Form 4: NVIDIA Director Tench Coxe Reports Stock Award and Holdings

NVIDIA director Tench Coxe received a stock award of 2,088 shares and reported holdings of over 36 million shares through various trusts and plans.

Summary

• Director Tench Coxe received 2,088 shares of NVIDIA stock as an annual grant for board service.
• These shares are in the form of restricted stock units, vesting 50% on November 20, 2024, and the remaining 50% on May 21, 2025.
• The grant will fully vest immediately if Coxe's service as a director terminates due to death.
• Coxe's total holdings include 54,368 directly owned shares, 6,852,480 shares held by a profit-sharing plan trust, and 29,671,360 shares held by a personal trust.
• The share amounts have been adjusted to reflect a ten-for-one stock split that occurred on June 7, 2024.

Sentiment

Score: 7

Explanation: The document reflects a standard transaction of a director receiving a stock award, which is generally positive for alignment of interests. There are no negative implications.

Positives

• The grant of restricted stock units aligns the director's interests with the company's performance.
• The vesting schedule encourages continued service on the board.
• The large number of shares held by the director demonstrates a significant stake in the company's success.

Risks

• The vesting of the restricted stock units is contingent on continued service as a director.
• The director's indirect holdings are subject to the terms of the respective trusts and plans.

Future Outlook

The director's stock award will vest in two tranches over the next year, contingent on continued service.

Industry Context

This filing is a routine disclosure of a director's stock award and holdings, which is common practice for publicly traded companies like NVIDIA. It reflects standard compensation practices for board members.

Comparison to Industry Standards

• Stock awards are a common form of compensation for directors in the technology industry, aligning their interests with shareholders.
• The vesting schedule of the restricted stock units is typical, encouraging long-term commitment.
• The size of the director's holdings is substantial, which is not unusual for long-serving board members of successful companies like NVIDIA.
• Comparable companies such as AMD, Intel, and Qualcomm also use stock-based compensation for their directors.

Stakeholder Impact

• Shareholders may view the stock award as a positive sign of alignment between management and ownership.
• The vesting schedule encourages the director's continued service, which benefits the company.

Next Steps

• The director will continue to serve on the board.
• The restricted stock units will vest according to the schedule.

Key Dates

Keywords

NVIDIA, Director, Stock Award, Restricted Stock Units, Beneficial Ownership, Stock Split, Trust, Profit Sharing Plan