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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

#141

Post by simoncion »

UncleOxidant wrote: post #76
georgeburdell wrote: post #17

Even weirder that last year Intel trebled the stock bonus, added a high performer profit bonus adder, and increased base pay by a lot. What a strange about face. What is Pat doing?

I had high hopes for Pat, but I think the institutional investors have been getting to him.

Pat did something similar at vmware. Froze hiring, promotion, raises, 401k matching, etc, etc. for a year, got himself an 80% pay raise for how well the company did, unfroze all that and fled to Intel. (The kicker is that vmware didn't compensate for the lost money and matching in the next evaluation cycle.)

I'm shocked that it has taken him this long to nickle-and-dime Intel's remaining employees to keep his pockets lined.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#142

Post by damageboy »

flangola7 wrote: post #95
insaneirish wrote: post #92

Earlier quoted context omitted.

> How is Intel an underdog next to AMD? I don't know many business machines running AMD. I don't know what a "business machine" is, but you probably aren't intimately familiar with organizations that have been directly purchasing large amounts of processors or processor containing devices over the last several years. For many such entities, AMD has made way more sense than Intel.

I meant workstations, laptops, servers, etc. My org has 1000s of endpoints and 10s of servers across multiple campuses. All of it running Intel.

Then your org is over paying for mediocre HW, at least for servers, arguably also for laptops (Dev machines for sure) At least for the last two years.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#143

Post by defrost »

p1esk wrote: post #27
defrost wrote: post #26

Earlier quoted context omitted.

As pithy two edged maxims go, that is dull and chipped on both sides. Recent layoffs have indiscriminately targeted talent and pay cuts deter those that are primarily driven by returns.

Agreed. In my defense, I was responding to a pretty dull comment.

No worries, we've all been there :)

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#145

Post by graton »

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.…

In 2021 Pat Gelsinger made $179 million dollars[1]. But his salary was $1.1 million. So him taking a 25% cut in his salary is pretty much nothing.

[1] https://www.crn.com/news/components-peripherals/intel-ceo-pa...

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#148

Post by epistasis »

osigurdson wrote: post #115
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 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.

Depends on the investor. There is an entire class of investor that is focused on stocks that reliably deliver a dividend. I wasn't aware that Intel had joined old-economy companies like oil, but I also don't fully understand the dividend investor mindset, as I can't figure out a tax situation that makes it appealing...

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#149

Post by jonas21 »

93po wrote: post #60
hgarg wrote: post #36

"All employees below Principal Engineer, grades 7 to 11, will get a 5% cut, 10% cuts will be instituted for VPs, and the executive leadership team will take a 15% cut, with Pat Gelsinger taking a 25% cut. " So the OP would rather have Intel fire thousands of employees?

Intel had record revenue in 2021 and $20 billion in profit. There is literally zero reason for cutting pay or jobs except for corporate greed.

It's not 2021 any more. Intel revenue dropped significantly in 2022, meanwhile they were hiring as though the revenue growth would continue. It's a similar story to many other tech companies. But at least at Intel, leadership is taking responsibility by cutting their own pay more than their employees' pay.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#150

Post by AtlasBarfed »

PaulDavisThe1st wrote: post #14
Scubabear68 wrote: post #13

I had to double check it wasn’t April 1st. This is a good way to lose your best employees.

If you're one of the best employees at Intel, who are you going to go work for? Choices are limited, and it's quite likely that those others are going to do roughly the same thing.

Let me ask you something.

Apple is now year 2 of throwing down the M1/M2 and the shock waves it created. AMD and Intel have to respond with an ARM chip. They just have to. Apple started it, so Qualcomm is going to do it, why wouldn't Samsung do it?

Intel has to play talent defense here. At a minimum, these companies are going to need deep x86 people that know how to do fast dynamic compiling transcoding like Apple did. Where can you get those? How about disgruntled Intel workers that got their pay cut?

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