$24 million worth of stock was put up for sale by Brian Krzanick but denies any link between the sale and security revelations.
Intel has been wrought with some scandals since the new year begun because of their chips. Two major security vulnerabilities called Meltdown and Spectre were discovered on almost every chip that Intel supplies.
Based on receiving such news, it is believed that the CEO of Intel, Brian Krzanick allegedly sold at least $24 million worth of Intel stock before the news came out. The company has declined and denied any connection of the sale of the stock to the release of information about the bugs.
The two bugs, Meltdown and Spectre allow hackers to gather information from users which is private. OS makers and chip makers have been both pushed into overdrive as they look for ways to mitigate the two bugs. The publications of the two flaws were made this week as people rung in the new year.
Talking to reporters, Krzanick said that his actions were not in any way related to the information that was released this week. Explaining his stock, Krzanick said that the company had a strict and rigorous way that they managed his stock. Talking about his plan, he said that his trading plan was worked out beforehand and once it’s planned for sell he had no control over any of it. The Intel chief still holds 250,000 shares as is required by his contract, and according to him, that’s quite a lot of shares to be in possession of. Krzanick also added that he was a firm believer in Intel and it’s stock and was very passionate about the company going forward.
However, according to a Securities and Exchange Commission filing, Google apparently notified Intel about the chip flaw back in June 2017. This would have given him ample time to make schedule stock sales, something which was done on the 30th of October, 2017.
Reports indicate that even though Krzanick seems to have stuck to the rules when he was selling his stock, he would still undergo more scrutiny. The timing of the stock sale together with the release of the news about the flaws is all too coincidental. The length of time that Intel chose to keep all this a secret is also a contentious issue.
The stock sale that the chief made resulted in him getting a $24 million windfall. Quite a good paycheck if you ask me. A look at the Intel stock price showed that there had not been a drastic change in the value of the stock. The price of the stock when Krzanick sold his and now is still around the same figure. An Intel rep said that stock sale by Krzanick was not in any way related to the revealed chip flaw. It was nothing but a standard stock sale, the rep confirmed. The rep also affirmed that Mr Krzanick still held stock according to the company’s guidelines and rules.