Those who work at Nvidia often get much more than just their salary, namely shares. But wealth has a price, and hardly anyone quits.
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How successful is Nvidia now? In recent years, the US company has experienced a steep rise from an already important manufacturer of chips for graphics cards to the global market leader for AI data centers. It is this boom that has recently made the company the most valuable in the world. That is why we recently reported: Anyone who had invested just 100 euros in Nvidia shares at the beginning of Covid-19 could buy the best graphics card for more than 2,000 euros today
How do Nvidia employees become millionaires? Nvidia’s approximately 76,000 employees have the option of receiving part of their wages in another way, namely in the form of shares as part of the so-called Employee Stock Purchase Plan (ESPP). 1 to 15 percent can be converted into discounted share purchases according to a set system.
Nvidia’s market value has increased almost tenfold, especially since the beginning of 2021 (via boerse.de). The employees’ share portfolios have also developed accordingly. You can find the details of the ESPP on the Nvidia homepage.
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Nvidia’s golden handcuffs
Do we know exact numbers? No, we cannot say exactly how many Nvidia employees are millionaires or even multiple millionaires. There is a survey on teamblind in which more than 3,000 people have taken part. The results, which were also posted by a Finance-X account, suggest that more than 50 percent of the respondents are millionaires. But it is unclear to what extent only Nvidia employees took part. Nevertheless, the numbers are not unrealistic for the reasons stated above.
That sounds like a paradise for employees, doesn’t it? It is difficult to say to what extent working at Nvidia is fulfilling for the individual, apart from the apparently excellent pay, but there are reports that suggest a downside. As Bloomberg writes, considerable overtime is required and stress is part of everyday work. Many even report seven-day weeks with more than five meetings a day, which can sometimes last until the early hours.
Nevertheless, Nvidia manages to retain its employees – and does so with above-average success. The proportion of staff who leave the company and have to be replaced by new staff is, on an annual basis, far lower than is usual in the industry: only around three percent. It is normal to have to replace almost one in five employees each year.
That’s why people in the industry like to talk about the golden handcuffs that companies that operate in this way put on their rich employees. No one wants to leave, even if they are unhappy and have little time to spend their money. The desire to accumulate more money prevails – especially in a system with so few government safeguards as in the USA.
But even if you don’t own Nvidia shares and certainly don’t work there, Nvidia’s successful chips still affect you. Because AI upscaling technologies like DLSS are the result of the same basic research as data centers: Intel, AMD and Google have no chance against Nvidia – That’s why you as a gamer should be interested in the AI arms race