NXP provides team members with total rewards packages consisting of base salary, and short-term incentives for all team members, as well as equity-based long-term incentives for other team members. We offer locally competitive benefits aimed at supporting team members’ financial, physical, and mental well-being.
Rewarding performance is a critical element of our overall program. NXP is committed to managing all reward-based compensation programs, including merit increases, Annual Incentive Program (AIP) payouts, Sales Incentive Program (SIP) payments and long-term incentive awards, to deliver on our pay-for-performance philosophy.
Since 2022, we have linked a portion of our executive and employee compensation to our ESG goals. For more information, see our 2023 Proxy Statement and our ESG goals.
NXP has policies and procedures in place to promote pay equity. We perform pay reviews twice a year, alongside NXP’s rewards processes, to ensure we are delivering pay decisions with an appropriate focus on fairness. We developed this proactive process to evaluate each reward-based compensation program in real time, and provide leaders with feedback to create more visibility into fair and equitable compensation while decisions are being made. We also analyze potential compensation recommendations or changes within functional areas and departments in order to make appropriate adjustments and promote pay equity. Review results are presented to the CEO and Chief Human Resources Officer, reflecting our commitment to evaluate compensation-related decisions based on a variety of factors, including, where applicable, gender, race and ethnicity.
We believe that pay decisions should be made on three factors: external considerations (i.e. market conditions), employee performance/contributions and internal equity. NXP utilizes third-party data to formulate compensation and benefits programs that are fair, equitable, and competitive. We then empower leaders to recognize both individual and team accomplishments through a variety of compensation programs. Each year, we conduct a formal assessment of the individual's specific achievements and the demonstrated behaviors – consistent with our values – to deliver rewards decisions that are linked to a team member’s performance evaluation.