Nvidia (NASDAQ:NVDA) has seen incredible growth in recent years. Since the beginning of 2024, the company's stock has jumped by 167%. Over the past five years, it has risen by a staggering 3,450%.
Given these numbers, it's easy to see why many NVIDIA employees who joined the company five or more years ago are likely millionaires today. Additionally, many of NVIDIA's mid-level managers are said to make more than $1 million per year, thanks to stock options and the overall appreciation of the company's stock.
However, cash flow now means that many Nvidia executives are in “semi-retirement” mode, which It caught the CEO's attention Jensen Huang. They are comfortable enough financially that they don't seem as motivated to work as hard as they used to.
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In response to questions about “semi-retired” employees, Huang advised all workers to act as a “CEO” of their time and be responsible for setting their work ethics. However, even Huang Received a 60% salary increase Last fiscal year, his compensation amounted to $34.2 million Nvidia's market capitalization Now $3.2 trillion.
But not all Nvidia employees think they are rich. With one Nvidia engineer making $250,000 a year and sharing it with Business Insider, the company's employee salaries are only impressive at first glance. He explained that although some Nvidia employees may be lucky enough to become millionaires, “a million doesn't go away.”
This West Coast-based engineer who joined Nvidia a few years ago receives roughly half of his base salary in restricted stock units (RSUs) annually. He noted that from an outside perspective, it may appear that all Nvidia employees are trading money, especially with the company's stock soaring.
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However, he explained that not everyone gets a large number of RSUs as there is a limit to the number of stock units that employees can get. Even top performers are required to take 50% of their base salary into stock each year.
“You will end up cashing out your shares to meet your annual obligations regarding personal taxes, estate taxes, and any other expenses you will incur,” he said.
Recently, former Tesla Director of Artificial Intelligence Andrei Karpathy pointed out“Most people don't do it, and the government takes half.” In other words, many Nvidia and Tesla employees could have become millionaires if they hadn't sold their company stock when they could have done so right away. On the other hand, he added that long-term shareholders would likely wait for Tesla to achieve fully autonomous driving with its FSD software before selling it at a higher price.
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This article Employees who joined Nvidia 5 years ago are now millionaires and live in “semi-retirement” Originally appeared on Benzinga.com
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