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

To: rkral who wrote (180976)	5/3/2005 2:26:36 PM
From: Amy J	Read Replies (1) \| Respond to of 186894

Ron, you missed the blurb about the "new proposed options." You may not consider $23 the "stumble price," but more importantly a dozen Intel folks that represent a broad selection of heavy stockowners across Intel, certainly do. That's an interesting dip from $27 downto $23 in a one year, in part due to the stumble. finance.yahoo.com Intc underperformed 10% compared to Nasdaq over this same period. Loosely, let's add this 10% to last year's price and one gets $29: $27 + 2.3 = $29.30. Well, a grant price of $29 certainly would more than doubly ensure the compensation program avoided rewarding for last year's stumble. ( We both know the component of the stumble price would be calculated in a different, more precise way, so don't get caught up in details and lose sight of the big picture point.) The big picture is it creates a concern if any leader is compensated for any portion of a stumble. It's not like there was an economic global issue or another 9/11 that stumbled the stock. I do think gas prices are much higher than last year, yet Intc reported great earnings while consumer companies struggled in Q1, so there should be credit for that outstanding recovery, so maybe a grant price that's somewhere between $29 and $23. Maybe $27 is a good mid-point to use, if Intel's board wants to minimize the perception of rewarding for stumbling. I think people would rather see him get $1M more in cash this year (which is half of the proposed option gain after Intc reaches $29), or 300k more at $27 grant $, rather than 300k more at the stumble price. Regards, Amy J