Krzhanich Brian (Brian Krzanich)

Krzhanich Brian (Brian Krzanich)

Biography

1982: Start of work in Intel

Since 1982 Brian Krzanich works in Intel. During this time he managed to replace a set of positions, in particular he held posts of the general managing director of manufacturing enterprises and a supply network of Intel and also the division which is engaged in assembly and testing of products.

2013: Appointment of Intel as the head

In May, 2013 Brian Krzanich is elected the new CEO of Intel corporation.

2017: Leaving council at administration of U.S. President of Trump

On August 14, 2017 Brian Krzanich announced leaving the American industrial council (American Manufacturing Council) at administration of U.S. President of Donald Trump.

I  resigned from the American industrial council. Thereby I would like to draw attention to  serious harm which our split political climate does to important issues, including big need to be engaged in recession of the American production. The policy and a political policy set the important task of recovery of the American production base on the second plan … I resigned authority because I want to achieve progress  while  many in  Washington, most likely, more anxious with attack on  any who  does not agree with  them  — Krzhanich in the official blog of Intel reported.

Brian Krzanich

According to the head of processor corporation, he is not a politician, and the engineer who the most part of the career worked at the production plants of the most advanced devices in the world. Now each question is politized so that the significant progress is impossible. Development of production in the USA should not be a political problem, he added.

In addition to Krzhanich, the American industrial council was also left the CEO of pharmaceutical company Merck & Co. Ken Frazier and  head of the producer of sportswear and  accessories of Under Armour Inc. Kevin Plank.

Brian Krzanich who before more than once spoke in favor for the progressive ideas including to ethnic and sociocultural variety, opposed a spike in violence in Sharlottsvilla (State of Virginia, USA) and condemned "supporters of the idea of superiority of white race and their adherents who took to the streets with a protest and committed violence".^[1]

On August 12, 2017 hundreds of far right took to Sharlotsvill's streets because of plans of the city authorities to demolish a monument to the general Robert Li who was involved in Civil war on the party of confederates.  Mass riots of which the mayor accused Donald Trump who provoked growth of radical moods the election campaign began.

2018

Dismissal from Intel because of the love relations at work

On June 21, 2018 the American producer of microprocessors Intel announced dismissal of the 58-year-old CEO Brian Krzanich. The resignation reason — office romance.

Follows from the message of the company that Krzhanich had love relations with  one of  the staff of Intel that contradicts corporate rules of Intel which "extend to all managers". Details in this respect are not given. The sex of the worker with which the dismissed head of Intel had relations of personal character is also unknown.

Intel announced resignation of the CEO Brian Krzanich because of office romance

It is noted that the unseemly behavior of Brian Krzanich was confirmed as a result of investigation which was made by group of the consultants working in the company and invited from out of.

As all employees should respect values of Intel and adhere to the code of corporate ethics, the Board of Directors accepted Krzhanich's resignation, said in the statement of Intel.

According to CNBC TV channel with reference to the informed sources, the love relations of Krzhanich with the employee were "some time ago", but the company knew of it shortly before the declaration of resignation of the head.

According to Reuters referring to the informant, the latest revision of corporate policy of Intel dated 2011 requires from employees to announce any non-business relations of leading employees with subordinates. Earlier several managers were dismissed for violation of these rules, give news agency.

The chief financial officer of the company Robert Swan is appointed the interim CEO of Intel. He will direct the American chimpeyker until on find the new head. Look for the person who will head Intel will be among top managers of the company and also on the party.

Bob played an important role in development and strategy implementation of Intel. We know that the company will continue organic work. We highly appreciate Brian's contribution to Intel — the chairman of the board of directors of Intel Andy Bryant (Andy Bryant) reported.

The analyst of Cowen Matthew Ramsay doubts that Swan can be appointed the permanent CEO of Intel, considering lack of experience in production and short term of stay in top management of the company. Swan held a position of the financial director of Intel in October, 2016.

In addition to the CEO's post, Brian Krzanich lost membership in the structure of Board of Directors of Intel. The company deleted Krzanich's biography from the website.^[2]

Brian Krzanich has no employment contract, however he has the right to $38 million in case of voluntary resignation, said in documents which the company provided the U.S. Securities and Exchange Commission (SEC). This amount includes $31 million in the form of remunerations on stocks which should be paid on the accelerated scheme and also $4.1 million as deferred compensation, proceeding from a quotation rate of Intel for December 29. The company refused to answer a question of Reuters of whether Krzanich received compensation relying it.

In 2017 the compensation packet of the CEO made $21 million which expenses on personal protection and transport enter.

Krzhanich's dismissal because of office romance happened against the background of the global campaign against harassments which is taking place under heshtegy #MeToo ("I too") in social networks. This heshteg is used by those who endured sexual harassments and violence. It was widely adopted in October, 2017 after the Hollywood actresses accused of harassments  of the producer Harvey Weinstein. At the same time it is not clear whether Krzhanich to the subordinate coveted or they had a novel by agreement.

After the resignation of Brian Krzanich of a stock of Intel fell in price by 2%.

Details of office romance because of which dismissed Krzhanich

On June 22, 2018 some details of office romance of Brian Krzanich because of which he was dismissed from a post of the CEO of Intel became known.

According to the The Wall Street Journal (WSJ) newspaper with reference to the acting staff of Intel, the love relations of Krzhanich were with the woman the middle manager. She did not hold executive position and did not work directly with the CEO.

The novel between them began approximately in 2008 and ended before Brian Krzanich headed Intel in 2013. In the 2011th the rules which are strictly forbidding to heads to have sexual and romantic relations with direct or indirect subordinates were admitted to the companies.

Brian Krzanich with the wife Brandi

According to interlocutors of WSJ, Krzhanich left as a result of the series of events which began with the fact that one of the staff of Intel blabbed out the relations with the colleague. The last, knowing about the strict corporate policy concerning relationship in collective "considered necessary" to report to the general counsel of the company on last intimacies of Krzhanich at work.

The legal adviser learned about it on June 14, 2018 and brought this information to the attention of Board of Directors then check with involvement of internal and external consultants began. Investigation confirmed the fact of abuse of regulations of the companies by Krzhanich, and on June 21 was announced his resignation.

Before entry into force of prohibition on the love relations in Intel heads quite often brought them. So, Brian Krzanich got acquainted with the wife Brandi in the eighties of the 20th century, then she worked as the engineer in Intel. They got married in 16 years after Brian began to work in Intel.

Krzhanich's predecessor — Paul Otellini — married the employee of Intel legal department. Till some moment the personal relations of employees concerned the management of corporation not to such an extent to try to obtain resignation of "top officials".

WSJ specifies that Intel very strictly treats the informal relations in collective in comparison with other companies. This policy consists in "tough prohibition" which concerns heads of any link and at once causes various concerns to employees to whom information on intimacies in the company became known.

At the same time, as transfers The Register with reference to own informants, the HR department of Intel in such cases takes actions for staff rotation to separate the employees consisting in communication on functional and administrative dependence. Case reaches dismissal seldom. Some high-ranking heads of Intel did not disdain at all to brag about the adventures "on an office ladder".

By June 25, 2018 the name of the new CEO of Intel is not told. Bloomberg notes that for all 50-year history of the company never the person who would not be a part of top management of Intel before was appointed the permanent head of the company. After Krzhanich's leaving the choice remained small as for previous years the corporation was left by several key directors.

Change of the head of Intel happens at the moment, adverse for the company. First, Intel faced problems in the field of creation of new technical processes that caused serious changes in the perspective plan and significant deceleration of evolution of processors of the company. Secondly, Intel works in the conditions of the accruing competition — and pressure is felt not only from the traditional rival of AMD, but also other producers, including IBM, Nvidia, Qualcomm, Samsung, etc.^[3]

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