Nvidia adopts new variable compensation plan for CEO Jensen Huang; it has a footnote on what is said to be part of company’s pay-for-performance culture
Nvidia has reportedly introduced a new variable compensation plan for its CEO, Jensen Huang, for the fiscal year 2027. A report by the news agency Reuters cited a regulatory filing released last week to claim that the US-based chip giant has set a cash bonus target of $4 million for Huang. The plan, approved by Nvidia’s compensation committee on March 2, links executive cash bonuses to the company meeting specific revenue targets for the fiscal year ending January 31, 2027. This is another example of Nvidia’s pay-for-performance culture, in which bonuses depend on the company’s financial performance. It could be reduced or eliminated if the company fails to achieve the goals.
In 2025, Huang’s compensation package totalled $49.9 million, mostly in the form of $38.8 million in stock awards.
