Nvidia, $NVDA, is increasing employee compensation with a stock grant named after CEO Jensen Huang.
Employees at the company are receiving a unique "Jensen special grant" of additional restricted stock units (RSUs), named after CEO Jensen Huang, according to three sources familiar with the matter who spoke with Business Insider on the condition of anonymity. Huang, worth $75 billion, ranks 20th on the Bloomberg Billionaires Index.
The one-time grant amounts to an extra 25% of the annual equity refreshers employees receive, which vest quarterly based on individual performance. The $2.1 trillion company began its annual performance review cycle on April 1, and employees were informed about the grant during appraisal meetings with their managers.
The number of RSUs granted is determined by Nvidia's average closing stock price of $898.20 over the 30 calendar days ending March 29. The sources mentioned that the grant will vest over a four-year period, with the first 6.25% vesting on September 18 and the rest in equal quarterly installments.
For example, if an employee received an equity refresher of $200,000, they would receive an additional $50,000 worth of stock that vests over four years. The special Jensen grant is believed to be a way to ensure that employees will benefit even if the stock price falls in the future.
Nvidia's stock has surged over 200% in the past year, making it the third-largest company by market value after Microsoft and Apple. The chipmaker, known for consistently surpassing earnings estimates, has seen significant growth due to the rise of generative AI, with its chips being crucial for applications like ChatGPT. In the fourth quarter, Nvidia reported revenues of $22.1 billion, surpassing expectations.
