Brian Krzanich. Photo courtesy of TechCrunch.
Summary: The CEO of Intel resigned after the company learned he had a relationship with an employee.
Intel’s CEO resigned this week after the company learned he had a past relationship with a colleague who reported directly or indirectly to him. The company forbids fraternizing, even when both parties consent.
“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 Mr. Krzanich’s resignation.”
Intel CEO Brian Krzanich will be replaced by Chief Financial Officer Robert Swan effective immediately until the company finds a permanent CEO.
“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,” Intel Chairman Andy Bryant said in a statement. “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.”
At Intel, managers are forbidden from dating employees, and the company requires staff to report any signs of inappropriate behavior in the workplace. Krzanich’s relationship happened in the past and has since ended, but the company only recently learned of it and had to adhere to its policy. The name of the employee was not released, according to CNBC.
Krzanich, 58, came under fire earlier this year for selling his stock after learning of a flaw in the company’s microchips. The company defended him and implied he had not committed insider training.
Krzanich joined Intel in 1982 as an engineer and worked his way up to CEO in May of 2013.
Krzanich had served as a member of Trump’s manufacturing council but quit due to Trump’s tepid response to a white nationalist rally in Charlottesville, Virginia.
“I resigned because I want to make progress, while many in Washington seem more concerned with attacking anyone who disagrees with them,” Krzanich said.
On Thursday, Intel’s stock dropped by 2%, following the announcement of Krzanich’s resignation. During Krzanich’s tenure, Intel stock rose by 120%, according to CNBC.
Krzanich reportedly earned $21 million last year.
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