Nvidia CEO Jensen Huang’s substantial compensation package last year was a result of the high demand for the company’s AI chips. As one of the co-founders of Nvidia, Huang received $34.2 million for the fiscal year ending in January, which marked a 60% increase from the previous year’s compensation of $21.4 million. The package included stock awards, cash bonuses, and other expenses such as residential security and car services.
The surge in demand for Nvidia’s AI chips has propelled the company’s share price, leading to significant financial gains for Huang. During the company’s fourth-quarter earnings call, he had to reassure analysts about fair allocation of chips. Nvidia’s strong performance in the AI chip market has made it one of the most valuable companies globally, with its share price tripling over the past year.
Huang’s personal wealth has also grown significantly due to his 3.8% stake in Nvidia, contributing to his fortune of $80.5 billion. Other Nvidia executives, including Chief Financial Officer Colette Kress, also saw an increase in compensation. Additionally, rank-and-file employees experienced pay raises during this time period with the median employee earning $266,939 in fiscal 2024.
Nvidia’s share price closed higher on Tuesday as it continued its upward trend for the year. The stock has seen significant growth over the past 12 months due to strong demand for its AI chips and its leadership in the market.
In summary, Jensen Huang received a substantial compensation package due to high demand for Nvidia’s AI chips last year which resulted in a significant financial gain and increased personal wealth for him and other executives at Nvidia while also providing pay raises for their employees
