Brian Krzanich, who once served on President Trump’s manufacturing council, resigned his position as chief executive officer of Intel after a “past consensual relationship” that the silicon-chip maker said violated its ban on personal involvement between managers and workers.
The board appointed Chief Financial Officer Bob Swann as interim CEO while the Santa Clara, Calif.-based company retains a search firm to locate a permanent successor.
“Bob has been instrumental to the development and execution of Intel’s strategy, and we know the company will continue to smoothly execute,” board chairman Andy Barr said in a statement. “We appreciate Brian’s many contributions.”
Krzanich’s departure is the latest to occur amid the #MeToo movement, which sprang from the downfall of movie mogul Harvey Weinstein and has prompted higher scrutiny of the relationships between men in high-ranking government and business positions and their subordinates. Weinstein was charged with felony sex offenses in New York City last month. Sen. Al Franken of Minnesota resigned his post earlier this year amid claims of inappropriate conduct, and former CBS anchor Charlie Rose was fired last fall.
Krzanich, who earned $21.5 million in salary and benefits last year, joined Intel in 1982 and became CEO in May 2013, according to regulatory filings. The company’s stock climbed 120 percent to $53.46 under his leadership, nearly twice the gain of the broader S&P 500, and he oversaw the purchases of circuit-maker Altera and machine-learning developer Mobileye.
Krzanich stepped down from Trump’s now-disbanded manufacturing council after fallout over the president’s response to August’s white supremacist rally in Charlottesville, Va., which turned violent and left one woman dead.
While he urged U.S. leaders to condemn the white supremacist movement, Krzanich also limited hyper-partisanship in the nation’s capital.
“I resigned to call attention to the serious harm our divided political climate is causing to critical issues, including the serious need to address the decline of American manufacturing,” he said at the time. “Many in Washington seem more concerned with attacking anyone who disagrees with them. We should honor – not attack – those who have stood up for equality and other cherished American values.”
Intel, which holds U.S. government contracts including a $1.5 million agreement with the U.S. Navy, tumbled 2.3 percent to $52.22 in New York trading on Thursday. The company also boosted its second-quarter earnings forecast 16 percent to 99 cents a share on sales of $16.9 billion.
