<p>It’s fairly unusual for faculty to never teach undergrads, or to stop teaching them due to the award of a prize. Nobelists or other high-status faculty may have a lower teaching load in general, and more administrative support (secretaries, grad student assistants) distancing them from the students in courses that they do teach. A lot of Nobel prizes are awarded to emeritus professors who aren’t required to teach any students at all, due to retirement. </p>
<p>At lower ranked schools where a Nobel Prize makes a professor an academic demigod, they can demand whatever perks they want, including never teaching. At the very top research schools, a Nobel doesn’t necessarily place a professor atop the pecking order in his department (though it certainly might in some cases), and may not be enough to circumvent minimal residency and teaching requirements.</p>
<p>A few schools have explicit privileges for Nobel Prizes, Fields Medals and other stipulated awards, but I don’t know if those benefits include not teaching undergrads.</p>