Intel CEO Brian Krzanich Resigns – Interim CEO Named

Intel CEO Brian Krzanich Resigns - Interim CEO Named

Intel CEO Brian Krzanich Resigns – Interim CEO Named

Intel has announced today that their CEO, Brian Krzanich, has resigned after it was uncovered that he had a “past consensual relationship with an Intel employee”, something that is strictly against the company’s rules of conduct for those in managerial positions. 

After an internal and external investigation confirmed this information, Intel’s board of directors accepted Brian Krazanich’s resignation, naming Robert Swann as the company’s interim CEO, while the company searches for a suitable replacement. 

Note that this resignation has nothing to do with Krzanich’s performance as Intel’s CEO or his highly suspicious sale of Intel stock in late 2017, his departure from Intel is solely to do with his failure to adhere to Intel’s code of conduct. That being said, these factors could have influenced the decision to resign. 

  

    Intel Corporation today announced the resignation of Brian Krzanich as CEO and a member of the board of directors. The board has named Chief Financial Officer Robert Swan interim chief executive officer, effective immediately.

Intel was recently informed that Mr. Krzanich had a past consensual relationship with an Intel employee. An ongoing investigation by internal and external counsel has confirmed a violation of Intel’s non-fraternization policy, which applies to all managers. 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.

“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. 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,” said Intel Chairman Andy Bryant.

Intel expects to deliver a record second quarter, with revenues of approximately $16.9 billion and non-GAAP EPS of approximately $0.99. With accelerating data-centric revenue, the company is off to an excellent start in the first half of the year and expects 2018 to be another record year. Intel will provide full second-quarter results and an updated outlook for the full year on the second-quarter earnings call on July 26.

As interim CEO, Swan will manage operations in close collaboration with Intel’s senior leadership team. Swan has been Intel’s CFO since October 2016 and leads the global finance, IT and corporate strategy organizations. He previously spent nine years as CFO of eBay Inc. Earlier, he was CFO of Electronic Data Systems Corp. and TRW Inc. He has also served as CEO of Webvan Group Inc.

Swan added, “Intel’s transformation to a data-centric company is well under way and our team is producing great products, excellent growth and outstanding financial results. I look forward to Intel continuing to win in the marketplace.”

The board has a robust succession planning process in place and has begun a search for a permanent CEO, including both internal and external candidates. The board will retain a leading executive search firm to assist in the process.

Intel CEO Brian Krzanich Resigns - Interim CEO Named  

This change in CEO comes at a difficult time for Intel, where the company is facing stiffer competition than ever in the x86 CPU market while also planning to enter new markets with both AI and GPU compute hardware. In short, Intel needs a strong leader right now, a leader who will be extremely difficult to find. 

As part of this announcement, Intel has confirmed that they are raising their second-quarter revenue expectations from $16.3 billion to $16.9 billion while also increasing their earnings per share predictions from 85 cents to 99 cents per share. 

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