What ex-Intel CEO Krzanich will inherit at CDK Global
On November 7, CDK Global ($NASDAQ:CDK), a major provider of software to automobile, motorcycle and other vehicle dealers, announced that it would bring on Brian Krzanich as its new chief executive officer and president.
Krzanich comes to CDK from Intel ($NASDAQ:INTC), where he resigned as CEO after a probe uncovered a consensual relationship between him and a middle manager at the company. He held his previous position from May 2013 up until late June 2018.
While at Intel, Krzanich was known for diversifying Intel's portfolio from just being a CPU company, as well as championing a $300 million fund used to increase diversity at the company. He was also one of the first CEOs to speak out against Donald Trump after the infamous 2017 Unite the Right rally. Among Intel employees who submitted reviews of their company anonymously on Glassdoor, his approval rating crawled up to 71% — right above the technology hardware industry average — just days before he resigned.
That corporate culture differs greatly to that of CDK, whose previous CEO, Brian MacDonald, lasted just over a year at the top post. Among employees, his approval rating dropped from above 50% to below 25%, as shares of the company dropped about $12 from July 2, 2017 to today.
Evidently through these reviews is a struggle for the company to maintain stability in upper management — as seen again with MacDonald being replaced — and issues with recent restructuring and layoffs. Even in positive reviews, employees reporting their opinions anonymously are still well aware of the company's issues.
In turn, the majority of employees who reviewed CDK are pessimistic on the business' outlook in the next six months, and have grown increasingly worried up until Krzanich became their new CEO.
Despite these complaints, hiring at CDK recently hit an all-time high thanks to a boom in client service openings, although it's unclear whether these hires would fill in roles laid off previously.
|Job Category||Number of Listings on Oct. 17|
|Client Services (AB0)||19|
|Development & Architecture (ED0)||15|
|B4B Consulting (EZ0)||14|
|Field Based Client Support (BJ0)||9|
|Product Management (BM0)||7|
|Direct Sales (BQ0)||7|
|Inside Sales (GB0)||6|
|Project Management (DU0)||5|
With declining employee sentiment present, Krzanich will be on watch to innovate at his new post at CDK, especially with his history of innovation at one of the largest tech companies in America.