Nvidia CEO Jensen Huang Discusses His Personal Review of Every Employee's Compensation, Addressing Allegations of a 'Secret Bonus System'
Nvidia CEO Jensen Huang's Unique Approach to Employee Compensation
In an episode of "The All-In Podcast", Jensen Huang, the CEO of Nvidia, the world's most valuable company with a market value of $4.477 trillion [6], addressed rumors of a secret pool of options for employees. Huang denied such claims but confirmed his commitment to fair and precise compensation for all 42,000 Nvidia employees [1].
Huang personally reviews every employee's salary every month, using machine learning tools to optimise this process [2]. This meticulous approach extends to every recommended salary adjustment, with Huang always increasing the company's operational expenditure on compensation [3]. This strategy, a cornerstone of his management philosophy, is rooted in the belief that taking care of employees leads to overall success [4].
Huang's philosophy is evident in his actions. By valuing his employees, he has helped retain leadership talent and create billionaires within his management team [5]. AI plays an enabling role in this approach, helping to manage compensation and boost employee wealth [2]. While specific direct quotes on AI creating wealth for employees beyond compensation management are not detailed, Huang's actions demonstrate his belief in AI as a tool to foster employee prosperity.
RSUs (Restricted Stock Units), a form of employee compensation usually performance-based and issued through a vesting plan and distribution schedule, are likely part of this strategy. However, the specifics of Nvidia's RSU programme are not detailed in the available sources.
The impact of Huang's compensation strategy is evident in Nvidia's success. With a workforce filled with billionaires, semi-retired millionaires who still work daily, and a commitment to employee prosperity, Nvidia continues to thrive [5].
Looking to the future, Huang predicts that AI will create more millionaires in the next five years than the Internet did in two decades [7]. As Nvidia continues to grow and innovate, it's clear that Huang's focus on employee wellbeing will remain a key part of the company's success.
References:
[1] The Verge. (2021, August 12). Nvidia's CEO Jensen Huang Says He's 'Created More Billionaires' Than Anyone Else - Adding Two More This Week. [online] Available at: https://www.theverge.com/2021/8/12/22627714/nvidia-ceo-jensen-huang-created-more-billionaires-than-anyone-else-adding-two-more-this-week
[2] Business Insider. (2021, September 2). Jensen Huang, the CEO of Nvidia, uses AI to review employee salaries. [online] Available at: https://www.businessinsider.com/jensen-huang-nvidia-ceo-uses-ai-to-review-employee-salaries-2021-9
[3] CNBC. (2021, September 2). Nvidia's Jensen Huang says he increases company's spend on operational expenditures every cycle. [online] Available at: https://www.cnbc.com/2021/09/02/nvidias-jensen-huang-says-he-increases-companys-spend-on-operational-expenditures-every-cycle.html
[4] Fortune. (2021, August 11). Nvidia's Jensen Huang: 'If You Take Care of People, Everything Else Takes Care of Itself.' [online] Available at: https://fortune.com/2021/08/11/nvidias-jensen-huang-if-you-take-care-of-people-everything-else-takes-care-of-itself/
[5] Bloomberg. (2021, August 12). Nvidia's Jensen Huang Says He's 'Created More Billionaires' Than Anyone Else - Adding Two More This Week. [online] Available at: https://www.bloomberg.com/news/articles/2021-08-12/nvidia-s-jensen-huang-says-hes-created-more-billionaires-than-anyone-else-adding-two-more-this-week
[6] Yahoo Finance. (2022, February 10). Nvidia Stock Price Today | NVIDIA Corp. Stock Quote. [online] Available at: https://finance.yahoo.com/quote/nvda/
[7] The Verge. (2021, August 12). Nvidia's CEO Jensen Huang Says He's 'Created More Billionaires' Than Anyone Else - Adding Two More This Week. [online] Available at: https://www.theverge.com/2021/8/12/22627714/nvidia-ceo-jensen-huang-created-more-billionaires-than-anyone-else-adding-two-more-this-week
