News Intel ex-CEO Gelsinger and his CFO slapped with lawsuit over Intel Foundry disclosures — plaintiffs demand Gelsinger surrenders his entire salary e...

[palladin9479]

Yeah, I know and get that. The point being, that's a serious amount of dosh, and it's no wonder that someone in the chain wants some back! I think the BOD should have negotiated better!! Don't you agree?

So this comes down to career employee mentality. People who would be hired of senior executive positions do not need to work anymore, they've already won and generally can just sail away at any point in time. They do not work because they have to work, but because they chose to work. Boards are responsible for interviewing and sifting through potential candidates until they pick one that they believe will either lead the company towards success or minimize the cost of failure through a very bad time. Those outcomes are not cheap and usually most of their compensation is in some form of stock.

That is why I do not pay attention to any "estimated value" from any media source, I want to know the number of shares and vesting period and if they can't get that then the rest is likely BS. Most executive contracts have an escape clause, otherwise known as a golden parachute, where if the executive has to leave early, then all outstanding shares vest immediately and usually have a kicker bonus attached.

 

[YSCCC]

O yea, it sounds like he’s a dictator and the board have no say of his moves… comeon.

Being overpaid or not is another story, but that’s called a contract. If Intel remotely claim back any, good luck they can find someone remotely having talent or vision to lead them.

 

[blppt]

The hits keep coming, I feel worried for Intel but maybe a better Intel rises up once they are done facing the consequences of the missteps of the past years.

I mean, AMD was in a pretty bad place before Ryzen, and look at them now. Of course, Intel already hired and (fired?) Jim Keller, lol.

 

[YSCCC]

If Intel "screwed itself up" it doesn't remove responsibility of id*c Pat G. Just look at his record - typical s*t-head incapable of achieving anything himself - typical luser - affir*ive action type - but with monumental ideas. The only reason he didn't completely fail when at Intel - first time - because he was lead by people like Andy Grove.

well, he's terminated anyway, and I never saw a place sans those with dictatorship and in those state owned companies... can sue and recall all the paid salary and bonus to the employee... (CEO is still an employee, reporting to the director board)

As I said, if you try doing that, good luck anyone with a chance to lead them out of the S__t filled pit they are now in, it's like an adv saying "hey, come for our prospect and lead us out, with attractive salary and bonus, but if you didn't meet our target we will fire you and take all the payment back, plus you have to hire your own lawyer"

 

[JRStern]

I wonder if this will even move forward, since how can you prove they actually withheld information in the reports?

I think there is a strong case to be made that they did not report important data in filings or public statements.
This has only been the trend for virtually all publicly traded companies for the last twenty years.
Stockholders? Pfffft

The best defense is that any sophisticated investor should have seen and known this without disclosure. Whether that wins in court or not I cannot say.

 

[JRStern]

The problem is, since about 2003 intel has never had competitive products. When AMD unveiled athlon64 intel literally had nothing to compete, ...

That's a little harsh. Yes, Intel was trying to go off with a new Itanium architecture instead of extend the crufty old x86 and AMD stole a big march on them, but Intel came back and produced some pretty solid 64-bit server chips - until they got jammed up in process at 14nm and generally got fat and lazy.

I think it's not appreciated how bad Intel server chips have been these last five years ... maybe ten. If the cloud hadn't come along circa 2015 and generated immense new demand, Intel would have been in deep trouble well before 2020.

 

[Flayed]

Dang 207M for 3 years work

 

[kcw]

The lawsuit won't help Intel's shareholders unless there is material evidence of obvious wrongdoing. It adds uncertainties to key employees.
The tendency to use good words is not a wrongdoing for executives. Intel's deteriorating financials are visible on financial statements (e.g. days of inventory) and the CFO has previously warned that.
I will doubt their true exposure instead (e.g. a net short hidden somewhere)
I also think ppl should spend the time and resources to push for benchmark standardization in the industry instead.

 

[-Fran-]

I think there is a strong case to be made that they did not report important data in filings or public statements.
This has only been the trend for virtually all publicly traded companies for the last twenty years.
Stockholders? Pfffft

The best defense is that any sophisticated investor should have seen and known this without disclosure. Whether that wins in court or not I cannot say.

How do you distinguish, in context, what is "important" and not without the help of hindsight, though?

What we think now is important in the moment may have been a footnote, but they wanted it as part of the executive summary instead "in retrospect".

I'm trying to be as impartial to Pat n' Co. with this, since there's no stablished practice or guide to follow on what you should disclose. The best you have is GAAP and non-GAAP reports which are what the shareholders should always read in great detail and ask for more if something is amiss.

This whole lawsuit reads extremely petty. I may not like what Pat did as a CEO, but this feels wrong.

Regards.

 

[hotaru251]

Intel's issues under gelsingers 4 yrs wont be felt for many yrs to come.
This is just shareholders not liking they "lost" value of their shares.

Gelsinger ONLY had 4 years....that is a incredibly short amount of time and results of that wont be felt for many yrs to come as thats how it is.

Foundries aren't cheap or fast and it takes time to get them going and secure orders.

Also is it even legal to ask for all his money? as if you take everything he made then he effectively was paid $0.00 salary which im pretty sure is not legally allowed as you can't work for free afaik.

 

[spartaman64]

he has made major missteps. intel got offered a sweetheart deal by TSMC 40% off purchases. imagine intel being able to undercut AMD because they pay much less for their wafers. but then pat ruined it by going around telling people china is going to invade taiwan dont buy from TSMC. this is obviously a very sensitive topic for taiwanese people on top of the business implications so TSMC withdrew their offer.

 

[rt23456p]

Should auditors be held responsible as well? They said no objection and agreed that report is fairly presented in all financial reports.

 

[caseym54]

What utter crap. Why don't they sue the board members that let Intel slide to such a point where Gelsinger's prescription was needed? Gelsinger was part of the solution, short-term investors and clueless board members were the problem. Still are.