Summary
NVIDIA Corporation filed an 8-K on May 16, 2005, to report on the adoption of its Fiscal Year 2006 Variable Compensation Plan (the '2006 Plan'). This plan is designed to incentivize executive leadership, including the CEO and senior officers, by linking a portion of their cash compensation to the achievement of pre-defined corporate and individual performance targets. The 2006 Plan allocates 50% of potential variable compensation to corporate objectives and 50% to individual objectives. Corporate performance will be measured against net income or gross margin targets set by the Compensation Committee, or other company-wide goals. Individual performance will be assessed based on specific objectives. Importantly, the Company's Board of Directors and Compensation Committee retain the discretion to modify these goals or award additional compensation even if targets are not met.
Key Highlights
- 1NVIDIA adopted the Fiscal Year 2006 Variable Compensation Plan (2006 Plan) on May 10, 2005.
- 2The plan is designed to provide variable cash compensation to the CEO and senior officers.
- 3Compensation is contingent upon achieving both corporate and individual performance targets.
- 450% of variable compensation is tied to corporate objectives, and 50% to individual objectives.
- 5Corporate performance metrics include net income or gross margin targets.
- 6Individual performance is assessed based on pre-set individual goals.
- 7The Compensation Committee and Board of Directors have the right to modify goals or award compensation irrespective of target achievement.