Intel, an American multinational corporation and technology company, announced on Thursday, 22 June 2018 that its chief executive, Brian Krzanich, resigned after an investigation found he had a “past consensual relationship” with an employee. This relationship was a breach of the company’s non-fraternisation policy, a policy that prohibits managers from having relationships with people who report to them either directly or indirectly.
“An ongoing investigation by internal and external counsel has confirmed a violation of Intel’s non-fraternization policy, which applies to all managers,” the company said in a statement. “Given the expectation that all employees will respect Intel’s values and adhere to the company’s code of conduct, the Board has accepted Krzanich’s resignation.”
Krzanich has left both his position as CEO and his position on the company’s board of directors.
Chief financial officer Robert Swan will step in as interim CEO, effective immediately, and the board has already begun the search for a permanent replacement, looking at both internal and external candidates.
Intel Chairperson Andy Bryant praised Swan’s “ability to lead the company as we conduct a robust search for our next CEO”.
The company was only recently made aware of the relationship between Krzanich and a person who fell under him in the chain of command, at which point it opened an investigation into the matter and started urging Krzanich to resign. It’s unclear with whom Krzanich had the relationship, but sources confirmed that the relationship began before Krzanich became CEO in 2013 and ended several years ago.
Krzanich joined Intel in 1982, working as an engineer before becoming CEO in 2013.
Intel’s stock has risen about 120 percent during Krzanich’s tenure as CEO, with shares falling 1.6% to $52.63 on Thursday trading. Intel also raised its guidance for the second quarter on Thursday. The company said it now expects adjusted earnings of 99 cents per share on $16.9 billion in revenue. The company previously forecast second-quarter earnings of 85 cents a share on $16.3 billion in revenue.
By Daniëlle Kruger
Follow Daniëlle Kruger on Twitter
Follow IT News Africa on Twitter