What is the main purpose of the Fiscal Year 2011 Variable Compensation Plan?

The primary purpose of the plan is to motivate and reward key employees, including officers, directors, managers, and senior contributors, by offering variable cash compensation directly linked to the achievement of specific corporate and individual performance goals during fiscal year 2011.

How is the variable compensation determined?

Variable compensation is determined by a combination of corporate and individual performance. Fifty percent (50%) of the potential award is tied to achieving certain net income levels set by the Compensation Committee, and the other fifty percent (50%) is linked to individual performance targets established by management.

Does NVIDIA guarantee compensation under this plan?

No, the compensation is variable and dependent on meeting performance targets. However, the Compensation Committee and Board of Directors reserve the right to provide compensation to officers or employees outside of the plan, modify targets, or grant additional compensation even if performance targets are not met, offering flexibility.

Who is eligible to participate in this compensation plan?

Eligible participants include certain officers, directors, managers, and qualifying senior contributors as determined by the Compensation Committee.

NVDA 8-K: Leadership Changes

Summary

NVIDIA Corporation's 8-K filing from May 5, 2010, details the approval of its Fiscal Year 2011 Variable Compensation Plan. This plan is designed to incentivize key personnel, including officers, directors, managers, and senior contributors, through variable cash compensation tied to both corporate and individual performance targets for fiscal year 2011, which ends on January 30, 2011. The compensation structure is equally weighted between corporate and individual achievements, with 50% of a participant's potential award linked to corporate net income performance (threshold, target, or maximum levels) and the other 50% tied to individual goal attainment. The plan grants flexibility to the Compensation Committee and Board of Directors to adjust targets, modify compensation, or award compensation even if targets are not met, ensuring alignment with strategic objectives and market conditions.

Key Highlights

1NVIDIA approved its Fiscal Year 2011 Variable Compensation Plan on May 5, 2010.
2The plan aims to provide variable cash compensation to officers, directors, managers, and senior contributors.
3Compensation is contingent on achieving pre-set corporate and/or individual performance targets for fiscal year 2011.
4Fiscal year 2011 concludes on January 30, 2011.
5The compensation is split 50/50 between corporate net income achievement and individual performance targets.
6Corporate targets are based on exceeding net income levels (threshold, target, or maximum).
7The Compensation Committee and Board retain significant discretion to modify the plan and award compensation.

NVIDIA CORP 8-K Report, Executive Changes (May 5, 2010)

Summary

Key Highlights

Frequently Asked Questions