Form 4: NVIDIA Director Aarti S. Shah Receives Stock Grant

NVIDIA director Aarti S. Shah received a grant of 2,088 restricted stock units as part of her annual compensation for board service.

Summary

• Aarti S. Shah, a director at NVIDIA, received 2,088 restricted stock units on June 27, 2024.
• These shares were granted as part of her annual compensation for serving on the Board of Directors.
• The restricted stock units were awarded for no consideration.
• The shares will vest in two tranches: 50% on November 20, 2024, and the remaining 50% on May 21, 2025.
• If Ms. Shah's service as a director terminates due to death, the grant will immediately become fully vested.
• The share amounts have been adjusted to reflect a ten-for-one forward stock split that occurred on June 7, 2024.

Sentiment

Score: 7

Explanation: The document reflects a routine compensation practice, which is generally positive for aligning director and shareholder interests. There are no negative implications.

Positives

• The grant of restricted stock units aligns the director's interests with those of the shareholders.
• The vesting schedule encourages continued service on the board.
• The immediate vesting upon death provides security for the director's estate.

Industry Context

This type of stock grant is a common practice for compensating board members in publicly traded companies, aligning their interests with those of shareholders.

Comparison to Industry Standards

• Stock grants to directors are a standard practice across the technology industry, with vesting schedules typically ranging from one to four years.
• The vesting schedule of 50% after approximately 5 months and the remaining 50% after approximately 11 months is relatively short compared to some other companies, which may indicate a desire to quickly align the director's interests with the company's performance.
• Companies like Apple, Microsoft, and Google also use stock grants as part of their director compensation packages, often with similar vesting terms.

Stakeholder Impact

• The stock grant aligns the director's interests with those of the shareholders, which is generally positive.
• The vesting schedule encourages the director's continued service, which benefits the company and its stakeholders.

Key Dates

Keywords

NVIDIA, Director, Stock Grant, Restricted Stock Units, Board of Directors, Vesting, Compensation, Form 4