NXP Semiconductors NV
For the period ended Apr 15, 2024. Filed Apr 15, 2024.
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What shareholders are asked to vote on at a company's meeting. It is where to find what directors and top executives are paid, and who owns the most shares.
Apr 15, 2024 · Filed Apr 15, 2024
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934 (Amendment No. )
Filed by the Registrantý
Filed by a Party other than the Registrant ☐
Check the appropriate box:
☐ Preliminary Proxy Statement
☐Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
ý Definitive Proxy Statement
☐ Definitive Additional Materials
☐ Soliciting Material Pursuant to §240.14a-12
NXP Semiconductors N.V.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
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☐ Fee paid previously with preliminary materials.
☐ Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11
NOTICE OF AND AGENDA FOR 2024
ANNUAL GENERAL MEETING OF SHARE HOLDERS
April 15, 2024
Dear Shareholders:
I invite you to attend the 2024 Annual General Meeting of Shareholders (the “Annual General Meeting” or “AGM”) of NXP Semiconductors N.V. (“we,” “us,” “our” or the “Company”), which will be held on Wednesday, May 29, 2024 at 8:45 a.m. Central European Time at the Sheraton Amsterdam Airport Hotel and Conference Center, Schiphol Boulevard 101, 1118 BG, Amsterdam, The Netherlands.
At the Annual General Meeting, we will discuss, and the Company’s shareholders will vote on, the following items of business:
| Item 1 | Adoption of the 2023 Statutory Annual Accounts |
|---|---|
| Item 2 | Discharge of the members of the Company’s Board of Directors (the “Board”) for their responsibilities in the financial year ended December 31, 2023 |
| Item 3 | Re-appointment of ten current directors named in this proxy statement |
| Item 4 | Authorization of the Board to issue ordinary shares of the Company (“ordinary shares”) and grant rights to acquire ordinary shares |
| Item 5 | Authorization of the Board to restrict or exclude pre-emptive rights accruing in connection with an issue of shares or grant of rights |
| Item 6 | Authorization of the Board to repurchase ordinary shares |
| Item 7 | Authorization of the Board to cancel ordinary shares held or to be acquired by the Company |
| Item 8 | Re-appointment of Ernst & Young Accountants LLP as our independent auditors for the fiscal year ending December 31, 2024 |
| Item 9 | Amended Remuneration of the Non-Executive Directors |
| Item 10 | Non-binding, advisory vote to approve Named Executive Officer compensation |
In addition to the above voting items we will have a discussion of the dividend and reservation policy and the implementation of the Company’s long-term strategy, including with respect to sustainable long-term value creation and the Company's corporate governance structure and compliance with the revised 2022 Dutch Corporate Governance Code. We will also consider any other business that properly comes before the Annual General Meeting. None of the proposals require the approval of any other proposal to become effective. We intend that this notice of the Annual General Meeting and the accompanying proxy materials will first be made available on our website on or about April 15, 2024. In accordance with Dutch corporate law and our Articles of Association, the record date for determining those shareholders entitled to notice of, and to vote at, the Annual General Meeting has been set at May 1, 2024. We will begin mailing proxy materials to our shareholders on or about May 8, 2024.
At the Annual General Meeting we will also present the consolidated financial statements and independent auditors’ report for the fiscal year ended December 31, 2023. If any other matters properly come before the Annual General Meeting the persons named in the proxy card will vote in their discretion the shares represented by all properly executed proxies.
NOTICE
YOUR VOTE IS VERY IMPORTANT. Please read this proxy statement and the accompanying proxy materials. Whether or not you plan to attend the Annual General Meeting, please submit your proxy card or voting instructions as soon as possible.
By order of the Board of Directors of NXP Semiconductors N.V.,
Jennifer B. Wuamett
Secretary
Eindhoven, The Netherlands
Important Notice Regarding the Availability of Proxy Materials for the Shareholder Meeting
to be Held on May 29, 2024
This proxy statement and the accompanying proxy card are first being made available on or about April 15, 2024. This proxy statement, our 2023 Annual Report on Form 10-K and the 2023 Statutory Annual Report are available on our website at http://investors.nxp.com by clicking “Corporate Governance”, then “Annual Meeting”.
We Strongly Encourage You to Sign Up For Electronic Delivery of Proxy MaterialsShareholders may request proxy materials be delivered to them electronically by enrolling at www.proxyvote.com. Not only will this result in faster delivery of the documents but also allows our shareholders to join us in our efforts to support a sustainable future and mitigate our impact on the environment.
Table of Contents
| GENERAL INFORMATION | 1 |
|---|---|
| VOTING PROCEDURES | 2 |
| Beneficial Owners | 2 |
| Shareholders of Record | 2 |
| Revocability of Proxy | 2 |
| General Matters | 2 |
| CORPORATE GOVERNANCE | 3 |
| SUSTAINABILITY | 4 |
| Environment | 7 |
| Human Capital Management | 9 |
| Social Responsibility | 14 |
| Health and Safety | 14 |
| ITEM 1: ADOPTION OF THE 2023 STATUTORY ANNUAL ACCOUNTS | 15 |
| ITEM 2: DISCHARGE OF THE BOARD OF DIRECTORS FOR THEIR RESPONSIBILITIES IN THE 2023 FINANCIAL YEAR | 15 |
| ITEM 3: RE-APPOINTMENT OF DIRECTORS | 15 |
| Nominees for Director | 17 |
| Nominee Skills and Experience | 23 |
| Director Independence | 24 |
| HOW OUR BOARD GOVERNS AND IS GOVERNED | 24 |
| Rules Governing the Board | 24 |
| Board Leadership and Role in Risk Oversight | 25 |
| Meetings of NXP’s Board | 25 |
| NXP’s Board Committees | 26 |
| Audit Committee | 26 |
| Human Resources and Compensation Committee | 26 |
| Nominating, Governance and Sustainability Committee | 27 |
| Setting and Overseeing Strategy | 28 |
| Risk Oversight | 29 |
| Board Education | 31 |
| HOW OUR DIRECTORS ARE SELECTED AND EVALUATED | 31 |
| Consideration of Director Nominees | 31 |
| Diversity | 31 |
| Board Refreshment | 32 |
| CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS | 33 |
| HOW OUR DIRECTORS ARE COMPENSATED | 33 |
| Non-Executive Director Compensation for 2023 | 33 |
| ITEM 4: AUTHORIZATION OF THE BOARD TO ISSUE ORDINARY SHARES AND GRANT RIGHTS TO ACQUIRE ORDINARY SHARES | 35 |
| ITEM 5: AUTHORIZATION OF THE BOARD TO RESTRICT OR EXCLUDE PRE-EMPTIVE RIGHTS ACCRUING IN CONNECTION WITH AN ISSUE OF SHARES OR GRANT OF RIGHTS | 35 |
| ITEM 6: AUTHORIZATION OF THE BOARD TO REPURCHASE ORDINARY SHARES OF THE COMPANY | 36 |
|---|---|
| ITEM 7: AUTHORIZATION OF THE BOARD TO CANCEL THE COMPANY’S ORDINARY SHARES HELD OR TO BE ACQUIRED | 36 |
| ITEM 8: RE-APPOINTMENT OF ERNST & YOUNG ACCOUNTANTS LLP AS THE COMPANY'S INDEPENDENT AUDITORS FOR THE FISCAL YEAR ENDING DECEMBER 31, 2024 | 37 |
| ITEM 9: APPROVAL OF THE AMENDED REMUNERATION OF THE NON-EXECUTIVE DIRECTORS | 42 |
| ITEM 10: NON-BINDING, ADVISORY VOTE TO APPROVE NAMED EXECUTIVE OFFICER COMPENSATION | 39 |
| EXECUTIVE OFFICERS | 40 |
| SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT | 42 |
| EXECUTIVE COMPENSATION | 44 |
| Compensation Discussion & Analysis | 44 |
| Shareholder Engagement and Results of 2023 Advisory Vote on Executive Compensation | 46 |
| Compensation Philosophy | 46 |
| Key Practices in Determining Executive Compensation | 48 |
| Key Components of Our Executive Compensation Program | 49 |
| Peer Group Analysis and Benchmarking | 50 |
| 2023 Compensation Decisions | 51 |
| Executive Share Ownership Guidelines | 58 |
| Other Practices & Guidelines | 59 |
| Employment Arrangements of Named Executive Officers | 59 |
| Key Policies and Practices | 59 |
| Compensation Practices and Risk | 60 |
| Governance | 60 |
| Human Resources and Compensation Committee Report | 62 |
| Summary Compensation Table | 63 |
| Grants of Plan-Based Awards Table | 64 |
| Outstanding Equity Awards at Year-End Table | 65 |
| Option Exercises and Stock Vested Table | 67 |
| Pension Benefits | 67 |
| Potential Payments upon Termination or Change of Control | 68 |
| CEO Pay Ratio Disclosure | 70 |
| Human Resources and Compensation Committee Interlocks and Insider Participation | 71 |
| Equity Compensation Plan Information | 71 |
| Pay Versus Performance Disclosure | 72 |
| CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS | 75 |
| Related Party Transactions | 75 |
| REPORT OF THE AUDIT COMMITTEE | 75 |
| DELINQUENT SECTION 16(A) REPORTS | 76 |
| THE 2025 ANNUAL GENERAL MEETING | 76 |
| OTHER MATTERS | 76 |
| APPENDIX A: Reconciliation of Non-GAAP Measures | 77 |
| Forward-looking Statements | 81 |
GENERAL INFORMATION
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.