As chief Executive officer of Intel Corp. Brian Krzanich has sold a significant portion of the shares of Intel in November 2017, after he became aware of serious problems with the security chip of the company, reports CNBC.
As stated in the Intel edition of MarketWatch, transactions the CEO was not associated with vulnerabilities of chips, which the public learned this week.
Cybersecurity experts from Google’s Project Zero has discovered two defects of microprocessors – Meltdown (meltdown of a nuclear reactor or crash) and the Spectre (Ghost), using which hackers can gain access to the entire memory of almost any computer in the world. On the website meltdownattack.com that experts have created to describe the problem, it is noted that while they know about the real cases of abuse.
Meltdown affected almost all Intel chips that were released after 1995. Spectre – issue CPUs not only Intel, but also AMD and ARM, that is, almost all devices with microprocessors can contain this exploit. According to the New York Times, the elimination of both vulnerabilities can slow down computers by 30%.
Intel and AMR recognize the existence of security gaps. Many large companies, including Apple and Google, are already working on additional protection devices and systems and offer users a temporary solution.
According to the Commission on securities and exchange Commission (SEC), the United States, in late November, Krzanich converted options and sold over 644 thousand shares of Intel at a weighted average price of $44,05 per share. The options allowed him to buy shares of Intel at a price of $12,985 to $26,795, which is substantially below the quotations at the time.
In addition, he sold more 245,7 thousand shares of Intel, already belonged to him at that time, at a weighted average price of $44,55.
Intel sets the minimum amounts of stock ownership for top executives depending on their positions after they have worked in the company for five years. For a CEO, the figure is 250 thousand Krzanich has held this post since may 2013, i.e. the compliance of its investments in shares of Intel this requirement will be evaluated in may 2018. And after a number of last year’s transactions Krzanich belonged to exactly 250 thousand shares of Intel, writes the Motley Fool.
As a result of the transaction the CEO of Intel got net about $25 million.
Krzanich said that Intel can offer a solution to Meltdown and the Spectre next week. According to him, the entire industry worked on patches and fixes for some time, it was assumed that information about the problem will be promulgated simultaneously with its decision. However, a leak occurred and the data is out of control.