Stock Prices Have Soared 350% Since Hiring
Up to Four Years to Receive Full Compensation
Turnover Rate Plummets from 5.3% to 2.5%
The artificial intelligence (AI) boom has sent the corporate value of major semiconductor manufacturers soaring, turning stock compensation into "golden handcuffs" for employees, according to recent analysis. As the competition for talent intensifies, semiconductor companies such as Nvidia, AMD, and Broadcom have adopted stock-based compensation systems similar to those used by Amazon and Google. As a result, employees now expect substantial stock rewards, making them less likely to move to other companies easily.
On October 26 (local time), Business Insider (BI) reported that the wages of semiconductor industry employees, whose compensation is linked to stock prices, have risen significantly due to the AI boom.
Restricted Stock Units (RSUs) are a system in which a company grants shares to employees in installments (vesting) after a certain period. Employees must remain with the company for the specified period to receive all the shares; if they leave early, they forfeit the unvested stock, resulting in a loss for those who switch jobs quickly. The recent sharp rise in the stock prices of semiconductor companies such as Nvidia, AMD, and Broadcom has further increased the potential future gains compared to when employees first joined.
One Nvidia employee told BI, "Leaving before my stock fully vests would be very costly," adding, "Even if I wanted to resign now, I don't think I could demand the same compensation from another company."
A former Broadcom employee was laid off last year and received vested stock worth about $500,000 (approximately 70 million won) at current value, but lost unvested RSUs. Had the person remained at the company until now, the value of the stock that would have been received would be about $3 million, meaning a loss of $2.5 million in stock value.
On top of that, there has been a massive surge in stock prices. According to the U.S. salary comparison platform Levels.fyi, the value of stock received by some Nvidia employees hired in 2023 has increased by more than 350% since their employment. For example, stock worth $488,000 granted to a Nvidia employee in 2023 is now valued at over $2.2 million. A Broadcom employee who received RSUs worth $66,000 in 2023 now holds stock valued at about $265,000.
A former Broadcom employee said, "RSUs are golden handcuffs," adding, "No one would consider resigning now to pursue other opportunities."
This is a strategy that big tech companies such as Amazon and Google have used for years to retain employees. High salaries alone are not enough to keep top talent for the long term. In recent years, the stock prices of AI semiconductor companies such as Nvidia, Broadcom, and AMD have outpaced those of major big tech firms, prompting these companies to adopt similar retention strategies. Some employees reportedly need to wait up to four years to receive their full stock compensation.
In fact, the adoption of such systems in the semiconductor industry has significantly increased employee tenure. In its annual sustainability report, Nvidia stated, "RSUs promote employee retention," noting that its turnover rate dropped from 5.3% in 2023 to 2.5% in 2025, less than half. Twenty percent of Nvidia employees have worked at the company for more than 10 years, and 40% for more than five years. Nvidia CEO Jensen Huang has even claimed that he has produced more billionaires than any other CEO in the world.
Broadcom announced that its global voluntary turnover rate was only 6.2% last year, lower than the technology industry average. Broadcom also described stock compensation as a "powerful long-term retention incentive."
Meanwhile, since the value of stock held by long-term employees is much higher than that of new hires, this compensation gap is sometimes openly discussed within companies. While some argue that holding more valuable stock increases loyalty to the company, one semiconductor industry employee pointed out that certain managers with high-value stock from long-term tenure are simply coasting while holding onto their shares.
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