The Nvidia Way: Jensen Huang and the Making of a Tech Giant

by Tae Kim

To avoid the “equity cliff” (when engineers depart after their stock packages have fully vested over the industry-standard four years), Nvidia offers annual refresher grants. If an employee receives an “outperform” rating from his or her manager, that employee may be awarded an additional three hundred shares that vest over the next four years. In theory, employees can receive these refresher grants every year—more and more reasons to remain with the company. Another wrinkle is the TC, or “top contributor,” designation. Managers can refer an employee for special consideration to senior executives. Jensen will review the list of TC candidates and give out special one-off grants that also vest over a four-year period. Once such a grant is approved, the employee receives an e-mail from a senior executive, with Jensen copied. The subject line says “Special Grant,” authorizing the RSU grant “in recognition of your extraordinary contributions,” with a clear description of the rationale behind the award. Jensen can also reach down into the organization at any time and award stock directly, without waiting for an annual compensation review. This allows him to ensure that people who are doing great work feel appreciated in the moment. It is yet another sign of his interest in every aspect, and level, of the company.