Intel CEO Brian asked to resign after his “consensual relationship” is revealed

Intel CEO Brian asked to resign after his “consensual relationship” is revealed

Santa Clara: Intel’s CEO and chairman of the board Brian Krzanich has officially resigned from the company following a recent investigation into a “consensual relationship with an Intel employee,” announced the company on Thursday.

While Chief financial officer (CFO) Robert Swan will take orders immediately as an interim CEO of the company until the board finds a permanent replacement for the CEO position, CNBC reported.

In its official statement, the company said: “An ongoing investigation by internal and external counsel has confirmed a violation of Intel’s non-fraternization policy, which applies to all managers.”

“Given the expectation that all employees will respect Intel’s values and adhere to the company’s code of conduct, the Board has accepted Mr. Krzanich’s resignation,” read the statement.

The alleged relationship ended and took place some time back but the company only got to know about it recently following which the company asked Krzanich to resign. It is not known with whom Krzanich had an affair said the sources.

Shares of Intel have initially risen up to 2 percent in premarket trading.

Krzanich, 58, had joined the company in 1982. He was elected as company’s CEO in May 2013. The details of him are, however, no longer available on the website. Before he was appointed as the CEO he worked as an executive vice president and chief operating officer.

He was assigned with transforming Intel from a PC-centric company to a data-centric company delivering the technology foundations for the new data economy.

Intel Chairman Andy Bryant in his statement said: “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.”

“Bob has been instrumental to the development and execution of Intel’s strategy, and we know the company will continue to smoothly execute. We appreciate Brian’s many contributions to Intel,” he added.

According to company filings, Krzanich’s total compensation for the year 2017 stood up to $21 million, including his transportation and residential security.

According to statistics, the company’s stock was also risen to 120 percent during his tenure as CEO.

SANTA CLARA, Calif. – June 21, 2018 – Intel Corporation today announced the resignation of Brian Krzanich as CEO and a member of the board of directors. The board has named Chief Financial Officer Robert Swan interim chief executive officer, effective immediately.

Intel was recently informed that Mr. Krzanich had a past consensual relationship with an Intel employee. An ongoing investigation by internal and external counsel has confirmed a violation of Intel’s non-fraternization policy, which applies to all managers. Given the expectation that all employees will respect Intel’s values and adhere to the company’s code of conduct, the board has accepted Mr. Krzanich’s resignation.

“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. Bob has been instrumental to the development and execution of Intel’s strategy, and we know the company will continue to smoothly execute. We appreciate Brian’s many contributions to Intel,” said Intel Chairman Andy Bryant.

Intel expects to deliver a record second quarter, with revenues of approximately $16.9 billion and non-GAAP EPS of approximately $0.99. With accelerating data-centric revenue, the company is off to an excellent start in the first half of the year and expects 2018 to be another record year. Intel will provide full second-quarter results and an updated outlook for the full year on the second-quarter earnings call on July 26.

As interim CEO, Swan will manage operations in close collaboration with Intel’s senior leadership team. Swan has been Intel’s CFO since October 2016 and leads the global finance, IT and corporate strategy organizations. He previously spent nine years as CFO of eBay Inc. Earlier, he was CFO of Electronic Data Systems Corp. and TRW Inc. He has also served as CEO of Webvan Group Inc.

Swan added, “Intel’s transformation to a data-centric company is well under way and our team is producing great products, excellent growth and outstanding financial results. I look forward to Intel continuing to win in the marketplace.”

The board has a robust succession planning process in place and has begun a search for a permanent CEO, including both internal and external candidates. The board will retain a leading executive search firm to assist in the process.

Source: Intel