The grant is in addition to any annual equity refreshers employees receive each quarter based on individual performance. The initiative is seen as a way to ensure employees continue to benefit even if the share price falls in the future. Nvidia's stock has risen by over 200% in the past year, making it the third-largest company by market value, behind Microsoft and Apple. Despite this, the company's stock dipped by 5% on Tuesday as competition in the AI chips market intensifies.
Key takeaways:
- Nvidia is increasing employee compensation with a stock grant named the 'Jensen special grant', which awards an additional 25% of the initial stock grant given to employees.
- The grant will vest over four years, with the first portion coming in September.
- The decision comes after Nvidia's stock has soared by more than 200% over the past 12 months, making it one of the most valuable companies in terms of market value.
- The company could potentially become the world's first $6 trillion company if it follows Cisco's trajectory during the dot-com bubble, according to Jeremy Siegel.