Chip giant|“Golden handcuffs” keep employees committed to Nvidia, even though the work culture is described as exhausting in Bloomberg’s story. CEO Jensen Huang, on the other hand, has been selling the company’s stock for hundreds of millions of dollars throughout the summer.
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Bloomberg’s article describes Nvidia’s demanding work culture and CEO Jensen Huang’s management style.
Employees are often expected to work long hours and be uncompromising.
However, Huang’s demanding style is also praised, with a 97 percent approval rating on Glassdoor.
The value of Nvidia’s stock has increased significantly, which has made many employees multi-millionaires.
Seven day workweeks, days stretching into the early hours of the morning and bidding contests. Among other things, this is how it is described news agency Bloomberg in the article about stock market rocket Nvidia’s work culture.
According to the ten employees interviewed by Bloomberg, there is a “culture problem brewing” in the company.
The employees interviewed by the news agency say that the CEO Jensen Huang has built a work culture in the company where employees are expected to be uncompromising and to work significant overtime.
The company’s structure is described as chaotic, because one supervisor can have dozens of direct subordinates.
According to the news agency, Huang himself has 60 direct reports, which, according to one former employee interviewed by the news agency, could lead to a situation where the CEO’s subordinates should fight for his attention instead of promoting the company’s general interest.
Bloomberg’s according to Huang, he has said that he would rather “torture employees to greatness” than fire them like many other tech companies.
According to the news agency, Huang has told the employees that he will push them to do their life’s work. On the other hand, the CEO said to the US program 60 Minutes that if you want to do extraordinary things, it shouldn’t be easy.
Despite this, the company’s employees seem to appreciate Huang’s demanding style, according to Bloomberg. The news agency says that on the Glassdoor website, which collects reviews of employers, his “acceptance percentage” is as high as 97, which is higher than many other CEOs of technology giants.
Second The factor in the satisfaction of Nvidia employees is probably money. The company’s share price has increased by around 700 percent by the end of 2022, and if the 2019 gear is taken as a comparison point, the increase has been a respectable 3,400 percent.
It means that the wealth of the employees in the company’s share bonus programs, and especially those who have been there longer, has accumulated a lot in recent years. Many have become multi-millionaires.
In his article, Bloomberg describes how luxury cars are lined up in front of Nvidia’s headquarters in Santa Clara, California. A former employee of the company says that he regularly saw coworkers browsing housing ads and talking about their new vacation homes.
According to the former employee, it is not at all unusual for the company’s employees to participate in very expensive sporting events such as the Super Bowl of American football or the finals of the basketball league NBA.
OP’s expert in international stocks and ETFs Joona Heinola states that the enormous expectations surrounding the company’s recent results announcement show how enormous the pressure to perform within the company is at the moment.
“After all, there is certainly enormous pressure there so that this story would continue and Nvidia would not collapse. The pressure is intense, and it will certainly be passed down to everyone.”
Many the hard work culture does not seem to be a problem, and for others the so-called “golden handcuffs” are a good enough reason to stay in the company.
According to a former employee interviewed by Bloomberg, many of the people who have been with Nvidia for almost ten years could very well already retire financially.
However, many do not do so, because even the following share bonuses are worth millions.
According to Bloomberg, Nvidia’s stock bonuses are typically earned over a period of four years, meaning that the employee should stay with the company to receive the full bonus.
That’s why, according to the news agency, Nvidia hasn’t had any trouble keeping its employees in recent years.
Based on media reports, one of the reasons why Nvidia’s competitor AMD wanted to buy the Finnish artificial intelligence company Silo AI was how difficult it is to lure artificial intelligence experts away from Nvidia’s service.
“As long as the company can keep its employees and attract new talent from elsewhere, it will bode well for the company,” says Heinola.
One One of the biggest individual beneficiaries of Nvidia’s success is CEO Huang, whose fortune has risen to more than $100 billion according to Bloomberg’s billionaire list.
The rise has been rapid, as the value of Huang’s assets has increased by almost 60 billion dollars during the current calendar year alone.
During the summer, Huang has realized his holdings at a fast pace. Based on the US Securities and Exchange Commission’s SEC database, Huang has sold a total of 4.8 million Nvidia shares during the summer months. The total value of the summer’s share sales will be approximately 580 million dollars.
OP’s Heinola points out that Huang’s share sales have been made according to a pre-made sales plan in accordance with US market legislation.
According to the SEC’s statistics, Huang has sold a pot of 120,000 shares on the market almost every day during the summer months when the stock exchange is open.
In the plan, Huang has said that he will sell a total of six million shares, which means that the pot of 1.2 million shares is still presumably unsold.
Amount are large, but so is Huang’s share pot. Huang owns about 3.5 percent of Nvidia’s stock, bringing his total holdings to about $100 billion.
Compared to that, Huang’s summer sales volumes remain moderate. It could be, for example, an ordinary decentralization of holdings.
OP’s Heinola thinks that the negative reaction to Huang’s sales is softened by advance knowledge of the sales program and the spread of sales over a longer period of time.
“But the first reaction is always that it’s not at least a positive sign if the company’s CEO reduces his holdings.”