NVIDIA has experienced one of the most remarkable business rises in recent years, establishing itself as one of the few technology companies with a market capitalization exceeding $3 trillion. NVIDIA shares have surged by 3,776% since 2019.
This appreciation of its shares has created an unusual phenomenon, turning many of its senior employees into millionaires. Nonetheless, as a recent study reveals, an article published by Bloomberg indicates that not everything is perfect at NVIDIA. The shift to becoming leaders in AI chips has introduced significant stress to their roles, preventing them from fully enjoying their newfound wealth.
Millionaire employees. While NVIDIA’s case is not unique in turning employees into millionaires due to a company’s economic prosperity, it is still quite rare. A survey conducted in June, surveying more than 3,000 of NVIDIA’s 30,000 employees on the Blind platform, revealed that 76% were millionaires, with one in three boasting a net worth exceeding $20 million.
The source of these fortunes lies in the employee stock purchase plan (ESPP, short for Employee Stock Purchase Plan), which the company has provided for the past 18 years. This plan allows employees to use 10% to 15% of their annual salary to purchase company stock. Long-term employees who have participated in this plan for years accumulate enough shares to drive to work in a Lamborghini rather than take the bus.
The dark side of success: a pressure cooker work environment. Despite their financial success, anonymous current and former NVIDIA employees have revealed to Bloomberg that the workplace culture at NVIDIA can be excessively demanding, even for those with millions in their investment portfolios.
A few months ago, NVIDIA CEO stated in a conference that he preferred to “push employees to greatness” rather than fire them, unlike what many in the industry do. Perhaps Jensen Huang was not joking. Ten NVIDIA employees told Bloomberg that they were expected to work seven days a week, with shifts ending at one or two in the morning and as many as seven meetings a day.
A job with significant rewards. Despite the demanding work environment, NVIDIA’s employee turnover rates have paradoxically decreased as its stock price has risen.
The 2023 Corporate Responsibility Report reveals that the employee turnover rate that year was 5.3%. However, the 2024 sustainability report indicates that, following the company’s record capitalization, the turnover rate fell to 2.7%, significantly lower than the industry average of 17.7%. Part of this success in retaining staff is attributed to stock packages that vest every four years, incentivizing employees to remain with the company.
NVIDIA’s “golden handcuffs”. A specific term has been coined to describe when employees’ financial interests prevent them from freely resigning due to being overworked: “golden handcuffs.” This describes the situation for many NVIDIA employees who feel “trapped” by the value of their stock and the opportunity to expand their investment portfolio.
According to data from Bloomberg, Colette Kress, AMD’s Chief Financial Officer for the last 11 years, controls a stock package worth approximately $758.7 million. In contrast, her counterpart at Intel, Dave Zinsner, has a higher annual salary bonus but holds a stock package valued at only $3.13 million. Jean Hu, who has served as AMD’s CFO since 2023, has a management trajectory comparable to Kress (possibly the most successful). The AMD executive oversees a stock package worth $6.43 million. Who would find it easier to leave the company?
Jensen Huang’s leadership. Jensen Huang’s leadership style has proven effective in promoting closeness with employees and his commitment to a culture of hard work. Some new hires have complained that their more seasoned (and wealthy) colleagues exhibit a more laid-back attitude.
However, Jensen Huang mentioned in an internal meeting reported by Business Insider that “[…] working at NVIDIA is like a ‘voluntary sport,’ where every employee must act as the ‘CEO’ of their own time. These are decisions adults should make.” Huang emphasized that each person should be mindful of their responsibilities and work as hard as they deem necessary, always within the context of their role.
Image | StripeUnsplash (Maria Shalabaieva)
NVIDIA: A Deep Dive into Employee Wealth and Corporate Culture
NVIDIA has experienced one of the most incredible business rises in recent years, managing to position itself as one of the few technological companies with a market capitalization of over $3 trillion. NVIDIA shares have appreciated by 3,776% since 2019.
The Millionaire Employee Phenomenon
The growth in NVIDIA’s stock price has created an unusual phenomenon, turning many of its most senior employees into millionaires. However, as a recent study by Bloomberg reveals, not everything is wine and roses at NVIDIA. Becoming champions of AI chips has added high amounts of stress to their jobs and is preventing them from enjoying their new fortunes.
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The Employee Stock Purchase Plan (ESPP)
Millionaire employees. Although NVIDIA’s transformation of its employees into millionaires is not entirely unique, it is still remarkable. A survey conducted in June, targeting over 3,000 of NVIDIA’s 30,000 employees on the Blind platform, revealed that 76% of them were millionaires, with one in three boasting a net worth of over $20 million.
The origin of these fortunes is the Employee Stock Purchase Plan (ESPP), which the company has offered for the past 18 years. This plan allows employees to allocate between 10% and 15% of their annual salary to buy company stock. Long-term employees who have participated in this plan for years have accumulated enough shares to afford luxury vehicles like Lamborghinis instead of commuting by bus.
Employee Experience: The Dark Side of Success
The dark side of success: a job pressure cooker. Despite the financial success, statements from Bloomberg indicate that the work culture at NVIDIA can be extremely demanding, even for those with millions in their investment portfolios.
A few months ago, NVIDIA CEO Jensen Huang claimed in a conference that he preferred to “torture employees into greatness” rather than resort to lay-offs, a common practice in the industry. Reports from ten current NVIDIA employees confirm that expectations to work seven days a week, with shifts ending at one or two in the morning and up to seven meetings a day, are not uncommon.
A Job with Many Benefits
A job with a lot to gain. Despite the demanding work environment, NVIDIA’s employee turnover rate has fallen inversely to the rise in its stock price. According to the Corporate Responsibility Report 2023, staff turnover was 5.3%. However, according to the 2024 Sustainability Report, following the company’s record capitalisation, its turnover rate fell to just 2.7%, well below the industry average of 17.7%. Stock options that vest every four years have contributed significantly to this retention, as they motivate employees to stay with the company.
NVIDIA’s “Golden Handcuffs” Phenomenon
NVIDIA’s “golden handcuffs.” There is a specific term for the economic bind that prevents employees from leaving due to their investment stakes: “golden handcuffs.” Many NVIDIA employees are trapped by the stock value and the prospect of further increasing their investment portfolios.
According to Bloomberg, AMD’s chief financial officer, Colette Kress, has a stock package worth approximately $758.7 million, while Intel’s CFO, Dave Zinsner, boasts a package valued at $3.13 million. Such valuations make it challenging for executives to leave their respective companies.
Leadership Style of Jensen Huang
Jensen Huang has made them CEO. Jensen Huang’s leadership style is renowned for its closeness to employees and his strong commitment to work culture. However, some newer hires voiced concerns that veteran (and millionaire) colleagues seem to exhibit a more relaxed work ethic.
In an internal meeting, Huang stated that “working at NVIDIA is like a voluntary sport,” emphasizing that employees should act as the “CEOs” of their own time. Huang encourages individual responsibility, saying that decisions must be made by aware, adult employees, who should manage their workload appropriately.
Practical Tips for Thriving at NVIDIA
- Engage in Summaries: Make concise notes from lengthy meetings to help you retain crucial information.
- Utilize Resources Wisely: Make the best use of NVIDIA’s professional development resources to sharpen your skills.
- Network: Build relationships across departments to enhance your professional support system within the company.
- Prioritize Self-Care: Amid stresses, ensure to prioritize mental and physical health to sustain long-term productivity.
Future Outlook for NVIDIA Employees
NVIDIA’s rapid growth and unique corporate culture offer exciting opportunities alongside challenging pressures. As the demand for AI technology and cutting-edge GPUs continues to rise, NVIDIA employees are well-positioned to benefit from this growth, provided they navigate its intense work demands effectively.
Image | Stripe Unsplash (Maria Shalabaieva)
