Abstract:
Huang Renxun, who resigned as Nvidia CEO, cannot freely dispose of even the 3.58% Nvidia shares he holds. Although he is Nvidia's largest individual shareholder, the vast majority of his shares are placed in a trust jointly managed by him and his wife, Lori Huang. Selling stocks and exercising voting rights actually require Lori Huang's consent.
According to documents submitted by NVIDIA to the U.S. SEC on the 12th local time, Huang Jenxun and Lori Huang indirectly held related assets through a trust established in 1995 and multiple entities, including the "Huang Renxun-Lori Huang Living Trust", two irrevocable trusts and six limited liability companies. As of March 23, Huang Renxun’s actual related holdings totaled 870.6 million shares of Nvidia stock, of which 669 million shares were classified into three family trusts, with the couple as co-trustees. There are only 70.1 million direct shares registered in his name, with a market value of approximately US$12 billion. The sale rights and voting rights of the 669 million shares in the trust are jointly held by the couple. It is common practice for wealthy people to put their shares into trusts for tax planning and asset management, but this kind of structure in which they share ownership and voting rights equally with their spouses is very rare.
It is worth noting that Lori Huang holds a leading position in their family foundation. She serves as the chairman of the "Huang Renxun-Lori Huang Foundation", and Huang Renxun only serves as secretary and chief financial officer. As of the end of 2024, the foundation has assets of approximately US$9.2 billion, including 58.7 million Nvidia shares. According to media reports, Lori Huang also separately manages another trust and holds Nvidia shares worth approximately US$5 billion.
U.S. media pointed out that this complex trust structure will make Huang Renxun’s asset disposal difficult. Market analysts believe that the possibility of the couple concentrating on selling large amounts of shares and triggering a plunge in stock prices is low.
But if the two get divorced, a "century-level asset division" may be staged. Since there is no prenuptial agreement, Lori Huang's share of assets can reach up to US$75 billion to US$77.5 billion. Even if assets are divided in a divorce, Nvidia shares are unlikely to flood the market immediately. Leslie Evans, a lawyer at asset management law firm Withers, said: "Even if the shares in the trust are divided, the relevant sale restrictions will still be in effect. One option is for Huang Jen-Hsun to retain the shares and pay his wife cash or other assets as compensation." At present, Lori Huang has not issued any separation or divorce-related announcements.
According to media reports, Huang Renxun gave up equity incentives worth approximately US$108 million when he resigned from Nvidia. This part of the equity is granted subject to continued employment and will automatically expire upon resignation. Media estimates put Huang’s total wealth at approximately US$144.5 billion.
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