News: Intel CEO Brian Krzanich resigns after probe into past relationship with employee

#Corporate

Intel CEO Brian Krzanich resigns after probe into past relationship with employee

The Intel board has named Chief Financial Officer Robert Swan as interim Chief Executive Officer.
Intel CEO Brian Krzanich resigns after probe into past relationship with employee

Intel Corp’s CEO Brian Krzanich has resigned, effective immediately, after a probe revealed that a past consensual relationship with an Intel employee violated company policy.

The company said in a statement, “An ongoing investigation by internal and external counsel has confirmed a violation of Intel's non-fraternization policy, which applies to all managers.”

Meanwhile, the board named Chief Financial Officer Robert Swan as interim CEO and said it has begun a search for a permanent CEO, including both internal and external candidates.

Intel Chairman Andy Bryant stated, “The board believes strongly in Intel’s strategy and we are confident in Bob Swan’s ability to lead the company as we conduct a robust search for our next CEO.” 

Krzanich, 58, had been appointed as the CEO in May 2013, and was in charge of moving the company's focus to growing data centers from personal computers. He had been trying to remake Intel into a more general provider of chips, expanding into new markets such as industrial systems and self-driving cars. Intel shares more than doubled during his tenure.

Yesterday, however, Intel shares fell 1.5 per cent in early trade.

Meanwhile, temporary replacement Swan has been Intel's CFO since October 2016 and previously spent nine years as CFO of eBay Inc. 

Incidentally, the chip maker also raised its second-quarter revenue and profit forecast this week, saying it expects quarterly revenue of about $16.9 Bn and an adjusted profit of about 99 cents per share, up from a previous forecast of $16.3 Bn in revenue and adjusted earnings. Intel’s revenues in 2017 stood at $62.8 Bn.

 Image Credits: CNBC

Topics: #Corporate, Culture, Employee Relations

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