Intel chief sold shares after company told of bugs

Intel chief sold shares after company told of bugs

Intel chief sold shares after company told of bugs

However, given the recent revelation that Intel processors are plagued by a major security flaw that put millions of machines at risk, the timing of the sale has raised suspicions for some that the CEO sold off his stock before the public could learn of the bugs.

The sale left the Intel chief with the minimum shares of the company's stock - 250,000 - that he has to be in possession under his employment contract.

The pre-arranged stock sale plan mentioned is a way of divesting stocks on a predetermined timeline, easing the potential threat of insider trading by company executives and outside accusations of insider trading.

Earlier, Google's cyber security experts discovered vulnerabilities in Intel's computer microprocessors that could potentially lead to the theft of confidential user data.

A little more than a month ago, Intel CEO Brian Krzanich sold approximately $24 million worth of Intel shares, a sale that almost eradicated Krazanich's entire position in the company. The transactions occurred in late November, before the flaw was public knowledge.

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Of course, if the SEC decides to leave this stone unturned, it's just a whole lot of hocus pocus - since executives are typically allowed to sell their holdings even if they know of non-public material information (I mean reasonably they will always have some form of non-public material information on hand, otherwise why would you be called CEO of a multi-national company, no?).

According to Business Insider, Google informed Intel of the security flaws in June of previous year.

Other outlets have reported an Intel spokeswoman said Krzanich's decision to sell the shares was unrelated to the security vulnerability disclosed this week.

Analysts Bernstein reckon the flaws could cost Intel more than the $475 million cost of the 1994 Pentium bug and more than the $700 million cost of the 2011 Cougar Point problem. Intel says it was notified about the bugs in June. Those options let him purchase the shares at prices between $12.985 and $26.795, significantly lower than where Intel was trading at the time.

Intel CEO Brian Krzanich told CNBC on Wednesday that his company had been working with researchers at Google for a couple of months to solve this security problem.He also told CNBC that this exploit isn't being used by the hackers.News of the security flaw caused Intel's stock to fall sown on Wednesday.

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