New Delhi: Following the resignation of Jensen Huang as CEO, Nvidia’s board of directors has been brought into the spotlight for the direction the company will take in the future. Aarti Shah, an Indian-origin executive, is among those.One of its members is Aarti Shah, who has acquired a fresh relevance in India due to her background.
On November 12, Huang stepped down as the CEO and board member at Nvidia, initiating a leadership change. The board has appointed interim CEO Colette Kress and first chairman Harvey C. Jones as the new chiefs while waiting for a permanent replacement. An independent directors’ committee with the help of outside counsel is looking into the allegations against Huang and potential national security issues. Those allegations are still under investigation.
The commotion started earlier this week. According to the New York Times, Huang had two extramarital relationships, and Nvidia stated he admitted to being unfaithful to his wife, apologised to his staff and family. Huang is alleged to have been a victim of a foreign intelligence operation, a matter that was first reported in November 8 when the board announced the independent investigation. The stock tumbled over 6% in pre-market trading hours as the board discussed his future.
Huang will be gone and the 10 other remaining directors will decide what is next, and Shah is one of them.
From Gujarat to the Nvidia boardroom
Shah earned her bachelor’s and master’s degrees in mathematics and statistics from the Gujarat University, and then went on to pursue higher education at the United States. She then worked for 27 years at the US pharmaceutical company, Eli Lilly and Company. At that time her roles focused on technology and data-driven operations, skills that were transferred to Nvidia on the company’s expansion to AI and accelerated computation.
She was appointed by Nvidia on November 9, 2020, and chairs the audit committee and compensation committee, which oversee financial reporting and internal controls and executive compensation. Huang greeted her as a world-class leader and one with a passion to make a difference at the intersection of computer science and healthcare when she joined.
Her other work is not confined to Nvidia. In 2023 she has been appointed to the board of the Swiss pharmaceutical company Sandoz Group AG, became a trustee of the Northwestern Mutual and is involved with various nonprofits like St. Jude Children’s Research Hospital. She is on the science, innovation and development committee and the human capital and ESG committee at Sandoz.
A board under scrutiny
This isn’t the first time that Shah has made an argument that is being made.Shah isn’t alone in his argument. The board also features early investors and veterans like Tench Coxe, a board member since 1993, and Dawn Hudson, who joined in 2013 following the lead of Pepsi-Cola North America and as the NFL’s chief marketing officer. The newest addition, in July, to the board is Suzanne Nora Johnson, who was formerly vice-chairman of Goldman Sachs. Huang has been acquainted with these directors for years.
There have also been doubts about how well the board has governed itself. A yearly evaluation by James Drury Partners law firm placed it 609 out of over 650 companies.
The task ahead
Replacing Huang will be difficult. He was co-founder of Nvidia over 30 years ago and played a pivotal role in developing the company from a graphics chip developer for gaming to one of the most powerful companies in AI. He has also been a key figure in selecting the technologies to support and in commercialising technology through the process of converting the ideas of engineers into products. The board is considering candidates from both the inside and out.
Investors will soon see the way the company is going in the market. Nvidia results will be announced on Nov. 18, India time, and Kress, who has assumed the role as interim CEO, is set to be under a microscope.
For the Indian audience, Shah’s inclusion on the board is a testament to the journey Indian professionals from Gujarat have come from in the business world. It’ll be interesting to see if she and her other directors will be able to help Nvidia through its biggest leadership shift in coming weeks.
