Nvidia’s chief, Jenson Huang, saw his compensation package swell by 60% in fiscal 2024, driven by a substantial rally in the company’s share price and triple-digit growth in both revenue and operating profit.
Huang’s total compensation rose to $34.16 million from $21.35 million the previous year, consisting of an unchanged base salary of $996,515, stock awards worth $26.67 million, non-equity incentive compensation of $4 million, and other compensation amounting to $2.494 million.
Huang’s wealth and shareholding
Despite this significant pay increase, the impact on Huang’s overall wealth, estimated at $81.7 billion by Forbes, is relatively minimal.
Huang owns 3.79% of Nvidia’s total shares, reinforcing his financial alignment with the company’s performance.
The recent fiscal year’s boost likely represents only a small addition to his substantial fortune.
Justifying the compensation
Under Huang’s leadership, Nvidia has capitalized on the surging demand for artificial intelligence (AI).
More than 40,000 companies reportedly use Nvidia GPUs for AI applications.
This strategic positioning has led to remarkable financial results, with the fiscal year ending January 28, 2024, showing a 126% year-on-year increase in revenue to $60.9 billion and a nearly sevenfold increase in operating income to $33 billion.
Breaking down Nvidia’s impressive growth further, the Compute and Networking division reported a revenue of $47.4 billion, up 215%, while the Graphics division saw a 28% increase to $13.5 billion.
Nvidia’s share price has surged by 95% year-to-date, resulting in a market capitalization of $2.3 trillion.
Shareholder voting on executive pay
The compensation details were disclosed in Nvidia’s Notice of 2024 Annual Meeting of Shareholders filed with the SEC.
Shareholders will vote on the compensation packages for Nvidia’s senior leaders, including Huang, on June 26.
This vote will be a crucial indicator of shareholder approval regarding the executive compensation strategy in light of Nvidia’s exceptional performance.
The post Nvidia CEO Jenson Huang got 60% pay hike in FY24 amid AI-led growth appeared first on Invezz