Intel Cuts Employee Pay to Maintain Quarterly Dividend • Hacker News Board

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#291

Post by RantyDave » Sat, Feb 04, 2023, 6:07 AM UTC

flangola7 wrote: post #290

RantyDave wrote: post #158

Earlier quoted context omitted.

Intel are screwed. Many of its biggest customers have started just making their own chips instead. The bleeding edge of compute appears to be falling to Nvidia (who now make both the chips and the network that connects them). Their latest GPU project is going the way of their other GPU projects. They don't even have the biggest/baddest fab capability thing going on any more. I have no idea what's going on in there, b…

Other than Apple who else is making their own chips?

Amazon. And I was assuming Microsoft but it turns out they are using ampere. Heh, Google too. I guess it's starting to work out for ampere (but Google make their own tensor chips).

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#292

Post by simoncion » Mon, Feb 06, 2023, 2:43 AM UTC

andromeduck wrote: post #263

simoncion wrote: post #141

Earlier quoted context omitted.

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…

How did VMware fare?

You can read its 10-Ks and the various business news articles out there as well as I can.

The company is still around. A new CEO was appointed after Pat left. The company is now in talks with Broadcom to be acquired by Broadcomn.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#293

Post by murbard2 » Tue, Feb 07, 2023, 2:12 PM UTC

robjan wrote: post #70

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.

I have a feeling that increases in foreign investors also discouraged companies from issuing dividends. For example, I pay 0% capital gains tax but have to pay the US government (where I have never stepped foot) 30% on dividends.

Agreed.

In theory you can claim it back, but it's a major pain in the ass. Some ETF issued outside the US and holding US stocks will do it.

Other strategies to avoid this annoyance include:

1. selling on the ex-dividend date and buying the next day.

2. buying a long-date call and selling a put instead of holding the stock

3. simpler version of 2: buy a deep in the money long-dated call, you won't be paying all that much for the convexity, and you don't have to think about dividends.