Huang’s net value five years ago was $ 3.73 billion. He now has more than $ 92 billion, although he had a peak of $ 119 billion earlier this summer, according to the report.
Plan 10b5-1
Huang’s recent sale of shales is within the framework of a 10B5-1 plan, Fortune reported. Plan 10B5-1 is a pre-programmed negotiation agreement intended to avoid the offense of initiate.
While he followed the legal procedures, investors thought that something could happen within the company when he chose to sell after a period of high performance, then a drop, according to the report.
Uncertainty about the future of the company
According to corporate governance expert Nell Minow, his actions do not seem beautiful, Fortune reported. “This indicates that the stock has jumped enormously and that they become a little nervous about it,” said Fortune. “It is certainly worrying for investors; We wonder: “Well, I may have to sell mine too. What do they tell me? If they do not have confidence in the stock, then why should I? »» The sale of Huang is not new. Last year, he sold $ 117 million in shares, but the sale of $ 323 million this year in July made the heads. Analysts are particularly concerned about the fact that Huang’s continuing sale after a performance of such high shares sends mixed signals to shareholders.
Another view
James Reda, director general of the HR of Gallagher de Chicago, is from another point of view. Reda argued that the sale in small pieces would simply reduce market disturbances and that the equity prices would therefore not be injured by his movements, said fortune. Huang’s sales of action follow a 10B5-1 public plan and ensure that the market is not blinded by the influx of shares.
Too much
In the Nvidia file in 2024, he revealed that CEO Jensen Huang received a salary of $ 996,514, more scholarships worth $ 26 million and $ 4 million in yield incentives, said fortune. Consequently, Huang’s total remuneration is around $ 34.17 million. Before starting to sell stocks this spring, Huang held more than 93 million NVIDIA shares, which is equivalent to 3.79% of the company.
This is a sign that Huang received too much stock, according to Minow. “Huang’s actions should be locked in” gold handcuffs – which means that it can only sell after years after leaving the business, “said Fortune.
Minow said it was time for Nvidia to stop granting more stock Huang because it already has a large amount. She said “that is why he gets rid of it,” said Fortune.
Necessary transparency
According to Minow, there is a possibility of improving the Board of Directors of Nvidia. She noted that out of the 12 members, only one has an expertise in corporate governance. The company should be more transparent as to its plans for a successor to the CEO, since managers cannot lead forever, Fortune reported.
Even other experts want more transparency from the company. Aalap Shah, Managing Director of Pearl Meyer, underlined the need for more transparency of the planning of the succession through the market. According to Shah, clear planning of the succession is crucial for any incoming CEO and is essential for strong corporate governance, Fortune reported. Without this, companies are likely to make hasty decisions that can create volatility for investors.
Faq
Why does Jensen Huang sell so many Nvidia actions?
Huang sells actions via a schedule provided to avoid the initiate offense. However, the frequency of its sales after a wave of stock has let some investors wonder if he lost confidence in the future of the company.
How does Nvidia governance have an impact on investors?
Experts urge Nvidia to be more transparent, in particular on its succession plan. Clear planning of the future makes it possible to avoid uncertainty and gives investors more confidence in the long -term stability of the company.
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