:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2228118570-28da6568143e4049a352b172204628c1.jpg)
Key Takeaways
- President Trump demanded that Intel CEO Lip-Bu Tan “resign immediately” in a post on Truth Social.
- This marks the first time since the 2008 financial crisis that a U.S. president has publicly called for a CEO to step down. Back then, the heads of General Motors and AIG were pushed out.
- Intel’s chipmaking business has struggled, but Trump didn’t mention those concerns in his demand.
- Trump’s post came shortly after Sen. Tom Cotton claimed in a letter to Intel’s chairman that Tan “controls dozens of Chinese companies.”
President Donald Trump on Thursday demanded the resignation of Intel CEO Lip-Bu Tan. It’s exceedingly rare for a U.S. president to call for the resignation of a private company’s leader—but it has happened before.
The last time was during the Great Recession in 2009, when a newly elected Barack Obama urged General Motors (GM) CEO Rick Wagoner to step down amid auto industry bailout negotiations. GM and Chrysler were asking for billions of dollars in government loans, and a White House task force pressed Wagoner to step aside as a condition of GM receiving additional relief.
George W. Bush faced similar circumstances in the waning months of his presidency, after the federal government bought a nearly 80% stake in AIG as part of an $85 billion bailout of the financial services giant. Henry Paulson, Bush’s treasury secretary, reportedly insisted that CEO Robert Willumstad be removed.
What Makes Trump Different?
While Intel’s chipmaking business has faced well-documented struggles, Trump’s criticism isn’t tied to financial performance. Instead, in a post on Truth Social, his social media platform, Trump accused Tan of having a conflict of interest.
“The CEO of INTEL is highly CONFLICTED and must resign, immediately,” Trump wrote on his Truth Social network. “There is no other solution to this problem.”
The post likely references a letter sent by Sen. Tom Cotton (R-Ark.) to Intel Chairman Frank Yeary this week, in which Cotton wrote, “Mr. Tan reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms. At least eight of these companies reportedly have ties to the Chinese People’s Liberation Army.”
Tan is the former CEO of Cadence Design Systems (CDNS), which settled legal proceedings with the U.S. government last month relating to “operations and business dealings in China” during his time at the helm.
Source link