Nvidia is five times bigger than Tesla but Elon Musk gets 1300 times more money than Jensen Huang
FILE - Nvidia CEO Jensen Huang speaks at the Computex 2024 exhibition in Taipei, Taiwan, June 2, 2024. Nvidia passed Microsoft on Tuesday, June 18, 2024, to become the most valuable company in the S&P 500. (AP Photo/Chiang Ying-ying, File)
NVIDIA shareholders on Wednesday, June 26, approved the compensation package of CEO Jensen Huang, who reportedly earned $34.3 million in the 2024 fiscal.
Interestingly, Huang's salary is among the lowest for a US tech CEO, especially considering NVIDIA was briefly the most valuable company in the world last week.
In contrast, Tesla's maverick CEO Elon Musk, who commands an eye-watering $46 billion after his pay package was approved by shareholders at the company's AGM on June 14, heads a company that is worth a relatively trifling $619.6 billion.
Huang was granted a total compensation package of $34.2 million for the fiscal year ending in January 2024, marking a 60% rise from the previous year's $21.4 million.
The package comprised $26.7 million in stock awards, $4 million in cash bonuses, and $2.5 million for additional expenses like security and transportation services.
Huang's 2024 compensation also featured a $1 million base salary and cash and stock incentives tied to performance targets.
Additionally, he may have received restricted stock units (RSUs) to enhance his wealth as they vest and convert to common stock over time.
Here's the clincher: it is about 0.074% of Musk's pay package, which is mind-boggling considering that Huang is the CEO of the world's third most valuable company, while Tesla is worth about $620 billion, making it the world's 13th most valuable.
A quick look at the pay packages of top US tech CEOs
| Company | CEO | Salary | Company's valuation | World Rank |
| Tesla | Elon Musk | $46 billion | $619.6 billion | 13 |
| Alphabet | Sundar Pichai | $280 million | $2.29 trillion | 4 |
| Apple | Tim Cook | $63.2 million | $3,28 trillion | 2 |
| Microsoft | Satya Nadella | $45.5 million | $3.36 trillion | 1 |
| NVIDIA | Jensen Huang | $34.2 million | $3.06 trillion | 3 |
| Amazon | Andy Jassy | $29.2 million | $2.02 trillion | 5 |
| Meta | Mark Zuckerberg | $24.4 million | $1.23 trillion | 7 |
Breaking down the numbers
Sundar Pichai: In 2023, Pichai's annual base salary was $2 million. His total compensation package, encompassing stock awards and incentives, is estimated to reach approximately $280 million.
Satya Nadella: As per a proxy statement filed with the Securities Exchange Commission in 2023, Microsoft reported that Nadella's total annual compensation was $48,5 million. The 2023 package comprised a $2.5 million salary, stock awards valued at $39,2 million, non-equity incentive plan compensation of $6.4 million, and additional compensation totalling $361,650.
Mark Zuckerberg: In a proxy filing statement unveiled ahead of the annual shareholder meeting in May, it was disclosed that Meta founder Mark Zuckerberg received $24.4 million in "other compensation," with a notable portion allocated to cover his security expenses. His base salary is $1.
Tim Cook: The CEO of Apple maintains a base salary of $3 million, a figure unchanged since 2016. In 2023, Cook, leading the second most valuable US company, received a total compensation of $63.2 million.
Andy Jassy: Amazon CEO Andy Jassy's total compensation for 2023 amounted to $29.2 million, encompassing his base salary, the value of vested shares throughout the year, and security expenses, as per a recent filing by the company.