Five years ago, Huang’s net assets were $ 3.73 billion. He currently has more than $ 92 billion, but has decreased from the peak of $ 19 billion this summer this summer.
10B5-1 plan
Huang’s recent stock sales are under the 10B5-1 plan. The 10B5-1 plan is a program programmed in advance to avoid insider transactions.
While he followed the legal procedures, the investor, according to the report, chose to have a high share performance and later sold after dip, so that something could have happened in the company. I did it.
Uncertainty about the future of the company
Fortunately reported that his actions would not look good, according to Nell Minow, a corporate governance expert. “It shows that the stock is jumping very much and they are a little nervous about it,” Fortune quoted. “Investors are certainly concerned. We ask themselves:” Well, maybe I should sell me too. What are they talking to me? If you were not confident, why should I do it last year, but I sold $ 127 million in July? I changed. Analysts are particularly concerned that Huang continues to sell after such high stock performance has sent a mixed signal to shareholders.
Another view
James Leda, a manager of HR, a consultant gagarger based in Chicago, is another view. REDA reported that the sale in small chunks has claimed that stock prices will not be damaged by his movements to simply reduce market disturbance. Huang’s stock sales are not blinded by the inflow of stocks, in accordance with the 10B5-1 planning 10B5-1 plan.
There is too much stock
NVIDIA’s 2024 submission revealed that CEO JENSEN HUANG had paid a $ 4 million stock award for $ 996,514 salaries, $ 26 million, and a performance -based incentive. Therefore, HUANG’s total reward is about $ 34.17 million. Before he started selling this spring stock, Huang owned more than 93 million NVIDIA shares. This is equivalent to 3.79 % of the company.
This is a sign that HUANG has been given too many inventory according to the minow. “Huang shares should be trapped in” Golden Hand Cuffs “. In other words, Fortune quoted, saying that he can’t sell until he left the business. ”
MINOW stated that NVIDIA had a considerable amount of money, so it was time to stop awarding Huang More Stock. She said, “That’s why he has removed it.”
I need transparency
According to MINOW, the NVIDIA Board of Directors has a range of improvements. She pointed out that only one of the 12 members had a corporate governance expertise. Fortunately reported that the company should be more transparent in the plan of the successor of the CEO, given that the leader could not lead forever.
Even other experts want more transparency from the company. Aalap Shah, the manager of Pearl meer, emphasized the need for more transparency in continuous planning on the entire market. According to Shah, a clear inheritance plan is important for the next CEO and indispensable for powerful corporate governance. Without it, there is a risk that companies can make volatility for investors.
FAQ
Why Jensen Huang sells so many NVIDIA shares?
Huang sells shares through planned schedules to avoid insider transactions. However, some investors are wondering if he has lost his confidence in the future of the company, depending on his sales frequency after the rise in stock.
What will the NVIDIA governance affect investors?
Experts are particularly urging NVIDIA to be more transparent, especially in the inheritance plan. A clear plan in the future can help you avoid uncertainty and have more confidence in the company’s long -term stability.
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