Intel Board Frustrated With Slow Progress Fires CEO
Intel Corp. Chief Executive Officer Pat Gelsinger was forced out after the board lost confidence in his plans to turn around the iconic chipmaker, adding to the turmoil at one of the technology industry’s pioneers.
The clash came to a head last week when Gelsinger met with the board about the company’s progress on winning back market share and narrowing the gap with Nvidia Corp., according to people familiar with the matter. He was given the option to retire or be removed, and chose to announce the end of his career at Intel, said the people, who asked not to be identified because the proceedings weren’t made public.
Intel Chief Financial Officer David Zinsner and Executive Vice President Michelle Johnston Holthaus are serving as interim co-CEOs while the board searches for Gelsinger’s replacement, the company said in a statement. Frank Yeary, independent chair of the board of Intel, will serve as interim executive chair..
Intel investors, eager to see changes at the company, initially applauded the CEO’s departure. The shares gained as much as 6% in New York on Monday, only to retreat later in the session. They were down 0.5% to $23.93 at the close in New York, bringing their year-to-date decline to 52%.
