Due to the failure to meet the financial target in the fiscal year 2023, Nvidia CEO pay was cut by 10%
Much like many industry leaders, Jensen Huang, the founder, and CEO of Nvidia, garners his compensation from a combination of a basic salary, stock rewards, and other benefits, which amounted to approximately $23.73 million in the fiscal year 2023. However, owing to Nvidia’s performance falling short of the target for the fiscal year 2023, Huang’s remuneration was trimmed by 10%, culminating in a final figure of $21.356 million.
Image: Nvidia
Huang’s compensation comprises a base salary of $996,200, stock awards amounting to $19.666 million, and other compensation of $693,700 (including insurance and travel expenses). According to TheRegister, Nvidia’s latest financial audit documents reveal that “Fiscal 2023 was a challenging year, with macroeconomic headwinds, channel inventory corrections, COVID-19 and product architecture transitions affecting several of our businesses. As a result, our Fiscal 2023 revenue and non-GAAP Operating Income performance fell short of the CC’s (compensation committee’s) pre-established goals for executive compensation.” Consequently, CEO Jensen Huang faced a pay cut. In fact, the remuneration of other Nvidia executives has increased compared to last year. Huang’s compensation is twice that of the second-highest earner and is 94 times the median employee compensation at Nvidia.
Despite a dip in Huang’s compensation, his personal net worth continues to grow. Nvidia’s stock price has surged by over 73% compared to a year ago. As the largest individual shareholder, Huang holds 3.51% of Nvidia’s shares, exceeding 86 million shares. According to Forbes, Huang’s personal net worth is $26.1 billion, marking a modest increase of over 1% compared to last year, and he currently occupies the 76th position in the global rich list.
