Two shareholders send a letter to the board; a signer posts it on X
Altimeter Capital Management and Atreides Management, U.S. investment firms that are shareholders of NVIDIA, sent a letter to the company's board on Nov. 13 (Nov. 14 Japan time). Gavin Baker, one of the signers and managing partner and chief investment officer (CIO) of Atreides, posted an image of the letter on X at 9:34:41 a.m. Nov. 14 Japan time, writing, "This letter was sent to Nvidia's board today."
This letter was sent to Nvidia's board today. A first for @atreidesmgmt Absolutely share @altcap belief that this letter outlines minimum acceptable standards. https://t.co/ST2f5TMAa1
The letter was released by its signers and is not an NVIDIA announcement. How NVIDIA's board has responded to the letter has not been confirmed. On Nov. 12, NVIDIA announced that Huang had resigned as president, chief executive officer (CEO) and a director, effective immediately, and that chief financial officer (CFO) Colette Kress would become interim CEO (first report).
Do not rush a successor; keep Huang's return as an option
The letter, addressed to the board, was signed by Altimeter CEO Brad Gerstner and Baker. The two said they were writing as shareholders to share a view they believe is widely held among shareholders and to make a simple request.
The letter cited the extraordinary success of Huang's leadership over a long period and the major uncertainty surrounding recent events related to his departure. It argued that it is in the best interest of all stakeholders, and in particular NVIDIA's shareholders, for the board to take a slow and deliberate approach to the company's future leadership that leaves all options open, including Huang's potential return.
It said there are more questions than answers about recent events. It asked the board to avoid rushing to replace Huang in a way that undermines shareholders' interests.
Support for interim CEO Kress's team
The letter said the company will be capably led in the interim by Kress and her team. It said the board has the benefit of time to get the decision right.
It also wrote that if, after all the facts are known, the board decides that bringing Huang back as CEO is not in shareholders' best interest, that is the board's prerogative. But it argued that Huang, the founder and longtime leader of the company, has earned the right to a deliberate process that avoids rushing to replace him before the facts are known. The letter does not mention a reason for the resignation.
Baker also voices support for a petition in a post
In a reply one second after posting the letter, at 9:34:42 a.m. Nov. 14 Japan time, Baker said he also supports a petition calling for Huang to be reinstated immediately while the results of an independent investigation are awaited. He added that he thought the letter was a constructive starting place for dialogue with the board. The petition and the investigation are not mentioned in the text of the letter.
I also support the petition to immediately reinstate Jensen while awaiting the results of the independent investigation, but I thought this letter was a constructive starting place for dialogue with the board.
