Jensen Huang forfeits US$108 million in unvested Nvidia equity
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Jensen Huang’s wealth is derived almost entirely from his holding of Nvidia’s common shares, rather than stock options or other forms of equity compensation.
PHOTO: ERIC LEE/NYTIMES
- Jensen Huang will lose about US$108 million in unvested Nvidia equity after leaving the company. Nvidia’s policy says unvested RSUs are forfeited when service ends.
- Huang’s wealth is mostly in Nvidia shares, not pay or options. Bloomberg says his net worth is US$138.4 billion, and the lost awards are only 0.08% of it.
- His exit followed the revelation of two extramarital affairs and hit Nvidia shares hard. The stock fell as much as 14% before closing down 4.3%, cutting more than US$6 billion from his wealth.
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Jensen Huang will forfeit about US$108 million (S$138.9 million) in unvested equity compensation after being ousted from Nvidia – a fraction of his total wealth.
The relinquished awards represent roughly 0.08% of his net worth, according to the Bloomberg Billionaires Index, which puts his fortune at US$138.4 billion.
The company’s equity compensation policy specifies that unvested RSUs, or restricted stock units, are forfeited once an executive terminates continuous service.
He holds about 346,000 such units and would receive about 310,000 shares through the company’s equity incentive plan, assuming its performance meets certain targets.
Unlike many other tech chief executive officers, Huang’s wealth is derived almost entirely from his holding of Nvidia’s common shares, rather than stock options or other forms of equity compensation.
Huang controls about a 3.5% voting stake in the Santa Clara, California-based firm, which makes up nearly 97% of his wealth, according to Bloomberg’s wealth index.
Since Nvidia only has one class of shares, Huang does not hold any privileged voting rights.
The 63-year-old co-founder, who stepped down following the revelation of two extramarital affairs, was paid about US$7.5 million in cash compensation in each of the past two years – a negligible sum relative to his net worth.
Still, his resignation came at an immediate cost.
Nvidia shares plunged as much as 14% in New York before paring losses to close down 4.3% at US$166.19, wiping more than US$6 billion from Huang’s net worth. BLOOMBERG