Intel CEO Brian Krzanich Resigns After Violating Company Policy -- 2nd Update
June 21 2018 - 10:27AM
Dow Jones News
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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