Intel Slashing CEO and Managers' Pay in a Bid To Preserve Cash (yahoo.com) 38
Intel, struggling with a rapid drop in revenue and earnings, is cutting management pay across the company to cope with a shaky economy and to preserve cash for an ambitious turnaround plan. From a report: Chief Executive Officer Pat Gelsinger is taking a 25% cut to his base salary, the chipmaker said Tuesday. His executive leadership team will see their pay packages decrease by 15%. Senior managers will take a 10% reduction and mid-level managers a 5% cut. Intel shares climbed 0.1% in premarket trading in New York Wednesday. The stock lost almost half its value last year. "As we continue to navigate macroeconomic headwinds and work to reduce costs across the company, we've made several adjustments to our 2023 employee compensation and rewards programs," Intel said in a statement. "These changes are designed to impact our executive population more significantly and will help support the investments and overall workforce needed to accelerate our transformation and achieve our long-term strategy." The move follows a gloomy outlook from Intel last week, when the company predicted one of the worst quarters in its more than 50-year history. Stiffer competition and a sharp slowdown in personal-computer demand has wiped out profits and eaten into Intel's cash reserves. At the same time, Gelsinger wants to invest in the company's future. He's two years into a turnaround effort aimed at restoring Intel's technological leadership in the $580 billion chip industry.
Re:Your goose is cooked, Intel. (Score:5, Interesting)
Integrated semiconductor companies are dying. It is a business model that no longer works.
Intel should split into two companies:
1. A fabless chip designer to compete with AMD and ARM.
2. A fabricator to compete with TSMC.
By staying integrated, when either side of the business stumbles, both suffer.
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Seems to me that high-end fab is on the verge of not even being an "industry" any more, but rather just a single company.
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Chief Executive Officer Pat Gelsinger is taking a 25% cut to his base salary
Which is completely meaningless. His "base salary" is less than 1% of the total compensation he is paid.
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To be fair, the stock price has dipped so far that his RSUs are probably worth quite a bit less and his options are probably all underwater, so in this case he and the executives probably are losing (or have lost) far more than 25% of their total compensation already.
No, "Chief Executive Officer Pat Gelsinger is taking a 25% cut to his base salary." That base salary comprises only 5% of his total compensation [sec.gov]. So, he basically gave up a 1.25% pay cut, which was dressed up to look like a 25% pay cut. Meanwhile, the grunt workers whose base salaries comprise far more than 5% of their incomes bore the true burden of the cuts.
Again??? (Score:4, Informative)
What, AGAIN?
Twice in a day, now that's something!
https://slashdot.org/story/23/... [slashdot.org]
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They're really hardcore about saving shareholders money. Stonks go up!
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Repetitive posts are BAU here. Repetitive promotion of repetitive posts also BAU.
Exciting (Score:2)
They're not really cutting CEO pay (Score:3, Insightful)
As for cutting managerial pay most managers in modern corporate America are also line workers. It's rare to have a manager who isn't also doing actual work and is just managing. But everybody hates managers so by focusing on managers they'll get a pass on the pay cuts.
Finally Intel isn't doing this out of the goodness of their hearts. It's extremely expensive to hire people who can do the kind of work they need done. And if they do Mass layoffs then in a few years they won't have the technology they need to compete with AMD or even ARM.
Intel sat on their laurels because for years there was no serious competition. Now they've got competition from all sides and their products aren't good enough to make people want to upgrade. I finally did a CPU upgrade after 5 years and I bought a Ryzen 5600 for $110. It blows past game. It doesn't help the gpus that can drive a CPU or still insanely expensive
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Most of their pay is in stock bonuses that will recover in time.
Only if Intel recovers, which isn't a given.
I have four computers in my office. None have Intel CPUs.
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I have four computers in my office. None have Intel CPUs.
I mean four is a lot, but I'm still not sure your office is a market segment large enough to gauge the direction of the industry as a whole.
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"People who think they know everything are very annoying to those of us who do."-Mark Twain
Issac Asimov said that, not Mark Twain.
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At my last company, the CEO received less than 10% of his pay in the form of salary. The farther up the org chart you move (in tech at least), the less your pay comes from salary and the more it comes from equity (RSUs and options). It's a good look cutting senior leadership pay when doing layoffs, but it's not nearly as impactful as the downward movement of INTC stock.
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That's supervisors you're thinking of. The managers are the ones who tell supervisors what to do.
>Intel sat on their laurels because for years there was no serious competition
About ten years ago IIRC there were stories about Intel making cuts to R&D. Layoffs maybe? This was about five years before AMD ate their lunch.
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Most of their pay is in stock bonuses that will recover in time. They're getting a small reduction to their salaries which sounds like a lot of money but it's a small percentage of their compensation.
Meanwhile, they're not doing layoffs, which means they're also taking a big reduction to their total compensation, because they won't get a stock bump from doing layoffs.
Finally Intel isn't doing this out of the goodness of their hearts. It's extremely expensive to hire people who can do the kind of work they need done. And if they do Mass layoffs then in a few years they won't have the technology they need to compete with AMD or even ARM.
On the other hand, that's also true for all the other companies that have done mass layoffs. That didn't stop anybody else, sadly.
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Most of their pay is in stock bonuses that will recover in time. They're getting a small reduction to their salaries which sounds like a lot of money but it's a small percentage of their compensation.
Exactly. I'd rather see them take a 10% hit to overall compensation than 25% of their base salary. THAT would sting far more than a little bit of cash.
Once you hit a certain level cash is nice, but you have "enough" on-hand it's not as important because you have the near term bills, heck most of the yearly bills, covered. At that point you're banking money for growth into as a form of rent seeking behavior. There's very little risk, just check out how oil execs (among many) sell shedloads of stock for a
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Intel's hardware is decent enough, the problem is that it's priced as if it is still the undisputed king. Currently, AMD is ahead, but even at times when Intel has the lead, the huge Intel tax hands price/performance to AMD.
Intel refuses to simply make a fair profit, they demand a killing or nothing. If they don't pull their heads out of their asses they'll get nothing.
So is this "Across the board" or not ? (Score:2)
Just how much are the Editors paid not to?
Managment or across the board? (Score:2)
https://slashdot.org/story/23/... [slashdot.org] says across the board and a few hours later article states only for management.
Maybe the truth is that everyone is getting a pay rise :p
Stock is worth more and went up. (Score:2)
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All intel employees are stock holders
Learn when to stop (Score:2)
"Intel Slashing CEO and Managers" is already a very satisfying headline, anything beyond can only make it less appealing.
It's likely a SCAM! (Score:3)
I worked for a company that did this during the pandemic. They cut everyone in management all the way to the CEO's salary by 20%.
It lasted about 8 months. Then they turned around and quietly gave everyone on the executive team special one time bonuses that were 3X their pay cuts and then gave the rest of the management team a 2% bonus.
90% of the management team left within 4 months of that event. Me included.
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Well, scum swims to the top. I will never understand this type of completely irrational greed. They probably thought everybody else was too stupid to notice.
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In a "normal" year, I could see agreeing to something like a 5% pay cut.
However, inflation has been 10%, so simply not getting a raise this year leads to a 10% reduction in "purchasing power". Add a pay cut to that- and a great many people will have trouble paying bils for housing, car, food, energy etc.
I worked for Intel for a very short time years ago after my company was purchased. The culture of the company is very weird- almost cult or military like. I can see why their very inward looking mindset h
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IBM selected their microcprocessor for the IBM PC and handed Intel the PC market, on the condition there was a second supplier which turned out to be AMD. This was before the PC was a thing. This made Intel VERY wea
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What, is this an ad? Who the fuck cares if business leaders have less stress? Do you mean highly experienced offshore professionals?
Do you understand how Ross Perot made his billions with EDS?
EDS came in and told companies he could run their IT operations for less money and that they could just lay off their existing staff. EDS would analyze, find critical players and over-performers and then present their plan to management. The Analysis was always at least 25% less cost than they were paying before so who
so what? (Score:1)
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Not on the west coast
Take their example (Score:2)
Slashdot should slash editors' pay if they post dupes on the same day.
Performance (Score:2)
Given the way the stock has performed over the past 3 years, I would think that upper management pay would have already been cut. Companies need to place value on executives who can lead a company through rough times. Intel makes a good product and maybe there's a little fat that can be trimmed out of headcount, cost reduction, and product alignment but start at the top, not at the bottom.