Menu
Intel executives got sharply less compensation in 2013

Intel executives got sharply less compensation in 2013

The company is now tying payouts more closely to performance

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.

No where 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 US$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 martyn_williams@idg.com


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags business issuespersonnelSEC Filingsintel

Featured

Slideshows

Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Show Comments