Summary
NVIDIA Corporation (NVDA) announced on March 27, 2012, the adoption of its Fiscal Year 2013 Variable Compensation Plan by its Compensation Committee. This plan is designed to incentivize eligible executive officers through cash bonus awards tied to the achievement of specific corporate and individual performance objectives for fiscal year 2013, which ends on January 27, 2013. The plan allocates 50% of a target bonus to corporate performance and 50% to individual performance, with potential payouts of up to twice the target award for exceptional achievement in either category. This structure aims to align executive compensation with both overall company success and individual leadership contributions.
Key Highlights
- 1NVIDIA adopted a Variable Compensation Plan for Fiscal Year 2013 for its executive officers.
- 2The plan links cash bonus awards to the achievement of pre-defined Corporate Targets and Individual Targets.
- 3Fifty percent of the target bonus is based on company performance (Corporate Targets).
- 4The remaining fifty percent of the target bonus is based on individual performance (Individual Targets).
- 5Awards can be up to double the target amount for exceeding objectives in either corporate or individual categories.
- 6Corporate targets for FY2013 are based on non-GAAP operating income achievement.
- 7Interim CFO Karen T. Burns is not eligible for this plan due to the interim nature of her role.
Frequently Asked Questions
The plan's purpose is to provide eligible executive officers with an opportunity to earn a cash bonus award. This bonus is directly linked to their performance in achieving specific corporate objectives and their individual performance goals during fiscal year 2013, thereby aligning executive incentives with the company's financial and strategic success.
The bonus calculation is split equally: 50% of a participant's target bonus is based on NVIDIA achieving set Corporate Targets (primarily non-GAAP operating income), and the other 50% is based on the participant achieving their Individual Targets or other criteria set by the Compensation Committee. Excellent performance in either area can result in payouts up to twice the target amount for that portion.
The plan is for eligible executive officers of NVIDIA. However, Karen T. Burns, serving as Interim Chief Financial Officer, is not eligible to participate due to the interim nature of her position.
The plan covers NVIDIA's fiscal year 2013, which concludes on January 27, 2013. Awards are contingent on the participant remaining an employee through the designated payment date, unless otherwise determined by the Compensation Committee.