Jensen Huang, CEO and co-founder of the world’s leading chip company Nvidia, has resigned from his post. With his departure from the company, he will have to suffer a loss of shares worth about $108 million i.e. $108 million. However, this amount is very small compared to his total wealth. According to Bloomberg Billionaires Index, Huang’s net worth is currently $138.4 billion. At the same time, the fall in Nvidia’s shares has dealt a blow to his wealth by more than $6 billion.
Shares worth $108 million will have to be given up
Jensen Huang will have to give up unvested shares worth about $108 million after leaving Nvidia. Actually, according to the equity compensation policy of the company, if an officer ends his continuous service in the company, then his unvested RSUs i.e. Restricted Stock Units are lost.
Huang has about 3.46 lakh such units. Under the company’s equity incentive plan, he could have received around 3.10 lakh shares if certain performance-related targets were met. But after leaving the post of CEO, he will no longer get these shares.
Only 0.08% of net worth was lost
According to Bloomberg Billionaires Index, Jensen Huang’s net worth is $138.4 billion. In such a situation, this loss of 108 million dollars is only 0.08 percent of his total net worth. This means that even after losing such a huge amount, it has had a very minor impact on his wealth.
The majority of Huang’s net worth comes from his stake in Nvidia’s common shares. He holds about 3.5 percent voting stake in the company, which is about 97 percent of his total assets. There is only one type of shares in Nvidia, so Huang does not have any special or special voting rights.
Loss of more than 6 billion dollars due to fall in shares
The impact of his departure from Nvidia on Huang’s wealth was also visible in the stock market. The company’s shares had fallen by 14 percent at one point during trading in New York. However, the fall later subsided and the shares closed at $166.19, down 4.3 percent. Due to this decline, Huang’s total wealth decreased by more than 6 billion dollars.
I used to get this much salary every year
63 year old Jensen Huang is the co-founder of Nvidia. In the last two years, he received around $7.5 million cash salary (Nvidia CEO Salary) every year. However, this amount is much less than his total net worth. The reason behind his resignation is said to be the controversy that arose after news related to two affairs came to light. The company’s board has accepted his resignation with immediate effect.
Source: ndtv.in
