Charter for the Compensation Committee of Nuance Communications, Inc.
The purpose of the Compensation Committee of the Board of Directors (the "Board") of Nuance Communications, Inc. (the "Company") shall be to discharge the Board's responsibilities relating to compensation of the Company's executive officers. The Committee has overall responsibility for approving and evaluating the executive officer compensation plans, policies and programs of the Company.
The Compensation Committee is also responsible for producing an annual report on executive compensation for inclusion in the Company's proxy statement.
1. Committee Membership and Organization
The Compensation Committee will be appointed by and will serve at the discretion of the Board. The Compensation Committee shall consist of no fewer than three (3) members. The members of the Compensation Committee shall meet the (i) independence requirements of the Nasdaq Stock Market, (ii) non-employee director definition of Rule 16b-3 promulgated under Section 16 of the Securities Exchange Act of 1934, as amended, and (iii) the outside director definition of Section 162(m) of the Internal Revenue Code of 1986, as amended.
The members of the Compensation Committee will be appointed by the Board on the recommendation of the Nominating and Governance Committee. Compensation Committee members will serve at the discretion of the Board.
2. Committee Responsibilities and Authority
- The Compensation Committee shall annually review and approve for the CEO and the executive officers of the Company (a) the annual base salary, (b) the annual incentive bonus, including the specific goals and amount, (c) equity compensation, (d) employment agreements, severance arrangements, and change in control agreements/provisions, and (e) any other benefits, compensation or arrangements. The CEO will not be present for the approval of the CEOs compensation.
- The Compensation Committee may make recommendations to the board with respect to incentive compensation plans.
- The Compensation Committee may form and delegate authority to subcommittees when appropriate.
- The Compensation Committee shall make regular reports to the Board.
- The Compensation Committee shall review and reassess the adequacy of this Charter annually and recommend any proposed changes to the Board for approval.
- The Compensation Committee shall annually review its own performance.
- The Compensation Committee shall have the sole authority to retain and terminate any compensation consultant, legal counsel or other advisor to assist in the evaluation of CEO or executive officer compensation, with funding to be provided by the Company. The Compensation Committee may select, or receive advice from, a compensation consultant, legal counsel or other advisor to the Compensation Committee, other than in-house counsel, only after taking into account the independence requirements established by law, rule, regulation or order, including, without limitation, Rule 5605(d)(3) of the Nasdaq Listing Rules. The Compensation Committee shall have sole authority to approve the fees and other retention terms of such consultant, legal counsel or other advisor.
3. Meeting and Minutes
- Members of the Compensation Committee shall meet at least once annually and will also meet, as required, in response to the needs of the Board of Directors and as necessary to fulfill their responsibilities.
- The Compensation Committee will maintain written minutes of its meetings, which minutes will be filed with the minutes of the meetings of the Board.