Intel CEO Brian Krzanich has resigned and gave up his board seat after violating the chip giant's "non-fraternization policy" for all managers. CFO Robert Swan has been named interim CEO, the company said today.
According to a prepared statement from the company:
"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."
In an attempt to minimize investor concerns about the transition, Intel also shared some financial details about its current quarter. The company expects to deliver a record second quarter, with revenues of approximately $16.9 billion and non-GAAP EPS of approximately $0.99, Intel said. Official results will surface July 26.
Ironically, Intel's stock rose on the CEO resignation news -- likely because of the strong financial indicators.
Interim CEO Swan has been Intel’s CFO since October 2016 and leads the global finance, IT, and corporate strategy organizations, the company notes. The Board has begun a search for a permanent CEO, including both internal and external candidates. An executive search firm is assisting the process.
