Nvidia’s crisis has corporate governance experts reaching for the popcorn
Nvidia’s stock sank 5.47% on Tuesday, following a 4% drop on Monday, a loss of about 9.5% in two days, even though there wasn’t much news out of the company. CEO Jensen Huang has reportedly been trying to conduct business as usual after admitting an extramarital affair with Alice Huang, a former executive at Nvidia customer Megaspeed whom U.S. intelligence agencies believe was spying for China. The biggest development seemed to be that Nvidia’s board hired the law firm Wachtell, Lipton, Rosen & Katz to conduct its investigation.
What comes next is mostly a guessing game, even for the people who study how boards are supposed to handle crises. Two corporate governance professors, Ann Lipton of the University of Colorado and Todd Henderson of the University of Chicago, say there is no real precedent for a CEO caught up in a suspected honeypot. And while they have views on what...
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