An NVIDIA employee who earns $250,000 dollars a year said that the earnings of the company’s employees «are not as rosy» as some might think. He told us anonymously Business Insiderthat while some NVIDIA employees may have to be lucky enough to become millionairesThis is not always the case. The publication checked the identity and wealth of the interlocutor.
A software engineer who joined the company a few years ago receives almost half of his base salary in the form of RSUs (restricted stock units, or flight shares).
«If you look at it from a distance and say that NVIDIA employees are millionaires, that’s absolutely true, but that million doesn’t go very far. Because the stock has gone through the roof, there is an expectation that everyone has made a lot of money. In reality, the RSUs you get are a major part of your exponential wealth growth, and not everyone is going to get a lot,— he says.
Even if some employees receive a lot of RSUs, not all of them will retain them.
«Ultimately, you will cash out your shares to meet your annual obligations for personal taxes, property taxes, and any other expenses,» he said.
NVIDIA, which employs about 26,000 people, has benefited greatly from the boom in generative artificial intelligence. Its shares have risen sharply over the past 12 months, making it the most expensive company after Microsoft and Apple. However, on Friday, NVIDIA shares fell 10% and are now worth almost $200 dollars below their March peak.
NVIDIA engineers are ranked from level 1 to level 8. The publication’s interviewee is a level 4. He said he is often asked on social media how much he earns. He argues that it is a misconception that all NVIDIA employees have a lot of money, as most of their wealth is held in stocks, and taxes take a significant portion.
The employee argues that in California, where NVIDIA has four offices, a million «is not a large» number because housing prices and the cost of living are generally high. He adds that «life happens», meaning there are always unexpected bills or expenses.
The largest purchase he made after he transferred some of his NVIDIA stock was a $250,000 down payment on his three-bedroom home, which was worth nearly $1.4 million in 2018.
There is also a cap on the number of share units that employees can receive. Even the most prominent employees are limited to receiving 50% of their base salary per year. This means that an NVIDIA employee earning $1 million a year cannot be considered rich in a place like San Francisco. According to the 2023 study, to be «wealthy», you need to have $4.7 million.
In addition, there is a big difference in the salaries of NVIDIA employees in the US and other countries. A software engineer in India who has a level three degree receives a base salary of about $19,000.
«I’m still happy with where I am and I’m glad I made it, but it’s not as rosy as it looks from the outside. I am very happy with the price at which NVIDIA shares are trading».
The stock’s rise has helped make CEO Jensen Huang one of the world’s richest men. He is ranked 21st in the Bloomberg Billionaires Index with a net worth of about $67 billion.