Intel execs saw sharp compensation cuts in 2013
The company is now tying payouts more closely to performance
IDG News Service - The total compensation packages of top executives at Intel fell sharply in 2013 as a result of changes in the way the chip maker pays senior employees.
Nowhere was this more apparent than at the very top of Intel's executive ranks.
Brian Krzanich, the company's recently appointed CEO, was paid a base salary of $887,500 in 2013. A year earlier Paul Otellini, the outgoing CEO, received $1.2 million.
Krzanich's compensation package also included a $1.8 million bonus and $6.3 million in Intel stock for a total of $9.1 million. Last year, he received $15.7 million from Intel, the majority of which came in stock.
The total compensation for President Renee James dropped from $15.2 million to $7.7 million.
Both Krzanich and James are "driving a cultural shift" at the company and the adjusted compensation levels are part of that, Intel said in a regulatory filing.
"Among the actions being taken is creating an environment of greater accountability through changes to Intel's compensation guidelines," it said.
The new structure means that executive base salaries are fixed with the remainder of executive compensation based on performance.
As a result, there's "a strong link between an individual's total compensation and the company and business unit results," said Intel.
Base salary makes up roughly 10 percent of the total compensation of Intel's top 350 executives and senior engineers under the formula. The remainder is in the form of an annual bonus, worth about 24 percent of the total, and Intel stock worth about 65 percent of the total, but those amounts will change based on Intel's business performance.
Executive Vice President Dadi Perlmutter received a total of $6.7 million against $15.7 million a year earlier and compensation for Chief Financial Officer Stacy Smith fell from $15.1 million to $6.2 million, according to the Intel filing. Otellini received a total of $4.3 million in 2013, down from $18.3 million in 2012 when he was CEO.
The biggest contributor to the drops in total compensation was sharply curtailed equity grants.
Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is firstname.lastname@example.org
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- eBook: An Executives' Guide: The Machine of the Future This eBook has been developed to help executives understand the value of M2M and IoT to enterprises. We will include a framework CEOs...
- Quantifying the Return on Investment: The Business Case for Machine-to-Machine Initiatives This paper uses real-world customer results and a set of key metrics to help executives and managers understand the return they should expect...
- Is There Still a Case for PMO? PMOs haven't always worked for all companies all of the time. Smart companies should review their PMO needs and activities through a PMO...
- Consequences of Poorly Performing Software Systems While performance issues are not always avoidable, their effects can be mitigated and often avoided by developing a keen understanding their causes and...
- How to Select the Right IoT Platform We are rapidly entering a world where almost everything will be connected to the cloud and managing these connected things and leveraging the...
- Integrated Infrastructure: Simplify Operations, Speed Deployments and Reduce Costs George Weiss, Gartner Vice President and Analyst, and Praveen Akkiraju, CEO of VCE, provide practical information regarding the various aspects of Integrated Infrastructures... All IT Leadership White Papers | Webcasts