Nvidia’s Stock Surge Drives CEO Jensen Huang’s Compensation to $34.2 Million

Nvidia CEO Jensen Huang received a significant boost in his compensation package in fiscal 2024, driven by the surging demand for the company’s AI chips and an impressive stock market performance. Huang, who co-founded Nvidia, saw his total compensation rise by 60% from the previous year, reaching $34.2 million, according to the company’s annual proxy filing.

Huang’s substantial pay package consisted of several components:

  • $26.7 million in stock awards: This sizable portion of his compensation reflects the significant rise in Nvidia’s stock price, which has tripled over the past year.
  • $4 million in cash bonuses: Rewarding Huang for Nvidia’s robust performance and market dominance.
  • $2.5 million for other expenses: This includes costs such as residential security and a car and driver, ensuring Huang’s personal safety and comfort.

The increase in Huang’s compensation is tied closely to Nvidia’s stock rally. The company’s shares have soared in value due to the high demand for its AI chips, propelling Nvidia to become the third-most valuable company globally, following Microsoft and Apple. As of now, Nvidia’s market capitalization stands at a staggering $2.3 trillion.

The AI boom has not only benefited Nvidia as a company but also significantly increased Huang’s personal wealth. Data from Bloomberg’s Billionaires Index shows that with a 3.8% stake in Nvidia, Huang’s net worth has climbed to $80.5 billion, positioning him as the 18th-richest individual in the world.

During a recent fourth-quarter earnings call, Huang assured analysts that Nvidia is allocating its highly sought-after AI chips fairly, emphasizing the company’s strategic management amid the overwhelming demand. Nvidia is set to report its first-quarter results next week, but it is already making headlines this earnings season due to its dominance in the AI chip market.

Huang is not the only executive enjoying a rise in compensation. Colette Kress, Nvidia’s Chief Financial Officer, saw her pay increase by about 22% to $13.3 million in the past year. Additionally, rank-and-file employees also experienced pay raises, with the median employee salary rising by 17% to $266,939 in fiscal 2024.

Nvidia’s stock performance has been stellar, closing 1.1% higher at $913.56 on Tuesday. The stock is up 85% so far this year and has gained over 200% in the past 12 months, reflecting the company’s strong market position and investor confidence in its future prospects.

Jensen Huang’s substantial compensation package underscores Nvidia’s remarkable performance and the critical role of its AI chips in the current technological landscape. As Nvidia continues to lead in the AI sector, both the company and its key executives are reaping significant financial rewards. The ongoing demand for AI technology positions Nvidia for continued growth, making it a focal point in the tech industry and a major player on the global stage.

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