Summary
NVIDIA Corporation (NVDA) filed an 8-K on March 18, 2021, detailing the adoption of its Variable Compensation Plan for Fiscal Year 2022. This plan, approved by the Compensation Committee of the Board of Directors on March 15, 2021, outlines the framework for variable cash payments to eligible executive officers based on the achievement of specific corporate performance goals for Fiscal Year 2022 (ending January 30, 2022). The primary performance metric for this plan is the achievement of specified revenue targets for FY2022, with defined threshold, base operating plan, and stretch operating plan levels. The document also provides details on the target award opportunities for named executive officers, including CEO Jen-Hsun Huang, CFO Colette M. Kress, and other key executives, expressed as a percentage of their base salary for achieving the base operating plan.
Key Highlights
- 1Adoption of the Variable Compensation Plan for Fiscal Year 2022 (FY22) by NVIDIA's Compensation Committee.
- 2Executive compensation for FY22 will be tied to achieving specific corporate performance goals.
- 3The primary performance metric for the FY22 Variable Compensation Plan is company revenue achievement.
- 4Performance goals are structured with threshold, base operating plan, and stretch operating plan levels.
- 5CEO Jen-Hsun Huang has a target award opportunity of $2,000,000, equivalent to 200% of his FY22 base salary, for achieving the base operating plan.
- 6Key executives like the CFO, EVP of Worldwide Field Operations, EVP of Operations, and EVP, General Counsel & Secretary also have defined target award opportunities.
- 7Participants must remain employed through the payment date to be eligible for awards, unless otherwise determined by the Compensation Committee.