We comply with the legal and financial reporting standards required in each of the jurisdictions where we have operations. We actively seek opportunities for improvement and solicit feedback from our stakeholders. Additionally, as part of our governance charter, our Board of Directors evaluates management’s ESG practices.
Our Code of Ethics and Business Conduct
(the Code) is consistent with the principles promoted by the Responsible Business Alliance emphasizing compliance, transparency, whistleblower protection and avoidance of any business practices that could contribute to corruption, bribery or conflicts of interest. Specifically, the Code outlines and promotes the following core values:
- Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships
- Full, fair, accurate, timely, and understandable disclosure in the reports and documents we file with or submit to the U.S. Securities and Exchange Commission and in our other public communications
- Compliance with applicable laws, rules and regulations
- Prompt internal reporting of violations of the Code
- Accountability for adherence to the Code
The Code applies to all our executive officers, directors, and employees. We expect all third parties we do business with, including consultants, contractors, and other service providers, to act in a manner consistent with the Code.
Each year, we communicate with all employees and managers about the importance of ethics and legal compliance. Our commitment to promote a culture of integrity means that we aim to foster an environment where each employee is expected to act ethically, and can voice concerns without fear of retaliation. Because we are committed to a strong workplace culture that provides effective grievance mechanisms for our employees, we utilize a corporate hotline hosted by an independent third party. Any employee can register a confidential and anonymous complaint using this hotline concerning topics about accounting, internal controls, auditing, suspected conflicts of interest, or any other matter.
Our board currently consists of six members, five of whom are independent and all of whom attend at least 75% of board meetings.
Our board has three standing committees - Audit, Compensation and Nominating/Corporate Governance. The Nominating Committee’s charter is to seek “prospective candidates (who) will foster a diversity of genders, backgrounds, skills, perspectives and experiences.” While at the time of this report issuance our board members are all men, we are actively seeking qualified female candidate(s) to join the board.
Compensation and Benefits
Competition for talent in the semiconductor industry is intense, and compensation is central to our recruiting and retention philosophy, especially given our rapid growth and our need to attract talented employees with a broad range of skills. We have four key objectives in our compensation strategy:
- Motivate and reward employees for sustained financial and operating performance of the company
- Encourage employees to focus on achieving both short-term personal goals as well as long-term developmental goals
- Encourage employees to remain with us for long and productive careers
- Align employee interests with those of our stockholders
Our total compensation packages are competitive, fair, and structured to encourage employees to invest in our future. They include:
- Market-competitive base salaries
- Short-term performance-based cash bonus awards
- Long-term equity incentive awards
- Employee stock purchase plan
- Patent incentive awards
We have a long-standing practice of granting equity incentive awards to our executives and broadly among our employees. Approximately 39% of our total workforce participate in the equity incentive and/or employee stock purchase plans. Our equity compensation program is primarily designed to align the interests of management and other employees to those of our stockholders. Our Compensation Committee utilizes feedback from our stockholders to design pay-for-performance equity programs tied to the achievement of a combination of different performance goals including revenue, operating metrics, and stock price appreciation. We believe the significant increase in our stock price and year-over-year outperformance in revenue growth demonstrate the effectiveness of these equity programs in motivating management and other employees to build a sustainable business model and to focus on long-term value creation for our stockholders.
We invest in and commit to our employees’ long-term success. Our employee benefits programs include a combination of supplemental benefits including paid time off for holidays and vacations, health insurance and other plan benefits such as disability and life insurance and flexible spending accounts. We offer programs and classes to help employees address stress and time-management challenges, and several of our buildings have an array of convenient onsite services like fitness centers and sporting facilities. We support employees in their important life events with a generous leave program, including military, bereavement, family and medical, and other personal matters.
We respect the rights of all shareholders. To that end, we have only one outstanding class of stock and all shareholders have the same voting power. Further, all shareholders are entitled to vote in the annual elections of board nominees.
Producing accurate and transparent financial statements is of the utmost importance to us. Our Audit Committee, chaired by a financial expert, consistently lives up to this standard of excellence. Further, we have not been required to restate our financial reports nor have we received a qualified or adverse opinion on any audit reports for more than a decade.
To learn more about our Corporate Governance practices, please see our current Proxy Statement