Intel is sliding after its CEO resigns

IntelFormer Intel CEO Brian Krzanich, who resigned Thursday.

Shares of Intel popped 2% in early trading Thursday – before sinking into the red, down about 2% – after the company said chief executive Brian Krzanich had resigned following an investigation that found he had a past relationship with employee in violation of company policy.

Krzanich, an Intel employee since 1982 and CEO since 2013, was in charge when Spectre, a serious security bug affecting most Intel processors, was discovered earlier this year, and as CEO, he apologised on behalf of the company.

Bob Swan, chief financial officer since October 2016, will take over in the interim period, Intel said.

The company also raised its earnings-per-share guidance in the same press release, saying second-quarter adjusted EPS will be “approximately $US0.99” when it reports on July 26, higher than its previous forecast of $US0.85.

“The board believes strongly in Intel’s strategy and we are confident in Bob Swan’s ability to lead the company as we conduct a robust search for our next CEO,” said Andy Bryant,’ chairman of Intel’s board of directors, in a press release. “Bob has been instrumental to the development and execution of Intel’s strategy, and we know the company will continue to smoothly execute. We appreciate Brian’s many contributions to Intel.”

Intel has easily outpaced the S&P 500 index since the beginning of 2018, rising 14% compared to the benchmark’s 2.65% gain.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.