Are NVIDIA Employees Living the Dream in ‘Semi-Retirement’ Mode?
NVIDIA (NASDAQ:NVDA) is one of the fastest-growing companies in recent years, with its stock surging by 167% since the beginning of 2024 and an impressive 3,450% over the past five years. Such robust growth has turned many NVIDIA employees who joined the company five or more years ago into millionaires.
According to reports, many midlevel managers at NVIDIA are making over $1 million a year, thanks to stock options and the overall appreciation of the company’s stock. With financial stability, some established NVIDIA executives are said to be operating in “semiretirement” mode, catching the attention of CEO Jensen Huang. They seem less motivated to work as hard as they used to, prompting Huang to encourage all workers to take charge of their work ethic and act as the ‘CEO’ of their own time.
Despite his advice, Huang himself received a 60% pay increase last fiscal year, bringing his compensation to $34.2 million as NVIDIA’s market value reached $3.2 trillion. However, not all NVIDIA employees feel financially secure. An NVIDIA engineer earning $250,000 a year shared that while some may become millionaires, a million dollars may not go as far as it seems.
The engineer, based on the West Coast, receives nearly half of his base salary in the form of restricted stock units (RSUs) annually. He clarified that there is a limit on the number of stock units employees can receive, with top performers capped at 50% of their base salary in stock each year. Many employees end up selling their stocks to cover personal and property taxes, as well as other expenses.
Former Tesla director of AI Andrej Karpathy highlighted that most people do not hold onto their stock and end up selling, with the government taking a significant portion in taxes. Long-term holders may be waiting for Tesla to achieve fully autonomous driving with its FSD software before selling at a premium.
While some NVIDIA employees are living in ‘semi-retirement’ comfort, others are mindful of managing their wealth wisely. It’s essential for employees to strike a balance between enjoying financial success and planning for the future to ensure long-term financial security. At Extreme Investor Network, we provide resources and strategies to help investors make informed decisions and secure their financial future. Join our network today to access expert insights and tools for financial success.