8-KCorporate ChangesExhibits & Filings

NVIDIA CORP 8-K Report, Bylaw Amendment (Dec 1, 2016)

Filed December 1, 2016For Securities:NVDA

Summary

NVIDIA Corporation (NVDA) filed an 8-K on December 1, 2016, reporting amendments to its Bylaws, effective November 29, 2016. The most significant change is the implementation of proxy access, allowing certain long-term stockholders to nominate directors. This move aligns NVIDIA with evolving corporate governance best practices and provides shareholders with a greater voice in board composition. The amendments also adjust the advance notice periods for stockholder proposals and director nominations, with a slightly earlier window for nominations outside of proxy access. These changes are designed to streamline the nomination process while maintaining appropriate timelines for the company and its shareholders. Investors should note that these governance changes, while not directly impacting financial performance, can influence the long-term strategic direction and shareholder engagement.

Key Highlights

  • 1NVIDIA has adopted a proxy access bylaw, allowing eligible stockholders to nominate directors.
  • 2Stockholders must own at least 3% of voting power continuously for three years to utilize proxy access.
  • 3Proxy access nominees can constitute the greater of two directors or 20% of the Board.
  • 4The advance notice period for non-proxy access director nominations has been adjusted to 90-120 days prior to the anniversary of the prior year's annual meeting.
  • 5The amendments reflect a shift towards greater shareholder engagement in board nominations.
  • 6These changes are effective immediately upon adoption by the Board on November 29, 2016.

Frequently Asked Questions

Proxy access is a corporate governance provision that allows qualifying shareholders to include their own director nominees in the company's proxy materials for annual meetings. This gives shareholders a more direct way to influence board composition, potentially leading to better alignment between management and shareholder interests.

To use proxy access, a shareholder or a group of up to 20 shareholders must have continuously owned at least 3% of NVIDIA's voting power for at least three years. They must also meet other requirements outlined in the Restated Bylaws.

Under the new bylaws, proxy access nominees can constitute the greater of two directors or 20% of the Board of Directors.

Yes, the advance notice period for nominating directors outside of proxy access has been adjusted. The new window is between 90 and 120 days prior to the anniversary of the prior year's annual meeting, compared to the previous 120-150 day window. There are also provisions for when the meeting date is significantly changed.