Jensen Huang to forfeit $108 million in unvested Nvidia shares after exit: Report

Jensen Huang stands to lose about $108 million in unvested Nvidia equity compensation following his departure from the company. However, the amount represents only a small portion of his estimated $144.5 billion fortune, according to the Bloomberg Billionaires Index.Jensen Huang will lose $108 million in unvested Nvidia shares following his departure. REUTERS/Nathan Howard/File Photo (REUTERS)The forfeited compensation accounts for roughly 0.07% of his net worth. Huang's departure comes after revelations about two extramarital affairs, bringing an end to his time at the Santa Clara, California-based chipmaker.Check the Nvidia live updates here.Nvidia's equity rules explain the forfeitureUnder Nvidia's equity compensation policy, executives lose their unvested restricted stock units (RSUs) when their continuous service with the company ends.Huang holds approximately 346,000 unvested units. He could also receive around 310,000 shares through Nvidia's equity incentive plan, provided the company meets certain performance targets.The forfeiture follows the company's rules on executive compensation rather than a separate financial penalty.Nvidia shares make up most of Huang's wealthUnlike several other technology executives, Huang's fortune comes primarily from his ownership of Nvidia shares rather than stock options or other equity awards.He controls approximately 3.5% of the company's voting stake. Nvidia shares account for nearly 97% of his estimated wealth, according to Bloomberg's index. The company has a single class of shares, meaning Huang does not have additional voting privileges.The 63-year-old co-founder received around $7.5 million in cash compensation in each of the past two years. That amount represents only a small fraction of his overall fortune.Nvidia stock decline hits his fortuneHuang's exit also had an immediate impact on his wealth through Nvidia's falling share price. The company's stock dropped as much as 14% during trading in New York following Thursday's announcement.By noon, his net worth had declined by approximately $7.4 billion, a far larger financial hit than the $108 million in unvested equity he stands to forfeit.