Intel CEO Krzanich Resigns Over Policy Violation, CFO Swan Takes Over
Intel forces out CEO Brian Krzanich after an investigation confirms a consensual relationship with an employee in violation of the company's non-fraternization policy. Chief Financial Officer Robert Swan steps in as interim leader while the board searches for a permanent replacement.
Intel forces out Chief Executive Officer Brian Krzanich after an internal investigation confirms a violation of the company's non-fraternization policy. The probe reveals a past consensual relationship between Krzanich and an Intel employee, which strictly goes against rules prohibiting managers from dating anyone who reports to them directly or indirectly. Upon discovering the relationship, the board immediately asks for and accepts Krzanich's resignation from both his executive role and his position on the board of directors.
Chief Financial Officer Robert Swan steps in as interim CEO effective immediately, taking the reins of the major chipmaker during this unexpected transition. The board of directors initiates a robust search for a permanent replacement, expressing strong confidence in Swan's ability to guide the company smoothly in the meantime. Intel Chairman Andy Bryant emphasizes that the board still believes strongly in Intel's overall strategic direction despite the sudden leadership change.
Krzanich leaves behind a complex legacy after joining Intel in 1982 and serving as CEO since 2013, during which time he leads the company's transformation from a PC-centric business to a data-focused enterprise. While his tenure sees the stock rise approximately 120 percent and yields over $21 million in total compensation last year, his departure causes immediate market volatility. Intel shares initially jump two percent in premarket trading following the announcement but ultimately fall 1.8 percent as morning trading progresses.