Intel CEO Sold Shares Before Chip Security Flaw Was Revealed
The giant chip maker Intel has, in recent days, been at the centre of all technology-related news. The failure that the company has in its processors, and that is not the only one to have, has been the cause of this negative attention.
This is not a recent problem and it is known that the giant chip maker Intel was notified during the past year. Something that was also known was that its CEO sold a very large portion of his company stock shortly before the failure was revealed to the world.
It is unclear why Brian Krzanich, the CEO of Intel to sell on October 30 last year a large portion of the shares held by the company he leads. In all, thousands of Intel shares were sold. With this sale, the CEO of Intel settled more than 39 million dollars.
After the sale, Brian Krzanich got 250,000 shares, the minimum amount imposed by the company so that it can maintain its leadership position. This is a limit that is set in his agreement with Intel and he can not break it.
The big question right now is that this sale happened 5 months after Intel was notified by Google about the problem, and shortly before the failure was publicly disclosed, which led to a more than expected drop in the value of the company’s stock in the stock market.
Intel’s position on this case
Faced with this case, Intel has publicly defended its CEO and ensure that the sale is not related to the problem discovered and that this would have been planned for some time. Intel also revealed that even with the sale made, Brian Krzanich continues to meet the requirements imposed to be in the position of CEO.
Even with these statements from the company, it is most likely that Brian Krzanich will be investigated by the competent US authorities to determine if inside information was used in this sale. It is not abnormal the sale of shares by the CEO, but usually not so great value.
Interestingly, and evaluating the value of Intel shares, the sale of Brian Krzanich will not have given him any advantage. The value embedded in the height would be approximately the same as would be achieved today.
Intel has been through a rather troubled period in recent months, with several failures and security issues emerging in its processors. If most resolve with updates to the code that supports these processors, a new flaw now discovered can completely change the situation.
It is so serious that they will have to be operating systems to adapt which will imply a loss of performance that will reach 30%.
There is not much information yet about this failure, which is still under wraps and awaiting the arrival of the updates that will solve it. But according to information that has come to the public, the processors manufactured in the last decade have a very serious failure and with serious security implications.
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