is appropriately aligned with our business
strategy and achieving our desired objectives. Further,
the Compensation Committee reviews market trends
and changes in competitive compensation practices, as
further described below.
The factors considered by the Compensation Committee
in determining the compensation of our executive officers
for fiscal year 2015 included:
• Each individual executive’s performance;
• Each individual executive’s skills, experience,
qualifications and marketability;
• The Company’s performance against financial goals
and objectives;
• The Company’s performance relative to both industry
competitors and its compensation peer group;
• The positioning of the amount of each executive’s
compensation in a ranking of peer compensation;
• The compensation practices of the Company’s peer
group; and
• The recommendations of our CEO (except with respect
to his own compensation and the compensation of our
Executive Chairman) as described below.
The Compensation Committee did not weight these
factors in any predetermined or formulaic manner in
making its decisions. The members of the Compensation
Committee considered this information in light of their
individual experience, knowledge of the Company,
knowledge of each executive officer, knowledge of the
competitive market, and business judgment in making
their decisions regarding executive compensation and
our executive compensation program.
As part of this process, our Executive Chairman works
closely with the Compensation Committee in determining
the compensation of our CEO. The Compensation
Committee, in consultation with the non-employee
members of the Board of Directors, also evaluates
the performance of our Executive Chairman and our