Intel CEO Resigns After 'Past Consensual' Affair With Intel Employee

Image: Intel

Intel's leadership has had a rapid overhaul in the last 24 hours, with CEO Brian Krzanich resigning after violating Intel's non-fraternisation policy.

Intel conducted an investigation into the matter after they were informed that Krzanich, who is married with two children, 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-fraternisation policy, which applies to all managers," a release from Intel said. "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."

Robert Swan, Intel's chief financial officer, was appointed as interim CEO. Intel will conduct a search for a new CEO, however, similar to the internal and external search that elevated Krzanich to the job.

Krzanich has been with Intel since 1982, having started at Intel's New Mexico plant and rising to chief operating officer in 2012. He replaced Paul Otellini as CEO in 2013 after the latter opted to retire.


Comments

    I don’t see why people have to have their lives torn apart because they make mistakes, or if their marriage falls apart. We have gone too far with this.

      Violation of Intel policy preventing bosses from sleeping with subordinates, basically. It's not unreasonable. (Also, torn apart is pretty strong language - he resigned, he wasn't imprisoned.)

        I get that, and as he head of the company he would have to be setting the example. It’s just sad is all. Can’t help who you like sometimes.

        I think Agent is referring to the whole, making it publicly aware as to why he has resigned. There's no need for a company to essentially expose one's life like that. It also puts his wife in an awkward position (if she was unaware of it originally) of not only being blindsided but also having to face her own humiliation and shame and she doesn't have the ability to be discreet now.

          There's also what's happened over the last couple of years: Intel still hasn't made ground on mobile, AMD's resurgence and gaining ground in consumer/data centres, the Spectre/Meltdown debacle.

          The timing of all of this just feels a little convenient. As for the public reasoning, it had to be disclosed: the market would have obliterated Intel if it had tried to hide it or put another spin on it. They did well by keeping it under wraps until the market announcement, really.

      It has nothing to do with him having an affair. It has everything to do with violating a policy designed to prohibit abuse of power and promote equality.

      With managerial non-fraternization in large companies (or the military!) it's about protecting juniors from sexual harassment (no matter what the policies, some bosses can and do act inappropriately and it's easier to get rid of the junior than the boss without a clear policy like this in place...) and about protecting seniors from blackmail ("I'll tell people about this if you don't get me that promotion"...). Managers know about these rules and they're in the contracts. Look at what can go wrong (say, Channel Seven!).

      Also, given that he recently sold $39M in shares, it's not so much "torn apart" as it is "a bit embarrassing until the next news cycle and possibly a bit expensive if his wife files for divorce".

    Sad for his children that this gets plastered all over the internet, but I guess they have dad to blame for that.

    I wonder if the other employee also "resigned"?

      The policy may not apply to them. Non-fraternisation policies usually apply to management as they hold a position of power and authority over others. It's not a uncommon policy.

        Oh yeah totally, it just read like the company has a broad non-fraternisation policy, which would seem fairly draconian, but not that surprising for an American company.

    Whats the bet this never happened and its just a way for him to retire without saying "i am retitiring because under my leadership i have completely fucked everything up", this 'lie' will hurt stocks less than the truth

      That's a pretty rough thing to put his family through just so some shareholders make a few cents in the dollar more than they would have otherwise.

        yeah but if the family get an extra few million $$ as a leaving present from Intel im sure it would hurt less.

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