NXP provides team members with total rewards packages consisting of base salary, short-term incentives and equity-based long-term incentives for some team members as well as competitive benefits aimed at supporting team members’ financial, physical and mental well-being.
Rewarding performance is a critical foundation for our overall program. NXP is committed to managing all reward-based compensation programs, including merit increases, annual incentive program (AIP) payouts and long-term incentive awards, to deliver on our pay-for-performance philosophy. Rewarding performance is a critical foundation for our overall program.
NXP has policies and procedures in place to promote pay equity, and diligent reviews are performed twice a year alongside the rewards processes. We also developed a proactive process to evaluate each reward-based compensation program in real-time and provide leaders with feedback to ensure fair and equitable compensation. We continue to use analytical tools, to assess potential compensation recommendations that need further review prior to these recommendations becoming effective, in order to make appropriate adjustments and promote pay equity. We use this process globally to evaluate these compensation-related decisions based on a variety of factors, including gender, and in the United States, race and ethnicity.
NXP relies on third-party data to establish fair, equitable and competitive compensation and benefits programs. We then empower leaders to recognize both individual and team accomplishments through a variety of compensation programs. Rewards decisions are linked to a team member’s performance evaluation. A formal assessment of both specific achievements, and the individual’s demonstrated behaviors – consistent with our values – to deliver those achievements, is performed annually.