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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: nihil who wrote (94289)	12/19/1999 9:39:00 AM
From: Haim Barad	Read Replies (1) \| Respond to of 186894

In a nutshell, it's not too far from what you described. Haim

To: nihil who wrote (94289)	12/19/1999 10:43:00 AM
From: greg s	Respond to of 186894

Hi nihil, As a summary, your comments are correct. Of course, every employee's review is specific to that individual's performance. I "retired" from Intel Aug. '98 after 17 yrs. of service. I decided that I had the means to follow my own star and that I should spend more time with my family. There are probably others who feel the same way. As Amy stated in an earlier post, this is normal for Intel and other high tech firms. IMHO, this is nothing new for Intel, they have learned how to deal with and plan for such over the years. Just my 2 cents worth ... Greg.

To: nihil who wrote (94289)	12/19/1999 3:03:00 PM
From: deibutfeif	Read Replies (1) \| Respond to of 186894

nihil, re:<My understanding of the Intel options award process...> As others have pointed out, you are close. Some fine points, however: 1) There is a typical run rate that applies at each grade level. Occasionally, this run-rate has been reduced in an attempt to bring employee compensation back in line with the rest of the industry. This happened (I think) for the options granted in '95 (which vest in '00). 2) For highly desirable/undesirable employees that typical number will be raised/lowered. However, since options only vest after 5 years, this works as golden handcuffs but not as a nudge out the door. 3) Intel does fire people when necessary - the clue is when you get put on a CAP (corrective action plan). Everybody is right that there is always turnover of technical personnel, especially if they have enough resource accumulated to do what they want. For each employee, that question is complicated by how much they are willing to "leave on the table" in the form of unvested options. This can amount to hundreds of K$/year even for moderate level employees. However the decrease in runrate has caused the options vesting in 2000 and thereafter to be less attractive. This effect has been compounded by the fact that the exercise price (which is set at grant time) has been rising. Thus many mid-term employees are finding that 4/00 or 4/01 to be the "sweet spot" in the curve. I am therefore quite sure that there will be a considerably higher than normal undesirable departure of experienced personnel in this time frame. The question is: will Intel manage through this? I sure hope so. dbf