Nvidia Executives Reap Big Stock Gains Despite Missed Goals

Nvidia executives missed financial goals in 2023 and didn't receive cash bonuses, but still realized tens of millions in stock awards due to equity program structure.

CEO Jensen Huang received over $500 million in stock awards and value from options exercises in fiscal 2023 despite no bonus payout.

Nvidia missed revenue goals in 2023 but executives still vest maximum equity awards based on high 3-year total shareholder return.

Talent poaching threat seen as low given Nvidia’s soaring stock price and habit of rewarding employees with equity at all levels.

In March 2024, Nvidia board hikes Huang’s potential fiscal 2025 bonus to $6 million, the third bump in 5 years, weeks after announcing record quarterly revenue.