Former Nvidia Advisor Claims $1 Billion in Stock Owed Due to 1993 Vesting Discrepancy

Claim of Unvested Shares

Eric Gullichsen, a former member of Nvidia's Technical Advisory Board, asserts he is owed approximately $1 billion in NVDA stock. This claim stems from a re-evaluation of his 1993 stock option grant, which he believes should have fully vested within one year, rather than the four years applied by Nvidia.

Vesting Schedule Discrepancy

Gullichsen's grant document, dated September 9, 1993, for 25,000 options, states that 'All shares shall vest upon the expiration of one year from Grant Date.' However, an April 1996 letter from Nvidia's CFO, Marcel Gani, indicated that 15,625 shares had vested, aligning with a four-year quarterly vesting schedule. Gullichsen calculates that the one-year vesting would have resulted in an additional 9,375 shares, which, after 480x in stock splits, would amount to 4.5 million shares.

Conflicting Documentation

The core of the dispute lies in conflicting documents. The signed option grant document specifies a one-year vesting. Conversely, an undated invitation letter signed by Nvidia CEO Jensen Huang mentioned a 'stock option of 25,000 which vests over 4 years.' The grant document also states that any discrepancy with its attached legal provisions 'shall be governed by the attached legal provisions,' which were not provided in Gullichsen's post.

Settlement Attempt and Outcome

Upon discovering the potential discrepancy, Gullichsen engaged legal counsel. After approximately a year of communication between his legal team and Nvidia's in-house and external counsel, the parties met. Gullichsen states that a settlement proposal for a 'far smaller' amount was made but was ultimately rejected by Nvidia.