Nvidia’s Huang Backs Higher Employee Pay After Question on Samsung Bonus Dispute

Nvidia Chief Executive Officer Jensen Huang said employees should be paid as much as possible when asked about Samsung Electronics Co.’s bonus system.

At a global media briefing at the Grand Hilai Taipei on June 2, Huang was asked how he viewed the recent issue surrounding Samsung’s performance bonuses. “I think employees should receive as much compensation as possible,” he said.

He added that Nvidia follows that approach. “Ask my employees. I actually do that.”

Nvidia is known for relying heavily on stock-based compensation, including restricted stock units, rather than cash bonuses. The structure links individual pay to long-term performance and gains in the company’s share price, aligning employee rewards with corporate growth. It also helps encourage talented workers to stay longer.

Fortune reported that Nvidia granted an average of about $150,000 in RSUs per employee last year.

South Korea’s chipmakers are also diversifying how they pay performance bonuses. SK Hynix Inc. and its labor union agreed in wage talks last year to remove the cap on its profit-sharing bonus program, known as PS, which is funded by 10% of operating profit. They also agreed to keep the system in place for 10 years. Cash remains the default form of payment, with an option to receive company stock.

Samsung Electronics, which had faced the threat of a strike, agreed to pay a special management performance bonus for its semiconductor division in company shares equal to 10.5% of operating profit. One-third of the shares can be sold immediately. Another third will be locked up for one year and the remaining third for two years.

Park Su-bin, Hankyung.com reporter, waterbean@hankyung.com