Nvidia, the chip making firm, is sharing its profits with its employees and how! It is giving its employees a special one-time grant of additional 25 per cent of stock units they were given on joining the firm. This is being aptly called the ‘special Jensen grant’, after Jensen Huang, CEO, Nvidia.
The stock has grown, thanks to the demand for artificial intelligence (AI). With the demand for Nvidia’s chips surging, the company that works in the area of AI and digital twins to transform the industries of the world, has become the first chip manufacturer to touch a market cap of $2 trillion. It clearly believes in sharing its good fortune with its employees, and is therefore granting its staff a stock boost. It is reported that the company’s revenues in the fourth quarter, in February, were $22 billion, that is, 270 per cent more than the revenues during the same time last year.
As per a report by Business Insider, employees were informed of the grant of additional restricted stock units (RSUs) during their yearly performance reviews earlier this month.
The number of RSUs being granted to each employee will be determined by the share price of the firm. In March, the price closed on an average of about $898. This special grant will vest in equal instalments over a four-year period. The first portion will reportedly vest in September.
Many of the new joinees who have become part of the organisation recently were reportedly granted stock options worth $2,00,000. They will now receive $50,000 additional RSUs. That is not all. The company grants employees annual equity refreshers basis individual performance.
The company is reportedly granting these stocks so that even if the share prices fall at some point in the future, the employees will stand to gain.
1 Comment
It’s great to see Nvidia recognizing its employees with the ‘Jensen Special Grant’. Sharing profits in this manner fosters motivation and loyalty among the team. Well done, Nvidia!