Krzanich's Affair Started Years Ago -- WSJ
June 23 2018 - 3:02AM
Dow Jones News
By Cara Lombardo and Jay Greene
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (June 23, 2018).
Intel Corp. ex-Chief Executive Brian Krzanich's affair with an
employee, which cost him his job this week, started before he was
CEO and ended several years ago, according to people familiar with
the matter.
The relationship, which those people said started about a decade
ago, came into public view this week when Mr. Krzanich, 58 years
old, resigned after the chip maker determined he had violated
company policy by having a relationship with a co-worker.
The woman involved in the affair still works at Intel, the
people said. She was in middle management when it began, still
doesn't hold a senior role at the company and didn't work closely
with Mr. Krzanich, they said.
Mr. Krzanich, who couldn't be reached for comment, had worked at
Intel since 1982 and became CEO in 2013 after rising through a
series of technical and leadership roles. The company declined to
comment on his marital status.
It is not clear when exactly the relationship ended. Earlier
this week, the company said in a statement that an investigation by
internal and external counsel confirmed a violation of its
nonfraternization policy, which was put into place in 2011 and
prohibits managers from having sexual or romantic relationships
with direct or indirect reports.
The recent chain of events was triggered when the employee
mentioned the relationship to a colleague, the people said. This
colleague, knowing company policy prohibits such relationships,
felt compelled by the company's rules to report it to Intel's
general counsel, and did so on June 14, the people said.
Soon after receiving the tip, the general counsel informed the
board about the relationship, these people said. The board
initiated an investigation, which it has said is ongoing.
By Wednesday, Mr. Krzanich had submitted his resignation,
according to a securities filing Thursday.
Intel has a relatively strict policy governing fraternization
compared with other companies. The policy is a "hard ban" that
applies to all managers regardless of seniority and requires
employees to raise any concerns immediately.
The episode comes after the #MeToo movement put a bright light
on inappropriate workplace conduct, forcing a number of senior
corporate and political officials out of their jobs.
Robert Swan, who has been the company's chief financial officer,
was named interim CEO. He has said he isn't interested in keeping
the role. Intel stock has fallen about 3.5% since the revelation,
closing Friday at $52.50 and giving the chip giant a market value
of $245 billion.
Write to Cara Lombardo at cara.lombardo@wsj.com and Jay Greene
at Jay.Greene@wsj.com
(END) Dow Jones Newswires
June 23, 2018 02:47 ET (06:47 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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