US chipmaker Intel appoints Robert Swan as CEO




Intel appointed Robert "Bob" Swan as his CEO on Thursday after he went in to lead the company temporarily after Brian Krzanich's resignation in June.

Mr Swan, 58, had previously served as Intel's Chief Financial Officer since 2016. He will be the company's seventh CEO in his 50-year history, who previously worked on eBay.

Krzanich left the company after the chip maker was informed of a previous consent relationship with an Intel employee. Intel at that time considered both internal and external candidates to replace him. Hiring an external candidate would have violated the company's long-standing practice of promoting internal leaders.

Intel shares fell 2 percent on the news on Thursday.

"As Intel continues to change its business to capture more of a large and expanded opportunity that includes data center, artificial intelligence and autonomous driving, while continuing to gain value from the PC business, the board concluded after a thorough search for Bob is the right leader to drive Intel for the next growth period, says chairman Andy Bryant.

In a letter to employees posted on Intel's website, Mr Swan said the company's strategy to focus on data, rather than the historical focus on PCs, "do not change." But he added, "Our performance needs improvement. . . We must continue to develop. "

The appointment comes after Intel last week warned that the headwinds it experienced in the last three months of last year will continue in 201[ads1]9, saying the data center's chip business was harmed by a decline in China and pause in capital spending on cloud computing. Companies

Vijay Rakesh, an analyst at Mizuho Tech, said investor reaction "seems to be subdued to negative" given "the lack of a technician leading a leading global technology company."

Unlike his six predecessors, all have been engineers and semiconductor specialists, he has spent most of his career in finance departments, including stints as chief financial officer at General Electric, Electronic Data Systems and, until 2015, eBay, before joining Intel, he was operating partner at General Atlantic in Palo Alto, and advised the equity group's portfolio companies for finance and M & A.

While his time at Intel has included elements of corporate strategy, M r. Swan's only former tenure as CEO of Webvan in 2001. The food supplier's pioneer became a high-profile victim of the dotcom bust and, having burned through hundreds of millions of dollars, eventually filed for bankruptcy.

Mr Swan will receive a base salary of $ 1.25 million and a new earnings-based stock option scheme worth up to $ 13 million over three years, the company said in a filing with the Securities and Exchange Commission. He will also be eligible for an annual performance bonus with a target dividend of around $ 3.4 million and additional annual equity grants of up to $ 15.5 million.

On Thursday, Intel also said Todd Underwood will take on the role of interim financial director as the company conducts a review of internal and external candidates. He currently serves as CFO and Director of Business Planning and Reporting.



Source link