finance fun fact

Nvidia's ESPP (Employee Stock Purchase Plan) is insanely generous The recent run up in Nvidia’s stock price has apparently made buying a Home in Santa Clara, which is where Nvidia is HQ’d, “Nearly Impossible Right Now” But wait until you hear about their ESPP, or Employee Stock Purchase Plan, because it’s absolutely bonkers. From what I gather, new employees can contribute up to 15% of their salary to the ESPP. But the sweetener is there’s a “look-back” mechanism of 24 months. This means when an employee joins, they can look back 24 months and use the stock price on that day for their future ESPP purchases. For example, let’s say a fresh college grad is planning to join Nvidia this summer and opts into the ESPP right away. Instead of purchasing Nvidia stock at whatever the price is, let’s say July 1st 2024, they’d be buying shares at July 1st 2022’s price, which is $145. And if that wasn’t enough, Nvidia also applies a 15% discount to that. It looks like the look-back mechanism expires after 2 years of employment though, but the 15% discount is for all employees, forever. And you wonder why “Rest and vest” is in the Silicon Valley lingo. $NVDA DISCLAIMER: All information is given for educational purposes and is not financial advice. I do not provide recommendations and am not responsible for investment actions. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results. Explanations are not guaranteed to be error-free. #Nvidia #ESPP #EmployeeStockPurchasePlan #SiliconValley #StockOptions #EmployeeBenefits #TechIndustry #SantaClara #HomePrices #EmployeePerks #StockPurchase #LookBackMechanism #InvestmentStrategy #CompanyCulture #EmployeeRetention #TechJobs