Nvidia staff works 7 days a week till 2 am, but 'golden handcuffs' stop them from quitting

A new report has revealed that employees working at AI chipmaker Nvidia despite facing extremely stressful conditions are not quitting, thanks to the hefty pay packages. They often work seven days a week and until 2 am. Ten people who spoke to Bloomberg said the staff works in a pressure cooker environment. However, the company has one of the lowest attrition rates worldwide.

Most of them attend endless meetings, sometimes over 10 a day, with people ending up howling and shouting in there, a former marketing employee at Nvidia told Bloomberg News. However, what stops them from leaving are the "golden handcuffs," the ex-staffer said.

Based in Santa Clara, California, the company gives its employees stock grants that typically vest over a four-year period. It sells semiconductors used to power artificial intelligence technology, which has led to a massive growth in its stocks.

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Nvidia’s stock has surged by 3,776 per cent by 2019, which means that every employee who has been a part of the company for the past five years has turned into a millionaire by now.

According to the Bloomberg report, the stock compensation package has turned out to be a powerful incentive for the staff who are ready to endure the harsh surroundings at work.

Lowest attrition rate

Nvidia's attrition rate is the lowest in the semiconductor industry. Last year, 5.3 per cent of employees left the company.

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But the attrition rate fell further to just 2.7 per cent after the company’s market capitalization exceeded $1 trillion. As per Nvidia, the rate of employee turnover in the industry is 17.7 per cent.

A former Nvidia engineer told the publication that people who have been working with the company for over 10 years have enough money to retire. However, a carrot is dangling in front of them and they are racing to get it. A larger windfall awaits them when the next stock grant vests, and so they continue to work.

He talked about how several staff members have been buying luxurious vacation homes and even managed to get their hands on expensive Super Bowl and the NBA Finals tickets. You can also spot Porsches, Corvettes and Lamborghinis in the parking lot of the company.

A real estate agent told Bloomberg that several Nvidia employees put down 40 to 60 per cent of down payments on homes worth millions of dollars.

Nvidia has not commented on the report.