Intel shares plummeted after the company’s CEO Brian Krzanich resigned over his consensual relationship with an employee in the past. As per the latest reports, the shares were down 2.3% to $52.24. Incidentally, Krzanich has also left the board of management.
Robert Swan, the Chief Financial Officer for Intel has at present taken over as the interim CEO while the chip-making giant finds a permanent replacement for the post.
Intel to investigate Krzanich’s relationship in detail
According to Intel’s statement, “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.”
It should be noted that Intel has a strict non-fraternization policy preventing managers from having relationships with employees. Also, any employee who sees an inappropriate behavior at the workplace should immediately report the management. As per the source, the company came to know about the past relationship of Krzanich recently.
The board of the chip-making company has accepted the resignation of Krzanich and stated that all the employees should respect the values and code of conduct of Intel. The resignation of the 58-year-old engineer is a big blow to the company. He joined Intel in 1982 and on May 2013 was elected by the member of the board of directors as the CEO. Prior to that he also served other senior leadership roles and at one time was also the COO of the company.
In his statement, the chairman of the company, Andy Bryant said that Intel appreciates the many contributions of Brian and the company will continue to perform.
Krzanich’s resignation is a big blow to Intel
Trading reports indicate that during the five-year term of Krzanich as CEO, the shares of Intel rose by 120%. According to Vijay Rakesh, the semiconductors analyst at Mizuho, the departure of Krzanich will bring a big gap at the top as Krzanich has a strong manufacturing background. At present, the company is also facing stiff competition from Advanced Micro Devices (AMD) and Nvidia (NVDA).
It is not the first time that an official at the top position had to resign for violating workplace behavior standards. The scrutiny at the workplace has heightened after the emergence of #MeToomovement following reports of misbehavior from producer Harvey Weinstein. It has led to many topmost officials resigning from their positions including executives at Lululemon Athletica, Nike, Social Finance, and more.