Marvell Technology Group (MRVL)

Compensation Mix

To achieve these objectives, the executive compensation committee provides a mix of compensation elements primarily composed of base salary, long-term incentive compensation (in the form of equity awards) and annual cash incentives. Each of these components is discussed in greater detail below. In addition, we provide our named executive officers with life, health and welfare benefits and a tax-qualified retirement savings program on substantially the same terms and conditions as these benefits are provided to other salaried employees in the United States, as well as certain perquisites for Dr. Sehat Sutardja, our President and Chief Executive Officer.

For fiscal 2009, the executive compensation committee determined the amount of each compensation element separately to ensure that each element met the desired objectives for that element (as described below). The executive compensation committee does not have a formal policy regarding the compensation mix between short-term and long-term compensation or between cash and non-cash compensation. Upon completing its determination of each compensation element, the executive compensation committee reviews the value of the total compensation package of each named executive officer to ensure that, in the aggregate, the compensation package is reasonable, and reasonably consistent with market practices, as discussed below under “Peer Groups,” with all decisions based on the judgment of the members of the executive compensation committee. However, based on our philosophy of aligning the interests of our named executive officers with those of our shareholders and our focus on long term value creation by our named executive officers, a substantial portion of our named executive officers’ compensation, and especially the compensation of Dr. Sehat Sutardja, our President and Chief Executive Officer, consists of long-term incentive compensation in the form of both time-based vesting and performance-based vesting stock options.

Compensation Mix

        To achieve these objectives, the executive compensation committee provides a mix of compensation elements primarily composed of base salary, equity compensation and, for some of our named executive officers, annual cash incentives. Each of these components is discussed in greater detail below. In addition, we provide our named executive officers with health and welfare benefits and a tax-qualified retirement savings program on substantially the same terms and conditions as these benefits are provided to other salaried employees in the United States.

        For fiscal 2008, the executive compensation committee determined the amount of each element of the compensation mix individually to ensure that each element met the desired objectives for that element as described below. The executive compensation committee does not have a formal policy regarding the compensation mix between short-term and long-term compensation or between cash and non-cash compensation. Upon completing its determination of each compensation element, the executive compensation committee reviews the value of the total compensation package of each named executive officer to ensure that, in the aggregate, the compensation package is reasonable, appropriate from an internal equity standpoint, and within market norms, as discussed below under "Peer Groups," with all decisions based on the judgment of the members of the executive compensation committee. However, based on our philosophy of aligning our named executive officers with our shareholders and our focus on long-term value creation by our named executive officers, a substantial portion of our named executive officers' compensation, and especially the compensation of Dr. Sehat Sutardja, our Chief Executive Officer, consists of stock option grants.

19