NVIDIA CORP
EX-10.1
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>exhibit101fy2023variableco.htm
<DESCRIPTION>EX-10.1
<TEXT>
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<title>Document</title></head><body><div id="i0b3d55f66ad84547b8d0460c9e12e7f1_33"></div><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div><font style="color:#000000;font-family:'DIN Next LT Pro Medium',sans-serif;font-size:10pt;font-weight:700;line-height:120%">VARIABLE COMPENSATION PLAN - FISCAL YEAR 2023</font></div><div><font style="color:#000000;font-family:'DIN Next LT Pro Medium',sans-serif;font-size:10pt;font-weight:400;line-height:120%">&#160;&#160;&#160;&#160;</font></div><div><font style="color:#000000;font-family:'DIN Next LT Pro Medium',sans-serif;font-size:10pt;font-weight:700;line-height:115%">Overview</font></div><div><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">The compensation philosophy of NVIDIA Corporation (the &#8220;</font><font style="color:#000000;font-family:'DIN Next LT Pro Medium',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:115%">Company</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#8221;) is to attract, motivate, retain and reward its management through a combination of base salary and performance based compensation.  Certain Senior Officers, as defined below (collectively, the &#8220;</font><font style="color:#000000;font-family:'DIN Next LT Pro Medium',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:115%">Participants</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#8221;), who are employed at the Company during fiscal year 2023 and, unless otherwise determined by the Compensation Committee (the &#8220;</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:115%">Committee</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#8221;) of the Company&#8217;s Board of Directors (the &#8220;</font><font style="color:#000000;font-family:'DIN Next LT Pro Medium',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:115%">Board</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#8221;), are employees of the Company through the date that any amounts earned hereunder are paid, will be eligible to earn compensation under the Fiscal Year 2023 Variable Compensation Plan (the &#8220;</font><font style="color:#000000;font-family:'DIN Next LT Pro Medium',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:115%">Plan</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#8221;).  The Plan is designed to award compensation for performance in fiscal year 2023 to a Participant if the Company achieves certain corporate performance goals (the &#8220;</font><font style="color:#000000;font-family:'DIN Next LT Pro Medium',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:115%">Performance Goals</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#8221;).</font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">For purposes of the Plan, only the Company&#8217;s chief executive officer, chief financial officer and other named executive officers shall be considered &#8220;Senior Officers.&#8221;  The Committee shall determine the persons to be specified as Senior Officers for purposes of this Plan and the Senior Officers who may be Participants hereunder.</font></div><div style="text-align:justify"><font><br></font></div><div><font style="color:#000000;font-family:'DIN Next LT Pro Medium',sans-serif;font-size:10pt;font-weight:700;line-height:115%">Determination of Fiscal Year 2023 Payments</font></div><div><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Each Participant is eligible to earn compensation under the Plan for fiscal year 2023 at a specified base amount (the &#8220;</font><font style="color:#000000;font-family:'DIN Next LT Pro Medium',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:115%">Base Payment Amount</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#8221;) if the Company achieves its Performance Goals at a specified base level. A Participant&#8217;s Base Payment Amount is based on the difficulty and responsibility of each position.  For fiscal year 2023, each Participant&#8217;s Base Payment Amount will be entirely allocated to the achievement of the Performance Goals.  The actual amount of compensation that may be earned by and paid to each Participant under this Plan (the &#8220;</font><font style="color:#000000;font-family:'DIN Next LT Pro Medium',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:115%">Actual Payment Amount</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#8221;) may be more or less than his or her Base Payment Amount as described more fully below.</font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">The Committee has set the Performance Goals for the Participants based on achievement of fiscal year 2023 revenue at specified threshold, base and stretch levels (the &#8220;</font><font style="color:#000000;font-family:'DIN Next LT Pro Medium',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:115%">Threshold</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">,&#8221; &#8220;</font><font style="color:#000000;font-family:'DIN Next LT Pro Medium',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:115%">Base Operating Plan</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#8221; and &#8220;</font><font style="color:#000000;font-family:'DIN Next LT Pro Medium',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:115%">Stretch Operating Plan</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">,&#8221; respectively).  For purposes of the Plan, the &#8220;</font><font style="color:#000000;font-family:'DIN Next LT Pro Medium',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:115%">Actual Result</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#8221; is defined as revenue, as reported on the Company&#8217;s income statement for fiscal year 2023, subject to adjustments if and to the extent determined appropriate by the Committee to reflect the exclusion of revenue from mergers with or acquisitions by the Company completed during fiscal year 2023. </font></div><div><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">The Actual Payment Amount for each Participant shall be determined pursuant to the following&#58;</font></div><div style="text-align:justify"><font><br></font></div><div style="padding-left:36pt;text-align:justify;text-indent:-18pt"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#8226;</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%;padding-left:13.77pt">If the Actual Result is less than the Threshold, a Participant will not earn any Actual Payment Amount.</font></div><div style="text-align:justify"><font><br></font></div><div style="padding-left:36pt;text-align:justify;text-indent:-18pt"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#8226;</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%;padding-left:13.77pt">If the Actual Result equals the Threshold, each Participant may earn an Actual Payment Amount equal to 50% of his or her Base Payment Amount.</font></div><div style="text-align:justify"><font><br></font></div><div style="padding-left:36pt;text-align:justify;text-indent:-18pt"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#8226;</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%;padding-left:13.77pt">If the Actual Result exceeds the Threshold but is less than the Base Operating Plan, each Participant may earn an Actual Payment Amount pursuant to the formula set forth below&#58;</font></div><div style="text-align:justify"><font><br></font></div><div style="padding-left:36pt;text-align:justify"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Actual Payment Amount  &#61;  &#91;((Actual Result - Threshold) &#47; (Base Operating Plan - Threshold)) * 50%) + 50%&#93; * Base Payment Amount</font></div><div style="text-align:justify;text-indent:36pt"><font><br></font></div><div style="padding-left:36pt;text-align:justify;text-indent:-18pt"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#8226;</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%;padding-left:13.77pt">If the Actual Result equals the Base Operating Plan, each Participant may earn an Actual Payment Amount equal to 100% of his or her Base Payment Amount.</font></div><div style="text-align:justify"><font><br></font></div><div style="padding-left:36pt;text-align:justify;text-indent:-18pt"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#8226;</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%;padding-left:13.77pt">If the Actual Result exceeds the Base Operating Plan but is less than the Stretch Operating Plan, each Participant may earn an Actual Payment Amount pursuant to the formula set forth below&#58;</font></div><div style="text-align:justify"><font><br></font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div><hr style="page-break-after:always"><div style="min-height:72pt;width:100%"><div><font><br></font></div></div><div style="padding-left:36pt;text-align:justify"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Actual Payment Amount  &#61;  &#91;((Actual Result &#8211; Base Operating Plan) &#47; (Stretch Operating Plan &#8211; Base Operating Plan)) + 1&#93; * Base Payment Amount</font></div><div style="text-align:justify"><font><br></font></div><div style="padding-left:36pt;text-align:justify;text-indent:-18pt"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">&#8226;</font><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%;padding-left:13.77pt">If the Actual Result equals or exceeds the Stretch Operating Plan, each Participant may earn an Actual Payment Amount equal to two (2) times his or her Base Payment Amount.  In no event may any Participant earn an Actual Payment Amount in excess of two (2) times his or her Base Payment Amount.</font></div><div style="text-align:justify"><font><br></font></div><div><font style="color:#000000;font-family:'DIN Next LT Pro Medium',sans-serif;font-size:10pt;font-weight:700;line-height:115%">Miscellaneous Provisions</font></div><div><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Any payments under this Plan shall be made in the form of cash following the end of fiscal year 2023, on such schedule as may be approved by the Committee in its discretion, but in all cases in compliance with the short-term deferral exemption from Section 409A of the Internal Revenue Code of 1986, as amended. Any payments under this Plan shall be subject to any required payroll deductions and tax withholdings.</font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Participation in the Plan shall not alter in any way the at will nature of the Company&#8217;s employment of a Participant, and such employment may be terminated at any time for any reason, with or without cause and with or without prior notice.</font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Notwithstanding whether this Plan is referenced in another agreement, policy, arrangement or other document, only the Board or the Committee may amend or terminate this Plan at any time.</font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Any payments or other benefits paid under this Plan shall be subject to the Company&#8217;s Clawback Policy.  By accepting any payment hereunder, the Participant agrees to be subject to the Clawback Policy.</font></div><div style="text-align:justify"><font><br></font></div><div style="text-align:justify"><font style="color:#000000;font-family:'DIN Next LT Pro Light',sans-serif;font-size:10pt;font-weight:400;line-height:115%">This Plan shall be governed by and construed in accordance with the laws of the State of California, without regard to its principles of conflicts of laws.</font></div><div style="height:72pt;position:relative;width:100%"><div style="bottom:0;position:absolute;width:100%"><div><font><br></font></div></div></div></body></html>
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