Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (49924)	4/11/2002 4:13:39 PM
From: Dealer	Read Replies (3) \| Respond to of 65232

Intel Cuts Execs' 2001 Salaries, Bonuses By Duncan Martell SAN FRANCISCO (Reuters) - Intel Corp. cut the 2001 bonuses of its top executives by an average of 61 percent and did not raise their salaries, as the world's largest semiconductor's profits plunged 88 percent last year amid the worst downturn ever for the chip industry. ADVERTISEMENT Chief Executive Craig Barrett saw his 2001 bonus cut by 61 percent to $1.08 million from $2.78 million the year before, while his salary was unchanged at $575,000. Chairman Andy Grove's bonus was also cut by 61 percent to $981,800 from $2.54 million as his salary remained at $525,000. The figures were disclosed in Intel's annual proxy statement filed with the Securities and Exchange Commission on Thursday. Intel's (NasdaqNM:INTC - news) net income in 2001 tumbled to $1.29 billion from $10.4 billion the year before as sales fell 21 percent to $26.5 billion from $33.7 billion. Worldwide semiconductor sales tumbled about 30 percent last year, nearly double the 17 percent drop in 1985, as economies weakened and spending on information technology fell sharply. But unlike many other chipmakers, Intel remained profitable throughout 2001. It spent $7.3 billion on capital improvements, largely to upgrade plants with equipment that makes chips from larger, 12-inch-diameter silicon wafers and which etch smaller line widths on chips. The investments cut costs and boosted the performance of its microprocessors. Last month, Santa Clara, California-based Intel narrowed the range of revenue guidance it gave in January, pushing it toward the high end of the range, saying that shipments of microprocessors -- the primary computing engines of personal computers -- were following normal seasonal patterns. It expects first-quarter revenue of $6.6 billion to $6.9 billion, compared with an earlier forecast of $6.4 billion to $7.0 billion. Analysts expect Intel to earn 13 to 16 cents a share in the quarter, with a mean estimate of 15 cents, on revenue of $6.79 billion, according to Thomson Financial/First Call. Roughly 80 percent of Intel's revenue is tied to the personal computer industry. Intel cut the 2001 bonus of Paul Otellini, who was named president and chief operating officer earlier this year, by 57 percent to $561,000 from $1.29 million in 2000. It kept the company veteran's salary unchanged at $300,000. Les Vadasz, who heads Intel Capital, the company's venture capital arm aimed at spurring innovation in the industry, saw his bonus cut by 63 percent to $468,600 from $1.28 million as his salary was kept at $275,000. Andy Bryant, the company's straight-shooting and highly respected chief financial officer, saw his bonus cut by 64 percent to $468,000 from $1.31 million, while his salary remained at $260,000. Overall, Barrett's total compensation, including salary bonus and all other compensation in 2001 fell 49 percent to $1.92 million from $3.76 million in 2000. Grove's total compensation declined 49 percent to $1.75 million from $3.44 million, while Otellini's total compensation decreased 44 percent to $986,400 in 2001 from $1.77 million in 2000.