Compensation and Benefits

NXP’s competitive compensation and benefits programs are designed to attract strong talent, as well as drive and reward high performance across all areas of our diverse workforce.

Compensation
Benefits

Compensation

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.

Benefits

NXP helps our team members maintain their health and financial well-being by providing benefits that may include an employee stock purchase plan (where eligible team members can purchase NXP shares through payroll deductions at 85% of fair market value), life insurance, business-travel accident insurance, personal accident insurance, paid maternity and paternity leave, personal time off, tuition reimbursement, certain local allowances, and other employee assistance programs.

We also offer a global Flexible Work Arrangement program, which offers eligible team members the ability to work a combination of onsite and remotely. Although our way of working focuses on meaningful face-to-face interactions, we have incorporated flexibility into our work arrangements in a way that allows us to maintain the focus on strong and effective teamwork, collaboration, and community.

In some countries, we also support part-time work schedules, helping to promote overall well-being and greater work-life integration, for our team members.

NXP’s benefits programs vary by country and region. Below is an overview of some of the benefits we offer in each region:

Americas Benefits Overview

NXP supports team members in Brazil, Canada, Mexico, and the United States by offering a benefits program that includes medical, dental, and vision insurance, in addition to any statutory benefits. We offer competitive retirement match contributions and car allowances and lease programs for our Sales team members. In the United States, we have medical and mental health benefits for team members who are transgender, and we also offer up to five visits of back-up care (for children or the elderly), tutoring for children, onsite gyms or gym allowance, onsite health checks and flu shots, and time off for community service and voting.
APAC Benefits Overview

NXP supports team members in APAC countries with benefit programs tailored to the specific country. This can include annual health and wellness checks, medical-insurance coverage, hospital coverage, and certain allowances, in addition to any statutory benefits. Retirement benefits are available at each site, with a mixture of pension plans and defined-contribution plans. At several NXP manufacturing sites, we supply allowances for the purchase of rice, as well as cafeterias serving food for the convenience of our team members. Certain sites also offer onsite health centers and designated areas for sporting activities and religious practices. NXP supports cultural events with gifts and time off for Diwali, the Dragon Boat Festival, and Chinese New Year.
EMEA Benefits Overview

NXP supports team members in EMEA countries with life insurance, personal-accident insurance and retirement (in line with local market practice), in addition to statutory benefits. We have a variety of car-allowance and lease programs in the countries where our customers are present. In several countries, including France, the United Kingdom, and sites in Eastern Europe, NXP provides additional medical, dental, and vision coverage, in addition to the in-country social programs. NXP pays for all team-member benefits, while team members pay the additional fees to cover their families. In some countries, we provide allowances that assist team members with commuting, meal, and other work-related costs. We also support health/sports-related activities and cultural events for our team members.

Looking Ahead

We will continue to focus our total rewards programs on attracting, motivating, retaining, and rewarding our talented team members
We continuously explore ways to improve our processes and systems to ensure the best investment in our people
We will integrate programs with a focus on employee well-being

Compensation and Benefits

Compensation

Benefits

Americas Benefits Overview

APAC Benefits Overview

EMEA Benefits Overview

Looking Ahead