Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers
Fiscal Year 2023 Annual Bonus Plan
On April 11, 2022, the Compensation Committee of the Board of Directors (the
"Compensation Committee") of Ambarella, Inc. (the "Company") approved a Fiscal
Year 2023 Annual Bonus Plan (the "FY2023 Bonus Plan"). The Company's executive
team members, including executive officers Feng-Ming Wang, Brian White, Les
Kohn, Chan Lee, Christopher Day, John Ju, and Yun-Lung Chen, are eligible to
participate in the FY2023 Bonus Plan. On April 17, 2022, the Board of Directors
approved a bonus target under the FY2023 Bonus Plan for Feng-Ming Wang, the
Company's Chief Executive Officer, of 100% of his fiscal year 2023 annual base
salary. Bonus targets for other executives range from 40% to 75% of annual base
salary. The FY2023 Bonus Plan establishes an aggregate target bonus pool that is
approximately 20% larger than the target bonus pool under the fiscal year 2022
bonus plan. The actual aggregate amount of the bonus pool under the FY2023 Bonus
Plan will be determined by the Compensation Committee or the Board of Directors
following completion of fiscal year 2023 based upon the Company's fiscal
year 2023 performance against revenue, operating profit, and certain
non-financial operational objectives established by the Compensation Committee.
The performance weightings for the executive management team are 1/3 for the
revenue metric, 1/3 for the operating profit metric and 1/3 for the
non-financial operational objectives. On-target performance is intended to
result in an aggregate bonus pool payout at target levels. Above target
performance is intended to result in aggregate bonus pool payouts above target
levels, with a maximum payout equal to 150% of the annual targeted bonus pool
payout, absent approval otherwise by the Board of Directors or the Compensation
Committee. Failure to achieve threshold performance levels will result in no
funding of the bonus pool, while performance between threshold and target levels
will be determined by liner interpolation. The Compensation Committee and the
Board of Directors have discretion to individually apportion from such bonus
pool and pay bonuses, if any, to individual executives that are based on
achievement of corporate goals and individual objectives. Any bonus plan payouts
will be made no later than two and one-half months following the end of the
Company's fiscal year 2023, and generally are subject to continued employment
through the payment date. The Compensation Committee and the Board of Directors
have discretion to reduce, eliminate or increase the size of the bonus pool and
the individual bonuses.
Fiscal Year 2023 Annual Base Salary Increases
On April 17, 2022, the Company's Board approved an increase to the annual base
salary of Dr. Wang for fiscal year 2023, effective as of February 1, 2022.
Dr. Wang's annual salary was increased to $561,000, an increase of 2% over
fiscal year 2022. In addition, the Compensation Committee approved increases in
the annual salaries of our other NEOs of 2%, which was less than the increase
for the Company's general employee population.
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AMBARELLA, INC. 
