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Intel Cuts Employee Pay to Maintain Quarterly Dividend

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Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#121

Post by ChuckMcM »

manv1 wrote: post #90

If 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.…

FWIW when I worked at Intel their 401k match was also in Intel Stock so there is that. (I do not know if they still do that) And yes, when I was there in '84 they were doing pay cuts to keep layoffs to a minimum.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#122

Post by rr808 »

dragonwriter wrote: post #82
amf12 wrote: post #75

Earlier quoted context omitted.

> Pay cuts are better than layoffs. Unfortunately, I highly doubt that. With pay cut, comes a huge drop in morale across all the employees. Highly performers even consider leaving, and some employees leave. After a layoff, the rest of the employees are more productive and the company gets to decide which employees to lay off (depending on business needs, comp-to-productivity, or whatever else). > That said, investors…

> With pay cut, comes a huge drop in morale across all the employees. Layoffs also create huge general morale drops, greater the more the company has succeeded in the near universal practice of trying to get people to treat the company as a surrogate family.

True but with layoffs the company can choose the people to remove, with broad pay cuts they likely lose their best staff.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#123

Post by senttoschool »

dilyevsky wrote: post #99
senttoschool wrote: post #52

Earlier quoted context omitted.

I think they still have offices here in the US and employ Americans. Alibaba has been scaling back though. Lastly, I don't think there's any law that prevents an American from moving to China to work. https://careers.tencent.com/en-us/cityinfo.html?city=401 http://research.baidu.com/

> Lastly, I don't think there's any law that prevents an American from moving to China to work. IANAL but yes there are now > Restricts the ability of U.S. persons to support the development, or production, of ICs at certain PRC-located semiconductor fabrication “facilities” without a license; See: https://www.bis.doc.gov/index.php/documents/about-bis/newsro...

I guess it won't stop Chinese citizens working at Intel to return home though.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#124

Post by Kilonzus »

Ok keeping the dividend aside another way to look at this is instead of layoffs they insituted a pay cut for everyone with senior personnel taking more of the effect. Of course questions arise of what headwinds are they really facing or are they just taking advantage of the current rhetoric but either way I am a fan.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#126

Post by coldtea »

manv1 wrote: post #90

If 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.

Wait till you see what will happen to the stock when talent leaves the company (whatever it has left, anyway) after such pay cuts...

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#127

Post by recursv_thnkng »

Kilonzus wrote: post #124

Ok keeping the dividend aside another way to look at this is instead of layoffs they insituted a pay cut for everyone with senior personnel taking more of the effect. Of course questions arise of what headwinds are they really facing or are they just taking advantage of the current rhetoric but either way I am a fan.

They did this pay cut on top of a layoff

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#129

Post by coldtea »

rz2k wrote: post #6

When 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…

>When 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.

I don't think optimizing the performance of banks the create trillions of debt and were bailed out trillions of dollars is "in the interest of taxpayers".

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#130

Post by dilyevsky »

senttoschool wrote: post #123
dilyevsky wrote: post #99

Earlier quoted context omitted.

> Lastly, I don't think there's any law that prevents an American from moving to China to work. IANAL but yes there are now > Restricts the ability of U.S. persons to support the development, or production, of ICs at certain PRC-located semiconductor fabrication “facilities” without a license; See: https://www.bis.doc.gov/index.php/documents/about-bis/newsro...

I guess it won't stop Chinese citizens working at Intel to return home though.

Only if they don’t want to keep their visas/green cards. “us persons” can have different meaning but I’m pretty sure in this case it applies at least to gc
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