From Fortune · Sebastian Herrera · · 2m
Nvidia board prepares to oust CEO Jensen Huang
Nvidia's board is moving to remove CEO Jensen Huang after he admitted an extramarital affair with a woman U.S. intelligence officials deemed a Chinese spy.
In brief
Nvidia's board is moving to remove CEO Jensen Huang after he admitted an extramarital affair with a woman U.S. intelligence officials deemed a Chinese spy. Nvidia's board is preparing to remove CEO Jensen Huang following his admission of an extramarital affair with a woman deemed a Chinese spy by U.S. officials…
Board moves to remove Huang
Nvidia's board of directors is preparing to remove Chief Executive Jensen Huang following his admission of an extramarital affair with a woman U.S. intelligence officials deemed a Chinese spy.
Thirty-three years as CEO
Huang's removal would end his thirty-three year reign as CEO of the chipmaking giant and send shockwaves throughout the technology industry and America's race in artificial intelligence.
Board meeting this week
Nvidia's board could meet as soon as Wednesday to determine Huang's fate. The Wall Street Journal reported the potential ouster.
Second relationship revealed
The New York Times reported that Huang, sixty-three years old, also had an extramarital relationship with Kimberly Powell, the company's vice president of health care.
Stock falls sharply
In after-hours trading, Nvidia's shares were down more than seven percent following the reports of Huang's affairs and the board's preparation to remove him.
Huang's grip on power
Huang co-founded Nvidia in nineteen ninety-three and created a flat structure with about sixty direct reports, sitting at the center of most decisions. The company has no chief operating officer and no clear succession plan.
Succession challenge ahead
Analysts say the challenge is not whether Nvidia's engineers can build chips without Huang, but whether anyone can inherit his authority to decide what gets built and keep customers confident.
Potential successors identified
Nvidia's chief financial officer Colette Kress could be an option for interim CEO.Lead independent director Stephen Neal, chairman emeritus at law firm Cooley LLP, could also take over as interim CEO if Huang is removed.
Board faces critical moment
Michael Useem, professor of management at the Wharton School of the University of Pennsylvania, told Fortune: "Rarely has a board faced this much pressure. This is the board's moment to shine or fade."
“Rarely has a board faced this much pressure. This is the board's moment to shine or fade.”
The key point
Nvidia's board is preparing to remove CEO Jensen Huang following his admission of an extramarital affair with a woman deemed a Chinese spy by U.S. officials, ending his thirty-three year tenure.
