NVIDIA CEO’s Pay Decreases by 10%, Yet Remains 94 Times Higher than Average Employee’s Earnings
NVIDIA President and CEO, Jen-Hsun Huang, was expected to earn close to $25 million during the last fiscal year. However, due to the company’s failure to reach its financial objectives, he received a smaller sum. Despite the reduction, his annual salary was still 94 times larger than that of the average NVIDIA employee.
Jensen Huang, co-founder and CEO of the graphics processor manufacturer, was well-compensated for the 2023 fiscal year, ending January 29, receiving $21.36 million during this period. His compensation package included a base salary of $996,216, stock awards worth $19.666 million, and an additional $693,710 in payments for security, life insurance, travel, and other benefits. The payment details were included in an official statement published by the company this week.
Nonetheless, the amount was 10% lower than in the previous year. NVIDIA stated that the “big boss” did not receive the full payout due to the company’s results not meeting its targets. The company’s revenue for the 12 months remained unchanged compared to the previous year, amounting to $26.974 billion, while the net profit reached $4.368 billion, compared to $9.75 billion a year earlier. NVIDIA had to cope with the post-pandemic drop in demand, which has now been exacerbated by rising inflation and other factors. The company acknowledged that “the 2023 fiscal year was a challenging one, with macroeconomic obstacles, inventory adjustments, COVID-19, and product architecture changes affecting several of our businesses, impacting the pre-established executive compensation goals.”
However, other top NVIDIA executives did not receive the same substantial remuneration as the CEO. CFO Colette Kress earned $10.91 million, while her planned salary was $11.99 million. Jay Puri, Executive Vice President of Global Operations Worldwide, received $10.62 million against a possible $11.99 million. Regarding the compensation of mid-level employees, their average remuneration was $229,078, resulting in a 94:1 ratio between the CEO and rank-and-file staff members.
NVIDIA urges all shareholders to vote in favor of approving executive compensation for 2023 and promises better times ahead. “As we approach the 2024 fiscal year, we anticipate new product architectures will evolve alongside new opportunities in areas such as generative artificial intelligence and language models, NVIDIA cloud services, and digitization,” the company added.
- I'm Vasyl Kolomiiets, a seasoned tech journalist regularly contributing to global publications. Having a profound background in information technologies, I seamlessly blended my technical expertise with my passion for writing, venturing into technology journalism. I've covered a wide range of topics including cutting-edge developments and their impacts on society, contributing to leading tech platforms.
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