NVIDIA 2015 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 of the 2015 NVIDIA annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 183

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183

30
Executive Compensation
Compensation Discussion and Analysis
Table of Contents to Compensation Discussion and Analysis Page
Introduction and Compensation Philosophy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Important Features of our Compensation Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Primary Compensation Elements for Fiscal 2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fiscal 2015 Compensation Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Summary of Pay Components and At-Risk Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rationale for our Performance Metric and Period for PSUs and Variable Cash Compensation . . . . .
How We Determine Executive Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Compensation Actions for Fiscal 2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional Executive Compensation Practices, Policies and Procedures. . . . . . . . . . . . . . . . . . . . . . .
Introduction and Compensation Philosophy
This section explains our executive compensation program as it relates to the NEOs listed below for Fiscal 2015:
Jen-Hsun Huang. . . . . . . . . President and Chief Executive Officer
Colette M. Kress. . . . . . . . . Executive Vice President and Chief Financial Officer
Ajay K. Puri . . . . . . . . . . . . Executive Vice President, Worldwide Field Operations
David M. Shannon . . . . . . . Executive Vice President, Chief Administrative Officer and Secretary
Debora Shoquist. . . . . . . . . Executive Vice President, Operations
The primary goals for our executive compensation program are:
• Attracting, motivating and retaining a talented, innovative and entrepreneurial team of executives to provide
leadership for our success in a dynamic, competitive market - We design our executive compensation program
to position NVIDIA competitively among the companies against which we recruit and compete for talent. Our
CC does not use a strict weighting system among compensation elements for each NEO, but instead considers the
total compensation necessary to attract, motivate and retain these individuals.
• Rewarding financial and operating performance - A significant percentage of our NEOs’ compensation is “at-
risk” in the form of variable cash compensation and equity that only vests upon achievement of performance goals.
• Aligning our NEOs’ interests with those of our stockholders to create long-term value - Our CC believes that
a mix of both cash and equity incentives is appropriate, as cash incentives reward NEOs for near-term results,
while equity incentives motivate NEOs to increase and sustain stockholder value in the longer term. Our CC
believes that equity compensation is a critical element of our total compensation package, and for that reason,
equity compensation generally comprises a significant portion of the total target value of the annual compensation
opportunity for each of our NEOs, especially our CEO. Equity compensation aligns the long-term interests of
stockholders and NEOs by creating a strong, direct link between NEO compensation and stock price appreciation.
In addition, the four-year vesting schedule of our equity awards rewards our NEOs for longer term performance.
Our CC also believes that if our NEOs own shares of our common stock with values that are significant to them,
30
31
32
32
34
35
37
39
43