Intel stock tumbled over 2 percent today as revelations that current CEO Brian Krzanich had tendered his resignation, the Wall Street Journal reports. Krzanich had delivered his resignation to the board, which accepted said departure yesterday.
While various policies in corporate America regarding sexual or romantic relationships between co-workers are different in their scope and protective measures, it is not uncommon for those policies to deny such relationships between employees wholesale. The board at Intel, however, was crystal clear in their messaging surrounding the nature of this inappropriate relationship.
“An ongoing investigation by internal and external counsel has confirmed a violation of Intel’s non-fraternization policy, which applies to all managers,” the company laid out in a public statement. “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.”
Krzanich will also leave the board, according to CNBC. Intel will actively seek a replacement while appointing an interim CEO in the form of current CFO Robert Swan, a man who made his fame and fortune before joining Intel in 2016 by helming the reigns at another tech giant in eBay. Swan served the internet auction house as CFO before his migration to Intel.
The departure of Krzanich is not the only loss Intel has suffered in terms of staffing recently. Stacy Smith, long-time finance chief and later taking a turn heading up manufacturing, left the company last year. Kirk Skaugen, the former staffer in charge of client computing and one-time candidate to take over the big chair as CEO, departed Intel in 2016 and is currently employed by Lenovo Group. Finally, Diane Bryant, once head of Intel’s data-center group, jumped ship to Google to take a hand in their cloud computing business late last year.
Intel is facing a great deal of consumer competition from long-time rivals AMD, with AMD having increased their market share due to the relative success of their new Ryzen line of processors and a significant price delta between the Intel i-Series offerings and the AMD counterparts, according to Tom’s Hardware.
Stock projections for Intel continue to remain sunny, however, with today’s temporary drop being hand-waved away by most analysts on record, according to the WSJ– not including the relevant fact that Intel’s stock has soared since Krzanich took the helm in 2013, the share price has increased by a whopping 123 percent during the past five years.
The company recently released a financial forecast that exceeded industry expectations, with Intel adjusting expected earnings to 99 cents per share and a revenue of $16.9 billion. When polled by FactSet Research Solutions, a respected industry leader in financial metrics, analysts had predicted a forecast of adjusted earnings per share of 86 cents, and a total take of $16.3 billion in earned revenue.