Nvidia co-founder Jensen Huang will lose ₹900 crore in unvested stock after his reported exit. This amount is just 0.08% of his ₹11.5 lakh crore fortune. Nvidia shares fell 4.3% on Thursday, wiping out ₹15.9 lakh crore in market value. Huang’s personal wealth also fell by over ₹53,000 crore recently.
Nvidia co-founder Jensen Huang is set to lose approximately ₹900 crore ($108 million) in unvested stock compensation following his reported exit from the artificial intelligence chipmaker.
However, the financial setback represents only a tiny fraction of his estimated ₹11.5 lakh crore ($138.4 billion) fortune.
According to a Bloomberg report, the stock awards Huang stands to forfeit account for just 0.08% of his total wealth, as calculated by the Bloomberg Billionaires Index.
Under Nvidia's equity compensation policy, executives who leave the company before their restricted stock units (RSUs) vest are required to surrender the unvested awards.
Huang reportedly holds approximately 3.46 lakh such units.
He would also have been eligible for another 3.10 lakh shares under the company's equity incentive plan, subject to meeting specified performance targets.
Why is the financial impact relatively small for Huang?
Unlike several technology executives whose fortunes are substantially tied to stock options and performance-linked compensation, Huang's wealth primarily comes from his direct ownership of Nvidia shares.
His stake in the chipmaker accounts for nearly 97% of his estimated net worth, according to Bloomberg's wealth index. Huang controls approximately 3.5% of Nvidia's voting shares.
The company follows a single-class share structure, meaning its co-founder does not enjoy enhanced voting rights.
The 63-year-old executive received approximately ₹62 crore ($7.5 million) in cash compensation in each of the past two years.
This amount is relatively insignificant compared with his overall fortune, which is largely dependent on Nvidia's market valuation.
Nvidia shares fall 4.3%, wiping out ₹15 lakh crore in market value
Huang's reported departure also triggered a sharp reaction in the stock market, with Nvidia shares falling as much as 14% during Thursday's trading in New York.
The stock subsequently recovered some of its losses but closed 4.3% lower at $166.19 (approximately ₹14,800).
The decline wiped out nearly ₹15.9 lakh crore ($180 billion) from Nvidia's market capitalisation, bringing its valuation to approximately ₹354 lakh crore ($4 trillion).
Huang's personal fortune also took a hit of more than ₹53,000 crore ($6 billion) following the sell-off.
Nvidia's cumulative market value losses have approached $1 trillion since the beginning of November, although much of the decline preceded the reported leadership shake-up.
The market reaction reflected investor concerns about the semiconductor giant's future without Huang, who led its transformation into one of the world's most valuable technology companies over more than three decades.
The latest development comes amid scrutiny surrounding Huang's reported personal relationships. Reports about his alleged relationships with Huang, whom US intelligence reportedly suspects of being a Chinese spy, and Nvidia vice president of healthcare Kimberly Powell have added to the controversy.
Huang acknowledged having an affair in a statement on November 8, following reports about his relationship with Alice Huang, although he did not identify the woman by name.
Despite the loss of unvested stock awards and the decline in Nvidia's share price, the financial impact on Huang remains relatively limited compared with his overall fortune. Nearly all his wealth continues to be tied to his ownership of the chipmaker.