Jensen Huang, the co-founder and CEO of Nvidia, has experienced his first base salary increase in a decade. This notable change comes as Nvidia’s market capitalization skyrocketed from $10.47 billion in January 2015 to approximately $2.94 trillion by February 2024. The company’s remarkable growth included a brief period where it was recognized as the world’s most valuable company in mid-2024 and is currently positioned as the third most expensive publicly traded entity.
Details of Huang’s Salary Adjustment
Huang’s base salary has increased by 49%, rising from $1 million to $1.5 million. Additionally, his performance-related cash compensation saw a 50% increase, bringing it to $1 million. The equity component of his compensation package reached $38.8 million, culminating in a total annual compensation of $49.9 million. This salary adjustment marks his first increase in ten years, primarily aimed at achieving parity with other senior executives, as stated by the company’s board.
Market Position and Stock Valuation
Huang retains a 3.5% ownership stake in Nvidia, equivalent to about $94 billion due to the company’s soaring valuation. Since the end of 2022, Nvidia’s market value has climbed over nine times, reflecting strong investor confidence in its strategic leadership, particularly in the artificial intelligence sector.
Executive Compensation Trends
This salary increase aligns with a broader trend among tech executives, who are increasingly receiving substantial non-cash compensation for security and logistical needs. For instance, Alphabet reported spending $8.27 million on personal security and travel for CEO Sundar Pichai, representing a 22% increase from the previous year.
As Huang’s compensation package evolves, it demonstrates Nvidia’s commitment to maintaining competitive leadership in the tech industry amidst its impressive growth trajectory.