In recent news, NVIDIA’s incredible stock growth has minted many new millionaires among its employees, particularly those who joined five or more years ago. The company’s stock price has surged over 3,450% in the past five years, leading to significant wealth accumulation for some. Mid-level managers reportedly earn over $1 million annually thanks to stock options.
However, this newfound wealth has led to a phenomenon of “semi-retirement” among some established employees, according to CEO Jensen Huang. Financially secure, these employees are said to exhibit less drive. Huang advised all workers to manage their time responsibly, highlighting individual accountability for work ethic.
Despite the headlines, not all Nvidia employees feel rich. An engineer earning $250,000 annually points out that salaries are initially impressive but lose luster considering living expenses. While some might be fortunate enough to become millionaires, “a million doesn’t go too far,” he explains.
This engineer receives half his salary in restricted stock units (RSUs), creating the illusion of immense wealth for all employees. However, RSU allocation is capped, limiting the number employees can receive. Even top performers are capped at 50% of their salary in stock annually.
Also read: Did You Know? NVIDIA Is Now Worth More Than Amazon & Tesla Combined
The engineer emphasizes the need to cash in stocks to meet annual expenses, including taxes and property taxes. This sentiment echoes comments by former Tesla AI director Andrej Karpathy, who highlighted the importance of holding onto stock (HODL) to maximize gains.
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