Nvidia board meets on CEO Jensen Huang future after relationship reports

UPDATE - follow-up to Nvidia prepares to oust Jensen Huang, WSJ reports — stock sinks: Nvidia shares dropped over nine percent in after-hours trading on Wednesday. The board of directors is getting ready to meet to decide the future of Chief Executive Officer Jensen Huang. This follows reports that Huang had an extramarital relationship with Kimberly Powell, who is the vice president of health care at the company.

Details of the Reports

The reports emerged after publications detailed an alleged relationship between Huang and Powell. The two were reportedly seen being affectionate at a hotel in San Jose, California, in March. Nvidia and Powell did not immediately reply to requests for comment. Heller, a crisis public relations firm that Huang reportedly hired last year, also did not respond immediately.

Investigation and Shareholder Details

This follows days after Huang admitted to another affair with a woman named Alice Huang, whom United States intelligence officials believe is a spy for China's Ministry of State Security. The board of directors started an independent investigation and hired the law firm Wachtell, Lipton, Rosen & Katz to look into the spying claims. Huang wrote an apology message to staff on Sunday saying he was unfaithful to his wife and that his actions hurt his family. Most of Huang's company shares are co-owned with his wife, Lori Huang, and are held in trusts holding about 800 million shares, while Huang holds about 70 million shares on his own.

Context

Corporate boards typically investigate executives when serious personal conduct or security allegations arise because such issues can affect company governance and investor trust. Nvidia has grown into a dominant player in the technology sector largely due to its advanced graphics processing units and artificial intelligence hardware.