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Intel CEO Sold Half Of His Stock Before Security Flaws Became Public


An Intel spokeswoman says that Krzanich's October 2017 trading plan change and subsequent stock sale were "unrelated" to the chip design flaw, but declined to provide any alternate explanation.

The sale has allowed Krzanich to whittle his holdings down to about 250,000 shares, which is the minimum he is required to own under Intel's rules.

According to an Intel statement, Krzanich selling his stocks is "unrelated" to the reports of vulnerabilities.

Intel's CEO said researchers at Google made Intel aware of a widespread security exploit "a while back", but the company is working on fixes that could start next week.

But while the public has known about this security problem just now, the tech companies knew about this for months.

There could be many reasons, personal, such as buying a new house.

It emerged earlier this week that Intel was notified by Google last June of a flaw in its processor chips that could leave memory and data vulnerable to theft - leaving the company, and its rivals, scrambling to mitigate the risk.




Intel CEO Brian Krzanich sold more than $20 million worth of company stock after his company had been informed of a massive cybersecurity flaw in its chips and prior to the company publicly disclosing the flaw. ArsTechnica added that Intel's current stock is around the same price as when Krzanick sold the company's stock.

ArsTechnica reported that although Krzanick's stock sale stuck to the corporate laws, the timing of the sale and the length of time that Intel chose to keep the news of the vulnerabilities secret, could still result in increased scrutiny from the SEC.

The shares were sold in accordance with a SEC Rule 10b5-1 plan, which is meant to prevent illegal insider trading by allowing company executives to create predetermined, automatic selling plans.

According to the Form 4, Krzanich held 495,743 shares before making the transactions listed in the filing. The shares of Intel witnessed a slight drop ever since the news of security flaw came out in public, it is now being traded at around $44.23.

Intel shares are down about 5% in trading since Tuesday.

The SEC filing also showed that the sale was part of an Intel plan created on October 30, just a month before its CEO disposed of his shares. It's common for a company dealing with security flaws to sit on the information in hopes of fixing the problem before hackers discover the vulnerabilities.

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