Nvidia announced on November 12 that founder and CEO Jensen Huang had resigned and appointed longtime CFO Colette Kress as interim CEO while the board searches for a permanent successor. Kress, who has never run a business or held responsibility for a profit-and-loss statement, was not presented as a credible candidate to succeed Huang. Three former Fortune 500 CEOs said the absence of a succession plan and the board’s failure to prepare an heir exposed serious governance weaknesses. They highlighted that Huang oversaw about 60 direct reports, the company’s extraordinary success lulled investors into neglecting key-person risk, and no obvious successor had been groomed. These weaknesses leave Nvidia vulnerable to a leadership crisis after its market value increased by more than $5 trillion in four years.
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