Intel CEO pay slips to $1.8 mln in 2002
April 02, 2003 12:53:35 (ET)
SANTA CLARA, Calif. (CBS.MW) - For 2002, when Intel's revenue barely increased, Chief Executive Craig Barrett's salary and bonus dipped 5 percent to $1.84 million.
However, he received options that could be worth $27 million even as the company's stock declined 50 percent last year. He also reaped $17.5 million from the exercise of previously-granted options last year.
On Wednesday, Intel (INTC, Trade) shares rose 6.5 percent to $17.50 as part of a broad market pop. Intel made the salary disclosures, and others, in an annual proxy filing with the Securities and Exchange Commission, ahead of its annual meeting scheduled for May 31 in Santa Clara, Calif.
For 2002, Intel earned $3.12 billion, or 46 cents a share, on revenue of $26.74 billion compared with earnings of $1.29 billion, or 19 cents a share, on sales of $26.54 billion in 2001.
Barrett received a salary of $610,000, a bonus of $1.1 million, "other" compensation of $134,900 and options on 584,000 shares. In 2001, Barrett received a salary of $575,000, a bonus of $1.1 million, other compensation of $264,800 and options on 484,696 shares.
His options were granted at a price of $29.33 each and would be worth $27.3 million assuming Intel's stock appreciates 10 percent annually over the life of the options.
Barrett exercised options last year on 544,000 shares worth $17.6 million. He currently has exercisable options on 2.2 million shares.
Chairman Andy Grove received a salary of $431,000, a bonus of $755,500, other compensation of $112,600 and no options. In 2001, he received a salary of $525,000, a bonus of $981,800, other compensation of $243,800 and options on 384,696 shares.
President and COO Paul Otellini received a $350,000 salary, a bonus of $612,000 and options for 664,000 shares. In 2001, he received a salary of $300,000, a bonus of $561,000 and options on 357,586 shares.
Chief Financial Officer Andy Bryant was paid $280,000, a bonus of $532,300 and options on 1.3 million shares. In 2001, he received a salary of $260,000, a bonus of $486,000 and options on 253,700 shares.
Intel's five highest compensated executives, representing 0.00635 percent of Intel's 78,800 employees, received 1.7 percent of all options granted within the company. In 2001, that percentage was less than 1 percent.
Shareholders will be able to vote on whether or not Intel should expense its options, based on a proposal put forth by the United Brotherhood of Carpenters and Joiners of America Pension Fund. Intel opposes the proposal.
Intel might change its auditor after 34 years with Ernst & Young. The chipmaker is soliciting bids from three other independent auditing firms, including E&Y, for services this year. Intel said there could be benefits in terms of a different auditor taking a "fresh-look" at the company's books and practices. Intel paid E&Y $10.8 million this year vs. $9.3 million in 2001.
Directors received a $24,000 retainer for 2002 and $4,000 for "out-of-pocket expenses" for each attended meeting, of which there are between six and eight. Also, each director received options representing 15,000 shares exercisable at $29.19 each.
Starting next year, directors will receive $60,000 annually but no per-meeting fees. The number of options granted to directors will also be reviewed this year.
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