Nvidia CEO Jensen Huang gets first salary raise in a decade

Nvidia CEO Jensen Huang has received his first salary increase in a decade, with his 2025 compensation package rising to $49.9 million. This increase is significant, as it marks a notable rise in his base salary, variable cash, and stock awards. The compensation committee's decision to raise Huang's base salary by approximately 50% to $1.49 million aligns with the median of peer company CEOs, reflecting internal pay equity and recognizing Huang's contributions to the company's success.

1. **Historical Context of the Raise**:
- Jensen Huang's salary had remained relatively stable for a decade, with his last significant increase occurring in 2015, when it rose by 19% to over $998,000.
- The recent raise brings Huang's salary more in line with his peers, such as Broadcom's CEO Hock Tan and Advanced Micro Devices' CEO Lisa Su.
2. **Nvidia's Performance and Huang's Compensation**:
- Nvidia has been performing exceptionally well, with revenue and operating income goals for fiscal 2025 being significantly exceeded.
- Huang's total compensation for 2024, which included stock awards, was $234 million, surpassing his base salary of $1.5 million increased to $1.49 million in 2025.
- The company's strong performance and Huang's role in driving this success likely influenced the decision to grant him a salary increase after a decade.
3. **Market Position and Future Outlook**:
- Nvidia is one of the world's most valuable companies, driven by its graphics processing units (GPUs) that are crucial for AI models.
- CEO Huang has been instrumental in positioning Nvidia at the forefront of the AI chip market, with the company forecasting a $3-$4 trillion AI infrastructure market by the end of the decade.
- Despite concerns about growth slowing, Huang remains optimistic about Nvidia's future, supported by the company's technological advancements and strong market demand.

The raise reflects Nvidia's success and acknowledges Huang's pivotal role in the company's growth, particularly in the AI sector. This increase is likely to motivate Huang to continue driving Nvidia's performance forward, as he remains deeply invested in the company's success through his significant stake.