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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

#131

Post by bickfordb »

coldtea wrote: post #126
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...

real talent leaves

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#132

Post by sorry_outta_gas »

faeriechangling wrote: post #7
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…

I don’t know who is invested in Intel that's betting on anything but a high risk high reward underdog story comeback. Intel already was undercompensating to the point of driving the talent out of their company to begin with. These wage cuts are a sign for investors to flee faster because management lacks coherence. Management seems to be betting on a strategy of promising the world to gain government subsidies while…

Investing in this giant companies instead of providing funding to spur new ones is just dumb

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#133

Post by AYBABTME »

kube-system wrote: post #103
faeriechangling wrote: post #67

Earlier quoted context omitted.

What stops the Americans from simply stealing (or buying) TSMC or Samsung or whatever technology with how deep their fingers are into those companies and starting up fabs as needed? Even if the world "Deglobalizes" overall does that really mean that America maintaining its influence over countries like Taiwan and Japan and South Korea is not an option if the issue is important enough? America also has AMD/Nvidia for…

Multinationals have no loyalty to any country anyway. Giving TSMC big tax breaks to build top fabs in the US to make AMD chips is equally as good as having Intel be a success from a national security perspective.

That's a wishfully pessimistic and cynical point of view. Multinationals are made of people and like people, some of them have more less turncoat attitudes. TSMC would probably not abandon Taiwan, it knows it's essential to its defense.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#135

Post by BuyMyBitcoins »

bloodyplonker22 wrote: post #71
idontwantthis wrote: post #32

Earlier quoted context omitted.

I invested when they announced their ARC GPUs at the height of the chip shortage. Took them so long to deliver it seems like they lost their chance.

Unfortunately, what they delivered was also extremely underwhelming. I expected something that would at least be a mid-range GPU, but they ended up releasing trash tier casual gamer cards. I do not believe that was their intent. AMD and Nvidia are just too competitive today.

Given that AMD has been competing with Nvidia for so long and has had so much trouble gaining market share and that they are always competing on price rather than performance, I reckoned that Intel would suffer the same fate with ARC.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#136

Post by BuyMyBitcoins »

murbard2 wrote: post #66
candiddevmike wrote: post #22

Earlier quoted context omitted.

Once upon a time dividend payments were _the reason_ to hold stock in companies. Funny that tax loop holes and the borrowing-against-assets-infinite-money-cheat rendered dividends "silly". Yes this is a shit situation for Intel, but public companies should be paying dividends, IMO.

The reason to hold stock is that they return value to shareholders. Stock buy backs are functionally dividends but they are taxed more fairly. They also work better for foreign investors, and are a much cleaner and simpler mechanism than directly sending cash to shareholders.

Stock buybacks also help boost numbers like Earnings Per Share without having to actually earn more.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#137

Post by sorry_outta_gas »

flangola7 wrote: post #83
faeriechangling wrote: post #7

Earlier quoted context omitted.

I don’t know who is invested in Intel that's betting on anything but a high risk high reward underdog story comeback. Intel already was undercompensating to the point of driving the talent out of their company to begin with. These wage cuts are a sign for investors to flee faster because management lacks coherence. Management seems to be betting on a strategy of promising the world to gain government subsidies while…

How is Intel an underdog next to AMD? I don't know many business machines running AMD.

Intel has been shitting the bed for a decade+ now

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#138

Post by kube-system »

AYBABTME wrote: post #133
kube-system wrote: post #103

Earlier quoted context omitted.

Multinationals have no loyalty to any country anyway. Giving TSMC big tax breaks to build top fabs in the US to make AMD chips is equally as good as having Intel be a success from a national security perspective.

That's a wishfully pessimistic and cynical point of view. Multinationals are made of people and like people, some of them have more less turncoat attitudes. TSMC would probably not abandon Taiwan, it knows it's essential to its defense.

Nothing about my comment implies they’d have to. The US just wants supply chain security and availability. That can be done by TSMC factories in the US regardless of where else they have factories.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#139

Post by ryanisnan »

bickfordb wrote: post #131
coldtea wrote: post #126

Earlier quoted context omitted.

> 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...

real talent leaves

This. I've had one pay cut in my career, and it immediately made me just up and leave. I don't know why one would tolerate such a thing, unless there was significant up-side still on the table.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#140

Post by tshaddox »

faeriechangling wrote: post #67
tshaddox wrote: post #63

Earlier quoted context omitted.

If you’re predicting a major decline of globalism, then betting on a domestic firm in an extremely economically important sector that is currently extremely reliant on globalism doesn’t sound that crazy.

What stops the Americans from simply stealing (or buying) TSMC or Samsung or whatever technology with how deep their fingers are into those companies and starting up fabs as needed? Even if the world "Deglobalizes" overall does that really mean that America maintaining its influence over countries like Taiwan and Japan and South Korea is not an option if the issue is important enough? America also has AMD/Nvidia for…

My understanding is that the semiconductor supply chain is hyper-globalized with many steps in the process being so enormously capital-intensive that only a single firm can produce them at scale, the firms producing these various steps are widely distributed geographically, and each step is nearly useless if any step is missing.

And I wouldn’t just be worried about something simple and direct like “the United States losing influence over Taiwan’s semiconductor industry.” The concern is more like “the United States losing its global influence and thus its ability to almost unilaterally enforce a particular global order including (among other things) relatively safe global ocean freight.”

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