Reports of further affair: Nvidia boss Huang faces dismissal on Wednesday

In the United States, it is common for executives to be fired for having relationships with individuals connected to their company's suppliers or clients. This policy is not rooted in moralistic zealotry, but rather a prudent consideration. Concealing such connections can lead to conflicts of interest, and failing to disclose them may result in losing one's job. This is evident in the case of Ashley Buchanan, former Kohl's CEO, who concealed an affair with a consultant whose coffee company supplied the retail chain.

However, Nvidia's governance operates differently. The company staunchly supports its founder, Jensen Huang, who has led the company for 33 years and was involved in an affair with the chief of his supplier, Megaspeed. Observing Nvidia's board of directors, one can discern the company's unwavering support for Huang. The board lacks a chairman, and Huang can effectively run the company. Many board members have been with Nvidia for decades, reflecting the company's loyalty to its long-standing leader.

This corporate culture raises concerns about Nvidia's governance. ISS, a US shareholder advocacy firm, has downgraded Nvidia's rating on a scale of one to ten, indicating a high-risk structure for shareholders. The rating agency assigns an eight, reflecting the potential for conflicts of interest and the lack of external oversight. Given the concentration of power in Huang's hands and the lack of institutional checks, the company's governance structure warrants scrutiny.