Nvidia has adopted a new variable compensation plan for fiscal 2027 that sets a target cash bonus of $4 million for CEO Jensen Huang, according to a regulatory filing on Friday. The plan, approved by Nvidia's compensation committee on March 2, ties executive cash bonuses to the achievement of specific revenue goals for the fiscal year ending January 31, 2027.
Key Takeaways
Nvidia has adopted a new variable compensation plan for fiscal 2027 that sets a target cash bonus of $4 million for CEO Jensen Huang. This comes after Nvidia reported better-than-expected results for the January quarter and forecasted current-quarter revenue above Wall Street estimates.
- Nvidia's new plan ties executive cash bonuses to specific revenue goals for fiscal 2027
- Jensen Huang's total compensation for 2025 was $49.9 million, largely driven by stock awards
- Nvidia reported better-than-expected results for the January quarter and forecasted current-quarter revenue above estimates
- The company expects fiscal first-quarter sales of $78 billion, plus or minus 2%
- Huang stated that recent investments in OpenAI and Anthropic are likely to be Nvidia's last
Huang's total compensation for 2025 was $49.9 million, driven largely by stock awards valued at $38.8 million, according to a regulatory filing in May last year. The filing comes after Nvidia reported better-than-expected results for the January quarter and forecasted current-quarter revenue above Wall Street estimates, underscoring expectations that heavy spending by Big Tech on artificial intelligence processors will continue.
The world's most valuable company said it expects fiscal first-quarter sales of $78 billion, plus or minus 2%. Meanwhile, at the Morgan Stanley Tech, Media and Telecom conference in San Francisco, Huang stated that Nvidia's recent investments in OpenAI and Anthropic are likely to be its last. He explained that once these companies go public, as anticipated later this year, the opportunity to invest closes.
Nvidia's relationship with both OpenAI and Anthropic has faced challenges recently. The investment in OpenAI finalized just last week as part of a $110 billion round came in at $30 billion, well short of an earlier pledge of up to $100 billion. Additionally, Anthropic's CEO Dario Amodei made controversial remarks comparing the sale of high-performance AI processors to approved Chinese customers to 'selling nuclear weapons to North Korea.'
Despite these challenges, Nvidia has been one of the biggest winners of the AI boom due to its graphics processing units (GPUs), which are essential for training models and running large workloads. The company is reportedly developing a new chip specifically for inference, with OpenAI expected to be one of the largest customers.
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