VMWARE, INC.

3401 Hillview Avenue

Palo Alto, California, 94304

PROXY STATEMENT

________________________________

GENERAL

We invite our stockholders to participate in our ~~2019~~2021 annual meeting of stockholders (“Annual Meeting”) and to vote on the proposals described in this proxy statement. The Annual Meeting will take place on ~~Tuesday, June 25, 2019~~Friday, July 23, 2021 at 8:30 a.m. Pacific time via live audio webcast at ~~www.virtualshareholdermeeting.com/VMW2019~~virtualshareholdermeeting.com/VMW2021. You will need the 16-digit control number provided on the notice of Internet availability of proxy materials (“Proxy Notice”) or your proxy card in order to participate in the meeting at that website. We will also offer a webcast of the Annual Meeting on the Investor Relations page of our website at ~~http://~~ir.vmware.com that will allow you to listen to the Annual Meeting but will not provide the opportunity to participate.

If you owned VMware Class A common stock (“Class A Stock”) or VMware Class B common stock (“Class B Stock”) at the close of business on May ~~3, 2019~~24, 2021 (“Record Date”), then you may participate in and vote at the meeting. There are five items that are scheduled to be voted on at the Annual Meeting:

•election ~~by our sole Class B common stockholder~~ of ~~two~~four members nominated by us to ~~our~~the Board of Directors (“Board”) to serve as Class ~~III,~~II directors, of which three are Group I directors to be elected by our Class B common stockholders and one is a Group II director to be elected by our Class A common stockholders and our Class B common stockholders voting together as a class, each for a three-year term expiring at the ~~2022~~2024 Annual Meeting;

•an advisory vote to approve named executive officer compensation;

•approval of an amendment to the Amended and Restated 2007 Equity and Incentive Plan;

•approval of an amendment to the Amended and Restated 2007 Employee Stock Purchase Plan; and

•ratification of the Audit Committee’s selection of PricewaterhouseCoopers LLP (“PwC”) as our independent auditor for the fiscal year ending January ~~31, 2020.~~28, 2022.

Dell Technologies Inc. (“Dell”) is our parent company through its ownership of EMC Corporation (“EMC”), ~~our majority stockholder~~VMW Holdco LLC and EMC Equity Assets LLC, each a holder of Class B Stock and an indirect, wholly owned subsidiary of Dell. Accordingly, as of the Record Date, Dell controls all of the outstanding Class B Stock and 30,678,605 shares, or approximately ~~27.8%~~27.4%, of the outstanding Class A Stock, representing approximately 97.4% of the combined voting power of our common stock. Class B Stock is entitled to ten votes per share on each proposal, ~~and~~except the election of the Class ~~III,~~II, Group II director, on which Class B Stock is entitled to one vote per share. Additionally, the election of the Class II, Group I directors nominated for election at the Annual Meeting will be voted on solely by Dell, through its control of Class B Stock.

We are not aware of any matters to be presented at the Annual Meeting other than those described in this proxy statement. If any matters not described in ~~the~~this proxy statement are properly presented at the meeting, the proxy holders will use their discretion to determine how to vote your shares. For additional information about the Annual Meeting see “Information About the Annual Meeting.”

References to “VMware,” the “Company,” “we” and “our” in this proxy statement refer to VMware, Inc., a Delaware corporation.

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ENVIRONMENTAL, SOCIAL & GOVERNANCE

VMware is committed to being a force for good, from its breakthrough technology innovations to its global impact. VMware is driving sustainability across our operations in order to drive long-term business value. To that end, we are aligning our Environmental, Social & Governance (“ESG”) strategy to our core business. At VMware, we believe corporate social responsibility means considering the interests of all stakeholders. Our stakeholders—stockholders, employees, customers, partners and communities—are increasing their focus on ESG matters and are expecting businesses to do the same. As one of the largest enterprise software companies, we believe it is our responsibility, and it is essential for our growth, to build a more secure, equitable and resilient digital foundation for the future.

VMware’s innovative solutions aim to maximize the efficiency and productivity of our customers’ IT infrastructures. From the beginning, our core virtualization technology has helped our customers achieve greater sustainable impacts by minimizing the amount of physical infrastructure they need. By enabling businesses and their employees to access their digital infrastructure anywhere, anytime and on any device, we believe that our solutions play a meaningful role in controlling and avoiding carbon emissions.

2030 Agenda

In December 2020, we announced our 2030 Agenda, a 10-year commitment to reaching 30 goals by 2030 (“30x30”). These 30x30 goals are aligned to VMware’s core business strategy and aim to drive business outcomes on three pillars: Trust, Equity and Sustainability. We are embedding these goals across the business to ensure meaningful impact and lasting value.

Trust: We are committed to building and protecting trust with all stakeholders–our customers, partners, stockholders, people and communities. We will achieve this by focusing on intrinsic security, privacy-by-design, digital ethics and transparent business practices.

Equity: We are committed to building a future that is accessible, inclusive and just for all. We will achieve this by focusing on distributed workforce technology; human capital development; diversity, equity and inclusion; product accessibility; nonprofit digital transformation; and digital skills.

Sustainability: We are committed to decarbonization for our customers, supply chain and operations. We will achieve this by focusing on net-zero emissions, radical efficiency, zero-carbon clouds, energy resilience for an “anywhere” workforce and investing in innovation.

Learn more about our 2030 Agenda at vmware.com/2030agenda. Our website and the information referenced in this Proxy Statement that is accessible through the website are not incorporated by reference into this Proxy Statement.

Protecting Our Environment

For us, sustainable growth for our business requires decoupling our company growth from carbon emissions. To this end, we’ve accelerated our focus on decarbonization and last year received third-party validation from the Science Based Target Initiative (SBTi) on our science-based targets. In 2020, we sourced 100 percent of electricity in our global facilities from renewable sources for the second consecutive year. Reducing our demand on electricity is an essential part of our environmental strategy, and we are focused on prioritizing energy efficiency within our operations through our commitment to green buildings, driving an impactful renewable energy strategy and raising awareness through employee engagement to promote resource conservation both at work and at home. We maintained our certified CarbonNeutral® company status, in accordance with The CarbonNeutral Protocol, for the third consecutive year. We were also recognized on CDP’s Climate A List (formerly known as Climate Disclosure Project). Please see our 2020 CDP Climate Change Disclosure and our 2020 Global Impact Report available on the Sustainably webpage of VMware’s website at vmware.com.

Carbon-Efficient Digital Transformation

Our products help customers in significantly reducing energy costs and related carbon emissions associated with operating their digital infrastructure while providing elastic scalability and simplified management. Every year, since 2016, we’ve quantified the impact of IT infrastructure growth on carbon emissions. Since 2003, our product portfolio has helped our customers avoid over 1.2 billion metric tons of carbon emissions. Please see our VMware sponsored, IDC White Paper: Enabling More Agile and Sustainable Business Through Carbon-Efficient Digital Transformations, which is available on the Sustainably webpage of VMware’s website at vmware.com.

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Empowering Our People

At VMware, we aspire to build a Diverse, Equitable and Inclusive (“DEI”) environment, that enriches lives at work, at home and in the community, because we believe that empowering our people to bring their authentic selves to work drives business excellence and enables us to achieve our business goals. We prioritize employee well-being and work hard to foster a culture that is respectful, kind and compassionate, which is defined by our EPIC2 values—Execution, Passion, Integrity, Customers and Community. We believe that a culture of belonging drives innovation and enables our people to bring their creativity and ideas to the table.

We’ve invested in programs to expand the community of women and diverse talent through management goals tied to DEI. We’ve empowered our people to be active members in their communities through our Citizen Philanthropy approach, since we believe that individual actions matter and add up to collective impact. And through public-private partnerships, we’ve committed to helping individuals gain the knowledge they need to compete in today’s workforce through VMware’s IT Academy. Our goal is to continue to be a great place to work while helping create and build sustainable and resilient communities globally. Learn more about our Citizen Philanthropy approach at vmware.com/company/foundation. Learn more about our IT Academy at vmware.com/company/it-academy.

Diversity, Equity & Inclusion (DEI)

VMinclusion is a business-led initiative that is focused on creating an inclusive culture at VMware and increasing the representation of women and underrepresented groups to better reflect the communities we live in and serve. VMware has set specific and measurable goals around increasing representation for women and underrepresented communities. We have assigned responsibility to all of our leaders at the level of Senior Director and above to work to improve the representation and retention of women globally and underrepresented communities in the U.S. and ensure all interview slates have at least one woman and one underrepresented community candidate.

Our Employee Resource Groups at VMware are called Power of Difference communities (“PODs”), and they play a strategic role in building a culture of belonging. We are focused on driving a culture that is inclusive of all forms of diversity: from demographic factors such as race, national origin, gender identity, sexual orientation and age to other critical factors such as function, office location, ability, personality and life experience. To that end, we have seven demographic PODs and eleven site (geographic) PODs across our global locations. POD participation is open to everyone. We believe when people feel a sense of belonging, they can bring their unique perspectives, creativity and innovation to their work. Please see our Diversity, Equity & Inclusion Report at vmware.com/company/diversity.

Governance

Strong corporate governance is essential to achieving long-term sustained business value. To guide integration of ESG into VMware’s operations and performance management, VMware is implementing an ESG governance structure comprised of internal leadership and members of our executive staff to guide integration of ESG into VMware’s operations and performance management. Our governance structure includes the full Board annual oversight of ESG topics as well as focused oversight responsibilities with the CCGC and Audit committees. We have established a new ESG Office to ensure cross-company alignment, a strategic focus, as well as to measure and track the progress against our 30x30 goals. We will report our progress annually using widely recognized guidelines for ESG reporting and transparency.

Recognition

Among our other recognition, below are some recent highlights:

•Newsweek, America’s Most Responsible Companies (2021)

•Forbes America’s Best Employers (2021)

•Forbes, Just 100 (2020)

•Dow Jones Sustainability Indices (2020)

•CDP A List (2020)

•Carbon Clean 200 (2020)

•Forbes, The Best Employers for Diversity (2020)

•Forbes, The Best Employers for Women (2020)

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•Forbes, Best Employers for Veterans (2020)

•ComputerWorld/InsiderPro, Best Places to Work in IT (2020)

•Glassdoor, Best Places to Work (2021)

•Human Rights Campaign Foundation, Best Places to Work for LGBTQ Equality (2021)

•Human Rights Campaign Foundation, Corporate Equality Index (2021)

OUR BOARD OF DIRECTORS AND NOMINEES

The Board is currently composed of ~~eight~~ten members. The number of directors constituting the Board may be set by resolution of the Board, ~~from time to time. However,~~however, the Board may not consist of less than six directors nor more than twelve directors.

The Board is divided into two groups, Group I and Group II. The ~~holder~~holders of Class B Stock, voting separately as a class, isare entitled to elect directors representing a minimum of 80% of the total number of the directors constituting the Board without vacancies. These directors are Group I directors. Holders of Class A Stock and Class B Stock, voting together as a single class, are entitled to elect the remaining number of directors. These directors are Group II directors.

The Board is also divided into three classes, with each class serving for a staggered three-year term. The Board consists of three Class I directors, ~~three~~four Class II directors and ~~two~~three Class III directors. At each Annual Meeting, a class of directors is elected for a three-year term to succeed the directors of the same class whose terms are then expiring. The terms of the Class I directors, Class II directors and Class III directors expire upon the election and qualification of successor directors at the Annual Meetings held during the calendar years ~~2020,~~ 2021, 2022 and ~~2019,~~2023, respectively. The following table lists the current members of the Board, the committees, group and class to which they belong and designates which directors the Board determined to be independent under the New York Stock Exchange (“NYSE”) corporate governance standards (“NYSE Rules”):

Director

Audit

Committee

Compensation and

Corporate

Governance

Committee

Mergers and

Acquisitions

Committee

Persons

Transactions

Committee

Director

Group

Director

Class

Independent

Director

Anthony Bates

ü(C)

Group II

Class I

Marianne Brown

Group I

Class III

Michael Brown

ü(C)

Group I

Class II

Donald Carty

Group I

Class III

Michael Dell*

Group I

Class I

Kenneth Denman

Group II

Class II

Egon Durban

Group I

Class I

Karen Dykstra

ü(C)

Group I

Class II

~~Patrick Gelsinger~~Rangarajan (Raghu) Raghuram

Group I

Class II

Paul Sagan**

ü(C)

Group I

Class III

____________________

* Chairman of the Board

** Lead Director

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Directors Standing For Election

Directors ~~Carty~~Michael Brown, Kenneth Denman, Karen Dykstra and ~~Sagan~~Raghu Raghuram have each been nominated by the Board for election at the Annual Meeting, and each has agreed to stand for election for an additional three-year term.

Information concerning the nominees is presented below:

Michael Brown

Class II, Group I

Term expires: 2021 Annual Meeting

Mr. Brown, age 75, has served as a director of VMware since April 2007. Mr. Brown was a director of EMC, VMware’s then-parent company, from August 2005 until May 2016. From August 1994 until his retirement in July 1997, Mr. Brown served as Vice President and Chief Financial Officer (“CFO”) of Microsoft Corporation. He was Vice President, Finance of Microsoft from April 1993 to August 1994. He joined Microsoft in December 1989. After retiring from Microsoft, Mr. Brown served as Chair of the Nasdaq Stock Market board of directors and as a past governor of the National Association of Securities Dealers (“NASD”). Prior to joining Microsoft, Mr. Brown spent 18 years with Deloitte & Touche LLP in various positions. Mr. Brown was a director of Insperity, Inc. from 1997 to June 2017. Mr. Brown is a director of Stifel Financial Corp, where he chairs the audit committee.

Mr. Brown brings to our Board substantial financial expertise that includes extensive knowledge of the complex financial and operational issues facing large companies, and a deep understanding of accounting principles and financial reporting rules and regulations. He acquired this knowledge in the course of serving as the CFO of a global technology company, working with a major international accounting and consulting firm for 18 years and serving as a member of the audit committees of other public company boards. Mr. Brown’s experience at Microsoft and on the boards of other technology companies also provides insight into the information technology industry. His experience as an independent auditor provides our Board and the Audit Committee with significant insight into the preparation of financial statements and knowledge of audit procedures. Through his many senior management positions, including as Chair of the board of the Nasdaq Stock Market and as a governor of the NASD, Mr. Brown has demonstrated his leadership and business acumen.

Kenneth Denman

Class II, Group II

Term expires: 2021 Annual Meeting

Mr. Denman, age 62, was elected to the Board in January 2021. Mr. Denman has been a venture partner at Sway Ventures, a venture capital firm, since 2018. Previously, Mr. Denman was President and Chief Executive Officer (“CEO”) of Emotient, Inc. a provider of video-based automated facial expression measurement software technology, from 2012 until the company was acquired by Apple in 2016. Previously, he was the CEO of Openwave systems, Inc. and iPass, Inc. and a Senior Vice President for MediaOne. Mr. Denman has been Visiting Professor at the University of Washington Foster School of business—Edward V. Fritzky Endowed Chair since 2012 where he also serves on the Advisory Board, in addition to being an Executive Board Member of the university of Washington Foundation. He is also a member of the board of trustees of Seattle Children’s Hospital. Mr. Denman is currently a director of Costco Wholesale Corp, where he serves on the audit committee, and Motorola Solutions, Inc. (“Motorola”). Within the last five years, Mr. Denman has also served as a director of LendingClub Corporation, Mitek Solutions, Inc., ShoreTel, Inc. and United Online.

Mr. Denman has extensive executive leadership experience in the technology industry, including in the software and services and cybersecurity businesses, managing global businesses and developing markets, together with private equity, investment banking and capital allocation experience. His leadership experience and service on the board of directors of other public companies brings to our Board strong leadership expertise and unique industry insight.

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Karen Dykstra

Class II, Group I

Term expires: 2021 Annual Meeting

Ms. Dykstra, age 62, has served as a director of VMware since March 2016. Ms. Dykstra served as CFO and Administrative Officer of AOL, Inc., a global media technology company, from November 2013 until July 2015, and as Executive Vice President (“EVP”) and CFO of AOL from September 2012 until November 2013. Ms. Dykstra served on the board of directors of AOL from 2009 until September 2012, including service as chair of the audit committee during her last two years on the AOL board. From January 2007 until December 2010, Ms. Dykstra was a Partner of Plainfield Asset Management LLC (“Plainfield”), and she served as Chief Operating Officer (“COO”) and CFO of Plainfield Direct LLC, Plainfield’s business development company, from May 2006 to 2010, and as a director from 2007 to 2010. She previously spent over 25 years with ADP, from 1981 through 2006, serving most recently as CFO from January 2003 to May 2006, and previously as Vice President—Finance, Corporate Controller and in other capacities. Ms. Dykstra is currently a director of Gartner, Inc., where she serves on the audit committee, and is a director of Boston Properties, Inc., where she also serves on the audit committee.

Ms. Dykstra brings to our Board substantial financial expertise that includes extensive knowledge of the complex financial and operational issues facing large companies, and a deep understanding of accounting principles and financial reporting rules and regulations. She acquired this knowledge in the course of serving as the CFO of two global companies, working with a major business services firm for 25 years and serving as a member of the audit committee of several other public company boards.

Rangarajan (Raghu) Raghuram

Class II, Group I

Term expires: 2021 Annual Meeting

Mr. Raghuram was appointed VMware’s CEO effective June 1, 2021. Prior to that Mr. Raghuram served as VMware’s Chief Operating Officer, Products and Cloud Services since October 2016, guiding VMware’s cloud and SaaS transformation efforts. Prior to that he served as EVP, Software-Defined Data Center Division from February 2014 to October 2016, and EVP, Cloud Infrastructure and Management from April 2012 to February 2014. Mr. Raghuram joined VMware in 2003 and has held multiple product management and marketing roles. Mr. Raghuram served as Senior Vice President and General Manager of Cloud Infrastructure and Management, Virtualization and Cloud Platforms, and Enterprise Products, from December 2009 through March 2012. Mr. Raghuram previously served as Vice President of VMware’s Server business unit and of Product and Solutions Marketing through December 2009. Prior to VMware, Mr. Raghuram held product management and marketing roles at Netscape Communications Corporation and Bang Networks, Inc.

As CEO of VMware effective June 1, 2021, Mr. Raghuram has in-depth knowledge of our business and brings to our Board insight and knowledge of our operations and strategic opportunities. In addition, Mr. Raghuram’s extensive experience in guiding our product development strategy for over eighteen years as the compute industry has rapidly evolved provides unique insight into how we can leverage our technology to anticipate and meet customer needs and market opportunities.

Directors Not Standing For Election

Information concerning our continuing directors is presented below:

Anthony Bates

Class I, Group II

Term expires: 2023 Annual Meeting

Mr. Bates, age 54, has served as a director of VMware since February 2016. Mr. Bates has served as CEO of Genesys Telecommunications Laboratories, Inc., a customer experience software platform provider, since May 2019. Mr. Bates served as a board partner at Social Capital, an investment firm, from August 2018 until May 2019 and was CEO, Growth Equity at Social Capital from June 2017 until August 2018. From June 2014 until December 2016, Mr. Bates served as President of GoPro, Inc., a maker of video and photo capture devices. From June 2013 until March 2014, Mr. Bates was EVP, Business Development and Evangelism of Microsoft Corporation, a software company. Mr. Bates was CEO of Skype Inc., from October 2010 until its acquisition by Microsoft in 2011, subsequent to which Mr. Bates served as President of Microsoft’s Skype Division until June 2013. From 1996 to October 2010, Mr. Bates served in various roles at Cisco Systems, Inc., most recently as Senior Vice President and General Manager of Enterprise, Commercial and Small Business. Mr. Bates currently serves on

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the board of directors of eBay Inc. Within the last five years, Mr. Bates has also served as a director of Social Capital Hedosophia Holdings Corp, and GoPro Inc.

Mr. Bates has extensive executive leadership experience in the technology industry, including managing worldwide operations, sales, service and support areas. His leadership experience and service on the board of directors of other companies brings to our Board strong leadership expertise and unique industry insight.

Marianne Brown

Class III, Group I

Term expires: 2022 Annual Meeting

Ms. Brown, age 62, has served as a director of VMware since October 2019. Ms. Brown served as Corporate EVP and Co-COO, Global Financial Solutions segment of Fidelity National Information Services, Inc. (“FIS”), a financial software, services and global business solutions provider from January 2018 through December 2019. Ms. Brown served as COO, Institutional and Wholesale Business of FIS since December 2015, when FIS acquired SunGard Financial Systems LLC, a software and IT services provider, at which she had served as COO from February 2014. From 2006 to 2014, Ms. Brown served as President and CEO of Omgeo, a global financial services technology company, and from 2005 to 2006 she was CEO of the Securities Industry Automation Corporation (“SIAC”), a subsidiary of the NYSE that provides computers and communications systems to the New York and American stock exchanges. Prior to joining SIAC, Ms. Brown spent 26 years with Automatic Data Processing, Inc. (“ADP”), a provider of human capital management solutions to employers, in various positions of increasing responsibility in areas including customer service, account management and sales, operations, technology and development. Ms. Brown is also a director of Akamai Technologies, Inc. (“Akamai”), Northrop Grumman Corporation and The Charles Schwab Corporation.

Ms. Brown brings to our Board executive leadership experience that includes extensive background in companies providing software, services and global business solutions to large enterprise customers. Her leadership experience in the financial services industry provides valuable insights into the business requirements and expectations that enterprise customers have for complex IT solutions, such as those offered by VMware. Her extensive experience as a COO also provides unique insight into the challenges of developing and implementing business solutions at a global scale.

Donald Carty

Class III, Group I

Term expires: ~~2019~~2022 Annual Meeting

Mr. Carty, age ~~72,~~74, has served as a director of VMware since December 2015. Mr. Carty is currently a private investor. Mr. Carty served as a director of EMC, ~~Corporation,~~ VMware’s then-parent company, from January 2015 until ~~September 2016 when~~ Dell acquired EMC (“Dell Acquisition”). in September 2016. Mr. Carty served as Chairman of the ~~Board~~board (“Chairman”) of Virgin America Inc. from February 2006 to December 2016, when Virgin was acquired by Alaska Air Group, Inc. He served as Vice Chairman and ~~Chief Financial Officer (“~~CFO”) of Dell, Inc. from January 2007 to June 2008, and as Chairman and ~~Chief Executive Officer (“~~CEO”) of AMR Corporation and American Airlines from May 1998 to April 2003. Mr. Carty is also a director of Hawaiian Holdings, Inc., the parent company of Hawaiian Airlines, Inc., where he serves on the audit ~~committee, compensation committee, safety committee~~ and ~~executive committee, and is~~finance committee. Within the last five years, Mr. Carty has also served as a director of Canadian National Railway Company, where he chairs the audit committee and serves on the environment, safety and security committee, the human resources and compensation committee, the strategic planning committee, and the pension and investment committee.Company.

Mr. Carty is a seasoned executive who brings to our Board significant financial acumen, industry insight and strategic planning experience gained from his previous leadership positions and service as the CFO of a global technology company. His service on other public company boards, including as a member of their audit committees, also provides him with valuable experience.

Michael Dell

Class I, Group I

Term expires: 2023 Annual Meeting

Mr. Dell, age 56, has served as a director and Chairman of VMware since the Dell Acquisition in September 2016. Mr. Dell serves as a director, Chairman and CEO of Dell, a provider of scalable IT systems. Mr. Dell has held the title of Chairman of Dell Inc. since he founded the company in 1984. Mr. Dell also served as CEO of Dell Inc. from 1984 until July 2004 and resumed that role in January 2007. In 1998, Mr. Dell formed MSD Capital, L.P. for the purpose of managing his and his family’s investments, and, in 1999, he and his wife established the Michael & Susan Dell Foundation to provide philanthropic support to a variety of global causes. Mr. Dell currently serves as a director and non-executive Chairman of the board of

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SecureWorks Corp., a majority-owned subsidiary of Dell. Within the last five years, Mr. Dell has also served as a director of Pivotal Software, Inc., until its acquisition by VMware in December 2019.

As the Chairman, CEO and founder of Dell, Mr. Dell oversees one of the world’s largest technology companies and is recognized as one of the leading innovators and influencers in the business world. Mr. Dell has decades of experience leading a complex, international technology enterprise and possesses extensive knowledge of internet-based technologies and the needs and expectations of enterprise customers. Having successfully led Dell Inc. through many transitions in information technology and enterprise computing, Mr. Dell brings extensive and valuable experience to our Board.

Egon Durban

Class I, Group I

Term expires: 2023 Annual Meeting

Mr. Durban, age 47, has served as a director of VMware since the Dell Acquisition in September 2016. Mr. Durban has been a director of Dell since October 2013. Mr. Durban is Co-CEO of Silver Lake, a global technology investment firm. Mr. Durban joined Silver Lake in 1999 as a founding principal. Mr. Durban currently serves on the board of directors of Endeavor Group Holdings, Inc., Motorola, Qualtrics International Inc., Twitter, Inc. and Unity Software Inc. Within the last five years, Mr. Durban has also served as director of Intelsat S.A. and SecureWorks Corp, as well as Pivotal Software, Inc., until its acquisition by VMware in December 2019.

As Co-CEO and a founding principal of one of the leading global technology investment funds, Mr. Durban possesses considerable financial acumen, deep knowledge of global trends in information technology and expertise in conducting complex business transactions. Mr. Durban also brings valuable experience from his service on other public company boards to his service on our Board.

~~Paul Sagan~~

~~Class III, Group I~~

~~Term expires: 2019 Annual Meeting~~

Mr. Sagan, age 60, has served as a director of VMware since April 2014 and was appointed VMware’s Lead Director in February 2015. Mr. Sagan has been Managing Director at General Catalyst, a venture capital firm, since January 2018, and previously served there as an Executive In Residence (XIR) from January 2014. Mr. Sagan was a director of EMC from December 2007 until the Dell Acquisition in September 2016. From April 2005 to January 2013, Mr. Sagan served as CEO of Akamai Technologies, Inc. (“~~Akamai~~”), a provider of services for accelerating the delivery of content and applications over the Internet, and was President from May 1999 to September 2010 and from October 2011 to December 2012. Mr. Sagan joined Akamai in October 1998 as Vice President and Chief Operating Officer (“~~COO~~”). Mr. Sagan was a member of President Obama’s National Security Telecommunications Advisory Committee from December 2010 until January 2017. From July 1997 to August 1998, Mr. Sagan was Senior Advisor to the World Economic Forum. Previously, Mr. Sagan held senior executive positions at global media and entertainment companies Time Warner Cable and Time Inc., affiliates of Time Warner, Inc., as well as at CBS, Inc. Mr. Sagan is also a director of Akamai and Moderna, Inc.

As the former President, COO and CEO of a fast-growing, industry-leading S&P 500 company, Mr. Sagan brings to our Board significant experience leading a complex, international technology enterprise, extensive knowledge of internet-based technologies and business acumen. During his career, Mr. Sagan has led visionary technology and media companies and has been senior advisor to the World Economic Forum. In addition, Mr. Sagan’s service on other public company boards enables him to bring valuable experience from those directorships to his service on our Board.

~~Directors Not Standing For Election~~

~~Information concerning our continuing directors is presented below:~~

~~Anthony Bates~~

~~Class I, Group II~~

~~Term expires: 2020 Annual Meeting~~

Mr. Bates, age 52, has served as a director of VMware since February 2016. Mr. Bates has served as CEO of Genesys Telecommunications Laboratories, Inc., a customer experience software platform provider, since May 2019. Mr. Bates served as a board partner at Social Capital, an investment firm, from August 2018 until May 2019 and was CEO, Growth Equity at Social Capital from June 2017 until August 2018. From June 2014 until December 2016, Mr. Bates served as President of GoPro, Inc., a maker of video and photo capture devices. From June 2013 until March 2014, Mr. Bates was Executive Vice President, Business Development and Evangelism of Microsoft Corporation, a software company. Mr. Bates was CEO of Skype Inc., from October 2010 until its acquisition by Microsoft in 2011, subsequent to which Mr. Bates served as President of Microsoft’s Skype Division until June 2013. From 1996 to October 2010, Mr. Bates served in various roles at Cisco Systems, Inc., most recently as Senior Vice President and General Manager of Enterprise, Commercial and Small Business. Mr. Bates currently serves on the board of directors of Social Capital Hedosophia Holdings Corp. and eBay Inc.

~~Michael Brown~~

~~Class II, Group I~~

~~Term expires: 2021 Annual Meeting~~

Mr. Brown, age 73, has served as a director of VMware since April 2007. Mr. Brown was a director of EMC from August 2005 until May 2016. From August 1994 until his retirement in July 1997, Mr. Brown served as Vice President and CFO of Microsoft Corporation. He was Vice President, Finance of Microsoft from April 1993 to August 1994. He joined Microsoft in December 1989. After retiring from Microsoft, Mr. Brown served as Chair of the Nasdaq Stock Market board of directors and as a past governor of the National Association of Securities Dealers (“~~NASD~~”). Prior to joining Microsoft, Mr. Brown spent 18 years with Deloitte & Touche LLP in various positions. Mr. Brown was a director of Insperity, Inc. from 1997 to June 2017. Mr. Brown is a director of Stifel Financial Corp, where he chairs the audit committee.

~~Michael Dell~~Egon Durban

Class I, Group I

Term expires: ~~2020~~2023 Annual Meeting

Mr. ~~Dell,~~Durban, age ~~54,~~47, has served as a director ~~and Chairman~~ of VMware since the Dell Acquisition in September 2016. Mr. Durban has been a director of Dell ~~serves~~since October 2013. Mr. Durban is Co-CEO of Silver Lake, a global technology investment firm. Mr. Durban joined Silver Lake in 1999 as a ~~director, Chairman and CEO of Dell, a provider of scalable IT systems.~~founding principal. Mr. Dell has held the title of Chairman of Dell Inc. since he founded the company in 1984. Mr. Dell also served as CEO of Dell Inc. from 1984 until July 2004 and resumed that role in January 2007. In 1998, Mr. Dell formed MSD Capital, L.P. for the purpose of managing his and his family’s investments, and, in 1999, he and his wife established the Michael & Susan Dell Foundation to provide philanthropic support to a variety of global causes. Mr. Dell also serves as a director and non-executive Chairman of the board of SecureWorks Corp. (“~~SecureWorks”), a majority-owned subsidiary of Dell, and~~Durban currently serves on the board of directors of Endeavor Group Holdings, Inc., Motorola, Qualtrics International Inc., Twitter, Inc. and Unity Software Inc. Within the last five years, Mr. Durban has also served as director of Intelsat S.A. and SecureWorks Corp, as well as Pivotal Software, Inc., ~~an indirect majority-owned subsidiary Dell~~until its acquisition by VMware in ~~which VMware has an ownership interest (“Pivotal”).~~December 2019.

As ~~the Chairman, CEO~~Co-CEO and ~~founder~~a founding principal of ~~Dell, Mr. Dell oversees one of the world’s largest technology companies and is recognized as~~ one of the leading ~~innovators and influencers in the business world.~~global technology investment funds, Mr. ~~Dell has decades of experience leading a complex, international technology enterprise and~~Durban possesses ~~extensive~~considerable financial acumen, deep knowledge of ~~internet-based technologies and the needs and expectations of enterprise customers. Having successfully led Dell Inc. through many transitions~~global trends in information technology and ~~enterprise computing,~~expertise in conducting complex business transactions. Mr. ~~Dell~~Durban also brings ~~extensive and~~ valuable experience from his service on other public company boards to his service on our Board.

~~On October 13, 2010, a federal district court approved settlements by Dell Inc. and Mr. Dell with the Securities and Exchange Commission (“SEC~~”) resolving an SEC investigation into Dell’s disclosures and alleged omissions before fiscal year 2008 regarding certain aspects of its commercial relationship with Intel Corporation and into separate accounting and financial reporting matters. Dell Inc. and Mr. Dell entered into the settlements without admitting or denying the allegations in the SEC’s complaint, as is consistent with common SEC practice. The SEC’s allegations with respect to Mr. Dell and his settlement were limited to the alleged failure to provide adequate disclosures with respect to Dell Inc.’s commercial relationship with Intel Corporation prior to fiscal year 2008. Mr. Dell’s settlement did not involve any of the separate accounting fraud charges settled by Dell Inc. and others. Moreover, Mr. Dell’s settlement was limited to claims in which only negligence, and not fraudulent intent, is required to establish liability, as well as secondary liability claims for other non-fraud charges. Under his settlement, Mr. Dell consented to a permanent injunction against future violations of these negligence-based provisions and other non-fraud based provisions related to periodic reporting. Specifically, Mr. Dell consented to be enjoined from violating Sections 17(a)(2) and (3) of the Securities Act of 1933 (“~~Securities Act”) and Rule 13a-14 under the Securities Exchange Act of 1934 (“Exchange Act~~”) and Rules 12b-20, 13a-1 and 13a-13 under the Exchange Act. In addition, Mr. Dell agreed to pay a civil monetary penalty of $4 million, which has been paid in full. The settlement did not include any restrictions on Mr. Dell’s continued service as an officer or director of Dell, Inc.

Egon Durban

Class I, Group I

Term expires: ~~2020~~2023 Annual Meeting

Mr. Durban, age ~~45,~~47, has served as a director of VMware since the Dell Acquisition in September 2016. Mr. Durban has been a director of Dell since October 2013. Mr. Durban is ~~a Managing Partner and Managing Director~~Co-CEO of Silver Lake, a global ~~private equity~~technology investment firm. Mr. Durban joined Silver Lake in 1999 as a founding principal. Mr. Durban ~~also~~currently serves on the board of directors of ~~Motorola Solutions,~~Endeavor Group Holdings, Inc., Motorola, Qualtrics International Inc., Twitter, Inc. and Unity Software Inc. Within the last five years, Mr. Durban has also served as director of Intelsat S.A. and SecureWorks Corp, as well as Pivotal ~~and SecureWorks.~~Software, Inc., until its acquisition by VMware in December 2019.

As ~~the Managing Partner, Managing Director~~Co-CEO and a founding principal of one of the leading global technology investment funds, Mr. Durban possesses considerable financial acumen, deep knowledge of global trends in information technology and expertise in conducting complex business transactions. Mr. Durban also brings valuable experience from his service on other public company boards to his service on our Board.

~~Karen Dykstra~~Paul Sagan

Class ~~II,~~III, Group I

Term expires: ~~2021~~2022 Annual Meeting

~~Ms. Dykstra,~~

Mr. Sagan, age ~~60,~~62, has served as a director of VMware since ~~March 2016. Ms. Dykstra~~April 2014 and as VMware’s Lead Director since February 2015. Mr. Sagan has been a senior advisor and Executive in Resident (“XIR”) at General Catalyst, a venture capital firm, since July 2020. Previously, Mr. Sagan served as ~~CFO~~managing director of General Catalyst from January 2018 to July 2020 and ~~Administrative Officer~~XIR from January 2014 to January 2018. Mr. Sagan was a director of ~~AOL, Inc.,~~EMC from December 2007 until the Dell Acquisition in September 2016. From April 2005 to January 2013, Mr. Sagan served as CEO of Akamai, a ~~global media technology company,~~provider of services for accelerating the delivery of content and applications over the Internet, and was President from ~~November 2013 until July 2015,~~May 1999 to September 2010 and from October 2011 to December 2012. Mr. Sagan joined Akamai in October 1998 as ~~Executive~~ Vice President and ~~CFO~~COO. Mr. Sagan was a member of ~~AOL~~President Obama’s National Security Telecommunications Advisory Committee from September 2012 until November 2013. Ms. Dykstra served on the board of directors of AOL from 2009 until September 2012, including service as Chair of the audit committee during her last two years on the AOL board. From January 2007 until December 2010 ~~Ms. Dykstra~~until January 2017. From July 1997 to August 1998, Mr. Sagan was ~~a Partner~~Senior Advisor to the World Economic Forum. Previously, Mr. Sagan held senior executive positions at global media and entertainment companies Time Warner Cable and Time Inc., affiliates of ~~Plainfield Asset Management LLC (“Plainfield~~”), and she served as COO and CFO of Plainfield Direct LLC, Plainfield’s business development company, from May 2006 to 2010, and as a director from 2007 to 2010. She previously spent over 25 years with Automatic Data Processing,Time Warner, Inc., ~~from 1981 through 2006, serving most recently~~ as ~~Chief Financial Officer from January 2003 to May 2006, and previously~~well as ~~Vice President - Finance, Corporate Controller and in other capacities. Ms. Dykstra~~at CBS, Inc. Mr. Sagan is currently a director of ~~Gartner,~~Moderna, Inc.~~, where she serves on~~ Within the ~~audit committee, and is~~last five years, Mr. Sagan has also served as a director of ~~Boston Properties, Inc., where she also serves on~~Akamai.

As the ~~audit committee.~~

~~Ms. Dykstra~~former President, COO and CEO of a fast-growing, industry-leading S&P 500 company, Mr. Sagan brings to our Board ~~substantial financial expertise that includes~~significant experience leading a complex, international technology enterprise, extensive knowledge of ~~the complex financial~~internet-based technologies and ~~operational issues facing large~~business acumen. During his career, Mr. Sagan has led visionary technology and media companies and ~~a deep understanding of accounting principles and financial reporting rules and regulations. She acquired this knowledge in~~has been senior advisor to the ~~course of serving as the CFO of two global companies, working with a major business services firm for 25 years and serving as a member of the audit committee of several~~World Economic Forum. In addition, Mr. Sagan’s service on other public company ~~boards.~~

~~Patrick Gelsinger~~

~~Class II, Group I~~

~~Term expires: 2021 Annual Meeting~~

~~Mr. Gelsinger, age 58, has served as CEO and a director of VMware since September 2012. Prior~~boards enables him to ~~joining VMware, he served as President and COO, EMC Information Infrastructure Products at EMC~~bring valuable experience from ~~September 2009~~those directorships to August 2012. Mr. Gelsinger joined EMC from Intel Corporation, where he was Senior Vice President and Co-General Manager of Intel Corporation’s Digital Enterprise Group from 2005 to September 2009 and served as Intel’s Senior Vice President, Chief Technology Officer from 2002 to 2005. Prior to this, Mr. Gelsinger led Intel’s Desktop Products Group.

~~As CEO of VMware, Mr. Gelsinger has in-depth knowledge of~~his service on our business and brings to our Board insight and knowledge of our operations and strategic opportunities. In addition, Mr. Gelsinger’s extensive experience as part of executive management teams for global information technology companies provides our Board with significant expertise on a variety of issues important to our business.Board.

Selection and Nomination of Directors

Our entire Board is responsible for nominating members for election to the Board and for filling vacancies on the Board that may occur between Annual Meetings.

The Compensation and Corporate Governance Committee (“CCG Committee”) identifies, evaluates and recommends director candidates to the entire Board. The CCG Committee reviews and assesses the skills and characteristics it believes are or may be required ~~on the~~for Board service based on the needs of our business. The CCG Committee identifies director candidates through numerous sources, including recommendations from directors, executive officers and stockholders of VMware. The CCG Committee identifies those individuals most qualified to serve as members of the Board and considers many factors with regard to each candidate, including judgment, integrity, diversity, prior experience, the interplay of the candidate’s experience

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with the experience of other members of the Board, the extent to which a director candidate would be desirable as a member of any committees of the Board, and a candidate’s willingness to devote substantial time and effort to the Board. As such, the Board believes that ~~diversity~~a diverse mix of viewpoints and experiences is an important consideration in determining the composition of the Board. The effectiveness of the Board’s efforts to recruit members with appropriate skill sets and experiences and to promote the exchange of differing viewpoints is reviewed as part of the Board’s ~~periodic self-assessment~~annual self-evaluation process. The Board believes that a board having no fewer than six and no more than twelve directors enables needed expertise, diversity of experiences, and independence, without hindering effective discussion or diminishing individual accountability. In considering director candidates, the Board considers the entirety of each candidate’s credentials in the context of these standards. With respect to the nomination of continuing directors for re-election, the individual’s contributions to the Board are also considered.

Our Board includes two members who self-identify as female as defined under California law SB 826 and two members who self-identify as a member of an underrepresented community as defined under California law AB 979. The average tenure of the Board is 4.5 years of service with five directors having served less than five years, four having served between five and ten years and one having served greater than ten years.

Our stockholders may recommend individuals to the Board for consideration as potential director candidates by submitting the suggested candidate’s name and appropriate background and biographical information to the VMware ~~CCG~~Compensation and Corporate Governance Committee, 3401 Hillview Avenue, Palo Alto, California, 94304. Assuming that the appropriate information has been timely provided, the CCG Committee will consider these candidates substantially in the same manner as it considers other candidates it identifies.

Our stockholders also may nominate director candidates by following the procedures set forth in the advance notice provisions of VMware’s bylaws. For additional information, see “Information About the Annual Meeting—What is the deadline to propose actions for consideration at the ~~2020~~2021 Annual Meeting or to nominate individuals to serve as directors?”

CORPORATE GOVERNANCE

For purposes of the NYSE Rules, VMware is a “controlled company” because more than 50% of the voting power of VMware is held by Dell. ~~Accordingly, pursuant to section 303A.00 of the NYSE Rules, we are exempt from certain NYSE corporate governance requirements and do avail ourselves of these exemptions. In particular, as~~As a controlled company under the NYSE Rules, we ~~are exempt from the requirements to have a:~~

voluntarily maintain a majority of independent directors on our ~~Board;~~Board, and

our CCG committee (a combined nominating, ~~and~~ corporate governance ~~committee~~ and a compensation ~~committee that are each~~oversight committee) is composed entirely of independent directors and ~~that each have~~has a charter addressing the ~~respective committee’s~~CCG Committee’s purpose and responsibilities.

In light of our position as a controlled company, we have opted to establish a combined CCG Committee, instead of a separate compensation committee and a nominating and corporate governance committee. However, our CCG Committee is voluntarily comprised entirely of independent directors.

Our Board is committed to maintaining strong corporate governance practices. Our Board has adopted Corporate Governance Guidelines to provide a framework for the effective governance of VMware. Additionally, our Board has adopted written charters for its standing committees (Audit, Compensation and Corporate Governance, Mergers and Acquisitions and Related Persons Transactions), as well as Business Conduct Guidelines applicable to all directors, officers and employees. Our Board reviews the Corporate Governance Guidelines, the committee charters and the Business Conduct Guidelines periodically and implements changes as appropriate. Information about our corporate governance practices and copies of the Corporate Governance Guidelines, committee charters and Business Conduct Guidelines are available in the Governance subsection of the Investor Relations page of our website at ~~http://~~ir.vmware.com. VMware will provide stockholders with a copy of its Corporate Governance Guidelines, committee charters and Business Conduct Guidelines, without charge, upon written request to Investor Relations at VMware, Inc., 3401 Hillview Avenue, California, 94304.

Our Board has adopted corporate governance practices that the Board believes are in the best interests of VMware and our stockholders, as well as compliant with the rules and regulations of the SEC and the NYSE Rules. Highlights include:

•Our Board believes that board membership requires a significant time commitment. As a result, directors may generally not serve on the board of directors of more than three public ~~companies.~~companies in addition to VMware without consideration by our CCG Committee. Our CCG Committee ~~considers~~assesses the ~~number~~appropriateness of a director serving on more than three other public company ~~boards on which a director or director candidate serves.~~boards.

•Directors who change job responsibilities outside VMware must promptly inform the CCG Committee. The CCG Committee then assesses the appropriateness of the director remaining on the Board and recommends to the Board whether to request that the director tender his or her resignation. If so requested, the director is expected to promptly tender his or her resignation from the Board and ~~all committees thereof.~~its committees.

•We have adopted a majority voting policy for the election of directors. The policy, which is included in our Corporate Governance Guidelines and our bylaws, requires any director who receives more votes cast “AGAINST” than “FOR” his or her election in an uncontested election to promptly offer to resign from the Board and ~~all~~its committees ~~thereof~~ following

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certification of the stockholder vote. The policy provides that the CCG Committee will assess the appropriateness of such director continuing to serve and will recommend to the Board the action to be taken with respect to such offered resignation. The Board will consider the CCG Committee’s recommendation and publicly disclose its decision and the rationale behind it within 90 days from the date of certification of the stockholder vote.

•Our Corporate Governance Guidelines require the CCG Committee to review committee assignments annually and, with the Chairman, ~~of the Board,~~ make recommendations to the Board regarding such assignments. The Board reviews those recommendations and annually appoints the members and chair of each ~~committee.~~committee, except with respect to the Related Persons Transactions Committee (“RPT Committee”), which selects its own chair. Our current committee membership is set forth in “Board of Directors, Independence and Committees—Committees of the Board.”

•The Lead Director oversees an annual evaluation process of the Board and each committee of the Board as follows:


–	~~each director annually evaluates the Board as a whole;~~

–

–each director annually evaluates the Board as a whole;

–each member of the Audit Committee, CCG Committee, Mergers and Acquisitions Committee (“M&A Committee”) and RPT Committee annually evaluates the committees on which he or she serves;

–each director annually prepares an individual self-evaluation; and

–the Lead Director reports on, and makes recommendations to the Board with respect to, the evaluations.

•~~M&A Committee”) and Related Persons Transactions Committee (“RPT Committee”) annually evaluates the committees on which he or she serves;~~


–	~~each director annually prepares an individual self-evaluation; and~~


–	~~the Lead Director reports on, and makes recommendations to the Board with respect to, the evaluations.~~

To enable open communications with stockholders and other interested parties, we provide various means to contact the non-management directors, the entire Board and the Audit Committee (see “Information About the Annual Meeting—How do I contact VMware’s Board of Directors”). Our Board strives to provide clear, candid and timely responses to any substantive communication from such persons.

•In addition to the communications above ~~it is our Board’s policy~~and pursuant to our Corporate Governance Guidelines, it is our Board’s policy to provide a response to any stockholder proposal that receives a majority vote.

•Our Board believes that director education is integral to board and committee performance and effectiveness. Directors are expected to participate in continuing educational programs to maintain the necessary level of expertise to perform their responsibilities as directors.

•Our non-management directors meet in executive session without management at least twice each ~~year. The~~year, during which the Chairman acts as presiding ~~director for such executive sessions of the non-management directors.~~director. Independent directors meet in executive session at least once each ~~year. The~~year, during which the Lead Director acts as the presiding ~~director for executive sessions of the independent directors.~~director.

•Our Board believes that our non-employee directors should have a meaningful financial stake in VMware. Accordingly, we include equity awards as a component of the compensation we provide to our non-employee directors and have established stock ownership guidelines that require such directors to own at least 5,000 shares of our Class A Stock and hold at least 50% of the net shares acquired from us in compensation for their Board service until they reach such ownership level. Non-employee directors who do not receive compensation for their service on our Board are exempt from our stock ownership guidelines.

Our Leadership Structure

Our current leadership structure separates the roles of CEO and Chairman. The CEO is responsible for setting the strategic direction for the Company and the day-to-day leadership and performance of the Company, while the Chairman provides guidance to the CEO, sets the ~~agenda~~agendas for Board meetings and presides over meetings of the full Board. Our leadership structure also includes a Lead Director role to facilitate effective performance of the Board and its oversight of our business. We believe that having a separate Chairman and Lead Director structure allows the Board to effectively address governance issues by providing another channel for the Board to express its views to management and provide feedback to the CEO on company performance. The leadership structure of the Board has not impacted the Board’s ability to provide effective oversight of risk management.

Lead Director

Mr. Sagan has been our Lead Director since February 2015. The responsibilities of our Lead Director include:

•serving as chair of any Board meeting, or portion of a meeting, at which the Chairman is not present;

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•providing the Chairman and the CEO with input on the preparation of Board meeting agendas, including those portions of Board meetings not attended by the Chairman and Board committee meetings;

•providing feedback to the Chairman and the CEO in the form of assessments of Board meetings and management presentations at Board meetings;

•consulting with the Chairman and the CEO on matters relating to corporate governance and Board performance;

•communicating regularly with the CEO regarding information to be provided to the Board so that the Board can perform its duties and as to feedback from the Board for the CEO;

•supervising the Board’s annual self-evaluations, including providing each Board member with feedback on such Board member’s performance and reporting overall results of the evaluations to the CCG Committee and, where appropriate, to the Board as a whole; and

•performing such other duties as may be requested from time to time by the Board.

Oversight of Risk Management

The Board’s role in the Company’s risk oversight process includes receiving regular reports from members of senior management on areas of material risk to the Company, including operational, financial, legal, ~~and~~ regulatory, ~~and~~ strategic and reputational risks.

Our M&A Committee assesses risks to the Company in connection with proposed acquisitions, divestitures and investments. The M&A Committee reviews management’s assessment of potential risks raised during due diligence and management’s related risk mitigation plans before granting approval to enter into definitive transaction agreements.

Our Audit Committee oversees management of financial risk exposures, including the integrity of our accounting and financial reporting processes and controls. As part of this responsibility, the Audit Committee meets periodically with the independent auditor, our internal auditors and our financial and accounting personnel to discuss significant financial risk exposures and the steps management has taken and ~~will~~plans to take to monitor, control and report such exposures. Additionally, the Audit Committee reviews significant findings prepared by the independent auditor and our internal auditors, together with management’s related responses. Our Audit Committee also oversees management’s compliance with applicable legal and regulatory requirements and the risks related to potential non-compliance, including those related to cybersecurity, ~~matters and concerns,~~ information security and data privacy. The Audit Committee reviews periodic reports from our Chief Ethics and Compliance Officer, our Chief Information Security Officer (“CISO”), our internal auditors and our independent auditor. ~~Finally, the~~The Audit Committee has primary oversight responsibility for matters relating to enterprise risk. As such, the charter for our Audit Committee provides for periodic reviews and discussion of our practices and policies with respect to risk assessment and risk management with ~~an enterprise risk management committee comprised of~~ senior members of the Company’s management ~~team.~~team, including our CFO and the head of our internal audit group.

The ~~enterprise risk management committee~~internal audit group reviews the adequacy and effectiveness of the Company’s risk management and controls framework and processes, provides that risk management activities are integrated, consistent and managed at a level consistent with the risk, makes recommendations for, and tracks and reports on progress of, changes in the risk management framework, and assists the ~~CEO~~Company’s executive staff in assuring that significant risks to the Company are identified and risk benefit trade-offs are managed appropriately to protect the Company’s assets and ~~shareholder~~stockholder value. The ~~CFO serves as the enterprise risk management committee chairman and the members include the CEO and senior leaders~~head of ~~the Company’s legal,~~internal audit ~~compliance, information security, product security, human resources, information, customer and products organizations. The enterprise risk management committee~~ meets with and regularly reports to the Audit Committee.

Our CCG Committee oversees the management of governance risks associated with director independence, potential director and executive conflicts of interest, the composition and structure of the Board and its committees and succession planning, and it also monitors the effectiveness of our corporate governance policies. Additionally, our CCG Committee oversees and reviews ~~the~~with management our executive officer and employee compensation plans and programs that could have a material impact on VMware for each of our functional ~~groups with the CCG Committee.~~groups. Our management review considers whether any of these plans or programs may encourage inappropriate risk-taking or give rise to risks that are reasonably likely to have a material adverse effect on us, and whether it would recommend any changes to the plans or programs. Long-term, equity-based compensation, which we believe discourages excessive short-term risk taking and strongly aligns employee interests with the creation of long-term increased stockholder value, is an important feature in the compensation packages we offer our executive officers and employees. Management also reviews with the CCG Committee risk-mitigating controls, such as our compensation recovery policy for executive officer bonus and equity compensation, the degree of committee and senior management oversight of each program, and the level and design of internal controls over such programs. Based on these reviews, we have concluded that our compensation plans and programs are not reasonably likely to have a material adverse effect on our Company.

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BOARD OF DIRECTORS, INDEPENDENCE AND COMMITTEES

Board Independence

As a controlled company, under the NYSE Rules, we are exempt from the requirement to have a majority of independent directors on the Board. ~~The~~However, the Board has affirmatively determined that ~~five~~seven of our ~~eight~~ten directors are independent of VMware under the NYSE Rules. Specifically, each of Directors Anthony Bates, Marianne Brown, Michael Brown, Donald Carty, Kenneth Denman, Karen Dykstra and Paul Sagan are independent. The Board considered all facts and circumstances it deemed relevant in making such determinations of independence, including business relationships between VMware and companies on which our independent directors serve as board members. The Board affirmatively concluded that none of these relationships are of a material nature or are of a nature that would preclude such directors from being deemed independent under NYSE Rules.independence.

Ownership interests of our directors or officers in the common stock of Dell, or service as both a director of Dell and VMware, or as a director of VMware and an officer or employee of Dell could create, or appear to create, potential conflicts of interest when directors and officers are faced with decisions that could have different implications for us and Dell. Since VMware’s initial public offering (“IPO”), in order to address potential conflicts of interest between us and EMC with respect to corporate opportunities, our certificate of incorporation has contained provisions regulating and defining the conduct of our affairs as they may involve EMC and its officers and directors, and our powers, rights, duties and liabilities and those of our officers, directors and stockholders in connection with our relationship with EMC. Our certificate of incorporation also contains provisions limiting the liability of any of our directors and officers who are also directors or officers of EMC in the event they learn of a transaction that may be a corporate opportunity for both VMware and EMC, provided they comply with the policies set forth in our certificate of incorporation. These provisions are applicable to Mr. Dell, who serves as CEO of EMC. Transactions with Dell are also subject to review by our RPT Committee pursuant to our Related Persons Transactions Policy. From time to time, our Board may also establish ad hoc special committees comprised of independent directors who are disinterested with respect to Dell and its affiliates to review significant potential transactions involving Dell. Additionally, pursuant to resolutions adopted by our RPT Committee, we have renounced any expectancy or interest in being offered an opportunity to participate in corporate opportunities of which Mr. Dell becomes aware through his personal capacity, his capacity as Chairman and CEO of Dell, his capacity as the founder and controlling owner of MSD Capital or through any other entity in which MSD Capital or its affiliates has an interest, and of which Mr. Durban becomes aware through his personal capacity, his capacity as a member of the board of directors of Dell, his capacity as ~~Managing Partner and Managing Director~~Co-CEO of Silver Lake or through any other entity in which Silver Lake or its affiliates has an interest. Pursuant to resolutions adopted by the Board, we have also renounced any expectancy or interest in being offered an opportunity to participate in corporate opportunities of which Mr. Sagan becomes aware through his personal capacity or through his capacity as ~~Managing Director~~senior advisor and XIR at General Catalyst or through any other entity in which General Catalyst or its affiliates has an interest and in corporate opportunities of which Mr. Denman becomes aware through his personal capacity or through his capacity as venture partner at Sway Ventures or through any other entity in which Sway Ventures or its affiliates has an interest. For more information, see “Review and Approval of Transactions with Related Persons.”

Attendance at Board, Committee and Annual Stockholder Meetings

The Board expects that each director will prepare for, attend and participate in all Board and applicable committee meetings and that each director will ensure that other commitments do not materially interfere with his or her service on the Board. During the fiscal year ended ~~February 1, 2019~~January 29, 2021 (“~~FY19~~FY21”), the Board held ~~eight~~six meetings. Each incumbent director serving during ~~FY19~~FY21 attended at least 75% of the Board and applicable committee meetings held during the period in which he or she served. VMware’s Corporate Governance Guidelines provide that each director is expected to attend the Annual Meeting. All members of the then-current Board ~~with the exception of Mr. Durban,~~ attended our ~~2018~~2020 Annual Meeting.

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Committees of the Board

The Board has established four standing committees: the Audit Committee, the CCG Committee, the M&A Committee and the RPT Committee. Each committee operates pursuant to a written charter, as adopted by the Board, that is available on the Governance subsection of the Investor Relations page of our website at ~~http://~~ir.vmware.com. The current membership of each committee is listed below.



Audit Committee			Compensation and Corporate Governance Committee	Mergers and Acquisitions Committee	Related Persons Transactions Committee
Michael Brown (C)*			Anthony Bates*	Anthony Bates (C)*	~~Michael~~Marianne Brown*
Donald Carty*			Marianne Brown*	Kenneth Denman*	Michael Brown*
Karen Dykstra*			Michael Brown*	Egon Durban	Kenneth Denman*
Paul Sagan*			Paul Sagan (C)*	Rangarajan (Raghu) Raghuram	Karen Dykstra (C)*
Karen Dykstra*	~~Paul Sagan~~ ~~(C)~~*	~~Patrick Gelsinger~~
Paul Sagan*

____________________

* Independent director under the NYSE ~~Rules.~~Rules

Audit Committee

The Board has determined that our Audit Committee is comprised solely of independent directors within the meaning of the applicable SEC rules and regulations and the NYSE Rules. The Board has determined that all current Audit Committee members meet the additional, heightened independence criteria of Rule 10A-3 of the Exchange Act applicable to audit committee members. The Board has also determined that ~~each of Directors~~Michael Brown, Donald Carty, Karen Dykstra and Paul Sagan isare each an “audit committee financial expert” as defined by the SEC and that all Audit Committee members are financially literate under the current listing standards of the NYSE.

The Audit Committee held nine meetings in ~~FY19.~~FY21. This committee reviews with management and our auditors our financial statements, the accounting principles applied in their preparation, the scope of the audit, any comments made by our independent auditor on our financial statements and our accounting controls and procedures, the independence of our auditors, our internal controls, other matters as set forth in the Audit Committee charter ~~as adopted by the Board,~~ and such other matters as the committee deems appropriate.

In accordance with its charter, the Audit Committee is responsible for the appointment, compensation, retention and oversight of the work of our independent auditor for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for us and pre-approves such audit, review or attest engagements. The Audit Committee also pre-approves non-audit services to be performed by our independent auditor in accordance with the Audit Committee’s pre-approval policy. Pursuant to its charter, our Audit Committee recommends, establishes and monitors procedures designed to facilitate the receipt, retention and treatment of complaints relating to accounting, internal accounting controls or auditing matters and the receipt of confidential, anonymous submissions by employees of concerns regarding questionable accounting or auditing matters. The Audit Committee also oversees management of financial risk exposures, including the integrity of our accounting and financial reporting processes and controls. In addition, the Audit Committee appoints the head of the internal audit department and oversees the Company’s internal audit function, reviews the appointments of our Chief Ethics and Compliance Officer and our CISO, receives periodic reports on ethics and compliance and information security matters, and is notified of any significant ethics and compliance and cybersecurity matters.

During ~~FY19,~~FY21, senior members of our financial and legal management participated in each of the Audit Committee’s regularly scheduled meetings. During the course of the year, the Audit Committee had separate executive sessions with our CFO and members of his staff, our ~~Chief Legal Officer or~~ General Counsel, our Chief Ethics and Compliance Officer, our CISO, the head of our internal audit department and our independent auditor at which candid discussions regarding legal matters, cybersecurity matters, financial reporting, compliance, internal controls and accounting systems and processes took place. The Audit Committee discussed with VMware’s independent auditor the overall scope and plans for its audit.

The Audit Committee reviewed and discussed our ~~FY19~~FY21 financial statements with our management and our independent auditor. The ~~meeting~~meetings included a discussion of the quality and not just the acceptability of the accounting principles applied, the reasonableness of the significant accounting judgments and estimates, the use of non-GAAP financial measures as a measure of financial performance, and the clarity of disclosures in the financial statements.

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Additionally, the Audit Committee has primary oversight responsibility for matters relating to enterprise risk. As such, the charter for our Audit Committee provides for the committee to periodically review and discuss our practices and policies with respect to risk assessment and risk management with the enterprise risk management committee.

In performing all of these functions, the Audit Committee acts in an oversight capacity. The Audit Committee reviews our quarterly and annual reports on Form 10-Q and Form 10-K prior to filing with the ~~SEC.~~SEC and discusses with management the earnings press releases, as well as the disclosure of financial information and earnings guidance provided to investors. In its oversight role, the Audit Committee relies on the work and assurances of our management, which has the primary responsibility for establishing and maintaining adequate internal control over financial reporting and for preparing ~~the~~our financial statements. The Audit Committee also relies on the work and assurances of our independent auditor who is engaged to audit and report on our consolidated financial statements and the effectiveness of our internal control over financial reporting.

Compensation and Corporate Governance Committee

The Board has determined that our CCG Committee is comprised solely of independent directors within the meaning of the applicable SEC rules and regulations and the NYSE Rules, although we are not required to maintain the independent composition of this committee in light of our position as a controlled company. The CCG Committee held ~~nine~~eight meetings in ~~FY19.~~FY21. In accordance with its charter, the CCG Committee evaluates and sets compensation for our executive officers and monitors our general compensation programs. Subject to the terms of our compensation plans and the consent of the holder of our Class B Stock to the aggregate size of the annual equity award pool pursuant to the terms of our certificate of incorporation, the CCG Committee has discretion to determine the amount, form, structure and implementation of compensation payable to our executive officers, including, when appropriate, discretion to increase or decrease awards or to award compensation absent the attainment of performance goals and to award discretionary cash compensation outside of the parameters of our compensation plans. In exercising such discretion, the CCG Committee consults with our management. The CCG Committee approves transactions under our equity plans and has the authority to administer and interpret the provisions of our equity and other compensation plans. The CCG Committee is also responsible for overseeing and reporting to the Board on succession planning for the CEO and other senior management positions. Additionally, the CCG Committee reviews compensation of our non-employee directors and recommends changes for approval by the Board, and also oversees our non-employee director stock ownership guidelines and our executive stock ownership guidelines.

Our CCG Committee is also responsible for overseeing and advising the Board with respect to corporate governance matters, assisting the Board in identifying and recommending qualified director candidates, making recommendations to the Board with respect to Board committee assignments, and, if no Lead Director has been appointed, overseeing the Board evaluations.

The CCG Committee has engaged an independent consultant, Frederic W. Cook & Co. (“FW Cook”), to advise the Committee on an as-needed basis with respect to executive and non-employee director compensation matters. FW Cook reports directly to the CCG Committee and does not provide services to VMware management. For more information on the processes and procedures followed by the CCG Committee for the consideration and determination of executive compensation, see “Compensation Discussion and Analysis.”

Mergers and Acquisitions Committee

The M&A Committee, pursuant to its charter, reviews and assesses, with our management, potential acquisitions, divestitures and investments and, where appropriate, will make recommendations to the Board regarding potential target candidates. In connection with such review and assessment, our M&A Committee may approve acquisitions, divestitures and investments up to a specified applicable dollar limit and in accordance with any other relevant parameters as established by the Board. The M&A Committee also assesses risk to the Company in connection with proposed acquisitions, divestitures and investments.

Related Persons Transactions Committee

The RPT Committee, pursuant to its charter, is responsible for reviewing transactions by the Company involving related persons, including Dell and its affiliated entities, in accordance with the Company’s Related Persons Transactions Policy. For more information on related persons transactions, see “Transactions with Related Persons.”

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Compensation Committee Interlocks and Insider Participation

During ~~FY19,~~FY21, the CCG Committee was comprised of Directors Anthony Bates, Marianne Brown, Michael Brown and Paul Sagan. No executive officer of VMware during ~~FY19~~FY21 served, or currently serves, as a member of the board of directors or compensation committee of any entity that has one or more executive officers serving on the Board or the CCG Committee.

PROPOSAL 1

ELECTION OF DIRECTORS

We are asking our stockholders to elect ~~two~~four Class ~~III,~~II directors, of which three directors are Group I directors and one is a Group II director, each to serve for an additional three-year term. The current term of office for Class ~~III, Group I~~II directors expires at the Annual Meeting. The Board has nominated the following ~~two~~ persons, each an incumbent Class ~~III, Group I~~II director, for election as Class II directors at the Annual Meeting:

~~Donald Carty~~•Michael Brown—Class II, Group I director (elected by Class B common stockholders only)

~~Paul Sagan~~•Kenneth Denman—Class II, Group II director (elected by holders of Class A Stock and Class B Stock voting together as a single class)

•Karen Dykstra—Class II, Group I director (elected by Class B common stockholders only)

•Rangarajan (Raghu) Raghuram—Class II, Group I director (elected by Class B common stockholders only)

Class II, Group I director nominees Brown, Dykstra and Raghuram must be elected by a majority of the votes of the Class B Stock cast with respect to such nominee at the Annual Meeting.

Mr. Denman, the Class II, Group II nominee, must be elected by a majority of the aggregate of the votes of the Class A Stock and Class B Stock cast with respect to such nominee at the Annual Meeting, with each Class A and Class B share entitled to one vote per share in such election.

We expect each nominee for election as a director at the Annual Meeting to be able to accept such nomination. For more information about the nominees, see “Our Board of Directors and Nominees.” Each director elected at the ~~2019~~2021 Annual Meeting will serve until the ~~2022~~2024 Annual Meeting or special meeting in lieu thereof and until that director’s successor is elected and qualified.

~~Class III, Group I director nominees Carty and Sagan must be elected by a majority of the votes of the Class B Stock cast with respect to such nominee at the Annual Meeting.~~

The Board unanimously recommends that ~~the~~ holders of ~~our~~Class A Stock and Class B Stock vote “FOR” the election of the Class ~~III,~~II, Group II nominee. The Board unanimously recommends that holders of Class B Stock vote “FOR” the election of the Class II, Group I ~~director~~ nominees.

PROPOSAL 2

ADVISORY VOTE TO APPROVE NAMED EXECUTIVE OFFICER COMPENSATION

In accordance with Section 14A of the Exchange Act, we are asking our stockholders to vote, on a non-binding advisory basis, on the compensation of our named executive officers as disclosed in this proxy statement (in accordance with the compensation disclosure rules of the SEC). This proposal, commonly known as a “Say-on-Pay” proposal, gives our stockholders the opportunity to express their views on the compensation of our named executive officers listed in the “Summary Compensation Table” (each a “NEO”). See “Compensation of Executive Officers—Summary Compensation Table.”

The objectives of our executive compensation program are to:

•motivate our executives to achieve our strategic, operational and financial goals;

•reward superior performance;

•attract and retain exceptional executives; and

•reward behaviors that result in long-term increased stockholder value.

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To achieve these objectives, we have implemented and maintained compensation plans that tie a substantial portion of our executive compensation to the achievement of pre-determined performance goals and increases in total stockholder return. Stockholders are urged to read the “Compensation Discussion and Analysis” section of this proxy statement for greater detail about our executive compensation programs, including our compensation philosophy, policies and practices and information about the ~~FY19~~FY21 compensation of our NEOs.

We are asking our stockholders to indicate their support for the compensation of our NEOs as described in this proxy statement by voting in favor of the following resolution:

“RESOLVED: That the stockholders approve, on an advisory basis, the compensation of the Company’s named executive officers as disclosed in the Compensation Discussion and Analysis section, the Summary Compensation Table, and the other

related tables as set forth in the proxy statement in accordance with the compensation disclosure rules of the Securities and Exchange Commission relating to the Company’s ~~2019~~2021 Annual Meeting of Stockholders.”

Even though your vote is advisory, and therefore will not be binding on the Company, the CCG Committee and the Board value the opinions of our stockholders and will consider the outcome of the vote when determining future executive compensation. We have adopted a policy providing for annual advisory votes to approve the compensation of our NEOs. The next advisory vote to approve the compensation of our NEOs will be at the ~~2020~~2022 annual meeting of stockholders.

The Board unanimously recommends that you vote “FOR” approval of the compensation of the Company’s named executive officers.

PROPOSAL 3

APPROVAL OF AMENDMENT TO AMENDED AND RESTATED

2007 EQUITY AND INCENTIVE PLAN

~~The~~In April 2021, the Board, based on the recommendation of the CCG Committee, approved an amendment to the Amended and Restated 2007 Equity and Incentive Plan (“Incentive Plan”), subject to stockholder approval at the Annual Meeting that would increase the number of shares of Class A Stock issuable under the Incentive Plan by ~~13,000,000.~~15,000,000. All other provisions of the Incentive Plan will remain in full force and effect.

We are asking our stockholders to approve this amendment.

Purpose of the Incentive Plan

The purpose of the Incentive Plan is to attract, motivate and retain our employees, ~~consultants, advisors~~independent contractors and non-employee directors and to provide compensation opportunities to reward superior performance. We believe that equity is a key element of our compensation package and that equity awards encourage participant loyalty and align participant interests directly with those of our stockholders. The Incentive Plan has allowed us to provide our service providers with equity-based incentive awards and non-equity based compensation that are competitive with those of companies with which we compete for talent.

Purpose of the Increase in the Number of Shares Reserved Under the Incentive Plan

The Incentive Plan isand our ~~sole plan~~Amended and Restate 2007 Employee Stock Purchase Plan are our only plans for providing equity incentive ~~compensation to eligible employees, consultants and non-employee directors.~~compensation. The Incentive Plan is a vital component of our compensation programs, and increasing the number of shares of Class A Stock that may be issued under equity awards ensures that we have an adequate reserve of shares available for issuance in order to attract, motivate and retain personnel and to provide compensation opportunities to reward superior performance. If the amendment ~~and restatement~~ of the Incentive Plan is not approved and we are unable to grant equity compensation in the future, we may need to consider other compensation alternatives, such as increasing cash compensation.

The Board, based on the recommendation of the CCG Committee, is recommending that stockholders approve an additional ~~13,000,000~~15,000,000 shares of Class A Stock under the Incentive Plan. The members of our CCG Committee, which administers the Incentive Plan, possess significant experience in the review and oversight of equity compensation plans at global technology companies and at VMware. Based on that experience, the CCG Committee has exercised its business judgment in concluding that increasing the number of shares of Class A Stock reserved under the Incentive Plan is in the Company’s best interests. The Company is committed to effectively managing our equity compensation share reserve while minimizing stockholder dilution.

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Each year the CCG Committee and our management review our overall compensation strategy and determine allocations of cash and equity compensation in light of our pay-for-performance philosophy and an equity budget for the year. In determining the annual equity budget, the CCG Committee reviews, among other things, the annual “gross burn rate” for the past three years, the “shareholder value transfer percentage,” the “issued overhang” percentage, historical share utilization and expectations regarding our future headcount and hiring needs. Gross burn rate means the total number of shares subject to equity awards granted during the fiscal year divided by the number of shares outstanding. Shareholder value transfer percentage means the value of all outstanding equity awards and the shares remaining available for grant under the Incentive Plan divided by the Company’s market capitalization. Issued overhang means the total number of ~~all~~shares subject to outstanding equity awards divided by our total outstanding shares. As a general

matter, we strive to achieve a gross burn rate, shareholder value transfer percentage and issued overhang percentage that approximate the average rates for our peer group companies identified in “Compensation Discussion and Analysis” as well as for the software and services industry more generally, and ~~that~~we consider these measures ~~are within~~in the context of the limits recommended by independent shareholder advisory groups, such as Institutional Shareholder Services (“~~ISS~~”). The CCG Committee has exercised its business judgment in determining that the Company’s equity awards are reasonable and generally competitive based on, among other things, consideration of the foregoing measures with the benefit of the extensive experience that the CCG Committee has in understanding the benefits and limitations of such measurements, making compensation decisions and evaluating the Company’s performance, business objectives and strategic goals.

In reaching its decision regarding the appropriate number of shares of Class A Stock by which to increase the share reserve, the CCG Committee considered these same factors ~~and determined a number that it believes complies with ISS’s guidelines~~ while providing the Company with a sufficient share reserve to cover the awards we anticipate granting to eligible participants for approximately two years, although the actual number of shares utilized will depend on a variety of factors, including our headcount growth rate, employee turnover, the level of equity compensation offered by other companies with whom we are competing for talent, our stock price and the mix of Restricted Stock Units (“RSUs”), Performance Stock Units (“PSUs”) and stock options granted.

Key Data

As of ~~March 1, 2019,~~April 30, 2021, a total of ~~12,093,046~~18,124,244 shares of Class A Stock remained available for future awards under the Incentive Plan, the Company’s only active stock plan other than the Amended and Restated 2007 Employee Stock Purchase Plan. As of ~~March 1, 2019,~~April 30, 2021, approximately ~~25,000~~34,600 employees (including executive officers) were eligible to participate in the Incentive Plan. All ~~five~~seven outside directors are eligible to participate in the Incentive Plan. ~~Consultants~~Independent contractors that provide services to us are also eligible to receive equity awards under the Incentive Plan. As of ~~March 1, 2019,~~April 30, 2021, we had approximately ~~9,500 consultants~~8,600 independent contractors eligible to participate in the Incentive Plan. However, historically, only in very limited circumstances have ~~consultants~~independent contractors been granted equity awards under the Incentive Plan. The following table sets forth, as of ~~March 1, 2019,~~April 30, 2021, information regarding outstanding equity awards (including awards under the Incentive Plan and equity awards assumed by VMware in connection with acquisitions) and shares of Class A Stock available for future equity awards under the Incentive Plan (without giving effect to approval of the proposed amendment to the Incentive Plan):



Total shares of Class A Stock underlying outstanding stock options			~~1,887,052~~935,398
Weighted-average exercise price of outstanding stock options			$~~36.96~~57.05
Weighted-average remaining contractual life of outstanding stock options			~~5.43~~6.14 years
Total shares of Class A Stock underlying outstanding unvested restricted stock, RSUs and PSUs			~~19,195,942~~17,082,202
Total shares of Class A Stock currently available for grant			~~12,093,046~~18,124,244

The additional ~~13,000,000~~15,000,000 shares of our Class A Stock for which stockholder approval is sought represents approximately ~~11.72%~~13.45% of our ~~110,902,312~~111,487,658 outstanding shares of Class A Stock (measured as of ~~March 1, 2019)~~April 30, 2021).

The closing price of our Class A Stock on ~~March 1, 2019~~April 30, 2021 was ~~$178.20.~~$160.83.

In administering our equity compensation program, we take into consideration the number of shares we utilize. Each year, we measure our “burn rate,” which we define as the sum of the number of stock options and RSUs granted in each year, as well as the number of PSUs earned and released (i.e. vested) in each year, divided by the weighted-average basic common stock shares outstanding (“CSO”) for the applicable year. This metric provides insight into our stewardship of equity in order to attract and retain talent critical to achieving business results. The table below details our utilization in each of fiscal years ~~2016, 2018~~2019, 2020 and ~~2019.~~2021.

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Fiscal
Year
Granted
Time-Based
RSUs⁽¹⁾
Earned
Performance-Based
Restricted
Stock Units (PSUs)⁽¹⁾
Total Granted
Options and
RSUs; and
Earned PSUs⁽²⁾
Weighted-
Average Basic
CSO
Burn Rate
2019 5,812,190 311,624 6,123,814 407,766,000 1.50%
2018 6,859,133 130,486 6,989,619 406,738,000 1.72%
2016 12,361,813 214,278 12,576,091 420,520,000 2.99%


Fiscal Year	Granted Time-Based RSUs(1)	Earned Performance-Based Stock Units (PSUs)(1)	Total Granted Options and RSUs; and Earned PSUs(2)	Weighted Average Basic CSO	Burn Rate
2021	9,847,714	1,007,433	10,855,147	419,841,000	2.59%
2020	4,878,208	890,480	5,768,688	417,058,000	1.38%
2019	5,812,170	311,624	6,123,794	413,769,000	1.48%

____________________

⁽¹⁾Reflects stock options and RSUs granted in each year as well as PSUs earned and released in each year only from VMware’s Incentive Plan. Does not include shares added to the Incentive Plan pursuant to the assumption or substitution of equity awards of acquired entities in connection with the acquisitions of other companies.

⁽²⁾VMware did not grant stock options under the Incentive Plan during the fiscal years shown. All stock options indicated as having been granted in VMware’s annual reports on Form 10-K for such years were pursuant to the assumption or substitution of stock option awards of acquired entities in connection with the acquisitions of other companies.

Plan Summary

The following is a summary of the material terms and conditions of the Incentive Plan. This summary, however, does not purport to be a complete description of all provisions of the Incentive Plan and is qualified in its entirety by reference to the full text of the Incentive Plan. A copy of the Incentive Plan has been filed with the SEC with this proxy statement, and any stockholder who wishes to obtain a copy of the Incentive Plan may do so by written request to our Secretary at VMware’s principal executive offices in Palo Alto, California.

Awards under the Incentive Plan may be in the form of stock options (either incentive stock options or non-qualified stock options) or other stock-based awards, including awards of restricted stock, ~~restricted stock units~~RSUs and stock appreciation rights. The Incentive Plan also provides for the grant of cash-based awards.

Authorized ~~Shares~~Shares.. Subject to stockholder approval of the amendment to the Incentive Plan ~~145,167,881~~to increase the share reserve by 15,000,000 shares, 160,167,881 shares of our Class A Stock (not including ~~6,434,433~~12,814,861 shares of Class A Stock previously added to the Incentive Plan pursuant to the assumption or substitution of equity awards of acquired entities in connection with the acquisitions of other companies (“Acquired Awards”)) will have been reserved for the grant or settlement of awards under the Incentive Plan since the Incentive Plan’s inception, subject to adjustment in the event of an extraordinary dividend or other distribution, recapitalization, stock split, reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase or share exchange or other similar corporate transaction (“Recapitalization”). On April 14, 2021, VMware announced a special cash dividend conditioned upon the planned spin-off of VMware from Dell expected to occur in the fourth quarter of calendar year 2021 (“Spin-Off”). The special cash dividend will be deemed a Recapitalization under the Incentive Plan that will result in an adjustment of the shares available for grant. The share reserve was ~~automatically increased by 6,117,881 shares~~previously adjusted in connection with ~~payment of~~ a prior special cash dividend ~~of $26.81 on~~paid by VMware in December ~~28,~~ 2018. Any shares of Class A Stock subject to awards that are canceled, forfeited or otherwise terminated or satisfied without the issuance of shares will again be available for grants under the Incentive Plan. The number of shares of Class A Stock available for issuance under the Incentive Plan will also be increased by the number of shares subject to Acquired Awards. Shares subject to Acquired Awards that are canceled, forfeited or otherwise terminated or satisfied without the issuance of shares do not again become available for grants under the Incentive Plan.

~~Eligibility~~Eligibility.. Substantially all of our employees, non-employee directors and ~~consultants~~independent contractors are eligible to participate in the Incentive Plan. Accordingly, each member of the Board and each executive officer has an interest in this proposal.

Types of Awards Under the Incentive ~~Plan~~Plan.. The following principal types of awards are available under the Incentive Plan:

Stock ~~Options~~.Options. Stock options represent the right to purchase shares of our Class A Stock within a specified period of time at a specified price and may be subject to vesting conditions. The exercise price for a stock option may not be less than 100% of the fair market value of the Class A Stock on the date of grant. Stock options will have a maximum term of ten years from the date of grant. Stock options granted may include those intended to be “incentive stock options” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (“Code”). Stock options awarded under the Incentive Plan may vest as determined by the CCG Committee. The purchase price of stock as to which an option is exercised must be paid in full

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at the time of exercise. Payment may be made in cash, which may be paid by check or other instrument acceptable to the Company, or, with the consent of the CCG Committee, in shares of Class A Stock, or the CCG Committee may permit such payment of the purchase price by any other method it deems satisfactory in its discretion.

Restricted Stock and ~~Restricted Stock Units~~RSUs.. Restricted stock is a share of our Class A Stock that is subject to a risk of forfeiture or other restrictions that will lapse subject to the recipient’s continued employment or the attainment of performance goals or other events. RSUs represent the right to receive shares of our Class A Stock in the future, with the right to future delivery of the shares also subject to the recipient’s continued employment or the attainment of performance goals or other events. Vesting requirements of restricted stock and RSUs vary and are established by the CCG Committee.

Stock Appreciation ~~Rights~~Rights.. Stock appreciation rights entitle the holder upon exercise to receive shares of our Class A Stock having a value equal to the excess of (1) the value of the number of shares with respect to which the right is being exercised (which value is based on fair market value at the time of such exercise) over (2) the exercise or base price applicable to such shares. The exercise price for a stock appreciation right will be not less than 100% of the fair market value of our Class A Stock on the date of grant. Stock appreciation rights under the Incentive Plan may vest as determined by the CCG Committee.

Other Stock-Based or Cash-Based ~~Awards~~Awards.. The CCG Committee is authorized to grant awards in the form of other stock-based awards or other cash-based awards, as deemed to be consistent with the purposes of the Incentive Plan. The maximum value of the aggregate payment to any ~~Covered Employee (defined below)~~grantee with respect to cash-based awards under the Incentive Plan in respect of an annual performance period is $5,000,000 (with proportional adjustment for longer performance periods, as described below).

Performance Based ~~Awards~~Awards.. The CCG Committee may grant awards under the Incentive Plan subject to the satisfaction of performance goals. ~~Prior to its amendment pursuant to the 2017 Tax Cuts and Jobs Act (“Tax Act~~”), Section 162(m) of the Code generally disallowed a tax deduction to public corporations for compensation greater than $1 million paid for any fiscal year to the corporation’s CEO and certain other executive officers. However,The performance-based ~~compensation was not subject to the $1 million deduction limit if certain requirements were met. The~~awards may utilize performance goals were designed to enable performance-based awards granted under the Incentive Plan to qualify for the exception to the 162(m) deduction limit. Among other changes to Section 162(m), the Tax Act eliminated the exemption for performance-based compensation. Although the 162(m) exception to the deductibility limit is no longer available for future performance-based awards to the CEO and certain other executive officers, the CCG Committee may elect, in its discretion, to continue to grant performance-based awards under the Incentive Plan utilizing the performance goals listed in the Incentive Plan. The CCG Committee may also utilize other performance goals that it deemsdeemed appropriate to achieve the objectives of our executive and employee compensation programs. The criteria designated as performance goals under the Incentive Plan may consist of any one or any combination of the following areas of performance: an objective formula or standard determined by the CCG Committee with respect to each performance period utilizing one or more of the following factors and any objectively verifiable adjustment(s) ~~thereto permitted and pre-established by the CCG Committee:~~thereto: (1) (A) earnings including operating income, (B) earnings before or after (i) taxes, (ii) interest, (iii) depreciation, (iv) amortization, or (v) special items or book value per share (which may exclude nonrecurring items), or (C) growth in earnings before interest, tax, depreciation or amortization; (2) pre-tax income or after-tax income; (3) earnings per common share (basic or diluted); (4) operating profit; (5) revenue, revenue growth or rate of revenue growth; (6) return on assets (gross or net), return on investment, return on capital, return on invested capital or return on equity; (7) returns on sales or revenues; (8) operating expenses; (9) stock price appreciation; (10) cash flow, free cash flow, cash flow from operations, cash flow return on investment (discounted or otherwise), net cash provided by operations, or cash flow in excess of cost of capital; (11) implementation or completion of critical projects or processes; (12) economic value created; (13) cumulative earnings per share growth; (14) operating margin or profit margin; (15) common stock price or total stockholder return; (16) cost targets, reductions, savings, productivity or efficiencies; (17) strategic business criteria, consisting of one or more objectives based on meeting specified market penetration, geographic business expansion, customer satisfaction, employee satisfaction, human resources management, supervision of litigation, information technology, goals relating to acquisitions, divestitures, joint ventures or similar transactions, research or development collaborations or budget comparisons; (18) personal professional objectives, including any of the foregoing performance goals, the implementation of policies and plans, the negotiation of transactions and the development of long-term business goals; and (19) any combination of, subset or component of, or a specified increase in, any of the foregoing. Where applicable, the performance goals may be expressed in terms of attaining a specified level of the particular criteria or the attainment of a percentage increase or decrease in the particular criteria, and may be applied to one or more of the Company, a subsidiary or affiliate, or a division or strategic business unit of the Company, or may be applied to the performance of the Company relative to a market index, a group of other companies or a combination thereof, all as determined by the CCG Committee. The performance goals may include a threshold level of performance below which no payment will be made (or no vesting will occur), levels of performance at which specified payments will be made (or specified vesting will occur), and a maximum level of performance above which no additional payment will be made (or at which full vesting will occur). Objectively verifiable adjustment(s) to performance goals can include but are not limited to adjustment(s) to reflect: (1) the impact of specific corporate transactions; (2) accounting or tax law changes; (3) asset write-downs; (4) significant litigation or claim adjustment; (5) foreign exchange gains and losses; (6) disposal of a segment of a business; (7) discontinued operations; (8) refinancing or repurchase of bank loans or debt

securities; or (9) unbudgeted capital expenditures. Each of the foregoing performance goals will be subject to certification by the CCG ~~Committee; provided that, to the extent an award is intended to satisfy the performance-based compensation exception to the limits~~Committee.

Ta ble of Section 162(m) and then to the extent consistent with such exception, the CCG Committee has the authority to make equitable adjustments to the performance goals in recognition of unusual or non-recurring events affecting the Company, any subsidiary or affiliate or the financial statements of the Company or any subsidiary or affiliate, in response to changes in applicable laws or regulations, related to the disposal of a segment of a business or related to a change in generally accepted accounting principles (“Contents~~GAAP”).~~

Limitation on ~~Awards~~Awards.. The following limits apply to awards granted under the Incentive Plan:

Awards to Non-employee ~~Directors~~Directors.. The maximum value of awards granted during a single fiscal year under the Incentive Plan or under any other equity plan maintained by the Company, taken together with any cash fees paid during such fiscal year for services on the Board, will not exceed $1,000,000 in total value for any non-employee director, except that such limit will be $1,250,000 for any non-employee director serving as the Lead Director of the Board or Chairman. Such applicable limit will include the value of any stock awards that are received in lieu of all or a portion of any annual committee cash retainers or other similar cash-based payments.

Awards to Other ~~Participants~~Participants.~~. Awards covering no more than 3,611,400~~ The aggregate number of shares of our Class A Stock that may be ~~granted~~issued pursuant to ~~any plan participant~~awards granted under the Incentive Plan induring any fiscal year to any individual may not exceed 3,611,400 shares, subject to adjustment in the event of a Recapitalization. The maximum aggregate payment which any ~~Covered Employee (defined below) under Section 162(m)~~grantee may receive pursuant to a cash-based award ~~will be $5,000,000~~ in respect of any annual performance period will be $5,000,000, and for any performance period in excess of one year, such amount multiplied by a fraction, the numerator of which is the number of months in the performance period and the denominator of which is twelve. Currently, our CEO, CFO and our three other highest compensated officers are considered Covered Employees under Section 162(m). Additionally, any person who was considered a Covered Employee for any prior tax year beginning after December 31, 2016 is deemed to be a Covered Employee.

~~Administration~~Administration.. The CCG Committee administers the Incentive Plan. The CCG Committee has the ability to: select individuals to receive awards; select the types of awards to be granted; determine the terms and conditions of the awards, including the number of shares, the purchase price of the awards and restrictions and performance goals relating to any award; establish the time when the awards or restrictions become exercisable, vest or lapse; determine whether options will be incentive stock options or nonqualified stock options; determine whether and to what extent an award may be settled, canceled, forfeited, accelerated, exchanged or surrendered (including upon a “change in control” or similar transaction); and make all other determinations deemed necessary or advisable for the administration of the Incentive Plan.

~~Dividends~~Dividends.. Subject to compliance with the requirements of Section 409A of the Code, an award may provide the grantee with the right to receive dividend or dividend equivalent payments with respect to Class A Stock actually or notionally subject to the award, which payments will be credited to an account for the grantee, and may be settled in cash or Class A Stock, as determined by the CCG Committee. Any such dividend or dividend equivalents will be settled in cash or Class A Stock to the grantee only if, when and to the extent the related award vests. The value of dividend or dividend equivalent payments payable with respect to any award that does not vest will be forfeited.

Effects of Certain Corporate ~~Transactions~~Transactions. . The CCG Committee may grant awards that, upon the occurrence of certain events specified by the CCG Committee, become fully vested and exercisable. If the Company is the surviving corporation in any merger or consolidation (other than a merger or consolidation in which the Company survives but in which a majority of its outstanding shares are converted into securities of another corporation or are exchanged for other consideration), any award granted thereunder will pertain and apply to the securities that a holder of the number of shares of stock of the Company then subject to the award is entitled to receive. In the event of a (1) dissolution or liquidation of the Company, (2) sale or transfer of all or substantially all of the Company’s assets or (3) merger or consolidation in which the Company is not the surviving corporation or in which a majority of its outstanding shares are converted into securities of another corporation or are exchanged for other consideration, the Company must, contingent upon consummation of such transaction, either (1) arrange for any corporation succeeding to the business and assets of the Company to (A) assume each outstanding award, or (B) issue to the participants replacement awards (which, in the case of incentive stock options, satisfy, in the determination of the CCG Committee, the requirements of Section 424 of the Code), for such corporation’s stock that will preserve the value, liquidity and material terms and conditions of the outstanding awards; or (2) make the outstanding awards fully exercisable or cause all of the applicable restrictions to which outstanding stock awards are subject to lapse, in each case, on a basis that gives the holder of the award a reasonable opportunity, as determined by the CCG Committee, following the exercise of the award or the issuance of shares of Class A Stock, as the case may be, to participate as a stockholder in any such dissolution, liquidation, asset sale or transfer, merger or consolidation, and the award will terminate immediately following consummation of any such transaction.

In the event of a Recapitalization, the CCG Committee will make such equitable changes or adjustments as necessary or appropriate to any or all of (1) the number and kind of shares of stock or other property (including cash) that may thereafter be issued in connection with awards or the total number of awards issuable under the Incentive Plan, (2) the number and kind of shares of stock or other property issued or issuable in respect of outstanding awards, (3) the exercise price, grant price or purchase price relating to any award, (4) the performance goals and (5) the individual limitations applicable to awards; provided that, with respect to incentive stock options, any adjustment will be made in accordance with the provisions of Section 424(h) of the Code, and provided further that no such adjustment will cause any award which is or becomes subject to Section 409A to fail to comply with the requirements of such section. The CCG Committee may also make such modifications to the Incentive Plan and the awards granted thereunder as necessary in order to conform each with the laws and regulations of jurisdictions outside of the United States.

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Clawback Provision for Executive ~~Officers~~Officers.. All awards granted under the Incentive Plan will be subject to recoupment in accordance with any clawback policy that the Company determines to adopt pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law. In addition, the CCG Committee may impose additional clawback, recovery or recoupment provisions in an award agreement as the CCG Committee determines necessary or appropriate, including but not limited to a reacquisition right in respect of previously acquired shares of stock or other cash or property upon the occurrence of cause as determined by the CCG Committee.

In the event of a restatement of incorrect financial results, the CCG Committee will review all awards held by executive officers (within the meaning of Rule 3b-7 of the Exchange Act) of the Company that (1) were earned based on performance or were vesting during the course of the financial period subject to such restatement or (2) were granted during or within one year following such financial period. If any award would have been lower or would not have vested, been earned or been granted based on such restated financial results, the CCG Committee will, if it determines appropriate in its sole discretion and to the extent permitted by governing law, (1) cancel such award, in whole or in part, whether or not vested, earned or payable or (2) require the participant to repay to the Company an amount equal to all or any portion of the value of any gains from the grant, vesting or payment of the award that would not have been realized had the restatement not occurred.

If a participant’s employment or service is terminated for cause (as defined in the Incentive Plan), all unvested (and, to the extent applicable, unexercised) portions of awards will terminate and be forfeited immediately without consideration. In addition, the CCG Committee may in its sole discretion and to the extent permitted by applicable law cause the cancellation of all or a portion of any outstanding vested awards held by such participant or payable to such participant or require such participant to reimburse the Company for all or a portion of the gains from the exercise of, settlement or payment of any of the participant’s awards realized after the event giving rise to cause first occurred.

For more information regarding our incentive compensation recovery policies, see “Compensation Discussion and Analysis—Compensation Recovery Policies.”

~~Transferability~~Transferability.. Under the Incentive Plan, awards are generally non-transferable other than by will or by the laws of descent and distribution.

Amendment and ~~Termination~~Termination. . The Board can amend, alter or discontinue the Incentive Plan, but no amendment, alteration or discontinuation can be made that would impair the rights of a participant under any award granted without such participant’s consent or that would increase the total number of shares of Class A Stock reserved under the Incentive Plan (other than pursuant to the adjustment provisions summarized above). In addition, stockholder approval may be required with respect to certain amendments, due to stock exchange rules or requirements of applicable law. The Incentive Plan, unless sooner terminated by the Board, will remain in effect through June 5, 2027.

U.S. Federal Income Tax Consequences

Incentive Stock ~~Options~~Options. . In general, neither the grant nor the exercise of an incentive stock option granted under the Incentive Plan will result in taxable income to the option holder or a deduction to us. In general, if the option holder does not dispose of stock received upon exercise of an incentive stock option within two years after the date the option is granted and within one year after the date of exercise, any later sale of such stock will result in a capital gain or loss (and we are not entitled to a corresponding deduction).

If stock received upon the exercise of an incentive stock option is disposed of before the holding period requirements described above have been satisfied, the option holder will generally realize ordinary income at the time of disposition. The

amount of such ordinary income will generally be equal to the difference between the fair market value of the Class A Stock on the date of exercise and the exercise price (or, if less, the difference between the amount realized on disposition of the stock and the exercise price). In the case of a disqualifying disposition in which a loss (if sustained) would be recognized, then the amount of ordinary income will not exceed the excess of the amount realized on the sale over the adjusted basis of the stock (that is, in general, the price paid for the stock). We will generally be entitled to a deduction for Federal income tax purposes equal to the amount of ordinary income realized by the option holder, subject to any necessary withholding and reporting ~~requirements.~~ requirements and possible limitations imposed by Section 162(m) and Section 280G of the Code.

Certain option holders exercising incentive stock options may become subject to the alternative minimum tax, under which the difference between (1) the fair market value of stock purchased under incentive stock options, determined on the date of exercise, and (2) the exercise price, will be an item of tax preference in the year of exercise for purposes of the alternative minimum tax.

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Non-Qualified Stock ~~Options~~Options.. Options granted under the Incentive Plan which are not incentive stock options are “non-qualified options.” In general, no income results upon the grant of a non-qualified option. When an option holder exercises a non-qualified option, he or she will generally realize ordinary income subject to withholding. Generally, such income will be realized at the time of exercise and in an amount equal to the excess, measured at the time of exercise, of the then fair market value of our Class A Stock over the option price. We will generally be entitled to a deduction for Federal income tax purposes equal to the amount of ordinary income realized by the option holder, subject to certain withholding and reporting ~~requirements.~~requirements and possible limitations imposed by Section 162(m) and Section 280G of the Code.

Restricted ~~Stock~~Stock.. Generally, restricted stock is not taxable to a participant at the time of grant, but instead is included in ordinary income (at its then fair market value less any amount paid for the stock) when the restrictions lapse. A participant may elect to recognize income at the time of grant, in which case the fair market value of our Class A Stock at the time of grant is included in ordinary income and there is no further income recognition when the restrictions lapse. We are generally entitled to a tax deduction in an amount equal to the ordinary income recognized by the participant.

~~Restricted Stock Units~~RSUs. . Generally, the participant will not be subject to tax upon the grant of an award of RSUs but will recognize ordinary income in an amount equal to the fair market value of any shares received on the date of delivery of the underlying shares of Class A Stock. We will generally be entitled to a corresponding tax ~~deduction.~~deduction, subject to possible limitations imposed by Section 162(m) and Section 280G of the Code.

Stock Appreciation ~~Rights~~Rights.. Generally, the participant will not be subject to tax upon the grant of a stock appreciation right. However, upon the receipt of shares pursuant to the exercise of a stock appreciation right, the participant, generally, will recognize ordinary income in an amount equal to the fair market value of the shares received. The ordinary income recognized with respect to the receipt of shares upon exercise of stock appreciation rights will be subject to any necessary withholding and reporting requirements. Generally, we will not be entitled to a tax deduction upon the grant or termination of stock appreciation rights. However, we will, generally, be entitled to a deduction for Federal income tax purposes equal to the amount of ordinary income realized by the ~~participant.~~participant, subject to possible limitations imposed by Section 162(m) and Section 280G of the Code.

Section ~~162(m)~~409A.. Section 162(m) limits to $1 million the deduction a public company may claim in any year for compensation to certain executive officers. Grants awarded under the Incentive Plan to executive officers covered by Section 162(m) since the Tax Act took effect are subject to the $1 million deduction limitation.

~~Section 409A~~. Awards held by participants that are subject to, but fail to comply with, Section 409A are subject to a penalty tax of 20% in addition to ordinary income tax, as well as to interest charges and, potentially, state-level penalties. In addition, the failure to comply with Section 409A may result in an acceleration of the timing of income inclusion in respect of awards for income tax purposes. Awards granted under the Incentive Plan are intended to be exempt from or comply with the rules of Section 409A and will be administered accordingly. The CCG Committee intends to administer any award resulting in a deferral of compensation subject to Section 409A consistent with the requirements of Section 409A to the maximum extent possible, as determined by the CCG Committee.

This summary is not a complete description of the U.S. Federal income tax aspects of the Incentive Plan. Moreover, this summary relates only to Federal income taxes; there may also be Federal estate and gift tax consequences associated with the Incentive Plan, as well as foreign, state and local tax consequences.

~~New~~Grants Under the Incentive Plan ~~Benefits~~

The future benefits or amounts that would be received under this amendment to the Incentive Plan are discretionary and are therefore not determinable at this time. Similarly, the benefits or amounts which would have been received by or allocated to executive officers and our other employees for the last completed fiscal year if this amendment to the Incentive Plan had been in effect cannot be determined. For more information about awards granted in ~~FY19~~FY21 to the NEOs, see “Compensation of Executive Officers—Grants of Plan-Based Awards.” For more information about awards granted in ~~FY19~~FY21 to our outside directors, see “Director Compensation.”

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This table below reflects all stock options granted under the Incentive Plan from its inception through May 20, 2021 to the individuals and groups listed in the table.


Name and Title			Number of Shares Underlying Options Granted
Patrick Gelsinger, CEO(1)			180,376
Zane Rowe, EVP and CFO			—
Amy Fliegelman Olli, EVP, General Counsel and Secretary			—
Sanjay Poonen, COO, Customer Operations(2)			191,411
Rangaragan (Raghu) Raghuram, COO, Products and Cloud Services			343,100
All current executive officers, as a group			363,100
All current directors who are not current executive officers as a group			58,000
Each nominee for election as a director			401,100
Each associate of any such directors, executive officers or nominees			—
Each other person who received or is to receive 5 percent of such options or awards			—
All employees, including officers who are not current executive officers, as a group			74,508,640

____________________

(1) Mr. Gelsinger resigned from his position as CEO effective February 12, 2021.

(2) Mr. Poonen resigned from his position as COO, Customer Operations effective May 11, 2021.

The Board unanimously recommends that you vote “FOR” the approval of the amendment to the Amended and Restated 2007 Equity and Incentive Plan.

PROPOSAL 4

APPROVAL OF AN AMENDMENT TO ~~THE~~ AMENDED AND RESTATED

2007 EMPLOYEE STOCK PURCHASE PLAN

In April ~~2019,~~2021, the Board, based on the recommendation of the CCG Committee, approved an amendment to the Amended and Restated 2007 Employee Stock Purchase Plan (“Purchase Plan”), subject to stockholder approval at the Annual Meeting, to increasethe number of shares of Class A Stock authorized for issuance under the Purchase Plan by ~~9,000,000.~~5,000,000. All other provisions of the Purchase Plan will remain in full force and effect.

We are asking our stockholders to approve the amendment to the Purchase Plan.

Purpose and Background of the Purchase Plan

We adopted the Purchase Plan to offer employees of VMware and eligible subsidiaries the opportunity to purchase shares of Class A Stock at a discounted price as an incentive for continued employment. The Purchase Plan also provides eligible employees with the opportunity to become VMware stockholders and participate in our success, which aligns the interests of participating employees with those of stockholders. As of ~~March 1, 2019,~~April 30, 2021, there were ~~6,091,377~~11,227,008 shares of Class A Stock available for future purchase under the Purchase Plan. Additional shares of Class A Stock are needed for use in the Purchase Plan so that it can continue to be used as a benefit to attract and retain employees. In reaching its decision regarding the appropriate number of shares of Class A Stock by which to increase the Purchase Plan share reserve, the CCG Committee considered a number of factors, including historical purchases under the Purchase Plan, the percentage of the Company’s outstanding shares represented by the share reserve, forecasts of expected share utilization and the expected length of time before the share reserve is depleted. Our forecast indicates that the addition of ~~9,000,000~~5,000,000 shares of Class A Stock will allow continued employee participation for at least two years, although the actual number of shares utilized will depend on a variety of factors, including our headcount growth rate, employee participation levels and our stock price. The proceeds received by VMware from the sale of Class A Stock under the Purchase Plan are used for the general corporate purposes of VMware.

Summary of the Purchase Plan

The following is a summary of the material terms and conditions of the Purchase Plan, as amended. This summary, however, does not purport to be a complete description of all provisions of the Purchase Plan and is qualified in its entirety by reference to the full text of the Purchase Plan. A copy of the Purchase Plan has been filed with the SEC with this proxy

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statement, and any stockholder who wishes to obtain a copy of the Purchase Plan may do so by written request to our Secretary at VMware’s principal executive offices in Palo Alto, California.

The Purchase Plan was adopted by the Board on June 5, 2007 and was first approved by VMware’s stockholders on August 9, 2007. Up to ~~23,300,000~~32,300,000 shares of Class A Stock are currently authorized for issuance under the Purchase Plan. If the proposed amendment is approved by the stockholders at the Annual Meeting, an additional ~~9,000,000~~5,000,000 shares of Class A Stock will be available for issuance under the Purchase Plan, bringing the total number of shares of Class A Stock that have been authorized for issuance under the Purchase Plan since its inception to ~~32,300,000~~37,300,000 shares.

As of ~~March 1, 2019, 6,091,377~~April 30, 2021, 11,227,008 shares of Class A Stock were available for future purchases under the Purchase Plan. As of ~~March 1, 2019,~~April 30, 2021, approximately ~~24,000~~33,700 employees were eligible to participate in the Purchase Plan, and approximately ~~17,500~~22,500 employees were participating. The closing price of the Class A Stock on the NYSE on ~~March 1, 2019~~April 30, 2021 was ~~$178.20.~~$160.83.

~~Eligibility~~Eligibility.. Currently, any individual who has completed ~~two~~three or more months of continuous service at VMware (or any eligible and participating subsidiary), or any lesser number of months as established by the CCG Committee, and whose customary employment is more than 20 hours a week and more than fivemonths in any calendar year is eligible to participate in the Purchase Plan, subject to the limitations described below under “—Special Limitations.” Individuals employed outside the United States are subject to similar eligibility restrictions, unless prohibited by the laws of the jurisdiction in which they are employed. Employees participate in the Purchase Plan by electing

payroll deductions that accumulate to purchase shares of Class A Stock at a discount. Non-employee directors are not eligible to participate in the Purchase Plan.

Employees (including employee directors and executive officers) are eligible to participate in the Purchase Plan. Accordingly, each employee member of the Board, each executive officer and each person who previously served as an executive officer during ~~FY19~~FY21 and remains employed by VMware has an interest in this proposal.

Option Periods and Purchase ~~Periods~~Periods.. Shares of Class A Stock are offered under the Purchase Plan through a series of successive option periods established by the Board, not to exceed 27 months. Currently, each option period commencing under the Purchase Plan (each, an “Option Period”) is approximately 12 months in duration and is divided into two consecutive six-month periods at the end of which purchases are made (each, a “Purchase Period”). Purchase Periods currently begin on March 1 and September 1 of each year and end on the last day of February and August of each year, subject to adjustment by the CCG Committee.

Purchase Price and Amount of Stock ~~Purchased~~Purchased.. When a participant enrolls in the Purchase Plan, the participant receives an option to purchase shares of Class A Stock on the last day of each upcoming Purchase Period at the lower of 85% of the fair market value of the shares on the first trading day of the Option Period or the last trading day of the Purchase Period, whichever price is lower, provided, however, that each Option Period will expire early (on the first day of the second Purchase Period within the Option Period) if the fair market value of the Class A Stock on the first day of the second Purchase Period is lower than the fair market value of the Class A Stock on the first day of the first Purchase Period of the Option Period, and all participants in the expired Option Period will automatically be granted an option in a new Option Period commencing on the same day that the second Purchase Period was scheduled to commence. The number of shares of Class A Stock a participant will be able to purchase will generally be equal to the payroll deductions during the Purchase Period, divided by the purchase price per share, subject to the limitations described below in “—Special Limitations.”

If the number of shares of Class A Stock available in any Option Period under the Purchase Plan is otherwise insufficient to fully exercise the options based on participants’ accumulated payroll deductions, the number of shares of Class A Stock each participant is entitled to purchase will be proportionately reduced, and the remaining cash balance in each participant’s contribution account will be returned to such participant.

Payroll Deductions and ~~Withdrawal~~Withdrawal.. Options are exercisable at the end of each Purchase Period through accumulations of payroll deductions. The amount of payroll deduction is determined by each eligible employee. Eligible employees can select payroll deduction rates in 1% increments from 2% to 15% of their compensation (subject to a maximum of $7,500 in any six-month Purchase Period, pro-rated for longer or shorter periods) each Purchase Period. No interest accrues on payroll deductions. After an eligible employee enrolls in the Purchase Plan, the employee is automatically enrolled in subsequent Option Periods unless the employee actively withdraws. A participant may withdraw from any Option Period up to 31 days, or such other number ofdays as the CCG Committee determines, before the end of the applicable Purchase Period, and upon such cancellation, all accumulated payroll deductions in the participant’s contribution account will be returned. For purposes of the Purchase Plan, compensation generally means all cash compensation paid to the participant by the Company unless otherwise specified by the Board, which generally includes base salary, bonuses, commissions and overtime pay.

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If a participant’s employment is terminated for any reason prior to the end of a Purchase Period, no stock will be purchased, and all accumulated payroll deductions will be returned to the participant (or to the participant’s legal representative in the event of the participant’s death). Additionally, nothing in the Purchase Plan grants eligible employees the right to be retained in the services of VMware.

If a participant holds any option under the Purchase Plan at the time of his or her death, his or her legal representative may, pursuant to a written request delivered on or before the date such option is exercisable, elect either (i) to cancel any such option and receive in cash the balance in the participant’s contribution account, or (ii) to have the balance in the withholding account applied as of the last day of the Purchase Period to the exercise of such option, and have the balance, if any, in excess of the total purchase price of the whole shares of Class A Stock returned in cash.

Special ~~Limitations~~Limitations.. The Purchase Plan imposes certain limitations upon a participant’s right to acquire ~~VMware’s~~ Class A Stock, including the following:

A participant is ineligible to receive an option pursuant to the Purchase Plan if, immediately after the grant of such option, the participant would be deemed under section 423 or 424 of the Code to own 5% or more of the total combined voting power or value of all classes of stock of the Company or any of its affiliates;

~~A participant cannot be granted options to purchase more than $25,000 worth of Class A Stock (valued at the time each option is granted) in any calendar year;~~

~~A participant cannot be granted options to purchase more than 750 shares of Class A Stock under the Purchase Plan in any Purchase Period, pro-rated for longer or shorter periods; and~~



•			A participant is ineligible to receive an option pursuant to the Purchase Plan if, immediately after the grant of such option, the participant would be deemed under section 423 or 424 of the Code to own 5% or more of the total combined voting power or value of all classes of stock of the Company or any of its affiliates;

•			A participant cannot be granted options to purchase more than $25,000 worth of Class A Stock (valued at the time each option is granted) in any calendar year;

•			A participant cannot be granted options to purchase more than 750 shares of Class A Stock under the Purchase Plan in any Purchase Period, pro-rated for longer or shorter periods and subject to adjustment in connection with certain transactions and other events, as discussed in the “Change in Capitalization” section below; and

•			A participant’s accumulated payroll deductions cannot exceed $7,500 in any six-month Purchase Period, pro-rated for longer or shorter periods, or $15,000 per a calendar year, less any rollover amounts.

Special Provisions Applicable to International ~~Employees~~Employees.. The Purchase Plan is generally intended to provide eligible employees of VMware’s eligible foreign subsidiaries with the opportunity to participate in the Purchase Plan in a manner that is intended to qualify under Code Section 423. However, the Purchase Plan also authorizes the establishment of alternative terms and conditions to facilitate participation in the Purchase Plan by eligible employees residing outside the United States in a manner that does not comply with Code Section 423 if necessary or desirable to achieve tax, securities law or other objectives or as necessary to comply with local laws, regulations or rules.

~~Transferability~~Transferability.. Awards granted under the Purchase Plan are not transferable except by will or the laws of descent and distribution.

Changes in ~~Capitalization~~Capitalization.. In the event of any change to our outstanding Class A Stock, such as a recapitalization, stock split, merger in which we are the surviving corporation or similar event, the aggregate number of shares of Class A Stock available under the Purchase Plan and other relevant provisions of the Purchase Plan will be appropriately adjusted. If we sell substantially all of our assets or merge with another corporation and are not the surviving corporation, the Board may designate a date for the open Option Periods to terminate and allow each participant to purchase shares of Class A Stock with accumulated payroll deductions or, if there is a surviving corporation, the Board may arrange for equivalent option to be substituted by the successor corporation. Otherwise, prior to the effective date of the merger or sale, the participant’s accumulated payroll deductions will be returned and all outstanding options will terminate.

Administration, Amendment and Termination. The Board or a committee of the Board (currently the CCG Committee) administers the Purchase Plan, makes determinations regarding all questions arising thereunder, and adopts, administers and interprets such rules and regulations relating to the Purchase Plan as it deems necessary or advisable. The Board may generally amend or terminate the Purchase Plan at any time. However, the Board must obtain stockholder approval for any amendment to the Purchase Plan that increases the number of shares of Class A Stock issuable under the Purchase Plan, reduces the option price of outstanding options or the price at which options can be granted, or modifies the requirements for eligibility to participate in the Purchase Plan.

U.S. Federal Income Tax ~~Information~~Information.. The following information is a general summary of some of the current federal income tax consequences of the Purchase Plan to U.S. based participants and to VMware. Tax laws may change, and actualtax consequences will depend on a participant’s individual circumstances as well as foreign, state and local tax laws. VMware encourages all participants to seek tax advice when they participate in the Purchase Plan. Participants in the Purchase Plan should consult their own professional tax advisors concerning tax aspects of rights under the Purchase Plan. Nothing in this Proxy Statement is written or intended to be used, and cannot be used, for the purposes of avoiding taxpayer penalties. The discussion below concerning tax deductions that may become available to VMware under U.S. federal tax law is not intended to

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imply that VMware will necessarily obtain a tax benefit or asset from those deductions. Taxation of equity-based payments in other countries is complex, does not generally correspond to U.S. federal tax laws, and is not covered by the summary below.

Tax Treatment of U.S. Participants. The Purchase Plan is intended to qualify as an “employee stock purchase plan” under Section 423 of the Code.

~~Tax Treatment of U.S. Participants. Participants~~ Under a plan which so qualifies, participants will not recognize income when they enroll in the Purchase Plan or when they purchase shares of Class A Stock. All tax consequences are deferred until the participant disposes of the shares of Class A Stock. If the participant holds the shares for one year or more after the purchase date and two years or more after the offering date, or if the participant dies while owning the shares (a “qualifying disposition”), the participant will generally recognize ordinary income when disposing of the shares equal to the difference between the purchase price and the fair market value of the shares on the date of disposition, or 15% of the fair market value of the shares on the offering date, whichever is less. Any additional gain will be taxed as long-term capital gain. If the shares of Class A Stock are sold for less than the purchase price, there is no ordinary income, but the participant will have a long-term capital loss for the difference between the purchase price and thesale price. If a participant disposes of the shares less than one year after the purchase date or less than two years after the offering date, the participant will generally have ordinary income in the year of such sale or disposition in an amount equal to the difference between the purchase price and the fair market value on the purchase date. The difference between the sale price and the fair market value on the purchase date will be a capital gain or loss.

Tax Treatment of VMware. When a participant recognizes ordinary income by disposing of shares before the one-year or two-year holding period ends, we will generally be entitled to a tax deduction in the amount of the ordinary income. If such holding period is met, we will not receive a deduction.

~~New~~Prior Purchases Under the Purchase Plan ~~Benefits~~

Participation in the Purchase Plan is voluntary and each eligible employee will make his or her own decision whether and to what extent to participate in the Purchase Plan. It is therefore not possible to determine the benefits or amounts that will be received in the future by individual employees or groups of employees under the Purchase Plan.

The following table sets forth the purchases made under the Purchase Plan by the individuals and groups listed in the table.


Name and Title			Number of Shares Purchased
Patrick Gelsinger, CEO(1)			1,690
Zane Rowe, EVP and CFO			—
Amy Fliegelman Olli, EVP, General Counsel and Secretary			338
Sanjay Poonen, COO, Customer Operations(2)			1,448
Rangaragan (Raghu) Raghuram, COO, Products and Cloud Services			3,695
All current executive officers, as a group			6,510
All current directors who are not current executive officers as a group			—
Each nominee for election as a director			3,695
Each associate of any such directors, executive officers or nominees			—
Each other person who received or is to receive 5 percent of such options or awards			—
All employees, including officers who are not current executive officers, as a group			21,061,896

____________________

(1) Mr. Gelsinger resigned from his position as CEO of VMware effective February 12, 2021.

(2) Mr. Poonen resigned from his position as COO, Customer Operations effective May 11, 2021.

The Board unanimously recommends that you vote “FOR” the approval of the amendment to the Amended and Restated 2007 Employee Stock Purchase Plan.

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PROPOSAL 5

RATIFICATION OF SELECTION OF INDEPENDENT AUDITOR

We are asking our stockholders to ratify the selection by the Audit Committee of PwC as our independent auditor for the fiscal year ending January ~~31, 2020.~~28, 2022.

PwC, an independent registered public accounting firm, has served as our independent auditor since 2007. We expect that representatives of PwC will be present at the Annual Meeting and will be given the opportunity to make a statement if they desire to do so and to respond to appropriate questions. PwC is also the independent auditor of Dell, our ultimate parent and controlling stockholder. We are required by the Master Transaction Agreement between VMware and Dell to use our reasonable best efforts to use the same independent registered public accountant selected by Dell. For further information, see “Transactions with Related Persons.”

Although ~~ratification~~approval by the stockholders is not required by law, the Board has determined that it is desirable to request ~~approval~~ratification of ~~this~~its selection by the stockholders as a matter of good corporate governance. In the event the stockholders fail to ratify the appointment of PwC, the Audit Committee will consider this factor when making any determinations regarding PwC. Even though your vote is advisory, and therefore will not be binding on the Company, the Audit Committee and the Board value the opinions of our stockholders.

The Board unanimously recommends that you vote “FOR” the ratification of the selection of PwC as our independent auditor for the fiscal year ending January ~~31, 2020.~~28, 2022.

Pre-Approval of Audit and Non-Audit Services

During ~~FY19,~~FY21, the Audit Committee approved all audit, review and attest services performed by PwC. In accordance with the Audit Committee’s pre-approval policy, the Audit Committee pre-approves permissible non-audit services and audit, review or attest engagements. The Audit Committee has delegated to its Chair the authority to pre-approve any specific non-audit service that was not previously pre-approved by the Audit Committee. Any decisions of the Chair to pre-approve non-audit services are then presented to the Audit Committee at its next scheduled meeting. During ~~FY19,~~FY21, the Audit Committee pre-approved all non-audit services in accordance with this policy.

For the fiscal years ended ~~February 1, 2019~~January 29, 2021 and ~~February 2, 2018,~~January 31, 2020, fees for services provided by PwC were as follows:

Fiscal Year
Audit Fees⁽¹⁾ ($)
Audit Related Fees⁽²⁾ ($)
Tax Fees⁽³⁾ ($)
All Other Fees⁽⁴⁾ ($)
    2019⁽⁵⁾
8,029,615 1,509,846 2,358,917 63,728
    2018⁽⁶⁾
9,572,910 1,311,453 2,429,477 62,132


Fiscal Year	Audit Fees(1) ($)	Audit Related Fees(2) ($)	Tax Fees(3) ($)	All Other Fees(4) ($)
2021(5)	10,632,172	2,160,525	2,685,987	74,300
2020(6)	10,420,247	1,381,158	3,058,120	6,300

____________________

⁽¹⁾ Includes fees in connection with the audit of our financial statements and internal control over financial reporting, review of interim financial statements included in our quarterly reports on Form 10-Q and other professional services provided in connection with statutory and regulatory filings or engagements.

⁽²⁾ Includes fees in connection with other technical, financial reporting and compliance services.

⁽³⁾ Includes fees in connection with tax compliance and tax consulting services.

⁽⁴⁾ Includes fees principally in connection with sustainability reporting services and for subscriptions to PwC’s web-based research program, training courses and conferences.

⁽⁵⁾ Includes current estimates of fees for unbilled services.

⁽⁶⁾ VMware revised its fiscal calendar effective January 1, 2017. VMware’s first fiscal year under its revised fiscal calendar began on February 4, 2017 and ended February 2, 2018. The period from January 1, 2017 through February 3, 2017 was recorded as a transition period (“~~Transition Period” or “Transition”). FY18 fees include fees relating to the Transition Period.~~Reflects actual amounts invoiced for FY20 services.

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EQUITY COMPENSATION PLAN INFORMATION

The following table sets forth certain information regarding our equity compensation plans, including the Incentive Plan and Purchase Plan, as of ~~February 1, 2019.~~January 29, 2021. Only shares of Class A Stock may be issued under these plans.


Plan Category	Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a)		Weighted-Average Exercise Price Per Share of Outstanding Options, Warrants and Rights (b)			Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c)		Plan Category	Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a)	Weighted-Average Exercise Price Per Share of Outstanding Options, Warrants and Rights (b)	Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c)
Equity compensation plans approved by security holders	21,700,927	⁽¹⁾⁽²⁾	$36.50		⁽³⁾	18,627,325	⁽⁴⁾	Equity compensation plans approved by security holders	20,302,177(1)(2)	$58.68(3)	30,243,358(4)
Equity compensation plans not approved by security holders	—		—			—		Equity compensation plans not approved by security holders	—
Total:	21,700,927			$36.50		18,627,325		Total:	20,302,177	$58.68	30,243,358

~~”). The FY18 Sales PSU Plan is based on sales performance over two-and-a-half years, commencing with the second half~~Ta ble of ~~FY18 and running through the end of FY20. The FY18 Sales PSU Plan does not have separate annual performance tranches and is described further in “—Performance Stock Units—FY18 Sales PSU Plan” below.~~Contents

NEOs

Our NEOs for ~~FY19~~FY21 set forth in this proxy statement are:



Patrick Gelsinger			CEO(1)
Zane Rowe			CFO and ~~Executive Vice President~~EVP
~~Maurizio Carli~~Amy Fliegelman Olli			~~Executive Vice President, Worldwide Sales~~EVP, General Counsel and ~~Services~~Secretary
Sanjay Poonen			COO, Customer Operations
Rangarajan (Raghu) Raghuram			COO, Products and Cloud Services

____________________

(1)Mr. Gelsinger resigned his position as CEO effective February 12, 2021, from which time Mr. Rowe began serving as interim CEO (in addition to his role as CFO and EVP) until Mr. Raghuram was named CEO effective June 1, 2021.

Executive Compensation Governance

What We Do

What We Do Not Do

~~94%~~95% of the CEO’s target direct compensation iswas in the form of incentive-based compensation, with ~~84%~~86% tied to stock price performance in FY21

No guaranteed bonuses

At least half of the NEO target cash compensation opportunity is in the form of cash incentive bonuses that are funded on the basis of quantitative financial results

No excessive perquisites or tax gross-ups

~~Performance stock units (“~~PSUs”) constitute at least 50% of total target value of long-term incentive compensation ~~equity mix~~ for the CEO and CFO. In ~~FY19,~~FY21, PSUs constituted ~~50%~~67% of ~~total~~the target ~~value of long-term incentive compensation equity~~ mix for ~~all NEOs~~

our CEO, CFO and COOs

No employment agreements with executives other than customary ~~expatriot~~ expatriate
and localization arrangements

PSU ~~Plans~~plans typically include a three-year or longer performance period

No single-trigger change-in-control provisions

Below-target performance in incentive plans results in disproportionately lower payouts

No hedging transactions allowed

~~Stock~~Maintain stock ownership guidelines for our C-level NEOs in order to further promote the alignment of executive officer interests with those of our stockholders

Independent compensation consultant is engaged by our CCG Committee to advise on executive compensation

Severance plan establishes consistent framework for benefits in case of separation from service of NEOs

Clawback provisions enable recovery of performance bonuses and gains on equity awards

Advisory Vote on NEO Compensation

We conducted our annual non-binding, advisory Say-on-Pay vote at our ~~2018~~2020 Annual Meeting held on July ~~19, 2018.~~15, 2020. Our stockholders demonstrated strong support for our executive compensation program, with over 99% of the total votes cast in support of our executive compensation program. In light of this strong support of our executive compensation practices and plans, we have maintained our existing compensation philosophy, which is focused on delivering compensation that rewards performance and helps to achieve the objectives of our executive compensation program described above, including attracting and retaining exceptional executives.

Section 2: CEO ~~Pay-for-Performance~~Pay for Performance Alignment

CEO ~~Pay-for-Performance~~Pay for Performance Alignment—“Granted” vs. “Realizable” Pay

The CCG Committee takes seriously its responsibility to maintain appropriate ~~pay-for-performance~~pay for performance alignment with emphasis on long-term ~~shareholder~~stockholder value. Our compensation program is designed to base CEO pay on the Company’s operational and financial performance while maintaining relative alignment between the CEO’s realizable pay and stockholder returns. During the period ~~from the end of FY15~~beginning FY19 through ~~FY19,~~FY21, our stock price increased in value by ~~213%~~34%, when ~~taking into account~~normalized for the ~~value~~

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stock price adjustment of $26.81 per share (indicated by the dotted line in the chart below) triggered by our special cash dividend paid in FY19, while the current realizable value of the compensation awarded to our CEO over the same period ~~increased~~decreased by ~~148%~~4% from its value when granted primarily due to ~~year-over-year stock price increases during~~ the ~~period from FY16 through FY19 (as measured on~~below-threshold achievement resulting in no realizable value attributable to the ~~last day~~FY20 TSR PSU Plan. Note that because Mr. Gelsinger resigned his position as CEO effective February 12, 2021, he did not receive a payout under the FY21 Executive Bonus Plan or under the FY21 tranches of ~~each fiscal year),~~the Operating PSU Plans, and ~~above-target performance achievement~~all unvested equity awards were terminated. However for purposes of evaluating FY21 CEO realizable pay, those amounts are included in the ~~FY16, FY18 and FY19 executive bonus plans and the FY16, FY18 and FY19 PSU performance periods~~realizable pay calculations in ~~the PSU plans.~~this section.

Summary of Relationship Between CEO Pay and Company Stock Price⁽¹⁾

____________________

Note: Stock prices reflect last trading day in applicable fiscal year.

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Value of Granted Pay⁽²⁾ vs. Value of Realizable Pay ~~(FY16-FY19)~~(FY19-FY21)⁽³⁾⁽⁴⁾		Value of CEO Realizable Pay from ~~FY16~~FY19 through ~~FY19 increased 148%~~FY21 decreased 4% from value when granted primarily due to ~~stock price increase~~the below-threshold achievement resulting in ~~FY16 through FY19 and above-target performance on~~no realizable value attributable to the ~~FY16, FY18 and FY19 performance periods in the~~FY20 TSR PSU ~~plans.~~Plan. At the same time, the Company’s TSR has ~~been 213%~~increased 34% from the ~~end~~start of ~~FY15~~FY19 through ~~FY19.~~FY21.
Granted Pay ($000)	$~~48,645~~83,717
Realizable Pay ($000)	$~~120,653~~80,423
Delta in Pay - Realizable vs. Granted	~~148%~~(4)%

Three-Year Stock Price (Through ~~FY19-end)~~FY21-end)
~~December 31, 2015~~February 2, 2018 Closing Price of ~~VMware~~ Class A Stock	$~~56.57~~122.72
~~February 1, 2019~~January 29, 2021 Closing Price of ~~VMware~~ Class A Stock	$~~150.51~~137.85
Amount of Special Cash Dividend in December 2018	$26.81
Delta in Stock Price	~~213%~~34%

____________________

⁽¹⁾ Value of “Granted Pay” reflects compensation awarded and granted to our CEO during ~~FY16, FY18~~FY19, FY20 and ~~FY19.~~FY21.

⁽²⁾ The value of Granted Pay is calculated as the sum of Salary, Bonus and Stock Awards reported in the “Summary Compensation Table” of this proxy statement for each applicable year, ~~(excluding PSU awards that were awarded prior to FY16),~~ as well as the target opportunity for Non-Equity Incentive Plan Compensation reported for each year in the “Grants of Plan-Based Awards” table of the applicable year’s proxy statement. No stock options were granted during the period.

⁽³⁾ The value of “Realizable Pay” reflects the value of Salary and Bonus amounts ~~delivered~~earned during ~~FY16, FY18~~FY19, FY20 and ~~FY19,~~FY21, the earned value of non-equity incentive awards during ~~FY16, FY18~~FY19, FY20 and ~~FY19~~FY21 and the value of equity ~~awards~~grants made during the period based on their value at the end of ~~FY19.~~

⁽⁴⁾FY21 and reflecting the effect of the performance multiplier on shares subject to vest for completed tranches. Note that Realizable Pay for FY21 includes the amount funded under the FY21 non-equity incentive award and the amounts earned under the Operating PSU Plans. However, those amounts were forfeited and not paid to Mr. Gelsinger because he resigned effective February 12, 2021 before he vested in the right to receive payouts under those awards. The Realizable Pay is calculated as the sum of Salary, Bonus and Non-Equity Incentive Compensation reported for each year in the “Summary Compensation Table” of this proxy statement (except as discussed above with respect to Mr. Gelsinger’s FY21 non-equity incentive plan compensation) and the amounts of stock options, RSUs and PSUs granted in ~~FY16, FY18~~FY19, FY20 and ~~FY19 (excluding PSU awards that were awarded prior to FY16)~~FY21 valued as of the closing stock price of ~~VMware’s~~ Class A Stock as of ~~February 1, 2019.~~January 29, 2021. No stock options were granted during the periods presented. The value of PSUs is further adjusted to reflect the effect of the performance multiplier on shares subject to vest for completed tranches as follows:

PSU Plan

~~FY16 Tranche~~

~~FY18 Tranche~~

FY19 Tranche

~~3-Year~~FY20 Tranche

FY21 Tranche

Multi-Year Performance Modifier

FY16 Operating PSU Plan

~~157.2% of target~~

~~187.1% of target~~(i)

142.8% of target

1.25x

FY18 Operating PSU Plan

~~187.1%~~142.8% of target

78.6% of target

1.25x

FY18 HC PSU Plan(ii)

100% of target

1.00x

FY19 Operating PSU Plan

142.8% of target

78.6% of target

146.0% of target

1.25x

FY20 Operating PSU Plan

78.6% of target

146.0% of target

Modeled at 1.00x (Not determined until after ~~FY20)~~FY22)

~~FY18 HC~~FY20 TSR PSU Plan

~~100% of Target~~-

Modeled at ~~1.00x (Not~~0.00x (based on TSR performance; year-end stock price below performance threshold and not determined until ~~after FY20)~~April 30, 2023)

~~FY19~~FY21 Operating PSU Plan

~~142.8%~~146.0% of target

Modeled at 1.00x ~~(Not~~(not determined until after ~~FY21)~~FY23)

____________________

(i) The number of shares earned in FY16 Operating PSU Plan were capped at 200% of target.

(ii) The FY18 HC PSU Plan measured performance from FY18 through FY20 focused on hybrid cloud subscription and SaaS revenue growth as well as TSR, and the number of shares earned were capped at 100% of target. The FY18 HC PSU Plan was completed in FY20 and is described in VMware’s 2020 Proxy Statement.

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Future tranches of the ~~FY18~~FY20 and ~~FY19~~FY21 Operating PSU Plans ~~and FY18 HC PSU Plan~~ are not included in this calculation because those future tranches will not be assigned an accounting grant date fair value until ~~FY20~~FY22 in the case of the ~~FY18~~FY20 Operating PSU Plan, and ~~FY18 HC PSU Plans, and~~until each of ~~FY20~~FY22 and ~~FY21~~FY23 in the case of the ~~FY19~~FY21 Operating PSU Plan when ~~in each case,~~ performance goals for each tranche are approved by the CCG Committee. The value of the ~~FY18~~FY20 and ~~FY19~~FY21 tranches of the ~~FY18~~FY20 Operating ~~PSU Plan, the FY18 HC~~ PSU Plan and the ~~FY19~~FY21 Operating PSU Plan included in the realizable pay calculations assume achievement at target in the ~~three-year~~multi-year performance modifiers for each plan. The value of the FY20 TSR PSU Plan included in the realizable pay calculations assumes achievement below threshold in the multi-year performance modifier of the Plan because the FY20 TSR PSU Plan’s performance goals include actual stock price achievement of VMware’s Class A Common Stock that are above the closing price on the last day of FY21. The actual values will be determined upon completion of each respective ~~three-year~~multi-year performance period, as described below in “—Long-Term Incentives.”

Negative Discretion in MBO Component of Bonus Plan Payout for CEO

The CCG Committee takes seriously its responsibility to align the MBO payout under the Cash Bonus Program with the Company’s overall financial results. As illustrated in the table below, the CCG ~~has utilized~~Committee typically utilizes its negative discretion over the individual performance component of the bonus to calibrate ~~payouts to~~ its assessment of CEO ~~performance.~~performance payouts. Due to Mr. Gelsinger’s resignation as CEO effective February 12, 2021, he departed prior to the CCG Committee’s evaluation of his individual performance for FY21. As shown in the table below, the CCG Committee did exercise negative discretion in FY19 and FY20.

~~FY19 CEO MBO Bonus Payout as a Percentage of Target and Calculated Payout~~

Calculated Funding Result
Per Corporate Financial
Metrics

Calculated Funding Result
For MBO Component
@ 1.25x

Actual MBO Payout
Reflecting Negative
Discretion from Calculated
Funding Result
FY19 130.0% 162.5% 150.0%
FY18 130.1% 162.6% 130.0%
FY16 110.5% in H1; 120% in H2 138.1% in H1; 154.6% in H2 120% in H1; 125% in H2


FY19 - FY21 CEO MBO Bonus Payout as a Percentage of Target and Calculated Payout
Fiscal Year	Calculated Funding Result per Corporate Financial Metrics	Calculated Funding Result for MBO Component @ 1.25x	Actual MBO Payout Reflecting Negative Discretion from Calculated Funding Result
FY21	130.2%	162.8%	n/a
FY20	95.5%	119.4%	80.3%
FY19	130.0%	162.5%	150.0%

Section 3: Compensation Components

The compensation packages of our NEOs include a mix of cash and equity-based compensation. The major compensation components are as follows:



Base salary			Primary element of fixed compensation
Annual cash bonus			Based on annual financial, strategic and operational performance measured against specific pre-established goals
Long-term performance-based equity incentive compensation			PSUs that are tied to stock price appreciation and long-term performance objectives important to our company
Long-term equity incentive compensation			RSUs that are tied to stock price appreciation and enhance retention and long-term focus

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Pay Mix

When designing the executive compensation program, the CCG Committee gives significant weight to cash bonuses and equity incentives, which reflects the CCG Committee’s belief that a large portion of executive compensation should be ~~performance-based. This compensation is~~ performance-based, ~~because payment and vesting are~~ tied to achievement of individual or corporate performance metrics. In addition, with respect to the equity awards, the value ultimately realized by the recipient fluctuates with the price of our Class A Stock, thereby explicitly linking executive compensation opportunity with ~~shareholder~~stockholder value. The CCG Committee believes that equity incentives are particularly significant because they drive the achievement of VMware’s long-term operational and strategic goals and align the executives’ interests with those of our stockholders, while the cash bonuses drive achievement of shorter-term performance goals.

The CCG Committee reviews NEO compensation packages on an annual cycle, taking into account peer group data, Company and individual performance, unvested equity holdings and internal pay equity. In its review, the CCG Committee may adjust the pay mix and typically considers apportioning annual equity awards between PSUs and RSUs.

The charts above reflect the pay mix applicable to our CEO and to the other NEOs on average. For purposes of determining the percentages shown above for NEO annual compensation opportunities: (1) annual base salary rate reflects the FY21 pro-rated amount, where applicable, ~~during FY19;~~including the effect of the temporary pay cuts implemented for our CEO, CFO and COOs in FY21 Q2 and Q3; (2) cash bonus target opportunity reflects amounts indicated in “—Section 5: Annual Performance-Based Bonus” of this CD&A; and (3) the equity component reflects the “Selected ~~Equity~~ Value” indicated in “—Section 6: Long-Term Incentives” of this CD&A.

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Section 4: Base Salary

Base salary serves as the primary form of fixed compensation for our NEOs. Base salary can also impact other compensation and benefit opportunities, including annual bonuses, as such opportunities are expressed as a percentage of base salary.

In the first quarter of ~~FY19,~~FY21, the CCG Committee conducted its annual review of executive ~~compensation. During the annual review, the CCG Committee~~compensation and determined to make no adjustments to the base salaries of any ~~NEO except for Mr. Carli, who changed~~NEO. As discussed earlier regarding the ~~location~~effect of ~~his employment to~~ the ~~U.S. From the start of FY19 until May 1, 2018, Mr. Carli was based in the Company’s headquarters in Palo Alto, California~~COVID-19 pandemic on ~~an expatriate assignment from his home location in the United Kingdom. Effective with the change of Mr. Carli’s home location to the U.S. on May 1, 2018,~~FY21 executive compensation decisions, the CCG Committee ~~established Mr. Carli’s~~approved temporary reductions to the salary of our CEO, CFO and COOs for the second and third fiscal quarters of FY21. The reductions to annual salary ~~rate at $800,000~~rates were 25% for our CEO and 15% for our CFO and COOs.

In the fourth quarter of FY21, the CCG Committee approved a salary increase for Ms. Olli effective December 1, 2020 in ~~consideration of Mr. Carli’s prior salary rate and market data for Mr. Carli’s role.~~

connection with her promotion to EVP.

Annual Salary
Rate in Effect at
Start of FY19
Annual Salary
Rate in Effect
at End of
FY19
% Change
Patrick Gelsinger $1,000,000 $1,000,000 -
Zane Rowe $750,000 $750,000 -
Maurizio Carli £560,000 $800,000
n/a⁽¹⁾
Sanjay Poonen $700,000 $700,000 -
Rangarajan (Raghu) Raghuram $700,000 $700,000 -

~~____________________~~


Name	Annual Salary Rate in Effect at Start of FY21	Annual Salary Rate In Effect During FY21 Q4	Actual FY21 Salary Earned
Patrick Gelsinger	$1,000,000	$1,000,000	$885,417
Zane Rowe	$750,000	$750,000	$698,438
Amy Fliegelman Olli	$575,000	$600,000	$579,167
Sanjay Poonen	$700,000	$700,000	$651,875
Rangarajan (Raghu) Raghuram	$700,000	$700,000	$651,875

⁽¹⁾
Mr. Carli’s salary rate change reflects market data for his role and the rounded value in U.S. dollars based on the applicable exchange rate from English pounds to U.S. dollars when his employment was localized to the U.S.

Section 5: Annual Performance-Based Bonus

Each of our NEOs is eligible to earn cash bonuses tied to our financial results and individual performance under our ~~annual executive bonus program (“~~Executive Bonus ~~Program”).~~Program. We believe it is important to provide rewards for specific results and behaviors that support our overall long-term business strategy.

~~Incentive Plan~~FY21 Executive Bonus Program Design

In ~~FY19,~~FY21, the CCG Committee maintained the ~~plan design~~general structure of the ~~FY18~~FY20 Executive Bonus ~~Program.~~ Program, with bonuses paid based on achievement against corporate financial performance metrics, individual goals for a performance period that spanned the full fiscal year and continuing to retain negative discretion to reduce actual payouts below the amounts calculated under the plan formulas. In FY21, as discussed above the CCG Committee made changes to the program in light of the uncertainty caused by the COVID-19 pandemic to:

•Delay establishment of performance goals until early in Q2 FY21 to provide more time to gauge the potential impact of the COVID-19 pandemic and set meaningful performance expectations

•Lower from previous year’s plans the threshold for minimum performance to achieve any funding in Plan from 95% to 90% of target

•Lower from previous years’ plans funding attributable to target performance from 100% to 90%

•Lower from previous years’ plans funding attributable to maximum performance from 200% to 150% of target

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As illustrated below, the ~~plan~~FY21 Executive Bonus Program design involved the following parameters:



Plan funding		• Entirely funded on the basis of quantitative, algorithmic measurement of financial performance which yields a plan funding percentage (“plan funding level”) • The payout algorithm provides for proportionately greater funding as performance achievement exceeds target goals, as well as ~~disproportionate~~greater reductions in funding as performance achievement drops below target goals, with zero funding below threshold performance levels
Plan funding metrics		• ~~60%~~100% of the plan funding ~~level~~ is ~~determined~~ based upon achievement of GAAP revenue and non-GAAP operating margin. The CCG Committee placed primary focus on achievement of widely-recognized metrics that are tracked by our ~~shareholders~~stockholders and analysts and that we believe are indicators of the performance and health of our company from growth and profitability perspectives • ~~40%~~The revenue and non-GAAP operating margin performance targets set by the CCG Committee for FY21 reflected expectations dampened due to COVID-19 as well as the Company’s plans to make investments in its subscription and SaaS business and reflecting the expected short-term impact of the ~~plan funding level is determined based upon achievement~~Company’s two major FY20 acquisitions of ~~license~~Pivotal and hybrid cloud and SaaS revenue. License revenue is considered an indicator of customer willingness to adopt and expand their use of our products, while hybrid cloud and SaaS revenue is considered a measure of progress in our plans to provide more cloud and SaaS-based offeringsCarbon Black
Thresholds must be achieved for any funding		• For any bonus amount to be paid out, a threshold level of achievement of each of the pre-established corporate financial objectives was required • No funding unless threshold performance is achieved in revenue and non-GAAP operating margin. In FY21, due to the economic uncertainty resulting from COVID-19, threshold performance was set at 90% of revenue and ~~adjusted license revenue targets and ~95% of~~ non-GAAP operating margin targets ~~were achieved~~instead of the 95% threshold used in FY20 • At threshold performance, the plan funding level would equal ~~only 26%~~25% of target
~~Cap on funding~~		• ~~Irrespective of actual performance, funding is capped at 240% of target, reflecting the maximum funding applicable to each component of our incentive plan~~
~~CCG Committee can exercise negative discretion on funding and payouts~~	• ~~The CCG Committee has the authority to exercise negative discretion on actual plan funding, irrespective of funding calculated on the basis of our formulaic approach~~
Payouts	• 50% of the bonus opportunity is payable to the executive formulaically at the plan funding level in order to reinforce the connection between objective financial results and bonus payouts • 50% of the bonus opportunity is funded at 1.25 times the plan funding level and actual payouts to executives are subject to negative discretion based on assessment of individual performance relative to strategic and operational goals •In FY21, due to the economic uncertainty resulting from COVID-19, funding in connection with achieving target performance under revenue and non-GAAP operating margin was reduced from 100% in past years to 90% because of the lower business outlook in early Q2 of FY21 compared to initial expectations at the start of FY21
Caps on Plan funding and payouts		•Plan funding based on achievement of objective financial results is capped. In FY21, due to the economic uncertainty resulting from COVID-19 as well as the lower thresholds in the Plan and targets based on our business outlook at the time, the CCG Committee reduced the Plan funding cap for the FY21 Plan to 150% of target instead of the 200% cap used in prior years. Taking into account the 1.25x maximum multiplier for the MBO portion of the Plan, the maximum payout in FY21 under the Plan was 168.75%, reduced from 225% in FY20
CCG Committee can exercise negative discretion on funding and payouts		•The CCG Committee has the authority to exercise negative discretion on actual plan funding, irrespective of funding calculated on the basis of our formulaic approach

~~The following is an illustration~~Ta ble of ~~the FY19 Annual Cash Bonus Incentive Compensation Plan:~~Contents

Target Opportunity

~~In FY19,~~During FY21 no changes were made to the ~~CCG Committee determined that bonuses would be paid based on achievement against corporate financial performance metrics~~size of the NEOs’ target bonus as a percentage of salary. However, due to the temporary reduction in CEO, CFO and ~~individual goals~~COO pay during the second and third fiscal quarters of FY21, the dollar target for ~~a performance period that spanned~~FY21 bonus payouts to these individuals was reduced from the ~~full fiscal year. The CCG Committee retained negative discretion~~FY20 dollar target amount to ~~reduce actual payouts below~~reflect the amounts calculated under the plan formulas. The target opportunity for Mr. Gelsinger was increased from 150% to 175% effective May 1, 2018 based on the CCG Committee’s review of market data from our peer group and Mr. Gelsinger’s performance. temporary salary reductions.


	Annual Salary Rate During FY19	Target Bonus (as percentage of base salary)	Bonus Target During FY19
Patrick Gelsinger⁽¹⁾	$1,000,000	175%	$1,690,247
Name				Name	Annual Salary in FY21 Pro-Rated for Target Bonus Calculation(1)	Target Bonus (as percentage of base salary)	Bonus Target During FY21
Patrick Gelsinger				Patrick Gelsinger	$874,313	175%	$1,530,048
Zane Rowe	$750,000	100%	$750,000	Zane Rowe	$693,441	100%	$693,441
Maurizio Carli⁽²⁾	$795,316	100%	$795,316
Amy Fliegelman Olli				Amy Fliegelman Olli	$579,121	100%	$579,121
Sanjay Poonen	$700,000	100%	$700,000	Sanjay Poonen	$647,212	100%	$647,212
Rangarajan (Raghu) Raghuram	$700,000	100%	$700,000	Rangarajan (Raghu) Raghuram	$647,212	100%	$647,212



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			Page

General			~~Page~~ 1

~~General~~Environmental, Social & Governance			12

Our Board of Directors and Nominees			14

Corporate Governance			69

Board of Directors, Independence and Committees			912

Proposal 1—Election of Directors			1215

Proposal 2—Advisory Vote to Approve Named Executive Officer Compensation			1215

Proposal 3—~~Approval~~A pproval of an Amendment to the Amended and Restated 2007 Equity and Incentive Plan			1316

Proposal 4—Approval of an Amendment to the Amended and Restated 2007 Employee Stock Purchase Plan			2023

Proposal 5—5 —Ratification of Selection of Independent Auditor			2327

Equity Compensation Plan Information			2428

Security Ownership of Certain Beneficial Owners and Management			2529

Compensation Discussion and Analysis			2731

Compensation of Executive Officers			5559

Summary Compensation Table			5559

Grants of Plan-Based Awards			5761

Outstanding Equity Awards at Fiscal Year-End			5963

Option Exercises and Stock Vested			6265

Nonqualified Deferred Compensation			6265

Potential Payments Upon Termination or Change in Control			6366

Pay Ratio			6467

Indemnification Agreements and Director and Officer Insurance			6568

Compensation and Corporate Governance Committee Report			6568

Director Compensation			6568

Review and Approval of Transactions with Related Persons			6770

Transactions with Related Persons			6771

Audit Committee Report			6975

Information About the Annual Meeting			7077

10-K Report			7784

Appendix A: Reconciliation of GAAP to Non-GAAP Data			A-1

Appendix B: Amended and Restated 2007 Equity and Incentive Plan			~~A-4~~A-3

Appendix C: Amended and Restated 2007 Employee Stock Purchase Plan			~~A-13~~A-12



Fiscal Year⁽¹⁾		Dates Covered in Fiscal Year
~~Fiscal Year 2016 (“FY16~~”)	~~January 1, 2016 through December 31, 2016~~
~~Fiscal Year 2018 (“FY18~~”)	~~February 4, 2017 through February 2, 2018~~
Fiscal Year 2019 (“FY19”)		February 3, 2018 through February 1, 2019
Fiscal Year 2020 (“FY20”)		February 2, 2019 through January 31, 2020
Fiscal Year 2021 (“FY21”)		February 1, 2020 through January 29, 2021


Plan	Summary Decision	Overview
Salaries	•In April 2020, approved temporary salary reductions for the CEO, CFO and COOs for second and third quarters of FY21	•Reductions intended to demonstrate leadership and contribute to company cost savings measures •Salary reductions were 25% for CEO and 15% for CFO and COOs
Executive Bonus Program	•In May 2020, approved the FY21 Executive Bonus Program •Established performance goals based on revised business outlook due to COVID-19 •Lowered from previous years threshold performance level and flattened payout curves based on economic uncertainty	•Delayed establishment of performance goals until early in Q2, FY21 to provide more time to gauge potential impact of COVID-19 pandemic and set meaningful performance expectations •Reduced opportunity for bonus payout as a result of reduction to base salary pay upon which bonus payouts are based •Changed Plan funding formula as compared to previous years’ plans: (i) Lowered threshold for minimum performance to achieve any funding in Plan from 95% to 90% of target (ii) Lowered funding (potential payout) attributable to target performance from 100% to 90% of target (iii) Lowered funding (potential payout) attributable to maximum performance from 200% to 150% of target •No changes to performance goals or payout opportunities during the performance period after goals were established
Operating PSU Plans	•In May 2020, approved the FY21 Operating PSU Plan and FY21 tranches of FY19 and FY20 Operating PSU Plans (the “Operating PSU Plans”) •Established performance goals based on revised business outlook due to COVID-19 •Lowered from previous years threshold performance level and flattened payout curves based on economic uncertainty	•Delayed establishment of performance goals until early in Q2, FY21 to provide more time to gauge potential impact of COVID-19 pandemic and set meaningful performance expectations •Changed Plan funding formula for FY21 tranche of Operating PSU Plans as compared to previous years’ plans: (i) Lowered threshold for minimum performance to achieve any funding in Plan from 95% of each of the two performance metrics in the FY20 tranche of the Operating PSU Plans to 90% of target for Subscription and SaaS revenue and 81% of target for non-GAAP operating income metric in the FY21 tranche of the Operating PSU Plans; (ii) Lowered funding attributable to target performance from 100% in the FY20 tranche to 90% in the FY21 tranche; (iii) Lowered funding attributable to maximum performance from 200% of target in the FY20 tranche to 150% of target in the FY21 tranche •Selected 3-year TSR compared to companies in the S&P 500 IT Index due to difficulty in establishing precise long-term financial goals at beginning of global economic shutdown due to COVID-19 pandemic •No changes to performance goals or payout opportunities during the performance period after goals were established



(Name of Registrant as Specified In Its Charter)

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)


2.	~~to approve, on an advisory basis, named executive officer compensation;~~


3.	~~to approve an amendment to the Amended and Restated 2007 Equity and Incentive Plan;~~


5.	~~to ratify the Audit Committee’s selection of PricewaterhouseCoopers LLP as our independent auditor for the fiscal year ending January 31, 2020; and~~


6.	~~to transact any and all other business that may properly come before the meeting or any adjournments thereof.~~



			By order of the Board of Directors


			Amy Fliegelman Olli
			~~Senior~~Executive Vice President, General Counsel and Secretary



Fiscal Year	Granted Time-Based RSUs⁽¹⁾	Earned Performance-Based Restricted Stock Units (PSUs)⁽¹⁾	Total Granted Options and RSUs; and Earned PSUs⁽²⁾	Weighted- Average Basic CSO	Burn Rate
2019	5,812,190	311,624	6,123,814	407,766,000	1.50%
2018	6,859,133	130,486	6,989,619	406,738,000	1.72%
2016	12,361,813	214,278	12,576,091	420,520,000	2.99%



Fiscal Year	Audit Fees⁽¹⁾ ($)	Audit Related Fees⁽²⁾ ($)	Tax Fees⁽³⁾ ($)	All Other Fees⁽⁴⁾ ($)
2019⁽⁵⁾	8,029,615	1,509,846	2,358,917	63,728
2018⁽⁶⁾	9,572,910	1,311,453	2,429,477	62,132



Name of Beneficial Owner	Class A Shares Beneficially Owned⁽¹⁾ (#)	Outstanding Class A Shares (%)	Class B Shares Beneficially Owned (#)	Outstanding Class B Shares (%)	Total Vote⁽²⁾ (%)
Principal Stockholders:
Dell Technologies Inc.⁽³⁾	30,678,605	27.8	300,000,000	100	97.4
Michael Dell⁽⁴⁾	30,678,605	27.8	300,000,000	100	97.4
Other 5% Beneficial Owners:
T. Rowe Price⁽⁵⁾	13,296,580	12.1	—	**	**
Other Directors and Executive Officers:
Anthony Bates⁽⁶⁾	11,200	**	—	**	**
Michael Brown⁽⁶⁾	17,202	**	—	**	**
Maurizio Carli⁽⁷⁾	20,598	**	—	**	**
Donald Carty*⁽⁶⁾⁽⁸⁾	11,605	**	—	**	**
Egon Durban	—	**	—	**	**
Karen Dykstra⁽⁶⁾	8,360	**	—	**	**
Patrick Gelsinger⁽⁹⁾	497,919	**	—	**	**
Sanjay Poonen⁽¹⁰⁾	239,567	**	—	**	**
Rangarajan (Raghu) Raghuram⁽¹¹⁾	171,391	**	—	**	**
Rajiv Ramaswami⁽¹²⁾	108,743	**	—	**	**
Zane Rowe	67,975	**	—	**	**
Paul Sagan*⁽⁶⁾	15,075	**	—	**	**
All directors and executive officers as a group (14 persons)⁽¹³⁾	31,849,702	28.8	300,000,000	100	97.5


Name of Beneficial Owner	Class A Shares Beneficially Owned(1) (#)	Outstanding Class A Shares (%)	Class B Shares Beneficially Owned (#)	Outstanding Class B Shares (%)	Total Vote(2) (%)

Principal Stockholders:
Dell Technologies Inc.(3)	30,678,605	27.3	307,221,836	100	97.4
Michael Dell*(4)	30,678,605	27.3	307,221,836	100	97.4

Other 5% Beneficial Owners:
BlackRock Inc.(5)	7,456,835	6.6	—	**	**
Dodge & Cox(6)	6,471,395	5.8	—	**	**

Other Directors and Executive Officers:
Anthony Bates(7)	14,380	**	—	**	**
Marianne Brown	—	**	—	**	**
Michael Brown*(7)	20,382	**	—	**	**
Donald Carty(7)(8)	14,785	**	—	**	**
Kenneth Denman*	—	**	—	**	**
Egon Durban	—	**	—	**	**
Karen Dykstra*	11,461	**	—	**	**
Amy Fliegelman Olli	338	**	—	**	**
Patrick Gelsinger(9)	524,343	**	—	**	**
Sanjay Poonen(10)	221,547	**	—	**	**
Rangarajan (Raghu) Raghuram*(11)	193,621	**	—	**	**
Zane Rowe	52,048	**	—	**	**
Paul Sagan(7)	18,255	**	—	**	**
All directors and executive officers as a group (15 persons)(12)	31,757,395	28.3	307,221,836	100	97.5



~~Closing Stock Price at end of FY18 (Feb. 2, 2018)~~	~~$122.72~~
~~Closing Stock Price at end of FY19 (Feb. 1, 2019)~~	~~$150.51~~
~~Value of Special Cash Dividend Paid Dec. 28, 2018~~	~~$26.81~~
~~One-Year TSR~~	~~44% = (($150.51 + $26.81) / $122.72) - 1~~


Financials	FY19	FY18	Year-Over-Year Change	Financials	FY21	FY20	Year-Over-Year Change
Revenue ($M)	$8,974	$7,862	14%	Revenue ($M)	$11,767	$10,811	8.8%
Non-GAAP operating margin⁽¹⁾	33.9%	33.8%	0.1%	Non-GAAP operating margin(1)	32.2%	30.2%	2.0%
Non-GAAP operating income⁽¹⁾ ($M)	$3,041	$2,657	14%	Non-GAAP operating income(1) ($M)	$3,789	$3,261	16.2%
License revenue ($M)	$3,788	$3,200	18%
Subscription and SaaS revenue ($M)				Subscription and SaaS revenue ($M)	$2,587	$1,877	37.8%
Unearned revenue balance⁽²⁾ ($M)	$6,978	$5,839	20%	Unearned revenue balance(2) ($M)	$10,314	$9,268	11.3%


Compensation Element	Amounts in Plan Design Prior to COVID-19 Executive Compensation Decisions	Explanation	Effect of COVID-19 on Executive Compensation Decisions	Explanation (as compared to prior year’s plan design)	Impact on Payout Opportunity
Annual Bonus Target Opportunity	$1,750,000	Reflects opportunity funded at 100% of target	$1,377,043	Plan design reflected lowered FY21 expectations, reflecting economic uncertainty, so funding reduced for target achievement from 100% to 90% per COVID-19-related plan design	$(372,957)
Annual Bonus Maximum Opportunity	$3,937,500	Reflects opportunity funded at 200% of target	$2,581,956	Reduced maximum opportunity from 200% to 150% per COVID-19-related plan design	$(1,355,544)
FY19 Operating PSU's Tranche for FY21 @ Target Opportunity	$3,809,081	Reflects number of PSUs in tranche multiplied by grant date fair value stock price	$3,428,173	Plan design reflected lowered FY21 expectations, reflecting economic uncertainty, so funding reduced for target achievement from 100% to 90% per COVID-19-related plan design	$(380,908)
FY20 Operating PSU's Tranche for FY21 @ Target Opportunity	$2,153,244		$1,937,920		$(215,324)
FY21 Operating PSU's Tranche for FY21 @ Target Opportunity	$4,766,418		$4,289,776		$(476,642)
FY19 Operating PSU's Tranche for FY21 @ Maximum Opportunity	$7,618,162	Reflects target number of PSUs in tranche multiplied by grant date fair value stock price and funded at 200% per COVID-19-related plan design	$5,713,622	Reduced maximum opportunity from 200% to 150% per COVID-19-related plan design	$(1,904,540)
FY20 Operating PSU's Tranche for FY21 @ Maximum Opportunity	$4,306,488		$3,229,866		$(1,076,622)
FY21 Operating PSU's Tranche for FY21 @ Maximum Opportunity	$9,532,836		$7,149,627		$(2,383,209)



~~Financial Performance Metric in FY19~~	~~FY16, FY18 and FY19 Operating PSU Plans~~	~~FY18 HC PSU Plan~~
~~Revenue Growth~~	ü ~~(metric in FY19 tranche)~~
~~Non-GAAP Operating Margin~~	ü ~~(metric in FY19 tranche)~~
~~Non-GAAP Operating Income~~	ü ~~(3-year goal)~~
~~Hybrid Cloud and SaaS Revenue Growth~~		ü ~~(metric in FY19 tranche)~~
~~Total Stockholder Return~~		ü ~~(3-year goal covering FY18-FY20, relative TSR compared to companies in S&P 500 IT Index)~~



Plan			Achievement	Impact on Payout Funding
Executive Bonus Program			~~Executive~~•Total revenue 103.4% of target ~~Annual Incentive~~ ~~Bonus Plan~~•Non-GAAP operating margin 3.8% above target	• ~~102.5%~~Overall, bonus payouts were 121.75% of target. Bonus payouts were above target due to above-target achievement in both total revenue • ~~Exceeded~~ and non-GAAP operating margin ~~target by 0.8%~~ • ~~106%~~and achievement of ~~target license and hybrid cloud and SaaS revenue~~	• ~~NEO payout from financial component of bonus plan was 130.0% of target, resulting from over-achievement in each component~~ • ~~NEO payouts from the Individual~~individual performance objectives (“MBO”) •Financial component paid out at 118.5% of target due to over-achievement in target revenue and non-GAAP operating margin •MBO component of bonus plan ~~ranged from 115% to 150%~~paid out at 125.0% of target based on ~~achievements~~CCG Committee assessment of NEO achievement, details further below in ~~expanding the Company’s portfolio of products, solutions and services and enhancing strategic partnerships~~this CD&A
~~FY16, FY18~~FY19, FY20 and ~~FY19~~FY21 Operating PSU Plans			• ~~FY19~~FY21 tranche applicable to ~~FY16, FY18~~FY19, FY20 and ~~FY19~~FY21 Operating ~~PSU Plans~~PSUs achieved ~~102.0%~~107.5% of target ~~adjusted~~subscription and SaaS revenue and ~~0.8% improvement in~~118.9% of non-GAAP operating ~~margin~~income target • Multi-year non-GAAP operating income growth modifier applicable to ~~FY16 PSU Plan: 10.7%~~FY19 Operating PSUs achieved 11.7% average annual growth compared to ~~5.0%~~10.0% of target	• ~~FY19 tranche: 142.8%~~FY21 tranche achieved 146.0% of target due to ~~overachievement~~max achievement in ~~adjusted~~subscription and SaaS revenue and above-target achievement in non-GAAP operating ~~margin~~income • Multi-year ~~revenue~~non-GAAP operating income growth modifier applicable to ~~FY16~~FY19 Operating PSU ~~Plan:~~Plan achieved 1.25x multiplier (maximum) on PSUs otherwise subject to vest based on performance in ~~FY16, FY18~~FY19, FY20 and ~~FY19~~FY21 tranches ~~(157.2%~~(142.8%, ~~187.1%~~78.6% and ~~142.8%~~146.0% of target, respectively); •FY19 Operating PSU Plan units converted to shares ~~paid out represented 200%~~at 153.1% of target ~~PSUs (maximum) issued~~established at the beginning of the performance period, reflecting above-target performance in ~~all three~~the FY19 and FY21 tranches, below-target performance in FY20 and above maximum performance in the multi-year goal
~~FY18 HC~~ ~~PSU Plan~~	• ~~FY19 tranche applicable to FY19 HC PSU Plan: Achieved 37.0% growth compared to 26.0% target in year-over-year growth in hybrid cloud and SaaS revenue~~	• ~~FY19 tranche: 100% of target; payout capped at target, no increase for above-target performance~~



	Annual Salary Rate in Effect at Start of FY19	Annual Salary Rate in Effect at End of FY19	% Change
Patrick Gelsinger	$1,000,000	$1,000,000	-
Zane Rowe	$750,000	$750,000	-
Maurizio Carli	£560,000	$800,000	n/a⁽¹⁾
Sanjay Poonen	$700,000	$700,000	-
Rangarajan (Raghu) Raghuram	$700,000	$700,000	-



	FY19 Bonus Plan (Revenue in $M)
Metric	Threshold	Target	Max	Actual⁽¹⁾
Revenue (0%-200% funding)	$7,852.5	$8,725.0	$9,597.5	$8,938.9
Non-GAAP Operating Margin (0%-200% funding)	31.7%	33.3%	38.9%	34.1%
License and Hybrid Cloud and SaaS Revenue (0%-240% funding)	$3,351.0	$3,723.3	$4,281.8	$3,950.6


	FY21 Executive Bonus Program Payout of Financial Component
Name	Financial Component Target Amount (50% of Total)	Bonus Calculated Per Formula @ 130.2%	Approved Bonus @ 118.5%
Patrick Gelsinger	$765,024	$996,061	Not applicable(1)
Zane Rowe	$346,720	$451,430	$410,864
Amy Fliegelman Olli	$289,560	$377,008	$343,129
Sanjay Poonen	$323,606	$421,335	$383,473
Rangarajan (Raghu) Raghuram	$323,606	$421,335	$383,473



	FY19 Executive Annual Incentive Bonus Payout of Financial Component
	Financial Component Target Amount (50% of Total)	Bonus Calculated Per Formula @ 130.0%	Approved Bonus @ 130.0%
Patrick Gelsinger	$845,124	$1,098,661	$1,098,661
Zane Rowe	$375,000	$487,500	$487,500
Maurizio Carli	$397,658	$516,955	$516,955
Sanjay Poonen	$350,000	$455,000	$455,000
Rangarajan (Raghu) Raghuram	$350,000	$455,000	$455,000


Name			Strategic and Operational Objectives
Patrick Gelsinger			•FY21 operating plans for our license and subscription and SaaS businesses •Operating plans for our Modern Applications business, including brand and engagement with application developers as well as roadmap of our Tanzu application development platform on the VMware software stack •Operating plans for our Multi-Cloud business, including VMware Cloud Foundation and hyperconverged infrastructure solutions scaling with our largest customers; scaling our VMware Cloud service on Amazon Web Services, Microsoft Azure and Dell EMC; driving the shift to hybrid and multi-cloud management; scaling our Telco Edge Cloud business with telecommunications and internet service providers •Establishing VMware as a credible intrinsic security platform via product roadmaps; building security integrations through our portfolio and accelerating our security go-to-market motions •Extending leadership of our networking platform, including with largest customers and new accounts •Extending leadership of our Workspace ONE platform supporting workforce transformation, digital workspaces and customer solutions during and after the COVID-19 pandemic •Corporate priorities related to customer experience, our people, diversity and inclusion, innovation and environmental sustainability



~~Patrick Gelsinger~~Zane Rowe		~~Achievement of objectives related to:~~ ~~- FY19~~•FY21 operating ~~plan including~~ plans for ~~products~~our license and subscription and SaaS businesses •Initiatives related to cross-Company operations, including governance operating models, operations supporting our cloud ~~services~~ ~~- Product and customer satisfaction~~ ~~- The Company’s networking~~ business, ~~including NSX and SD-WAN~~ ~~- Expanding the Company’s cloud and as-a-service technologies~~ ~~- The Company’s private cloud products and solutions~~ ~~- Growing the Company’s end-user computing business into a leading~~operations supporting our go-to-market teams, integration of large FY20 acquisitions in FY21, execution of our digital ~~workspace~~ ~~platform~~ ~~- Establishing new bets as future growth accelerators~~ ~~- Driving~~transformation plans enabling product roadmaps and go-to-market ~~objectives with Dell Technologies~~priorities ~~- Executing on capital allocation objectives~~ ~~- Executing on go-to-market objectives~~•Corporate priorities related to customer experience, our people, diversity and ~~people-~~inclusion, innovation and ~~workforce-related objectives~~environmental sustainability
~~Zane Rowe~~Amy Fliegelman Olli		~~Achievement~~•Plans to provide transactional support of ~~objectives~~sales team and deliver strategic support to growth businesses and BUs •Plans to build patent arsenal and vigorously and proactively protect and defend VMware’s intellectual property •Promote seamless and scaled customer experiences with VMware •Drive embedded compliance and accountability throughout the Company •Corporate priorities related ~~to:~~ ~~- FY19 operating plan, guidance~~to customer experience, our people, diversity and ~~forecasts~~ ~~- As-a-service financial~~inclusion, innovation and ~~business model~~ ~~- Capital allocation objectives~~ ~~- People- and workforce-related objectives~~
~~Maurizio Carli~~	~~Achievement of objectives related to:~~ ~~- FY19 operating plan including plans for products and cloud services~~ ~~- Product and customer satisfaction~~ ~~- Accelerating cloud and as-a-service go-to-market~~ ~~- Driving go-to-market objectives with Dell Technologies~~ ~~- Executing on go-to-market objectives and people-related objectives~~environmental sustainability
Sanjay Poonen		~~Achievement of objectives related to:~~ ~~- FY19~~•FY21 operating ~~plan including~~ plans for ~~products~~our license and ~~cloud services~~subscription and SaaS businesses ~~- Product~~•Operating plans for our Modern Applications business, including brand and engagement with application developers as well as roadmap of our Tanzu application development platform on the VMware software stack •Establishing VMware as a credible intrinsic security platform via product roadmaps; building security integrations through our portfolio and accelerating our security go-to-market motions •Extending leadership of our Workspace ONE platform supporting workforce transformation, digital workspaces and customer ~~satisfaction~~solutions during and after the COVID-19 pandemic ~~- The Company’s networking business,~~•Initiatives related to go-to-market excellence including ~~deployments~~governance and partnerships of all sales, marketing, customer experience and support, and alliances activities ~~- Expanding the Company’s cloud~~•Corporate priorities related to customer experience, our people, diversity and ~~as-a-service technologies~~ ~~- Establishing new bets as future growth accelerators~~ ~~- Driving go-to-market objectives with Dell Technologies~~ ~~- Executing on go-to-market objectives~~inclusion, innovation and ~~people-related objectives~~environmental sustainability
Rangarajan (Raghu) Raghuram		~~Achievement of objectives related to:~~ ~~- FY19~~•FY21 operating ~~plan including~~ plans for ~~products~~our license and ~~cloud services~~subscription and SaaS businesses ~~- Product~~•Operating plans for our Modern Applications business, including brand and engagement with application developers as well as roadmap of our Tanzu application development platform on the VMware software stack •Operating plans for our Multi-Cloud business, including VMware Cloud Foundation and hyperconverged infrastructure solutions scaling with our largest customers; scaling our VMware Cloud service on Amazon Web Services, Microsoft Azure and Dell EMC; driving the shift to hybrid and multi-cloud management; scaling our Telco Edge Cloud business with telecommunications and internet service providers •Establishing VMware as a credible intrinsic security platform via product roadmaps; building security integrations through our portfolio and accelerating our security go-to-market motions •Extending leadership of our networking platform, including with largest customers and new accounts •Extending leadership of our Workspace ONE platform supporting workforce transformation, digital workspaces and customer ~~satisfaction~~solutions during and after the COVID-19 pandemic ~~- The Company’s networking~~•Corporate priorities related to governance of decisions across engineering, product and business ~~including NSX~~units to harmonize R&D processes and ~~SD-WAN~~roadmaps, cross-Company operations and go-to-market ~~- Expanding the Company’s cloud~~•Corporate priorities related to customer experience, our people, diversity and ~~as-a-service technologies~~ ~~- The Company’s private cloud products~~inclusion, innovation and ~~solutions~~ ~~- Growing the Company’s end-user computing business into a leading digital workspace~~ ~~platform~~ ~~- Establishing new bets as future growth accelerators~~ ~~- Driving product objectives with Dell Technologies~~ ~~- Executing on people-related objectives~~environmental sustainability


						FY21 Executive Bonus Program Payout of Individual Component
	FY19 Executive Annual Incentive Bonus Payout of Individual Component
	Target Amount (50% of Total Target)	Bonus Calculated Per Formula @ 162.5%	Approved Bonus % of MBO Target	Approved Bonus Value
Name					Name	Target Amount (50% of Total Target)	Bonus Calculated Per Formula @162.75%	Approved Bonus % of MBO Target	Approved Bonus Value
Patrick Gelsinger	$845,124	$1,373,326	150%	$1,267,685	Patrick Gelsinger	$765,024	$1,245,077	Not applicable(1)	Not applicable(1)
Zane Rowe	$375,000	$609,375	125%	$468,750	Zane Rowe	$346,720	$564,288	125.0%	$433,401
Maurizio Carli	$397,658	$646,194	130%	$516,955
Amy Fliegelman Olli					Amy Fliegelman Olli	$289,560	$471,260	125.0%	$361,951
Sanjay Poonen	$350,000	$568,750	120%	$420,000	Sanjay Poonen	$323,606	$526,668	125.0%	$404,507
Rangarajan (Raghu) Raghuram	$350,000	$568,750	115%	$402,500	Rangarajan (Raghu) Raghuram	$323,606	$526,668	125.0%	$404,507


	FY21 Executive Bonus Program Total Payout
Name	Total Target (Financial + Individual)	Total Actual (Financial + Individual)	Total Actual as a % of Target
Patrick Gelsinger	$1,530,048	Not applicable(1)	Not applicable(1)
Zane Rowe	$693,441	$844,264	121.75%
Amy Fliegelman Olli	$579,121	$705,080	121.75%
Sanjay Poonen	$647,212	$787,980	121.75%
Rangarajan (Raghu) Raghuram	$647,212	$787,980	121.75%



	FY19 Executive Annual Incentive Bonus Total Payout
	Total Target (Financial + Individual)	Total Actual (Financial + Individual)	Total Actual as a % of Target
Patrick Gelsinger	$1,690,247	$2,366,346	140.0%
Zane Rowe	$750,000	$956,250	127.5%
Maurizio Carli	$795,316	$1,033,911	130.0%
Sanjay Poonen	$700,000	$875,000	125.0%
Rangarajan (Raghu) Raghuram	$700,000	$857,500	122.5%



~~FY19~~FY21 Operating PSUs (~~50%~~67% of annual target ~~value)~~ value for CEO, CFO and COOs)						~~FY19~~FY21 RSUs (~~50%~~33% of annual target ~~value)~~ value for CEO, CFO and COOs)
– Three-year performance period – Vest in the first quarter of ~~FY22~~FY24 subject to continued employment and achievement of objective, quantitative performance criteria related to core business results						– Vest over four-year period subject to continued employment – Value subject to fluctuation in alignment with ~~VMware’s stock~~the Class A Stock price



Focus on long-term performance			• Three successive annual performance tranches covering ~~FY19, FY20~~FY21, FY22 and ~~FY21~~FY23 to drive achievement of sustained results. Annual tranches enable more precise and meaningful goal-setting during a highly dynamic period • If an annual tranche is completed at below-target performance, a catch-up is not available in subsequent tranches • Multi-year goal to hold NEOs accountable for long-term performance
Focus on value creation			• ~~Focus~~In FY21 the CCG Committee utilized subscription and SaaS revenue in place of license and subscription and SaaS revenue in order (i) to focus on ~~revenue adjusted for the change in deferred hybrid cloud~~subscription and SaaS revenue as an indicator of future top-line growth ~~prospects~~prospects; (ii) to reduce overlap of metrics in the FY21 Executive Bonus Program; (iii) to reinforce the importance of subscription and SaaS revenue as IT consumption models increasingly transition from on-premises to cloud-based subscription services; and (iv) to reflect that license is becoming less important as a standalone indicator of future growth •In FY21 the CCG Committee utilized non-GAAP operating income in place of non-GAAP operating margin to focus on the profitability produced from our operations as ~~an indicator~~compared to a relative percentage of ~~NEOs’ stewardship~~revenue to drive focus on generation of ~~Company profitability in each tranche~~operating profit while we grow our hybrid and multi-cloud business • Focus on ~~non-GAAP operating income as metric~~multi-year TSR in the multi-year multiplier of ~~profit available~~the FY21 Operating PSU Plan to hold NEOs accountable for ~~investment~~stockholder returns that are competitive relative to companies in ~~Company growth or return of earnings and capital to stockholders through stock repurchases, as well as~~ the ~~one-time special cash dividend of $11 billion in FY19~~S&P 500 IT Index • Substantially penalizes NEOs for under-performing relative to three-year ~~non-GAAP operating income~~relative TSR goal • ~~Three-year non-GAAP operating income goal adds diversity to portfolio of performance~~Metrics in FY21 Operating PSU Plan reduce overlap with metrics in FY21 Executive Bonus Program while maintaining cohesion with annual incentive plan and PSU ~~tranches~~tranches. TSR selected for FY21 Operating PSU Plan multi-year multiplier in light of difficulty in setting meaningful multi-year financial performance goals due to the substantial economic uncertainty at the start of the COVID-19 pandemic



FY19 Performance Tranche Achievement
	Threshold (50%)	Target (100%)	Max (200%)	Actual Result	Result	Funding Weight	Funding
Adjusted Revenue	$8,606	$9,011	>=$9,416	$9,190	144.1%	70%	100.9%
Non-GAAP Operating Margin	31.7%	33.3%	>=35.3%	34.1%	139.6%	30%	41.9%

Total FY19 Performance Tranche Funding							142.8%


FY21 Performance Tranche Achievement
	Threshold (50%)	Target (90%)	Maximum (150%)	Actual Result	Result	Funding Weight	Funding
Subscription and SaaS Revenue	$2,165	$2,406	>=$2,550	$2,587	150%	70%	105.0%
Non-GAAP Operating Income	$2,581	$3,186	>=$4,006	$3,789	136.5%	30%	41.0%
Total FY21 Performance Tranche Funding							146.0%



FY16 PSU Plan Multi-Year Modifier
	Min 0.75x	Target 1.0x	Max 1.25x	Actual Result	Result
Non-GAAP Operating Income Average Growth Over Three Fiscal Years	<=4.0%	5.0%	>=6.0%	10.7%	1.25x (maximum)



FY19 Performance Tranche Achievement⁽¹⁾
	FY19 Tranche of PSU Plan: Target PSUs			FY19	PSU Achievement in FY19 Tranche⁽²⁾
Name	FY16 Operating PSU Plan	FY18 Operating PSU Plan	FY19 Operating PSU Plan	Tranche Modifier	FY16 Operating PSU Plan	FY18 Operating PSU Plan	FY19 Operating PSU Plan
Patrick Gelsinger	52,146	19,756	24,375	142.8%	74,464	28,211	34,807
Zane Rowe	30,085	13,171	11,375	142.8%	42,961	18,808	16,243
Maurizio Carli	8,023	10,976	8,937	142.8%	11,456	15,673	12,762
Sanjay Poonen	16,046	13,171	8,125	142.8%	22,913	18,808	11,602
Rangarajan (Raghu) Raghuram	14,039	13,171	11,375	142.8%	20,047	18,808	16,243


FY21 Performance Tranche Achievement
	FY21 Tranche of PSU Plan: Target PSUs			FY21	PSU Achievement in FY21 Tranche(1)
Name	FY19 Operating PSU Plan	FY20 Operating PSU Plan	FY21 Operating PSU Plan	Tranche Modifier	FY19 Operating PSU Plan	FY20 Operating PSU Plan	FY21 Operating PSU Plan
Patrick Gelsinger	24,375	13,779	27,765	146.0%	n/a(2)	n/a(2)	n/a(2)
Zane Rowe	11,375	14,764	27,765	146.0%	16,607	21,555	40,536
Amy Fliegelman Olli	6,500	4,429	6,247	146.0%	9,490	6,466	9,120
Sanjay Poonen	8,125	6,889	27,765	146.0%	11,862	10,057	40,536
Rangarajan (Raghu) Raghuram	11,375	6,889	27,765	146.0%	16,607	10,057	40,536



	Total Shares in FY16 Operating PSU Plan⁽¹⁾	FY16 Operating PSU Plan Awards Banked Per Annual Tranche Modifiers			FY16 Operating PSU Plan Awards Banked Per Annual Tranche Modifiers			3-Year Perfor-mance Modifier	Total Shares Earned in FY16 Operating PSU Plan⁽²⁾
Name	Total Shares in FY16 Operating PSU Plan⁽¹⁾	FY16 Tranche Target	FY18 Tranche Target	FY19 Tranche Target	FY16 Tranche Target	FY18 Tranche Target	FY19 Tranche Target	3-Year Perfor-mance Modifier	# of Shares	% of Total Target Issued
Patrick Gelsinger	156,436	52,145	52,145	52,146	157.2%	187.1%	142.8%	1.25x	312,872	200%
Zane Rowe	90,251	30,083	30,083	30,085	157.2%	187.1%	142.8%	1.25x	180,502	200%
Maurizio Carli	24,067	8,022	8,022	8,023	157.2%	187.1%	142.8%	1.25x	48,134	200%
Sanjay Poonen	48,134	16,044	16,044	16,046	157.2%	187.1%	142.8%	1.25x	96,268	200%
Rangarajan (Raghu) Raghuram	42,117	14,039	14,039	14,039	157.2%	187.1%	142.8%	1.25x	84,234	200%