How to replace an irreplaceable CEO: Lessons from Apple, Microsoft, and Nvidia

Nvidia faces the daunting task of replacing co-founder and CEO Jensen Huang, who resigned yesterday amid reports of extramarital affairs, a transition experts say carries heightened risk but is manageable with key strategies. Management experts advise against seeking a carbon copy of the founder, citing Tim Cook's success at Apple by leveraging his own operational strengths rather than mimicking Steve Jobs. Successors must also receive full authority, as founders' lingering presence often hinders performance, with 54% of companies underperforming under executive chairmen. Successful transitions also require cultural evolution, as demonstrated by Microsoft's Satya Nadella, who shifted the company's mindset and tripled revenue. However, Nvidia appears unprepared, lacking prior succession planning, leaving the new leader to determine which aspects of Huang's legacy are essential for the company's future.