01—Abstract
Summary
Summary of the 8-K filed March 13, 2018. Cited figures are marked; the original filing is the authoritative source.
NVIDIA Corporation (NVDA) filed an 8-K on March 12, 2018, to announce the adoption of its Variable Compensation Plan for Fiscal Year 2019, effective March 7, 2018.
This plan outlines the framework for variable cash payments to eligible executive officers, directly tied to the achievement of specific corporate performance goals for fiscal year 2019, which ends on January 27, 2019. The performance metrics are primarily based on achieving specified revenue targets, with established levels for threshold, base operating plan, and stretch operating plan achievements. This announcement provides insight into NVIDIA's executive compensation strategy, emphasizing performance-based incentives.
Investors can view this as a mechanism to align executive interests with the company's financial performance. The plan details target award opportunities for named executive officers, including CEO Jen-Hsun Huang, at 110%a of his base salary for achieving the base operating plan. The adoption of this plan signals management's focus on driving revenue growth and operational success in the upcoming fiscal year.
02—Key points
Key Highlights
- NVIDIA adopted its Variable Compensation Plan for Fiscal Year 2019 on March 7, 2018.
- The plan allows eligible executive officers to earn variable cash payments based on corporate performance.
- Performance goals for FY2019 are primarily linked to achieving specified revenue targets.
- The plan includes threshold, base operating plan, and stretch operating plan achievement levels.
- Named executive officers have target award opportunities tied to base operating plan achievement, expressed as a percentage of their fiscal year 2019 base salary.
- CEO Jen-Hsun Huang has a target award opportunity of 110% of his base salary for achieving the base operating plan.
- The full 2019 Variable Compensation Plan document is filed as an exhibit to this 8-K.
03—Questions
Frequently Asked Questions
What is the purpose of the Variable Compensation Plan for Fiscal Year 2019?
The purpose of the plan is to provide eligible executive officers with the opportunity to earn a variable cash payment based on NVIDIA's achievement of specific corporate performance goals for Fiscal Year 2019. This aligns executive compensation with the company's financial and operational success.
What are the key performance metrics for this compensation plan?
The primary performance metric for the 2019 Plan is the achievement of specified fiscal year 2019 revenue targets. The plan outlines threshold, base operating plan, and stretch operating plan levels for these revenue goals.
How is the compensation structured for the named executive officers?
The compensation for named executive officers is structured as a target award opportunity, expressed as a percentage of their base salary, for achieving the base operating plan. For example, CEO Jen-Hsun Huang has a target award of 110% of his base salary if the company meets its base operating plan goals.
What conditions must an executive meet to be eligible for an award?
Unless otherwise determined by the Compensation Committee, an eligible participant must remain an employee of NVIDIA through the payment date under the 2019 Plan to be eligible to earn an award.
04—Continue