Only after Huang Renxun resigned did he realize that the problem was big! Experts reveal Huida’s biggest concern

Huida Huang Renxun announced his resignation as CEO on Thursday (12th). (Reuters)

[Financial Channel/Comprehensive Report] Nvidia CEO Jen-Hsun Huang announced on Thursday (12th) his resignation as CEO due to a series of scandals including alleged extramarital affairs, ending his leadership role since co-founding the company in 1993. Chief Financial Officer Colette Kress will temporarily act as CEO. However, experts pointed out that Huang Renxun's unique leadership style, coupled with the flat management structure adopted by Huida for a long time, made the company's succession issue particularly difficult. In particular, Huang Renxun directly managed about 60 employees in the past and almost controlled core decisions such as company strategy, resource allocation and coordination with senior managers. The outside world has questioned whether Huida can maintain its past decision-making efficiency without this key figure.

"CNBC" reported that experts analyzed that Huang Renxun was not only the CEO of Huida, but also acted as the "coordinator" of the entire organization. Joseph Fuller, professor of management practice at Harvard Business School, pointed out that in companies that adopt flat management, CEOs usually have greater influence than leaders in traditional hierarchical organizations. Huang Renxun directly manages the company's senior executives and holds great power. He is responsible for coordinating different departments, resolving disputes and allocating resources. Now that the company has lost its top decision-maker, it may face difficulties in cross-department coordination.

Jo-Ellen Pozner, associate professor of management at Santa Clara University's Levy School of Business, also said that Huida's flat structure in the past was able to operate smoothly because of Huang's strong leadership and clear vision. But now without Huang, it is likely that no one will be able to effectively coordinate among senior executives in different professional fields, which may even slow down the progress of technology research and development work.

Jen-Hsun Huang's management style is different from that of ordinary corporate CEOs. In an interview with Podcast host Lex Fridman in March 2026, he revealed that the team he directly manages has about 60 employees, which is much higher than the number of subordinates directly managed by an average CEO. He has explained in the past that the more subordinates a CEO directly manages, the fewer management layers within the company and smoother the flow of information.

However, this management model may also become an obstacle to Huida's succession. Pozner pointed out that although a flat structure can allow information to flow quickly, other senior executives do not have Huang's overall vision, so it will be particularly difficult to find someone to replace him from within the company. She also believes that Huang Renxun directly manages dozens of subordinates and may not have enough time to train one of them to become his future successor.

Denise Rousseau, a professor of organizational behavior and public policy at Carnegie Mellon University, believes that Huida’s flat management is not without its advantages. With fewer layers of management, lower-level executives across the company have greater autonomy, helping to maintain organizational stability during leadership transitions.

As for the future management direction of Huida, Pozner predicted that the new leader may lead the company to move to a more traditional management structure. She pointed out that although many people, especially those in the Silicon Valley industry, are opposed to the rigid class system and the organizational structure of traditional large enterprises, such management systems still have their functions and necessity.

Pozner bluntly said that Huida's current management system "is not an organizational structure that can be maintained for a long time." After Huang Renxun leaves the CEO position, Huida will not only have to find a new leader, but may also face the challenge of readjusting the organizational structure.

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