Compensation “clicks” for Logitech’s executives…

Logitech International, which makes all kinds of fancy computer mice and other gizmos, bills itself as —a world leader in products that connect people to the digital experiences they care about. With dual locations in Switzerland and Fremont, Calif., the stock trades on both the Swiss Exchange (LOGN) and on Nasdaq (LOGI).

Logitech plans to release its quarterly financial results at 10 p.m. on July 28, 2010, so we won—t officially know how the company is doing until then.

On the one hand, Bank of America Merrill Lynch downgraded the stock from —buy to —underperform on June 24.

But if there’s a correlation between the company’s performance and how it’s treating its top executives, then the quarterly results ought to look pretty good. (Not that we’re convinced that kind of connection always holds up.)

We looked at Logitech’s preliminary proxy, filed July 7, and found some interesting disclosures about executive compensation in the Summary Compensation Table.

While Gerald Quindlen, Logitech’s President & CEO, kept the same base salary of $787,500 from fiscal years 2009 to 2010, his stock awards jumped by more than $300,000; for FY 2010, he received $1,007,600 in performance-based RSUs, as well as $394,000 in option awards. He also got non-equity incentive plan compensation of $1,299,000. Add in $26,498 (mostly for tax preparation services), and Quindlen ended up with a total compensation package of $3,514,598 for fiscal year 2010.

The company’s chairman, Guerrino De Luca, got a total compensation package of nearly $1.6 million. Although his base salary remained the same as that of the prior year and his option awards decreased quite a bit, he did get $907,000 in non-equity incentive plan compensation.

The three other highest-paid NEOs who also got sizable stock and option awards and a hefty non-equity incentive plan compensation payout include:

Werner Heid, Senior Vice President, Sales & Marketing – $2,020,085 Total Compensation;

David Henry, Senior Vice President, Customer Experience and Chief Marketing Officer – $1,680,571 Total Compensation;

Junien Labrousse, Executive Vice-President, Products – $2,409,532 Total Compensation.

(Henry actually just resigned from Logitech on June 8, 2010, although he will stay through October 1, 2010. In exchange for signing a release, he—ll walk away with a lump sum payment of at least $460,000, plus a pro-rated bonus, outplacement services, and health insurance premiums. If he leaves after October 1, that number jumps to $508,000 plus the other benefits.)

When the quarterly results come out, we—ll see whether the company’s performance matches the generous payouts to its top executives. For the shareholders’ sake, we hope the big numbers are justified.


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