Nvidia CEO Jensen Huang Receives First Salary Increase Since 2015 Amid Soaring Market Cap

Nvidia CEO Jensen Huang has finally seen an increase in his base salary, marking his first raise since 2015. Despite the company's market capitalization skyrocketing by 281 times over the past decade—from $10.47 billion in late January 2015 to $2.94 trillion in early February 2024—Huang's salary remained fixed at $1 million for nearly 10 years. Nvidia briefly became the most valuable company globally in mid-2024 and currently holds the position as the world's third most valuable publicly traded firm, according to CompaniesMarketCap.com. This year, Huang's base salary has been raised by 49% to $1.5 million, complemented by a 50% increase in performance-related cash compensation to $1 million. His overall package also includes an equity component worth $38.8 million, bringing his total annual compensation to $49.9 million. The company's board justified this adjustment by citing internal pay equity with other senior executives and the fact that this is Huang's first base salary raise in a decade. "The compensation committee believed this was appropriate in consideration of internal pay equity with the base salaries of other NEOs and as it represented Mr. Huang's first base salary increase in 10 years," the board's statement filed with the Securities and Exchange Commission (SEC) reads. "His target variable cash opportunity remained at 200% of base salary, increasing to $3 million, which aligns with the median of peers. Mr. Huang's target equity opportunity increased by 25%, to $27.5 million, placing him slightly above the median of peers." Huang's ownership stake in Nvidia stands at approximately 3.5%, a share that is now valued at around $94 billion due to the company's significant rise in valuation. This surge reflects strong investor confidence in the company's leadership and its product dominance, particularly in the artificial intelligence (AI) sector. Nvidia's market cap has climbed more than 9 times since the end of 2022, further emphasizing its success and market position. The recent increases in Huang's compensation are part of a larger trend among tech executives receiving higher non-cash benefits for security and logistical purposes. Alphabet, for instance, reported spending $8.27 million on personal security and travel for its CEO, Sundar Pichai, during the same period, representing a 22% increase over the previous year, according to Quartz. To stay updated on the latest news, analysis, and reviews from the tech industry, including insights into companies like Nvidia, follow Tom's Hardware on Google News and make sure to click the Follow button.