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After a decade of unchanged compensation, Nvidia CEO Jensen Huang has received a substantial 49% base salary increase amid the company's AI-driven market dominance and explosive revenue growth.
Key Takeaways
- Jensen Huang's base salary increased by 49% to $1.5 million, his first raise in 10 years
- His total compensation package reached $49.9 million, including $38.8 million in stock awards
- The compensation committee cited internal pay equity and peer alignment as reasons for the increase
- Nvidia reported 114% revenue growth in fiscal 2025, reaching $130.5 billion
- Huang's personal wealth from his Nvidia shareholdings is estimated at approximately $94 billion
- The median Nvidia employee earned $301,233 in fiscal 2025, creating a CEO-to-worker pay ratio of 166:1
- Despite the impressive compensation package, Huang ranks as the 17th wealthiest person globally
Breaking a Decade-Long Salary Freeze
After maintaining the same base salary for a decade, Nvidia CEO Jensen Huang has received his first significant pay increase since 2015. According to a proxy statement submitted to the SEC on Thursday, Huang's base salary has increased to $1.5 million, marking a 49% rise from his previous salary of approximately $996,514. The compensation committee deemed this adjustment appropriate to ensure internal pay equity with other senior executives and to better align with peer company CEOs.
This salary increase comes at a time when Nvidia has established itself as one of the world's most valuable enterprises. The company's market capitalization has grown dramatically from $10.47 billion in late January 2015 to $2.94 trillion in early February 2024, representing a 281-fold increase. Briefly in mid-2024, Nvidia even claimed the title of the world's most valuable publicly traded company.
The Full Compensation Picture
While the base salary increase is notable, it represents just a fraction of Huang's total compensation package. His performance-related cash compensation also increased by 50% to $3 million, with his target variable cash opportunity remaining at 200% of his base salary. The most substantial component of his compensation comes from stock awards, which surged to $38.8 million, bringing his total annual compensation to $49.9 million.
The compensation committee raised Huang's total target pay by $7 million to align more closely with the median of peer company CEOs. His base salary now aligns with the 75th percentile of peers, while his target equity opportunity increased by 25% to $27.5 million, positioning it slightly above the median of peers.
Additionally, Huang's compensation for 2025 included $3.5 million allocated for residential security, consulting fees, and driver services, an increase from the $2.2 million reported for these expenses in the preceding year.
Nvidia's Explosive Growth Under Huang's Leadership
The salary increase comes amid Nvidia's remarkable performance in the AI chip market. The company reported a staggering 114% increase in revenue for the 2025 fiscal year, reaching $130.5 billion. This growth has been largely driven by the company's graphics processing units (GPUs), which power the most advanced artificial intelligence models and tasks.
Nvidia's stock price has reflected this success, soaring more than ninefold from the end of 2022 to the end of the previous year. However, the company has experienced some volatility in 2025, with its stock declining about 15% year-to-date, resulting in a nearly $16.5 billion reduction in Huang's net worth over the year.
Despite this recent dip, Huang's wealth remains substantial. As of May 1st, he ranks as the 17th wealthiest individual globally, according to the Bloomberg Billionaires Index, with a net worth of nearly $98 billion. This wealth primarily stems from his approximate 3.5% ownership in Nvidia, estimated to be worth around $94 billion.
Employee Compensation and Industry Comparisons
While Huang's compensation package is substantial, it's worth noting that Nvidia employees are also well-compensated. According to an SEC filing, the median Nvidia employee made $301,233 in fiscal year 2025, resulting in a CEO-to-median-employee pay ratio of 166:1. This compares favorably to some other tech giants; for instance, Google's parent company Alphabet reported that the typical Google employee makes a comparable amount, with a median salary of $331,894 in 2024.
Huang's updated salary now aligns more closely with those of other executives in the semiconductor industry, such as Broadcom CEO Hock Tan and AMD CEO Lisa Su. In comparison, Google CEO Sundar Pichai's compensation package is more modest relative to employee pay, with Pichai making 32 times more than a mid-level employee at the company, with an annual compensation of $10.7 million last year.
Nvidia's approach to executive compensation reflects the company's strong performance and its position as a leader in the AI chip market. As the company continues to drive innovation in artificial intelligence and other cutting-edge technologies, it will be interesting to see how its compensation strategies evolve to attract and retain top talent at all levels of the organization.
Nvidia's remarkable growth trajectory and Huang's increased compensation package highlight the critical role of AI hardware in today's technology landscape and the premium placed on leadership in this rapidly evolving sector.
