Intel CEO Resigns Over Relationship With Employee

/
Intel.jpg

A Wall Street Journal article describes events leading to the Intel CEO's resignation. Brian Krzanich had an affair with a mid-level manager at the company, but the relationship ended years ago. Still, the affair became public when the woman told a co-worker who, citing the company's strict policy, reported it to the board of directors.

Intel has a particularly tough policy, which bans any relationships among managers and any employees and requires employees to report known relationships.

In a news release, the company announced the news in the first paragraph and then quickly moved to the future: the appointment of an interim CEO and expressions of confidence for Intel's strategy. Still, the stock fell 3.5% on the news.

Image source.

Discussion:

  • Did Krazanich do the right thing by resigning? Why or why not?
  • What are the advantages and downsides of Intel's strict policy? "Non-fraternization" seems dated and odd, doesn't it? Why would a company use this title?
  • Consider the employees who discussed the affair. We might assume that one confided in the other. What were the steps along the way that led to Krazanich's resignation? Who is accountable for the result?