CEO of Intel Corp. Brian Krzanich resigned effective immediately last week said the company after it was discovered that he had violated policies established a the company due to having had a prior relationship with an Intel employee.
In an announcement late last week, Intel said that following external and internal counsel investigations it was determined that Krzanich has violated the non-fraternization policy at the company when he has a consensual relationship previously with someone with the company. The policy at Intel applies to all its managers, said the company.
Shares of Intel were down 2.4% after the announcement while the Dow was down just 0.8% on the day. The CFO at Intel Bob Swan will take the reins as the interim CEO until the board finds a permanent replacement for Krzanich.
Swan has worked at Intel since October of 2016 and previously was employed by General Atlantic LLC and with eBay.
Krzanich was a veteran at Intel. He started working for the company during 1982 just after he had graduated from college.
When his predecessor resigned, the company announced that for the first time it would look for an external candidate, though in the end Intel chose between three candidates who were all internal.
Intel said once again that it would be seeking candidates who were both currently with Intel as well as external ones. Krzanich was Intel’s sixth permanent CEO in its 50 year history and like him each of the previously five were promoted from within the company.
One Wall Street analyst was upbeat about the prospects of the company amidst the shift in leadership. He said that although Krzanich was successful in redirecting the strategy at Intel to data centric business from one that was compute-centric, he considers that the company has a deep number of candidates for CEO.
Intel is projecting revenue of nearly $16.9 billion for the second quarter with adjusted earnings coming in at 99 cents per share.
Another Wall Street analyst said he was disappointed that the company had wrapped together its strong projections for revenue and earnings for its second quarter with the resignation of its CEO as it took too much away from the strong quarter the company is expecting.