Intel to Freeze Salaries, Exchange Employees’ Options (Update4)
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By Ville Heiskanen
March 23 (Bloomberg) -- Intel Corp., the world’s largest chipmaker, will freeze salaries and exchange employee stock options as the economic slump weighs on chip orders and its share price slumps.
The company, whose net income fell 24 percent last year, won’t give raises to anyone, including Chief Executive Officer Paul Otellini and Chief Financial Officer Stacy Smith, according to a regulatory filing. Intel also will allow workers to exchange underwater stock options for ones with lower prices.
Intel’s share price has dropped by a third in the past year. The company joins other technology providers in updating compensation policies as consumers and companies curb spending for everything from computers to mobile phones. About 114 companies have proposed or completed option-exchange plans, including Intel competitor Advanced Micro Devices Inc. AMD also announced plans to cut workers’ salaries.
Intel is seeking shareholder approval to issue as many as 235 million new shares for the option-exchange program. The company also said the value of Otellini’s compensation rose 10 percent to $12.7 million last year.
Intel, based in Santa Clara, California, rose 87 cents, or 5.9 percent, to $15.52 in Nasdaq Stock Market trading at 4 p.m. New York time.
To contact the reporter on this story: Ville Heiskanen in New York at vheiskanen@bloomberg.net
Last Updated: March 23, 2009 16:21 EDT
http://www.bloomberg.com/apps/news?pid=20601103&sid=aygOVr7qhA2k&refer=us#
Share | Email | Print | A A A
By Ville Heiskanen
March 23 (Bloomberg) -- Intel Corp., the world’s largest chipmaker, will freeze salaries and exchange employee stock options as the economic slump weighs on chip orders and its share price slumps.
The company, whose net income fell 24 percent last year, won’t give raises to anyone, including Chief Executive Officer Paul Otellini and Chief Financial Officer Stacy Smith, according to a regulatory filing. Intel also will allow workers to exchange underwater stock options for ones with lower prices.
Intel’s share price has dropped by a third in the past year. The company joins other technology providers in updating compensation policies as consumers and companies curb spending for everything from computers to mobile phones. About 114 companies have proposed or completed option-exchange plans, including Intel competitor Advanced Micro Devices Inc. AMD also announced plans to cut workers’ salaries.
Intel is seeking shareholder approval to issue as many as 235 million new shares for the option-exchange program. The company also said the value of Otellini’s compensation rose 10 percent to $12.7 million last year.
Intel, based in Santa Clara, California, rose 87 cents, or 5.9 percent, to $15.52 in Nasdaq Stock Market trading at 4 p.m. New York time.
To contact the reporter on this story: Ville Heiskanen in New York at vheiskanen@bloomberg.net
Last Updated: March 23, 2009 16:21 EDT
http://www.bloomberg.com/apps/news?pid=20601103&sid=aygOVr7qhA2k&refer=us#
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