Nvidia board weighs removing CEO Jensen Huang after reports of affairs
The board of the $4.2 trillion chipmaker met to decide on the founder's future following allegations of extramarital relationships.
The Nvidia board of directors met late on Wednesday to decide whether to remove cofounder and CEO Jensen Huang, according to Al Jazeera. The decision follows reports that Huang had extramarital affairs, including a relationship with Alice Huang, a former executive at Singapore-based Megaspeed. US officials suspect Alice Huang of working for Chinese intelligence, a claim China has denied.
The company's market value fell by more than $600 billion this week. Nvidia shares also dropped more than 8 per cent in after-hours trading on Wednesday after The Wall Street Journal reported the board was preparing to oust him. The New York Times also reported that Huang had another relationship with Kimberly Powell, Nvidia’s vice president of healthcare, who reports to him.
Under Nvidia’s bylaws, the board can remove any officer with or without cause through a majority vote of the 11 directors. While Huang could be removed as CEO, removing him as a director would require a shareholder vote. Huang owns approximately 3.6 per cent of the company and does not have majority voting control.
The board launched an independent investigation on November 8 into whether Huang was the target of a foreign intelligence effort. In a memo to staff, Huang admitted to being unfaithful to his wife and said he owed his family and employees an apology. Megaspeed has denied allegations that it was involved in illegally shipping Nvidia chips to China.
Analysts cited by Reuters as likely internal successors include Chief Financial Officer Colette Kress and engineer Ian Buck. Three Republican House committee chairs have asked Huang to attend a closed-door briefing on November 18, where he faces a possible subpoena if he does not respond.