Texas Instruments CEO Ousted for Code of Conduct Breach
Texas Instruments Inc. said CEO Brian Crutcher resigned after less than two months in the job, citing violations of the chipmaker’s code of conduct. His predecessor, Rich Templeton, will resume the role on a permanent basis.
“The violations are related to personal behavior that is not consistent with our ethics and core values, but not related to company strategy, operations or financial reporting,” the company said in a statement, without elaborating. Shares of Dallas-based Texas Instruments fell 2.3 percent in extended trading.
Crutcher is the third chip company leader in less than two months to leave his job over a breach of rules on personal conduct, following the departures of Intel Corp.’s and Rambus Inc.’s CEOs. Intel’s Brian Krzanich was found to have had an extramarital relationship with another employee. Those resignations, as well as the broader backdrop of the #metoo movement, focused on eradicating gender-based discrimination, harassment and abuse, may be triggering heightened scrutiny of the personal behavior of tech-industry executives.
Templeton, 59, returns to the helm of a company he led for more than 13 years, during which he transformed Texas Instruments into the leading provider of analog chips and made it one of the most profitable companies in the industry. Crutcher’s promotion to president and CEO to replace Templeton was announced in January, and he took the reins on June 1. Both executives have spent more than 20 years at Texas Instruments. Crutcher also resigned from the board.
Texas Instruments, which is scheduled to give its full earnings report next week, said second-quarter revenue rose to $4.02 billion, up 9 percent from a year earlier. Profit was $1.40 a share, including a 3-cent-per-share tax benefit. On average, analysts had predicted a profit of $1.30 a share on sales of $3.97 billion.
At least 417 high-profile executives and employees had been accused of harassment or other misconduct as part of the #metoo movement in 18 months, according to a study released last month by crisis-consulting firm Temin & Co. Of those, 193 were fired or left their jobs, the study found.
By Ian King
