Jensen Huang To Lose $108 Million In Nvidia Stock Awards After Exit, But His $138 Billion Fortune Remains Intact: Report

Jensen Huang To Lose 8 Million In Nvidia Stock Awards After Exit, But His 8 Billion Fortune Remains Intact: Report


News business markets Jensen Huang To Lose $108 Million In Nvidia Stock Awards After Exit, But His $138 Billion Fortune Remains Intact: Report

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Under Nvidia’s equity compensation policy, executives who terminate their continuous service with the entity are required to surrender unvested RSUs. Huang holds 346,000 units.

Jensen Huang. (File Photo)

Jensen Huang. (File Photo)

Nvidia co-founder Jensen Huang is set to forfeit about $108 million in unvested equity compensation following his ouster from the company, a relatively small financial setback for the billionaire whose fortune is estimated at $138.4 billion.

The forfeited stock awards account for just around 0.08% of Huang’s net worth, according to the Bloomberg Billionaires Index, Bloomberg News reported.

Under Nvidia’s equity compensation policy, executives who terminate their continuous service with the company are required to surrender unvested restricted stock units (RSUs). Huang holds about 346,000 such units, while he would have been eligible to receive around 310,000 shares under the company’s equity incentive plan, subject to the achievement of specified performance targets.

Unlike several other technology executives, whose wealth is often linked to stock options and performance-based compensation, the bulk of Huang’s fortune comes from his direct ownership of Nvidia shares. According to Bloomberg’s wealth index, his stake in the company accounts for nearly 97% of his total wealth.

Huang controls about 3.5% of Nvidia’s voting shares. The company has a single class of shares, meaning the co-founder does not enjoy any special or enhanced voting rights.

The 63-year-old executive received around $7.5 million in cash compensation in each of the past two years, a relatively insignificant amount compared with his overall wealth.

However, his departure triggered an immediate market reaction on Thursday. Nvidia shares fell as much as 14% during trading in New York before recovering some losses to close 4.3% lower at $166.19. The decline erased more than $6 billion from Huang’s personal fortune.

Despite the loss of unvested stock awards and the decline in Nvidia’s share price, the financial impact remains relatively modest compared with the billionaire’s overall wealth, which is overwhelmingly tied to his holdings in the world’s leading artificial intelligence chipmaker.

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Jensen Huang is set to forfeit approximately $108 million in unvested equity compensation, which includes about 346,000 restricted stock units and potential shares from the company’s equity incentive plan. Under Nvidia policy, departing executives must surrender unvested units.

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