According to a June 19 report by U.S. IT specialist media Benzinga, the rapid rise in Nvidia’s stock price has led to an outbreak of millionaires among its employees.
Nvidia’s stock price has soared 167% this year and 3,450% compared to five years ago. Given these figures, the media stated that it’s highly probable that all employees who joined Nvidia five years ago are now millionaires.
Most Nvidia employees opt to receive 50% of their salary in stock, a benefit offered by the company.
Benzinga estimated that employees who joined Nvidia five years ago have become millionaires, thanks to the company’s stock price soaring by 3,450% since then. It also reported that Nvidia’s middle managers earn over $1 million annually.
The prevalence of millionaire employees at Nvidia has led to concerns for CEO Jensen Huang, who worries that many might be working in a semi-retired mode due to their financial security.
Jensen Huang recently mentioned in private that “some employees appear less motivated to work hard as they are financially comfortable.” However, he added that “all employees should consider themselves CEOs and adhere to professional ethics.”
As of January 2024, it is reported that Nvidia has approximately 29,600 employees.
Meanwhile, Jensen Huang’s salary has also hit the jackpot. He received $34.2 million in compensation in the last fiscal year, a 60% increase from $21.4 million the previous year.
This increase is attributed to the soaring stock price, which boosts the value of his stock options beyond his base salary. This is the highest salary among CEOs in the same industry.
Lisa Su, CEO of AMD, received a salary of $30.4 million. Pat Gelsinger, CEO of Intel, the largest semiconductor company in the U.S., received $16.9 million.