Intel CEO resigns after "consensual relationship" with employee

Marco Green
June 21, 2018

According to sources speaking with CNBC, the relationship occurred "some time back", but Intel recently found out about the tryst and Krzanich was asked to resign.

There is an ongoing investigation by both internal and external counsel into the matter, the company said, which has confirmed that Krzanich violated Intel's non-fraternization policy - a code of conduct it says applies to all managers.

Mr Krzanich, who has been credited with transforming Intel from a purely hardware-focused company into a multi-faceted computing organisation, had been married to wife Brandee, and was reportedly paid over $21 million previous year. The board named Robert Swan, Intel's chief financial officer, interim CEO effective immediately.

Krzanich, has been the CEO of Intel Corporation since May 2013. Swan has an impressive resume for the task: He has been intel;s CFO since October 2016 and had previous stints as CFO at eBay, Electronic Data Systems Corp. and TRW Inc. A timeline for naming the next chief wasn't mentioned.

Krzanich has been at Intel since 1982, starting as a process engineer before moving into management.

Intel also raised its second-quarter revenue and profit forecast Thursday.

"Intel's transformation to a data-centric company is well under way [sic] and our team is producing great products, excellent growth and outstanding financial results", he said in a statement. "I look forward to Intel continuing to win in the marketplace", concludes Swan. The company has also retained an executive search firm to help locate candidates.

Intel said Thursday that it expects to post a per-share profit of 99 cents in the second quarter, 13 cents better than Wall Street was expecting, and revenue of $16.9 billion United States, which is also better than had been projected by industry analysts.

Other reports by Click Lancashire

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