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


To: Proud_Infidel who wrote (182431)10/22/2005 2:36:13 AM
From: Amy J  Read Replies (1) | Respond to of 186894
 
RE: "Do you think they care?"

Yes, I think they do.

But I think you'll find large company BODs are more dependent upon factual charts, than the fluid pulse of a company.

RE: "In the past 5 years, they have proven they are not beholden to the stockholders"

It takes time to change things and Intel headed in the right direction by scaling things back.

Also, I think Intel saved a bundle by using options over the past couple of years while the stock was flat/down. For example, some at the higher levels have been asked to join other firms with up to a 25% base pay increase, yet some have stayed back. Without options, Intel would need to pay a lot of money in the way of increased base pay even when the stock wasn't doing good, if options had been eliminated.

Instead, Intel's labor expenses are going to be flat yoy while their headcount increased 14% yoy to 96,000, and is net up 30k from 66k during the trough of the downturn. Flat labor expenses is a substantial shareholder savings.

However, options aren't effectively motivating people, so, am in favor of Intel's board issuing an increased cash-dividend which would dampen the impact of other firms attempting to wave higher base pays, provided this doesn't conflict with cash needed for fabs and contigencies.