NVIDIA Board Seeks Successor CEO ... to Decide Jensen Huang’s Fate Soon

[Financial News] Just three days after NVIDIA CEO Jensen Huang admitted to having an affair, the board began taking steps to prepare for his removal. It has also started looking for a successor CEO in cooperation with an outside firm.
Reuters and other news outlets reported that NVIDIA’s board was holding a meeting on the 11th (local time) to decide Huang’s future as CEO.
The board is said to have already been working with an outside specialist firm to find a successor to Huang. It is also considering appointing an executive to serve as interim CEO while it searches for a permanent one.
Markets are also watching closely to see who would take over if Huang steps down as CEO.
Previously mentioned as possible successors were CFO Colette Kress; NVIDIA Vice President Ian Buck, who created the company’s software platform CUDA; Huang’s children, Madison Huang and Spencer Huang; and his son-in-law, Vice President Nico Caprez.
However, given that the board is working with an outside firm, a new CEO could be brought in from outside the company if Huang is dismissed.


On the 8th, the board formed an independent committee to launch an investigation but also expressed confidence, saying, “There is no basis to believe that national security information or NVIDIA secrets were leaked,” and “We trust Jensen and the management team.” But it reversed that stance just three days later.
The meeting was held just one day after Jun Kim, a Korean-American lawyer and former U.S. federal prosecutor, was appointed to lead the investigation.
As a result, it appears that the CEO is effectively being dismissed before a thorough and detailed investigation has even been properly carried out.
With Congress, including both chambers, already demanding that Huang appear and announcing plans to investigate, he is also expected to have difficulty carrying out his company duties normally.
The board appears to have shifted toward dismissing Huang after additional allegations emerged that he had an extramarital relationship with a female NVIDIA executive who reported directly to him.
This is believed to be because the affair partner, Alice Huang (Chinese name: Huang Le), was identified as a spy for a Chinese intelligence agency, turning the case into a national security matter rather than a simple affair.
Like other U.S. companies, NVIDIA has a code of conduct prohibiting inappropriate workplace relationships on grounds including conflicts of interest, and requires an immediate investigation when a report of such conduct is received.


If no leak of company secrets or national security issue is actually confirmed, the affair with Alice Huang could be dismissed as a matter of personal morality or privacy. An inappropriate workplace relationship, however, could clearly be grounds for disciplinary action.
The Information, a technology news outlet, previously reported that Alice Huang exploited her relationship with Huang to smuggle into China $7.5 billion worth of NVIDIA chips banned from export to the country (about 10 trillion won).
If Huang remains in his position, NVIDIA would face intense scrutiny not only from within the company and from investors and customers, but also from political circles and investigative agencies.
However, removing Huang from his position before a full investigation into the allegations already raised could also be intended to ensure the investigation’s independence and objectivity.
Corporate ethics experts in industry and academia have repeatedly argued that Huang should be removed from his duties, at least while the investigation is underway.

[email protected] Lee Seok-woo, international affairs correspondent Reporter