In a remarkable testament to Nvidia’s explosive growth, the company’s 2024 performance has not only catapulted its stock but also transformed several of its long-serving board members into billionaires. This surge reflects the unprecedented demand for Nvidia’s chips, crucial for artificial intelligence technologies, and has positioned the company’s board among the top wealthiest in the world.
Nvidia’s impressive 171% stock rise in 2024 made it the second-best performer on the S&P 500 Index, driven by its pivotal role in powering AI innovations. This performance has significantly boosted the fortunes of its board members. According to the Bloomberg Billionaires Index, Tench Coxe, a board member since the company’s early days, has amassed a fortune of US$5.4 billion, making him the third-largest individual shareholder with over 32 million shares.
Mark Stevens, another veteran board member, boasts a net worth of US$9.3 billion, placing him as the 298th-richest person globally. Harvey Jones, with a US$1 billion stake, joins this elite group, having sold over US$300 million in shares.
The creation of multiple billionaires from a company’s board is a rare feat, typically seen among founders or family dynasties, rather than directors. Felipe Cabezon, a finance professor at Virginia Tech specializing in executive compensation, explained, “What we observe here is a unique case of wealth creation through strategic growth and performance incentives, rather than compensation schemes.”
Nvidia’s board members have been integral to the company’s strategy for more than three decades, aligning their success with that of the firm. “It’s a story of perseverance and strategic alignment with company goals,” Cabezon added.
Jensen Huang, Nvidia’s CEO, is a testament to this success, with his net worth skyrocketing to US$114.4 billion, making him the 12th-richest person globally. His wealth increased by over US$70 billion in 2024 alone.
The potential for further expansion of Nvidia’s billionaire club looms, as Brooke Seawell, another long-term board member, holds a nearly US$700 million position. His continued involvement since 1997 places him on the cusp of joining his fellow directors in the billionaire ranks.
Boards like Nvidia’s are an anomaly in their wealth concentration from company growth rather than external ventures. For instance, Tesla’s board, the wealthiest globally, with a combined net worth exceeding US$442 billion, includes members with diversified wealth sources beyond the company.