They have to cut the dividend, this is bananas
Intel Cuts Employee Pay to Maintain Quarterly Dividend
111–120 of 293 posts
Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend
#112I'm not an Intel shareholder (outside of ETFs maybe) but I would be far more interested in their stock if they cut their dividend entirely and invested 100% of earnings back into the business. Hire the best talent, become the kind of place where the best talent wants to be. Stop being a stodgy, old, risk averse has-been. I would really like to see Intel make a comeback but this dividend preservation move suggests they no longer believe in their own company.
Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend
#113When bailed out banks paid bonuses it was understandably unpopular, but there was a certain logic that retaining talent optimized performance of the remaining bank, and therefore it was ultimately in the interest of taxpayers. It seems surprising that Intel either doesn't think that retaining top talent is in the interest of shareholders, or thinks that investors aren't able to understand the investment. I would assu…
What's Intel to do if TSMC top talent costs way less than Intel's top talent? How are they to compete? Even if they cancel all the dividend.
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Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend
#114When bailed out banks paid bonuses it was understandably unpopular, but there was a certain logic that retaining talent optimized performance of the remaining bank, and therefore it was ultimately in the interest of taxpayers. It seems surprising that Intel either doesn't think that retaining top talent is in the interest of shareholders, or thinks that investors aren't able to understand the investment. I would assu…
If Intel becomes a pure play foundry, bear with me, then it won't need those employees. It should be training those employees to become silicon designers and verification engineers at their own fabless semiconductors.
Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend
#115If Intel cuts its dividend the stock will crater. Since executive compensation is stock-based, tied to the stock performance, or both, there's an obvious incentive to keep the dividend going. The dividend has become more political than normal. In finance theory, a dividend is supposed to be a paid-out return. If you're cutting salaries to pay the dividend that means that you don't have enough surplus...by definition.…
>> If Intel cuts its dividend the stock will crater
Not necessarily. It really makes zero difference to the valuation of a company. Investors really punish companies that can barely cover their dividend (or worse have to borrow). If earnings are bad and revenues are not growing, the dividend is just a hokey shell game that works for about 5 minutes.
Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend
#116The worse culture, I have ever seen in any company. Amazed how they are still in business. The corporate greed, the culture of nepotism, killing innovation has been dominant.
I think you're being hyperbolic, or you haven't worked in many companies. Intel isn't a great place to work (despite their corporate value claiming it is), but by most accounts, Amazon is much worse unless you really like a place with cutthroat corporate politics. And "corporate greed"? Doesn't that describe every American corporation? All the big tech companies are laying off right now (except maybe Apple). And nepotism? I'm not sure where you got that one from. Intel isn't a family business.
Intel sucks in a lot of ways, but you seemed to list a bunch of inapplicable things. Intel's yearly review process is horrible, something Jack Welch would be proud of, pitting employees against each other, and their pay is terrible for a tech company.
Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend
#117If Intel cuts its dividend the stock will crater. Since executive compensation is stock-based, tied to the stock performance, or both, there's an obvious incentive to keep the dividend going. The dividend has become more political than normal. In finance theory, a dividend is supposed to be a paid-out return. If you're cutting salaries to pay the dividend that means that you don't have enough surplus...by definition.…
> executive compensation is stock-based
If they're cutting executive salaries by the largest amount it sounds good on paper but doesn't really do anything because their pay is, as you said, stock based.
So, unsurprisingly, very skeezy unless they change the largest factor in their pay.
Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend
#118Earlier quoted context omitted.
Sure, just move to California where non-compete agreements aren't enforced
Wouldn't the previous employer in the previous state still be able to sue you in their state (as your old employment contract specifies that any disputes will be resolved in the courts of that previous state)?
Don't let previous employer know where you're working.
Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend
#119Earlier quoted context omitted.
Layoffs get rid of both ends, as well. Don't fool yourself here.
Yep. First place I worked, they did some layoffs. After that, some of the best people started trickling out.
Layoffs show the company isn't in a good place, so the best people start looking for better opportunities early, to avoid still being around when it gets even worse.
Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend
#120If Intel cuts its dividend the stock will crater. Since executive compensation is stock-based, tied to the stock performance, or both, there's an obvious incentive to keep the dividend going. The dividend has become more political than normal. In finance theory, a dividend is supposed to be a paid-out return. If you're cutting salaries to pay the dividend that means that you don't have enough surplus...by definition.…
Why is that, aren’t buy backs better for investors anyway?
One reason I imagine is them being excluded from dividend etfs which would mean an outflow