Nvidia, Okta Lawyers Paid Joint $20 Million as Companies Push AI

Nvidia Corp. and Okta Inc. paid their top in-house lawyers more than $20 million collectively as the companies tackle issues tied to the growing market for generative artificial intelligence.

Timothy Teter, Nvidia’s general counsel, received more than $11 million in total compensation during fiscal 2024, up from $9 million in 2023, the chipmaker disclosed in a proxy filing Tuesday.

Okta’s new chief legal officer, Larissa Schwartz, collected nearly $9.1 million during that same period, the company disclosed in a proxy statement filed May 9. The San Francisco-based authentication software provider last year parted ways with its longtime former general counsel, Jonathan Runyan.

The companies have been embracing the demand for generative AI, a technology that touches on a host of legal issues from privacy to copyrights.

Nvidia, which created a graphics processor integral to the development of AI technology, is a chipmaker that within the past year has become one of the world’s most valuable companies. Okta is integrating generative AI technology into its authentication software platforms.

Teter in fiscal 2024 received nearly $9.7 million in stock awards and more than $1.3 million in cash, including roughly $847,000 in annual base salary, Nvidia disclosed. He previously earned roughly $9.1 million, $7.8 million, and $5.2 million from Nvidia between 2023 and 2021, respectively, according to past proxy filings. Teter is an ex-Cooley litigation partner who joined Nvidia in 2017.

Schwartz, a former deputy general counsel at Okta, earned $450,000 in annual base salary and nearly $192,000 in non-equity incentive plan cash compensation, according to the company. The bulk of her pay was composed of more than $8.4 million in stock awards.

Runyan, her predecessor as legal chief, earned nearly $15.8 million in total compensation during his last year at Okta.

Nvidia declined to comment on Teter’s compensation. Okta didn’t immediately return a request for comment.

Soaring Stock

Okta appointed Schwartz to take on its top legal role last year from Runyan, who retired from Okta and is now a co-founder and chief operating officer for Armada Inc., a data center startup in the AI space that emerged from stealth mode this past December to announce a $55 million fundraising.

Okta earlier this year said it would shed 7% of its workforce—or about 400 jobs—in order to reduce costs. The company has also been grappling with the aftermath of a data breach of its network. Schwartz’s shares in Okta are valued at almost $3 million, according to Bloomberg data.

Nvidia’s rising stock price—bolstered by increased demand for AI-related products—has Teter’s holdings in the company valued at $292 million.

While Nvidia is riding high, it also has its own challenges, such as tightening regulations and geopolitical tensions between the US and China involving the microchip and supercomputer market.

The Santa Clara, Calif.-based company’s new Blackwell chip has positioned Nvidia to continue dominating the AI computing sector, according to a Bloomberg News report last year.

Nvidia has close ties to Cooley, where Teter spent more than two decades in private practice, Bloomberg Law reported last year.

Cooley chairman emeritus and senior counsel Stephen Neal is Nvidia’s lead director, a role that saw him earn almost $360,000 during fiscal 2024.

Mark Perry, another former Cooley partner who is also serving on Nvidia’s board, received the same sum in total compensation. Securities filings show that Perry has sold off nearly $22.9 million in Nvidia stock since early 2023.

Aside from Teter, Nvidia has hired other Cooley lawyers, such as deputy general counsel Rebecca Peters and Iain Cunningham, as well as senior corporate counsel Courtney Hollander and senior litigation counsel Azadeh Morrison.

Cooley is also identified as Nvidia’s “general legal counsel” in the company’s 2024 annual report. Nvidia didn’t disclose the legal fees it paid to Cooley within the past year in its most recent proxy filing.