US Treasury Secretary Scott Bessent says Nvidia's board should look outside the company for its next chief executive after Jensen Huang stepped down. He also wants answers within 10 days on the company's compliance with export restrictions.
Bessent said on Sunday that Nvidia needs to "go outside the company" as it searches for a new chief executive. He spoke on Fox News' "Sunday Morning Futures" show, days after Huang's abrupt exit.
Huang stepped down on Thursday after revelations of extramarital affairs, including one involving a suspected Chinese spy. Bessent said the board needs a dramatic shakeup because of what was going on inside the company.
Bessent presses the board on export compliance
Bessent also said Nvidia's board and outside counsel must answer questions within the next 10 days about the company's culture of compliance with export restrictions.
Next, he said he wants to determine whether Nvidia knowingly overlooked warning signs of shell companies, many based in Singapore, that funneled chips to China. He asked whether the company was pressing seemingly illicit sales to boost its revenues and earnings.
Succession and the market reaction
The Financial Times reported on Friday that the board approached Arm Holdings CEO Rene Haas as a potential replacement for Huang.
Meanwhile, Nvidia named Chief Financial Officer Colette Kress interim CEO, effective immediately, and appointed Harvey C. Jones chairman of the board. Nvidia's board has launched an internal investigation, according to Crypto Briefing.
Investors did not wait, and Nvidia shares fell 10% when the resignation was announced.
Sources: Investing.com (Reuters), Investing.com, Crypto Briefing
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