Intel released an announcement this morning that Brian Krzanich has resigned. The Intel CEO stepped down from his position as well as from the board effective immediately. Bob Swan will take over duties as interim CEO. The press released cited Intel’s non-fraternization rules for employees as the basis for the resignation. Brian is married and has two children, so while the relationship is cited as consensual it goes against the basic rules of the company.
The same announcement also includes financial information pertaining to an increase of the estimate of Q2 earnings. Intel expects to earn in the $16.9B range with the rest of the year looking to be record breaking. This will certainly help soften the blow of the CEO resigning unexpectedly, but there were many in the financial community which did not expect Brian to last throughout the year due to issues with roadmap, manufacturing, and competition from the rest of the industry.
Under Krzanich Intel has thrived financially. The company has seen record revenue and profits throughout his tenure. 2018 does look to be the most successful year in the company’s history. The only downside so far has been the issues with 10nm manufacturing. While this will have no material effect on Intel’s performance this year, the mass production of competing products in 2019 using 7nm processes from TSMC, Samsung, and GLOBALFOUNDRIES will put more pressure on the company than it has seen in years.
Bob Swan will be in charge of finding the next CEO of Intel. No timeline has been announced for the search.
this is the silliest reason
this is the silliest reason to fire or get rid of your CEO, this is something that should have been handled internally.. guess forces within the company have had it out for this guy for a while, why else ask for his resignation for something that is primarily a personal matter?
Violations or internal
Violations or internal policies is a perfectly valid reason for a CEO to resign or be pushed out…..especially when you have a non fraternization policy and the CEO is bangin an employee. And one would argue it WAS handled internally…. As internally as it can be until you have to explain to your investors….and YOU HAVE TO EXPLAIN TO YOUR INVESTORS….why the CEO is up and leaving. And you can’t say its for Spectre/Meltdown because it will only add ammunition to pending class action lawsuits.
i don’t see how consensual
i don’t see how consensual relationship effects intel bottom line, unless you trying to stave off the #metoo movement from dropping your shareprice.
The point is that the CEO
The point is that the CEO can’t be seen to not have to obey company polices.
Of course there is that, but
Of course there is that, but as CEO’s usually skate on policies like that I’m wondering if it was simply the procedural reasoning the board finally had to can him. Intel has a lot of bad press for Spectre/Meltdown…..the CEO was being looked at for questionable trading of Intel stock right before that (basically dumping everything except what bylaws required) etc. Those issues alone may not have been enough……but violating a company policy, no matter how trivial is an ironclad GTFO if you are looking for one.
A consensual relationship by
A consensual relationship by a CEO seems a silly reason for letting someone go until the relationship takes a bad turn. Then the potential for a sexual harassment lawsuit becomes real and the bad publicity ratio goes up exponentially. And we cannot know if this was the only occurrence or was the last straw.
The CEO of the company sold
The CEO of the company sold every bit of stock he could legally sell without going to jail(likely fined/slapped on the wrist)
The CEO who has access to the most vital pieces of the business’s knowledge.
What jumped to me was that he had absolutely ZERO faith in Intel team’s recovery and his own business plan for the companies recovery.
The shareholders/board members should have fired him immediately. The boardmembers themselves should have been fired for hiring a CEO who has absolutely no faith in his own company.
The mofo is getting paid the big bucks for exactly this reason. Even if he didn’t believe in the recovery plan, he should have taken one for the team and bought even more stock to telegraph success. That’s the point of the CEO.
Just look at that Photo! He
Just look at that Photo! He does appear to have a satisfied look on his face or is that just from all the shares of Intel that the he sold before things began to meltdown.
Anyhow Intel will have to devorce itself from more of its high margins in order to hold off AMD in the server business going forward as Price/Performance is what sells server CPUs.
Old Brian K could not keep his FIN out of his coworker’s FET and I hope he at least used a pellicle. Oh well the soon to be EX-Wife is getting plenty of those pre-meltdown stock profits and half of it all after the lawyers are paid.
People can’t chose who they
People can’t chose who they fall in Love with. It hit’s you like a brick in the head.
It’s about Love.
At leat it did with me.
At leat it did with me.