INTC Intel Corporation

By Austen Hufford 

Intel Corp. Chief Executive Brian Krzanich resigned Thursday after the company determined he violated company policy during a past, consensual relationship with an Intel employee.

The company said that a continuing investigation by internal and external counsel confirmed a violation of Intel's "non-fraternization policy," which applies to all managers.

Intel said it accepted Mr. Krzanich's resignation as it expects all employees to respect Intel's values and adhere to its code of conduct. Mr. Krzanich couldn't be reached for comment.

The board said Chief Financial Officer Robert Swan would become interim CEO effective immediately. Mr. Swan joined Intel in 2016 after being CFO of eBay Inc. Intel has started a search for a permanent leader and is considering internal and external candidates.

While details of the relationship weren't disclosed Thursday, the public resignation highlights the discussions happening in workplaces around the country over how employers should regulate office romances.

Many companies have long had policies discouraging relationships between managers and direct reports, but in recent months some employers have started to review their rules and create stricter policies.

Mr. Krzanich joined intel in 1982, rising through a series of technical and leadership roles to become chief executive in 2013. In recent months, Mr. Krzanich has emerged as a leading proponent of the commercial drone industry, primarily by publicly championing the company's technology and serving as chairman of a high-level federal aviation advisory committee.

Intel, like many other technology companies, has said it was working to increase gender and racial diversity in its workplace. In its 2017 diversity report, the company said 73.5% of its total workforce was male.

The company also released a financial forecast that was above analyst expectations. For its second quarter, the company expects adjusted earnings of 99 cents a share and revenue of $16.9 billion. Analysts polled by FactSet had expected adjusted earnings of 86 cents a share and revenue of $16.3 billion.

Intel's shares slipped 1.3% in morning trading.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

June 21, 2018 10:12 ET (14:12 GMT)

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