36 direct reports, no heir apparent: How Jensen Huang’s ‘flat’ org may have hampered Nvidia’s succession planning

Nvidia, the chipmaking giant with over 30,000 employees, famously operates with a 'flat' organizational structure. Founder and former CEO Jensen Huang, known for his disdain of bureaucracy, had only 36 direct reports and rarely had one-on-one meetings. This structure, common among tech companies, was designed to foster quicker decision making and free up cash for the AI boom.

However, Huang's resignation after confessing to two affairs left the company with no obvious successor. Colette Kress, Nvidia's finance chief, was appointed interim CEO, but the situation sparked a 10% drop in the company's share price as investors worried about the future of the AI boom. Critics argue that flat structures, while promoting agility, can hinder succession planning by concentrating power in the hands of the CEO and limiting opportunities for employees to develop into future leaders.