A survey involving over 3,000 of NVIDIA’s employees revealed that 76% of them were millionaires, and one in three had a net worth of over $20 million.
Everyone is talking about NVIDIA because in just a few years, it has experienced one of the fastest and most incredible corporate ascents, with a market capitalization exceeding $3 trillion. NVIDIA’s stock has appreciated by 3,776% since 2019, and working for the company can make you a millionaire.
The rise in the company’s stock value has created an uncommon phenomenon, turning many of its long-standing employees into millionaires. However, as revealed in a Bloomberg article, not everything is perfect inside NVIDIA.
Although they have become leaders in the AI chip sector, this has significantly increased the level of stress in their jobs, preventing some from fully enjoying their newfound wealth.
While it’s not unusual for a company’s financial success to make its employees millionaires, NVIDIA’s case remains remarkable. A survey conducted in June on the platform Blind, involving over 3,000 of the company’s 30,000 employees, revealed that 76% of them were millionaires, and one in three had a net worth of over $20 million.
The origin of these fortunes lies in the Employee Stock Purchase Plan (ESPP) that the company has offered over the last 18 years. This plan allows employees to allocate between 10% and 15% of their annual salary to purchase company stock. Employees who have participated in this plan for years, especially the more senior ones, have accumulated enough shares to drive to work in a Lamborghini instead of taking the bus.
The dark side of success
Extreme work pressure. Despite the financial prosperity, current and former NVIDIA employees have revealed to Bloomberg that the work culture at the company can be extremely demanding, even for those with millions in their investment portfolios.
A few months ago, NVIDIA’s CEO mentioned at a Stripe conference that he preferred “pushing employees to achieve greatness” rather than laying them off as other companies in the industry were doing. Perhaps Jensen Huang wasn’t joking. Ten NVIDIA employees told Bloomberg that they were expected to work seven days a week, with workdays extending until one or two in the morning and up to seven meetings a day.
A job with substantial rewards. Despite this demanding work environment, employee turnover at NVIDIA has significantly decreased as the company’s stock price has risen.
NVIDIA’s 2023 Corporate Responsibility Report reveals that the employee turnover rate that year was 5.3%. However, the 2024 sustainability report shows that, following the company’s record market capitalization, its turnover rate dropped to 2.7%, well below the industry average of 17.7%. Part of the success in employee retention is attributed to stock packages that vest every four years, motivating employees to stay with the company.
NVIDIA’s “golden handcuffs.” There is a specific term to describe when financial interests bind employees to their jobs despite work pressure: “golden handcuffs.” This is the case for many NVIDIA employees who feel “trapped” by the value of their stock and the potential to grow their wealth.
According to Bloomberg, the company’s CFO of the past 11 years, Colette Kress, controls a stock package valued at approximately $758.7 million. In contrast, her counterpart at Intel, Dave Zinsner, has a higher annual bonus, but his stock package is valued at $3.13 million. Jean Hu, AMD’s CFO since 2023, has a career path similar to Kress, with a stock package valued at $6.43 million. Who among them would have fewer reservations about leaving their company?
Jensen Huang has made them CEOs. Jensen Huang’s leadership style has proven unique, demonstrating closeness with his employees and a strong commitment to a culture of hard work. Some new employees complained that their more senior (and wealthier) colleagues had a more relaxed attitude.
However, in an internal meeting, Huang stated, according to Business Insider, that “working at NVIDIA is like a ‘voluntary sport,’ so each employee must act as the ‘CEO’ of their own time. These are decisions that adults must make.” Huang added that each person should be aware of their work and work as hard as they deem necessary, but always with responsibility.