7 ms·

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 fac

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?

compiler-guy 4y ago
Thinking in terms of quarters rather than years or even decades.
- UncleOxidant 4y ago
  Sure, and that's been the problem with the last couple of CEOs before Pat, but Pat came in expressly saying he was going to take the long view. I suspect that he's visited been by some large institutional investors who don't take the long view.
  - baq 4y ago
    If he did the right thing he’d have to take an 80% TC cut instead of 25%… stock needs to fall at least 50% from here of dividends are gone.
    - UncleOxidant 4y ago
      He should go further than 80% and take the average Intel engineer's salary until things turn around.
UncleOxidant 4y ago
I had high hopes for Pat, but I think the institutional investors have been getting to him.
- simoncion 4y ago
  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.
  - andromeduck 4y ago
    How did VMware fare?
    - simoncion 4y ago
      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.
- reducesuffering 4y ago
  Pat is ultimately just a high-paid employee. The board and investors own the company and have ultimate veto on what Pat does or he's fired. If Pat puts in a plan at the quarterly meeting to cut dividend, they can tell him no and to instead cut salaries.
elihu 4y ago
Intel is projecting a loss next quarter, something that hasn't happened in a really long time. Pat doesn't want it to happen on his watch, but I think it would have been better to cut the dividend or take the loss than to do pay/bonus/benefit cuts like this. Wouldn't be surprised if the words "organize" and "union" are spoken in hushed tones by a few people in the hallways tomorrow. If that gets any momentum behind it it would be a glorious thing and long overdue, but it might not help with Intel's financial difficulties or inspire shareholder confidence...
- graton 4y ago
  They had a loss last quarter of $700 million [1]. They had a loss of $500 million in Q2 of 2022 [2] [1] https://www.intc.com/news-events/press-releases/detail/1600/intel-reports-fourth-quarter-and-full-year-2022-financial https://www.intc.com/news-events/press-releases/detail/1600/... [2] https://www.intc.com/news-events/press-releases/detail/1563/intel-reports-second-quarter-2022-financial-results https://www.intc.com/news-events/press-releases/detail/1563/...
  - elihu 4y ago
    Good point: it was a loss according to GAAP, but the non-GAAP results weren't a loss. Whereas it looks like they're projecting a non-GAAP loss as well next quarter. (I don't know what the relevant differences are here on GAAP vs non-GAAP.)
    - graton 4y ago
      GAAP = Generally Accepted Accounting Principles non-GAAP = Whatever we decide? :) Okay, I don't really know. Real info: https://www.investopedia.com/articles/financial-analysis/062716/gaap-vs-nongaap-which-should-you-consider-evaluation.asp https://www.investopedia.com/articles/financial-analysis/062...
      - elihu 4y ago
        Yeah, non-GAAP is basically, "we've decided to account for certain things differently because the standard accounting rules would be misleading in our business." Companies could abuse non-GAAP reporting, but there's nothing particularly unusual or nefarious about reporting non-GAAP numbers along with the required GAAP numbers, or treating the former as the more accurate representation of reality.

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?

compiler-guy 4y ago

Thinking in terms of quarters rather than years or even decades.

UncleOxidant 4y ago
Sure, and that's been the problem with the last couple of CEOs before Pat, but Pat came in expressly saying he was going to take the long view. I suspect that he's visited been by some large institutional investors who don't take the long view.
- baq 4y ago
  If he did the right thing he’d have to take an 80% TC cut instead of 25%… stock needs to fall at least 50% from here of dividends are gone.
  - UncleOxidant 4y ago
    He should go further than 80% and take the average Intel engineer's salary until things turn around.

UncleOxidant 4y ago

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

simoncion 4y ago
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.
- andromeduck 4y ago
  How did VMware fare?
  - simoncion 4y ago
    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.
reducesuffering 4y ago
Pat is ultimately just a high-paid employee. The board and investors own the company and have ultimate veto on what Pat does or he's fired. If Pat puts in a plan at the quarterly meeting to cut dividend, they can tell him no and to instead cut salaries.

elihu 4y ago

Intel is projecting a loss next quarter, something that hasn't happened in a really long time. Pat doesn't want it to happen on his watch, but I think it would have been better to cut the dividend or take the loss than to do pay/bonus/benefit cuts like this. Wouldn't be surprised if the words "organize" and "union" are spoken in hushed tones by a few people in the hallways tomorrow. If that gets any momentum behind it it would be a glorious thing and long overdue, but it might not help with Intel's financial difficulties or inspire shareholder confidence...

graton 4y ago
They had a loss last quarter of $700 million [1]. They had a loss of $500 million in Q2 of 2022 [2] [1] https://www.intc.com/news-events/press-releases/detail/1600/intel-reports-fourth-quarter-and-full-year-2022-financial https://www.intc.com/news-events/press-releases/detail/1600/... [2] https://www.intc.com/news-events/press-releases/detail/1563/intel-reports-second-quarter-2022-financial-results https://www.intc.com/news-events/press-releases/detail/1563/...
- elihu 4y ago
  Good point: it was a loss according to GAAP, but the non-GAAP results weren't a loss. Whereas it looks like they're projecting a non-GAAP loss as well next quarter. (I don't know what the relevant differences are here on GAAP vs non-GAAP.)
  - graton 4y ago
    GAAP = Generally Accepted Accounting Principles non-GAAP = Whatever we decide? :) Okay, I don't really know. Real info: https://www.investopedia.com/articles/financial-analysis/062716/gaap-vs-nongaap-which-should-you-consider-evaluation.asp https://www.investopedia.com/articles/financial-analysis/062...
    - elihu 4y ago
      Yeah, non-GAAP is basically, "we've decided to account for certain things differently because the standard accounting rules would be misleading in our business." Companies could abuse non-GAAP reporting, but there's nothing particularly unusual or nefarious about reporting non-GAAP numbers along with the required GAAP numbers, or treating the former as the more accurate representation of reality.