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Brian Krzanich has resigned as Intel CEO, the company announced this morning. The resignation was due to a "past consensual relationship with an Intel employee" that violated the company's non-fraternization policy. Krzanich is also leaving the company's board of directors.
Intel was informed recently of the relationship, and an investigation by internal and external counsel confirmed its existence. Krzanich has been at Intel since 1982, starting as a process engineer before moving into management. He became CEO in 2013, and since then Intel has entered new markets
Krzanich led Intel as rival chipmakers ate away its dominance in the technology over several decades and he also presided over a series of high level executive departures.
Krzanich, who did not have an employment contract, is entitled to a $38 million "walk-away" payment in the event of a voluntary termination, according to Intel's regulatory filings. Krzanich's total compensation topped $21 million last year, and the company paid for his transportation and residential security.
The board named Chief Financial Officer Robert Swan as interim CEO and said it has begun a search for a permanent CEO, including internal and external candidates.
The change in leadership comes as Intel expands beyond personal computers and servers into areas such as artificial intelligence and self driving cars, where smaller competitors including Nvidia Corp (NVDA.O) are strong. Qualcomm Inc (QCOM.O) leads in the mobile chip market.
Shares of Intel initially rose 2 percent in premarket trading after the announcement but was down 1.8 percent in morning trading.
