Nvidia CEO takes R46-million pay cut
Nvidia CEO Jen-Hsun “Jensen” Huang’s annual salary has been cut by around 10% after the graphics giant missed sales targets in its 2023 financial year results.
The Register spotted Huang’s salary had been reduced in the company’s annual review document.
While Huang had earned $23.74 million (R457.58 million) in Nvidia’s 2022 financial year, he only received about $21.36 million (R411.70 million) in 2023, a $2.38-million (R45.87 million) decline.
The package comprised a $996,216 base salary, $19.67 million in stock awards, and $693,710 in other compensation, including life insurance, security, and travel.
For comparison, AMD CEO Lisa Su earned total compensation of $30.22 million (R582.18 million) in the 2023 financial year.
Had Nvidia reached its sales targets, Huang’s total compensation would have increased to about $25 million (R481.62 million).
Despite the cut, he still earned 94 times that of the median Nvidia employee and over double that of the next best-paid executive.
Nvidia’s revenue remained flat compared to last year, while net income was halved from $9.75 (R187.6 billion) to $4.37 billion (R91.1 billion).
The company’s graphics card sales were hit by a downturn in demand from cryptocurrency miners after coin prices came crashing down in 2022 and Ethereum switched from proof-of-work to proof-of-stake.
At the same time, consumer price inflation has put pressure on gamers, leading to a significant revenue drop from sales in that market.
The crypto crash and Ethereum’s switch to proof-of-stake also led to miners offloading second-hand cards, which gamers could scoop up at cheaper prices than new stocks from Nvidia’s board partners.
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