Jensen Huang to forfeit $108 million in unvested Nvidia equity
The Nvidia co-founder's departure follows revelations of two extramarital affairs, causing a significant drop in the company's share price.
Nvidia Corp co-founder Jensen Huang will lose approximately $108 million in unvested equity compensation following his departure from the Santa Clara, California-based chipmaker, according to reports from The Economic Times and Hindustan Times.
The 63-year-old executive stepped down after revelations regarding two extramarital affairs. Under the company's equity compensation policy, executives forfeit unvested restricted stock units (RSUs) when their continuous service ends.
Huang holds around 346,000 unvested units. He could have received about 310,000 shares through an equity incentive plan if the company reached specific performance targets.
The forfeited amount represents a small fraction of Huang's total wealth. While the Bloomberg Billionaires Index estimates his fortune between $138.4 billion and $144.5 billion, his Nvidia holdings account for nearly 97 per cent of his net worth.
Following the announcement, Nvidia shares fell as much as 14 per cent in New York before closing down 4.3 per cent at $166.19. This decline resulted in a loss of more than $6 billion from Huang's net worth.
In the previous two years, Huang received roughly $7.5 million in cash compensation annually, a sum described as negligible compared to his overall fortune.