Nvidia’s crisis has corporate governance experts reaching for the popcorn

Nvidia's stock has dropped 9.5% in two days, despite no major news from the company, following CEO Jensen Huang's admission of an extramarital affair with Alice Huang, who is suspected of spying for China. The board has hired law firm Wachtell, Lipton, Rosen & Katz to conduct an internal investigation. Corporate governance experts Ann Lipton and Todd Henderson say there is no precedent for a CEO caught up in a suspected honeypot, and the investigation will be thorough but its outcome is uncertain. They note that the investigation's scope and thoroughness depend on the directors running it and their incentives.