By Aaron Pressman Less than five months after being ousted as CEO of Intel, Brian Krzanich has landed a new gig as president and chief executive of CDK Global, which makes software for car dealerships.
Krzanich resigned from Intel in June, after the company said it discovered he’d had a past consensual relationship with an employee in violation of Intel’s non-fraternization policy.
The newly hired CEO “combines an exceptional track record of creating shareholder value with exactly the right combination of technology and strategic leadership experience,” CDK chairman Leslie Brun said in the statement. “The board has full confidence that he has the talent and expertise necessary to lead CDK as it pursues a growth strategy.”
The new job entails somewhat smaller responsibilities and lesser compensation than running Intel. CDK had revenue of about $2.3 billion and $381 million of profit in its most recent fiscal year versus $69 billion of sales and $15 billion of net income over Intel’s last 12 months. CDK had 8,500 employees at the end of June, while Intel reported almost 103,000 at the end of 2017.
In his new role, Krzanich will receive a salary of $1 million with a target bonus of $1.5 million. He also is in line to receive an initial grant of stock and options worth $12.5 million vesting over the next three years and subject to the company meeting certain performance targets. Another one-time $3 million award depends on Krzanich buying $3 million of CDK’s stock.
Krzanich’s last three years of total compensation at Intel, covering 2015 through 2017, were worth $21.5 million, $19.1 million, and $14.6 million.
The hiring marks the latest quick return to employment for Silicon Valley executives caught up in the #MeToo movement and heightened awareness of sexual misconduct and inappropriate behavior in the workplace. Former Social Finance CEO Mike Cagney raised $50 million for his new startup, Figure, and Steve Jurvetson, an ousted founder of VC firm DFJ, has started a new firm called Future Ventures.
The hiring hasn’t done much for CDK’s
stock price, which has lost 10% over the past two days and is down 27% so far this year. Intel
is still searching for a permanent replacement for Krzanich, who joined the company in 1982 and served as CEO from May 2013 through June of this year.