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

To: carl a. mehr who wrote (172761)	1/31/2003 2:48:27 AM
From: The Duke of URL©	Respond to of 186894

must be, you probably worked the problem backwards. That is exactly what I did and I told you it was a guess, but it does seem like a reasonable explanation, ASSUMING IT IS TRUE.

To: carl a. mehr who wrote (172761)	1/31/2003 8:40:02 AM
From: GVTucker	Respond to of 186894

Carl, RE: director compensation, specifically Pottruck All that information is in the proxy statement. This would be a good time to remind everyone: READ! Every single public company files a 10-K, 10-Q, annual report, and proxy statement. A shareholder should read each cover to cover. sec.gov Interesting to note that Mr. Pottruck is the chair of the Finance Committee, and also a member of the Compensation Committee. The cash compensation to the directors is fine, but the options compensation is absurd. It gives the directors the incentive to "shoot for the fences" and take on excessively risky projects. Any wonder that Intel undertook the rather expensive foray into non-core businesses in the late 90's? If it works, the options are worth millions. If it doesn't work, well, options can't go below zero, so they lose nothing, and shareholders are left holding the bag. Specifically in regard to the option issue: In 2001, each independent director was paid a retainer fee of $24,000. In addition, independent directors receive a fee of $4,000 plus out-of-pocket expenses for each regular Board meeting attended. Independent directors also receive a fee of $500 for each special telephonic Board meeting attended. In 2001, Dr. Yoffie received an additional $6,000 for serving as Lead Independent Director. Directors who are company employees receive no additional or special compensation for serving as directors. Independent directors do not receive consulting, legal or other fees from Intel other than Board compensation. Intel also grants stock options to independent directors. In accordance with Intel's 1984 Stock Option Plan, option grants to independent directors may not exceed 40,000 shares per director per year, and the option exercise price must be equal to the fair market value on the date of grant. During 2001, Intel granted each independent director an option to purchase a total of 15,000 shares at an exercise price of $29.41 per share, except for Mr. Hundt, who received option grants exercisable for a total of 35,000 shares at an exercise price of $28.76 per share. Mr. Hundt joined the Board in 2001, and accordingly, his option grants included an initial option to purchase 20,000 shares plus the annual director option grant of 15,000 shares. He received his grants on the date that he joined the Board, resulting in a different exercise price than the other directors' annual grants. Independent director options are exercisable in full one year from the date of grant. Intel has a deferred compensation plan for independent directors. Under this plan, independent directors may elect to defer up to 100% of their annual retainer and fees, and receive an investment return on the deferred funds as if the funds were invested in Intel common stock. Independent directors participating in the plan may make irrevocable elections to receive the deferred funds in a lump sum or in equal annual installments over 5 years or 10 years, and to begin receiving distributions at retirement or at the earlier of retirement and a date specified at the time of the election, which cannot be less than 24 months from the election date. This deferred independent director compensation is an unsecured obligation of Intel. Drs. Yoffie and Shaw and Mr. Pottruck participated in the deferred compensation plan for 2001. In 1998, the Board terminated its retirement program for independent directors. The retirement program provided a retirement benefit to any independent director who had at least 10 years of service or who retired after the age of 65 with at least 5 years of service. All independent directors serving at the time of termination were vested with the number of years served (regardless of whether they had met the previous vesting requirements), and no further years of service will accrue for purposes of retirement benefits. Directors vested under the program receive an annual benefit equal to the annual retainer fee in effect at the time of payment, to be paid beginning at commencement of retirement and continuing for the lesser of the number of years served as an independent director or the life of the director.

To: carl a. mehr who wrote (172761)	1/31/2003 9:23:58 AM
From: Jim McMannis	Read Replies (1) \| Respond to of 186894

RE:"There appears to be a lot of resentment within the Intel company about the way stock options are handed out. The company "big wigs" are creating morale problems!" Definitely. When I mentioned it to a lithography Tech I know at Intel you could just feel the disillusionment. These guys are looking like rats fleeing the burning ship.

To: carl a. mehr who wrote (172761)	1/31/2003 11:05:31 AM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Carl, You'll be glad to hear (from the following article) that Intel is working to save money on it's compensation expense. Maybe eventually they will get around to the BOD options. Intel Freezes Wages of 3,200 Irish Workers, Irish Times Says By Gabrielle Monaghan Dublin, Jan. 31 (Bloomberg) -- Intel Corp., the world's biggest maker of computer chips, froze the wages of its 3,200 workers in Ireland to help combat a continued slump in the technology industry, the Irish Times said, citing an unidentified spokeswoman. Intel, which doesn't allow staff to negotiate wages collectively through trade unions, will save millions of euros from the move at a time when a new national wage agreement proposes an increase of 7 percent over 18 months, the paper said. The California-based company must control its costs in Ireland to enable it to continue to invest in research and capital expenditure, the spokeswoman told the Irish Times. Intel lost half its value in 2002 as sinking profits and doubts that the economy would recover caused businesses and consumers to curb personal-computer purchases. (Irish Times 1-31 Business, pg. 1)