NVIDIA 2013 Annual Report Download - page 57

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• Mr. Puri: Our Compensation Committee did not increase Mr. Puri’s base salary for fiscal year 2014 of $500,000,
based on its evaluation of market data for similarly situated executives in our peer group and internal pay equity
considerations.
• Mr. Shannon: Our Compensation Committee did not increase Mr. Shannon’s base salary for fiscal year 2014 of
$500,000, based on its evaluation of market data for similarly situated executives in our peer group and internal
pay equity considerations.
• Ms. Shoquist: Our Compensation Committee did not increase Ms. Shoquist’s base salary for fiscal year 2014 of
$500,000, based on its evaluation of market data for similarly situated executives in our peer group and internal
pay equity considerations.
In connection with Ms. Kress’ appointment as our CFO, our Compensation Committee, in consultation with Exequity,
considered her base salary at her prior employer, the base salaries for similarly situated executives at our peer companies,
as well as internal pay equity. Based on its evaluation of these factors, our Compensation Committee determined that an
annual base salary of $500,000 was appropriate.
Executive Officer
Salary Before
Annual Review ($)
Fiscal Year 2014 Salary
after Annual Review ($) % Change
Market Position of
Base Salary
Jen-Hsun Huang . . . . . . . . . . . . . . . . . . . . . . 800,000 850,000 6 < 25th
Colette M. Kress . . . . . . . . . . . . . . . . . . . . . . N/A 500,000 N/A 25th-50th
Karen T. Burns (1) . . . . . . . . . . . . . . . . . . . . . 450,000 500,000 11 25th-50th
Ajay K. Puri . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 500,000 — 75th-90th
David M. Shannon (2) . . . . . . . . . . . . . . . . . . 500,000 500,000 — 90th
Debora Shoquist (3) . . . . . . . . . . . . . . . . . . . . 500,000 500,000 — 90th
__________
(1) Market position of base salary is relative to chief financial officers at our peer companies.
(2) The Compensation Committee recognizes that Mr. Shannon’s base salary is at a significant level relative to market, but has determined
that it is appropriate given Mr. Shannon’s scope of responsibility as head of legal and human resources and also his responsibility
for launching our patent licensing program. In addition, the Compensation Committee took into account internal pay equity with
Mr. Puri and Ms. Shoquist.
(3) The Compensation Committee recognizes that Ms. Shoquist’s base salary is at a significant level relative to market, but has determined
that it is appropriate given Ms. Shoquist’s level of responsibility and her ability to impact Company results. In addition, the
Compensation Committee took into account internal pay equity with Messrs. Puri and Shannon.
Variable Cash Compensation
Variable cash compensation, administered under our Variable Plan, is designed to align executive compensation with
the executive officer’s individual performance and our annual corporate financial performance. The Variable Plan provides
that up to 50% of the executive officer’s total target award opportunity, which we call the Corporate Target Amount, is
earned based on our success at achieving a corporate financial performance target, which earned amount we call the Corporate
Component. Up to 50% of the executive officer’s total target award opportunity, which we call the Individual Target Amount,
is earned based on how well the executive officer performs against his or her individual objectives, which earned amount
we call the Individual Component.
The total target opportunity (that is, the Corporate Target Amount plus the Individual Target Amount), or Variable Cash
Target, is equal to a specified percentage of the executive officer’s base salary. At the beginning of each fiscal year (or, in
the case of new hires, prior to their start date), our Compensation Committee generally establishes the Variable Cash Target
for each executive officer eligible to participate in the Variable Plan. In February and March 2013, our Compensation
Committee reviewed the Variable Cash Target for each executive officer. In doing so, our Compensation Committee reviewed
the total target cash opportunity (base salary plus variable cash compensation) for similarly situated executives at the 25th,