Nvidia has seen a remarkable increase in its stock value, with shares rising by 167% since the beginning of 2024 and a staggering 3,450% in the last five years. As a result, many employees who joined the company five or more years ago are likely millionaires today, with mid-level managers reportedly earning over $1 million a year due to stock options and stock appreciation. This newfound wealth has led some established Nvidia executives to enter a “semi-retirement” mode, prompting CEO Jensen Huang to encourage employees to take charge of their work ethic.
Despite the financial success experienced by some Nvidia employees, not everyone feels wealthy. A Nvidia engineer earning $250,000 annually shared that the salaries at the company may seem impressive at first, but in reality, not all employees receive significant compensation. Many employees receive a portion of their salary in the form of restricted stock units (RSUs), with a limit on the number of stock units they can acquire. This engineer also mentioned that employees often cash in their shares to cover expenses like taxes, preventing them from accumulating substantial wealth.
Former Tesla AI director Andrej Karpathy highlighted that many employees may have missed the opportunity to become millionaires by selling their company shares too soon, with the government taking a large portion of their profits. While some may be waiting for Tesla to achieve fully autonomous driving with its FSD software to sell their shares at a premium price, others have missed out on potential gains due to premature selling.
Overall, the rapid growth of Nvidia’s stock value has created millionaires among its long-term employees, but not everyone feels financially secure. While some have entered “semi-retirement” mode, others are still working towards accumulating wealth by navigating the challenges of stock compensation and taxation. The story underscores the importance of managing stock options wisely to maximize financial gains in the long run.
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https://finance.yahoo.com/news/employees-joined-nvidia-5-years-160012281.html