Nvidia CEO Jensen Huang has received his first base salary increase in a decade, with his compensation rising 49% to $1.5 million for fiscal 2025. This significant adjustment comes as the chipmaker’s market value has soared to $2.94 trillion, establishing itself as a dominant force in AI technology.

Compensation Package Details

The revised compensation structure includes a $1 million performance-based cash bonus, representing a 50% increase from the previous year, alongside $38.8 million in stock awards. This adjustment forms part of a total compensation package worth $49.9 million, reflecting Nvidia’s preference for equity-based remuneration.

Historical Context and Growth

Between 2015 and 2024, Huang maintained a consistent base salary of $996,800, despite Nvidia’s remarkable market capitalisation growth from $10.47 billion to nearly $3 trillion. The company briefly claimed the position of world’s most valuable company in mid-2024, highlighting its extraordinary trajectory.

Internal Pay Equity Considerations

Nvidia’s compensation committee highlighted internal pay equity as a crucial factor in the salary adjustment. The board noted that Huang’s package had fallen behind other named executives within the organisation. His target equity opportunity has increased by 25% to $27.5 million, positioning it slightly above the industry median.

Wealth and Ownership Structure

Despite the recent increase, Huang’s base salary remains relatively modest compared to other Fortune 500 CEOs. The majority of his wealth stems from his 3.5% ownership stake in Nvidia, currently valued at approximately $94 billion, demonstrating his long-term commitment to the company’s success.

Market Position and Industry Impact

The salary adjustment coincides with Nvidia’s commanding position in the AI chip market, where it holds between 70% and 95% market share among major technology firms. The company’s quarterly revenue has reached $26.4 billion, underscoring its pivotal role in the global AI infrastructure.

Future Implications

Nvidia’s compensation model, which emphasises equity over cash compensation, aligns with its growth-focused strategy in AI and accelerated computing. As competition intensifies from other chip manufacturers, the company’s approach to executive compensation reflects its commitment to retaining top talent while maintaining shareholder value.

News Source: https://www.cnbc.com/2025/05/01/nvidia-ceo-jensen-huang-gets-first-salary-raise-in-a-decade.html