News Intel's vacant CEO spot rumored to be filled by Toms Caulfield — abrupt GlobalFoundries shakeup sparks speculation

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Intel would need to buy stock for any new CEO wouldn't they? (what I meant was the buyback need not be targeted for any particular ceo, i.e. Caulfield.
 
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Now this would be something GF was spinoff AMD when AMD decided to go fabless after unsuccessfully being able to manage the supply chain necessary to deliver chips with the same mastery of Intels FAB process nodes and TTM. Two decades Peterwith the pressures of the market the ascendence of Samsung and TSMC and Intel is turning to a former competitor to get on track in its business and apparently growth of FAB prowess. This must indicate Pat G had it right … Intel has a chance for growth via its FAB business or at worst fix its manufacturing issues. Got to say how the mighty have fallen and no one stays on top forever.
 
So the speculation is for a new CEO who previously pulled GloFo off of advancing their process tech, and then made the company "profitable" again (no mention of the pandemic & how it boosted ALL chip companies).

Yeah, that's NOT the best type of leader going forward for Intel. They need someone who can improve their manufacturing and re-capture the lead in process tech, not someone who "sold assets he deemed unpromising, but more importantly, he quit the leading-edge process technology race..."
 
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Exactly,
2Be_or_Not2Be said:
So the speculation is for a new CEO who previously pulled GloFo off of advancing their process tech, and then made the company "profitable" again (no mention of the pandemic & how it boosted ALL chip companies).

Yeah, that's NOT the best type of leader going forward for Intel. They need someone who can improve their manufacturing and re-capture the lead in process tech, not someone who "sold assets he deemed unpromising, but more importantly, he quit the leading-edge process technology race..."
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It makes sense to hire him then.... Intel now want to sell/spin off assets that's deadweight (Intel IFS) and quit the leading edge process, and this guy did exactly that at GloFlo. He quit 7nm and sold off deadweight assets to maximize shareholder value.

Intel is unironically going to skyrocket in stock value because Intel Products is highly lucrative by simply outsourcing to TSMC for leading edge.
 
If true, my immediate speculation would be Intel will do a spin-off that merges Global Foundries with Intel Foundry into a new company. In investors eyes this would be a win-win. Intel sheds a business they no longer want and haven't been able to keep up with and Global Foundries gets back into the leading edge node game in a world where localization is currently in favor.

Personally I don't like it, but given the actions by Intel and the current economic trends it might end up going that direction one way or another.
 
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frogr said:
Intel would need to buy stock for any new CEO wouldn't they?
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Typically companies don't buy stock they award to CEOs, at least not in a traditional sense (meaning go to market, acquire the shares and then transfer ownership). They have a few ways in which they handle the awarded shares (typically via options or RSUs). Options are just that, the option to buy the stock at a strike price, it can be from the public market or shares the company has on hand or via new issues. RSUs work the same way though there are more rules around those. In both cases companies have options for how to handle the distribution. One way is to transfer outstanding shares the company itself already owns (via buybacks, reserves or both), the other options is to simply issue new stock, while some do different combinations of strategies. Google for example issues stock when they award it and then use buyback allocations to "re-acquire" the shares issued at a later date so that shareholders are not diluted by the issuing of new stock. However, companies are not obligated to buyback the shares they issue, it's simply an option some companies use to keep large shareholders happy, but not all companies do it.

tldr; they don't need to buy stock in order to award stock to a new CEO, it just depends on the situation and what the company wants/is willing to do.
 
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Alvar Miles Udell said:
An article about a reddit post with the evidence being a stock block trade when said stock is lower now than it was then...
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The link to the stock purchase and size is relatively weak in terms of speculation quality. It's rare for a company to buy stock and simply give it to a new CEO right out the gate on hire. It's almost always tied to KPIs over a set number of years (3 to 5 typically) and when those KPIs are met at the end of a fiscal year then the awards occurs. It's not unheard of to award up front, but that is usually reserved for rockstar CEOs with long track records. In this case I would call it unusual because Thomas Caulfield's CEO history is relatively short, but in desperate times...
 
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So Intel is hiring the titan of advancement that axed GloFo 7nm and the “10nm” upgrade on their 12nm node? You just can’t make this stuff up. They want somebody with tons of 14nm experience or something lol?
 
JamesJones44 said:
The link to the stock purchase and size is relatively weak in terms of speculation quality. It's rare for a company to buy stock and simply give it to a new CEO right out the gate on hire. It's almost always tied to KPIs over a set number of years (3 to 5 typically) and when those KPIs are met at the end of a fiscal year then the awards occurs. It's not unheard of to award up front, but that is usually reserved for rockstar CEOs with long track records. In this case I would call it unusual because Thomas Caulfield's CEO history is relatively short, but in desperate times...
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In desperate times you hire Bill Belichick not Scott schottenheimer … just saying
 
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JamesJones44 said:
If true, my immediate speculation would be Intel will do a spin-off that merges Global Foundries with Intel Foundry into a new company. In investors eyes this would be a win-win. Intel sheds a business they no longer want and haven't been able to keep up with and Global Foundries gets back into the leading edge node game in a world where localization is currently in favor.

Personally I don't like it, but given the actions by Intel and the current economic trends it might end up going that direction one way or another.
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At this point anything that can compete Samsung and TSMC would be a boon and hopefully help reduce prices on key tier-1 components. Not that Nvidia will use someone else or has incentive to reduce their prices but there are only a handful of players that can build out cutting edge chips.
 
Pierce2623 said:
So Intel is hiring the titan of advancement that axed GloFo 7nm and the “10nm” upgrade on their 12nm node? You just can’t make this stuff up. They want somebody with tons of 14nm experience or something lol?
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As opposed to who? An experienced CEO for nodes below 12 nm? Are there more than three on the planet?
 
JamesJones44 said:
The link to the stock purchase and size is relatively weak in terms of speculation quality. It's rare for a company to buy stock and simply give it to a new CEO right out the gate on hire. It's almost always tied to KPIs over a set number of years (3 to 5 typically) and when those KPIs are met at the end of a fiscal year then the awards occurs. It's not unheard of to award up front, but that is usually reserved for rockstar CEOs with long track records. In this case I would call it unusual because Thomas Caulfield's CEO history is relatively short, but in desperate times...
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I'm also fairly sure a company cannot buy back stock from the public market without giving a notice.
 
The Hardcard said:
As opposed to who? An experienced CEO for nodes below 12 nm? Are there more than three on the planet?
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I sure as hell wouldn’t hire the guy that’s presided over one of the worst performing foundries of the last decade both technologically and financially. They’ve lagged behind every other major foundry other than maybe Samsung in growth. They also spent two years on 7nm and were still far enough from a viable financial success that they found scrapping two full years of r&d spending more palatable than trying to get 7nm into production. SMIC got their “somewhat similar to 7nm in some ways” process node up and running at production levels without access to tools as advanced as what GloFo has in their “super high density” 12nm process they spun out of the r&d they wasted on 7nm and a “10nm” update on their 12nm process.
 
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