Nvidia Employees in Israel Fear Stock Plunge Amid CEO Scandal
Translated & summarized from N12 by baba
Nvidia's Israeli employees, numbering around 6,000, are facing significant paper losses on their stock options due to a recent 30% drop in the company's share price. The decline follows revelations of CEO Jensen Huang's extramarital affairs, leading to concerns about his leadership and the company's future. Many employees who became millionaires through stock awards are now seeing their wealth diminish, with some losing hundreds of thousands of dollars.
The story in 5 lines · by baba
- Nvidia's Israeli employees fear stock option losses after a 30% share price drop.
- CEO Jensen Huang's extramarital affairs triggered the company's stock decline.
- Around 6,000 Nvidia employees in Israel have seen paper losses of hundreds of thousands of dollars.
- Huang was a respected CEO known for generous bonuses and employee appreciation.
- Nvidia's compensation in Israel includes substantial stock awards and purchase plans.
Nvidia's approximately 6,000 employees in Israel are reportedly concerned about the value of their stock options and equity awards following recent turmoil at the company. Many of these employees have become millionaires over the years due to the significant rise in Nvidia's stock price, driven by the AI revolution. However, recent declines have erased hundreds of thousands of dollars on paper for some.
The crisis stems from revelations that CEO Jensen Huang had an extramarital affair with Alice Huang, whom the US government identifies as a Chinese intelligence agent. Additionally, it has been revealed that Huang had another affair with Kimberly Powell, a senior vice president of health products within the company. Since the scandal broke, Nvidia's stock has dropped approximately 12%, and from its early October peak, it has lost about 30% of its value.
This stock market downturn has led to significant paper losses for many Nvidia employees in Israel, with some junior employees losing hundreds of thousands of dollars and a few with larger holdings losing millions. Beyond the financial impact, employees are also worried about potential shifts in the company's standing and leadership in Israel, particularly with the departure of Huang, who was considered a respected figure and a generous employer.
Nvidia has historically rewarded its Israeli workforce generously. Huang himself was known for sending appreciation messages, communicating directly with senior staff, and notably, providing a bonus of around $10,000 to each employee during the Swords of Iron war. Employees also benefit from extra paid time off, referred to as "Jensen's vacation." The company's compensation structure in Israel includes a substantial stock component, with senior hardware and software engineers earning significant monthly salaries that include stock-based compensation alongside cash.
Nvidia offers various equity awards, including Restricted Stock Units (RSUs) and Performance Stock Units (PSUs), as well as an Employee Stock Purchase Plan (ESPP) that allows employees to buy company stock at a discount. Despite a decrease in the number of restricted shares allocated to employees in the last fiscal year compared to the previous two, employees purchased millions of shares during that period.
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