According to a report published by Business Insider, there is a simmering feeling of unfairness among newer Nvidia staffers. During an internal meeting last month, frustrations were raised about established Nvidia executives operating in “semi-retirement” mode. Though we only have a rough sketch of the meeting content and discussion, the impression is that employees who have been at Nvidia for five or more years are so financially comfortable that they simply aren’t motivated to work very hard. In fact, most middle managers make $1 million a year — or more.
It is clear that longer-tenured employees at Nvidia can be very wealthy. Those with stock options will have seen their nest eggs balloon by as much as 1,200% in five years. Shares are currently valued at $488, and if we go back a little further, say ten years, we are looking at an incredible 12,000% increase in stock valuations.
Huang appealed to employee responsibility
Business Insider wrote that Nvidia CEO Jensen Huang had several things to say about the idea of “semi-retirement” mode employees working at the company. Firstly, he explained that those working within the green team must see the job as a “voluntary sport.” Here, Huang seems to appeal to senior workers’ passion, prestige, and pride in their work. Secondly, the Nvidia CEO suggested senior staff should act like a CEO of their own time, in an adult, responsible way.
We know that some must be feeling that the workload share, the stress, and the strain at Nvidia is not evenly distributed – that’s why the “semi-retirement” question made it to discussion at last month’s meeting. However, it is still clear that Huang has broad and strong support (and a 98% approval on Glassdoor). Instead of the CEO, Business Insider indicates that employees think the employee-centric culture at Nvidia is largely to blame. This, combined with a hands-off management style and the firm’s seemingly unassailable position in 2023, seem to contribute to extreme executive comfort and, some would say, complacency at the firm. We must also remember that employee comfort levels are also increased by knowing that the last formal job cuts and layoffs at Nvidia were 15 years ago – at the peak of the financial crisis.
To get further insight into the work culture at Nvidia, the source talked to 13 current Nvidia staff and two Human Resources professionals familiar with the company. Insiders said that there isn’t much outside competitive pressure felt from the likes of Amazon, Microsoft, et al. Another interesting line was that, at Nvidia, it is “harder to get fired than hired.” It was also claimed that even middle managers at Nvidia make $1 million per year.
However, one of the employees that Business Insider talked to said that Huang was more than firm in getting the message across regarding slacking. "Jensen's making a serious point, which is 'do your damn job,'" said a particularly charged-up employee.
Rocking the boat is risky
If nothing really changes after the aforementioned meeting, we wouldn’t be shocked. All’s well at the green team with massive revenue/income streams and hardly any increase in operating expenses. If it ain’t broke, don’t fix it, goes the popular proverb, and some would say Huang would be prudent not to rock the boat.
We know the Nvidia CEO is a driven personality and doesn’t rest on his laurels, so he probably expects others to feel the same. Business Insider notes that a common theme for the CEO at these all-hands meetings is that the stock market is very unforgiving, and Nvidia is living on priced-in-market expectations of consistently strong results.
