Compensation and Benefits

NXP’s competitive compensation and benefits programs are designed to attract the best talent as well as drive and reward the best 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 team members where long-term retention is appropriate.

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 2024 Proxy Statement and the "goals" section of the “Sustainability Strategy” chapter of this Report.

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, to 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 make appropriate adjustments and promote pay equity. Summarized results of this analysis are presented to our 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 based 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 those achievements through our Enabling Performance process.

Benefits

In 2023, NXP introduced Wellbeing@NXP, aimed at helping our team members maintain their physical health, mental health and financial well-being through our various programs offered at the local level. Through an app-based portal, we support challenges throughout the year and provide daily tips, journeys and online programs for employees to maintain their well-being. We encourage team members to create connections with others who are working on similar well-being initiatives. They also have the ability to connect with specific programs within the overall benefits offerings.

NXP offers a wide range of global 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 the following:

A global Flexible Work Arrangement program, which allows 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.
Annual recharge days that allow employees globally to either enjoy a local holiday or enjoy a meeting-free day to catch up on their goals. In 2023, seven Recharge Days were recognized throughout the company.
In some countries, we 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 matching contributions for retirement, as well as car allowances and lease programs for our Sales team members. In the United States, we offer consistent benefits packages for salary and hourly team members who work at least 20 hours per week. 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.
- Medical benefits
- Retirement match contributions
- Health centers
- On-site gyms or gym allowances
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.
- Annual health and wellness check
- Medical insurance and hospital coverage
- Retirement benefits and pension plans
- Health centers
EMEA Benefits Overview
NXP supports full and part-time team members 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 supplemental 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, meals and other work-related costs. We also support health and sports-related activities and cultural events for our team members.
- Life insurance, personal accident insurance
- Retirement benefits and pension plans
- Medical, dental and vision insurance
- Car allowance and lease programs

Looking Ahead

We will continue to have our total rewards programs focus on attracting, motivating, retaining and rewarding our talented team members.
We will continue examining our compensation programs and pay decisions through the lens of pay equity.
We will 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 team member health and well-being.

Compensation and Benefits

Compensation

Benefits

Americas Benefits Overview

APAC Benefits Overview

EMEA Benefits Overview

Looking Ahead