Ron, please reread the post and also look at the very last line to understand the connection to Intel.
Hightech is somewhat under a balancing act between avoiding the creation of unions and retaining executives:
1. Whatever union activity happens at EA is extremely relevant to Intel - both are in the hightech industry.
Union activity is a potential threat to hightech. Never ignore union activity. All hightech companies should be putting some pressure on EA BODs in order to establish a palatable hightech compensation guideline to ward off union activity. Understanding what the environment at Yahoo was like is possibly relevant to this potential hazard. (Google guys are on top of this pulse and to their credit they are thankfully exploiting it, which probably will return some faith back into hightech and probably avoid unions.) But companies like Yahoo and EA create a potential threat to the rest of the hightech industry on the backs of a nasty downturn, when companies shouldn't be pushing their luck too far. These union concerns reduce substantially when the hightech industry shows job growth, a healthier way to attain opportunity, than thru destructive unions. However, YOY job growth in Silicon Valley was negative (~1,000), so union activity is still a modest concern. Unions are a small concern, but with large risks if they occur. Do we really want a competitive industry turned into the likes of the airline or car industry? Yuck.
Competing to the union concern, is retention of executives, the flip side of the same coin where you have management wanting more.
2. Refer to the last line where I mentioned an Intel VP exec recently was lured by Cadence (semiconductor CAD) with $10M in CASH.
3. You may not be connecting the dots:
- Sean Maloney was reported to interview with HP for the previously open CEO post
- Abhi Talwalker left today to LSI Logic
3. Meanwhile, they have to balance all of this against us shareholders.
If this isn't related to Intc, I don't know what is.
But I think Otellini has good instinct, so am not too concerned.
Regards,
Amy J |
