Nvidia CEO Jensen Huang is on the verge of being dismissed over an extramarital affair scandal. The name of Chief Financial Officer Colette Kress is widely mentioned as his successor.
Bloomberg News reported that Nvidia’s board held a video conference on the 11th (local time) to discuss Huang’s future. U.S. online outlet Semafor, citing an anonymous source, said some directors are leaning toward having Kress serve as interim CEO. The idea presumes that Huang is dismissed. The board has yet to make a final decision. Nvidia is also reportedly looking at candidates for the next CEO with the help of an outside specialist firm.
The same day, The Wall Street Journal (WSJ) reported that the board is preparing to dismiss Huang. Huang admitted on the 8th to an affair with Alice Huang. Alice Huang is a former Megaspeed executive. U.S. intelligence authorities suspect her of being a Chinese spy. The New York Times (NYT) reported the same day that Huang had also been in an inappropriate relationship with a vice president in charge of healthcare who reports directly to him.
Kress joined Nvidia in September 2013. Since then, she has overseen finance for 13 years. Before that, she handled finance at Microsoft (MS), Cisco and Texas Instruments, among others. This year she also ranked 49th on business magazine Fortune’s list of the “Most Powerful Women.”
Vlad Savov, Bloomberg’s technology editor, analyzed that the board’s mood is leaning toward having Kress serve as interim CEO and leaving the search for a successor to her. He assessed that tapping the CFO is reasonable for keeping the business running steadily. However, he pointed out, “I don’t see a senior executive who could take on the ‘showman’ role like Jensen Huang.”
Some supporters have floated another option: moving Huang to board chair and installing a new CEO.
The market appears more worried about Huang’s absence. Immediately after the WSJ report, Nvidia shares fell nearly 9% in after-hours trading. U.S. investment advisory firm Yorkville Ives put a fair price for Nvidia under Huang at $300 per share (about 401,250 won). If Huang leaves, it lowered the figure to $225 (about 300,938 won). That values Nvidia without Huang 25% lower.