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

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesintelpersonnelSEC Filings

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Essentials

Mobile

Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?