Intel executives got sharply less compensation in 2013

The company is now tying payouts more closely to performance

The total compensation packages of top executives at Intel fell sharply in 2013 as a result of changes in the way the chip maker pays senior employees.

No where was this more apparent than at the very top of Intel's executive ranks.

Brian Krzanich, the company's recently appointed CEO, was paid a base salary of US$887,500 in 2013. A year earlier Paul Otellini, the outgoing CEO, received $1.2 million.

Krzanich's compensation package also included a $1.8 million bonus and $6.3 million in Intel stock for a total of $9.1 million. Last year, he received $15.7 million from Intel, the majority of which came in stock.

The total compensation for President Renee James dropped from $15.2 million to $7.7 million.

Both Krzanich and James are "driving a cultural shift" at the company and the adjusted compensation levels are part of that, Intel said in a regulatory filing.

"Among the actions being taken is creating an environment of greater accountability through changes to Intel's compensation guidelines," it said.

The new structure means that executive base salaries are fixed with the remainder of executive compensation based on performance.

As a result, there's "a strong link between an individual's total compensation and the company and business unit results," said Intel.

Base salary makes up roughly 10 percent of the total compensation of Intel's top 350 executives and senior engineers under the formula. The remainder is in the form of an annual bonus, worth about 24 percent of the total, and Intel stock worth about 65 percent of the total, but those amounts will change based on Intel's business performance.

Executive Vice President Dadi Perlmutter received a total of $6.7 million against $15.7 million a year earlier and compensation for Chief Financial Officer Stacy Smith fell from $15.1 million to $6.2 million, according to the Intel filing. Otellini received a total of $4.3 million in 2013, down from $18.3 million in 2012 when he was CEO.

The biggest contributor to the drops in total compensation was sharply curtailed equity grants.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Join the PC World newsletter!

Error: Please check your email address.

Tags business issuespersonnelSEC Filingsintel

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?