Nvidia board: still picking a CEO search firm, no candidates formally engaged
Nvidia's board told CNBC on November 13 it is 'in the process of selecting a search firm for the Nvidia CEO role' and has 'not formally engaged any potential candidates,' calling speculation about individuals 'premature' — directly tempering the FT report that the board approached Arm CEO Rene Haas. The search is at square one days before Kress presents Q3 results on Tuesday.
The News
Nvidia's board told CNBC on November 13 that it is 'in the process of selecting a search firm for the Nvidia CEO role' and has 'not formally engaged any potential candidates,' calling speculation about individuals 'premature.' It is the board's only update since Jensen Huang resigned on November 12, and it puts the search for a permanent chief executive at square one.
A search firm is a specialist company hired to find candidates for a senior job. It draws up a shortlist, approaches candidates and checks them, so the board can choose from a vetted list rather than relying on its own contacts. Nvidia's board says it is still choosing which firm to hire, which means the formal search has not yet begun.
The statement directly tempers a Financial Times report, published on November 13, that the board had approached Arm chief executive Rene Haas about the role. The board's words do not say the approach never happened — they say no candidate has been formally engaged and that naming names now is premature. The distinction matters, but the practical message is the same: there is no frontrunner, and no timeline.
That leaves interim chief executive Colette Kress presenting quarterly results on Tuesday with the permanent job openly unfilled. Kress, who keeps her role as chief financial officer, has been on calls to reassure customers and suppliers, Reuters reported in its November 12 profile of the interim chief executive. Nvidia closed Friday at $162.85, down 2.01%. Arm closed Friday at $190.53, down 4.63%.
The board is still picking the firm that will run the search — the CEO hunt has barely started.
Why It Matters
The statement matters because it resets expectations. The Financial Times report that the board had approached Rene Haas created the impression of a search already under way, with a named candidate. The board's own words say the search has not reached that stage — it is still choosing the firm that will run the search. For a company whose market value has fallen from about $5.8 trillion to roughly $4 trillion in a little over a month, a search at square one is a long road.
It also tells investors something about the board's posture. By calling speculation 'premature' and stressing that no candidate has been formally engaged, the board is signalling that it will not be rushed — the same message two major investors sent in their letter on Friday. That is consistent with a board that wants the investigation to run its course before it commits to a permanent leader.
The cost of that patience is uncertainty. Kress is capable and respected, but she is interim, and every week without a permanent chief executive is a week in which rivals, customers and employees wonder who will run the company long term. Tuesday's earnings call will be her first chance to show the market that the company is steady while the board takes its time.
The board's wording is careful. Saying speculation is ‘premature’ and that no candidate has been ‘formally engaged’ does not deny the Financial Times report that the board approached Arm chief executive Rene Haas — it leaves that question open while making clear there is no frontrunner and no timeline. For investors, the difference between an informal approach and a formal engagement matters less than the practical point: the search is at square one.
Analyst's Take
Our call is Mixed. A careful, unhurried search is the right approach for a company in crisis — rushing a permanent appointment before the facts are known would be worse. But the board's own update confirms the search has barely started, days before the interim chief executive has to present results to a market that has already cut the company's value by about a third. Patience is defensible; it is not free.
What to watch: when the board names a search firm, whether any candidate's name surfaces with the board's backing rather than through leaks, and what Kress says about the succession on Tuesday's call. A firm named quickly would be the first real sign of momentum.
Reader poll: who should lead Nvidia next? Vote: Kress, Huang, or An outsider.
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By The Numbers
FAQ
What is a search firm?
A search firm is a specialist company hired to find candidates for a senior job. It draws up a shortlist, approaches candidates and checks them, so the board can choose from a vetted list rather than relying on its own contacts. Nvidia's board says it is still choosing which firm to hire.
Did the board approach Arm's Rene Haas?
The Financial Times reported the board approached Arm chief executive Rene Haas. The board's statement to CNBC on November 13 did not confirm or deny a specific approach — it said no candidate has been 'formally engaged' and called speculation about individuals 'premature.'
Who is running Nvidia now?
Colette Kress, the chief financial officer, is interim chief executive and keeps the CFO role. She presents quarterly results on Tuesday, November 17, the company's first results since the resignation.
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Source: Reuters