Patrick Gelsinger, CEO of Intel, speaks during an interview with Bloomberg Studio 1.0 at the company’s headquarters in Santa Clara, California, on February 3, 2022.

David Paul Morris Bloomberg | Getty Images

Intel shareholders last week voted against compensating the company for its top executives, according to a regulatory document released Monday.

The vote is advisory in nature and will not immediately affect the compensation of Intel executives, but sends a signal that some Intel investors are closely monitoring CEO Pat Gelsinger’s performance and the course of his turnaround plan for the chip giant. In total, shareholders representing about 34% of the shares voted for the package. Of those who voted, shareholders representing about 920 million shares voted in favor, while those representing 1.77 billion shares voted against.

The vote is the latest example of shareholder voting against executive compensation packages that could include hundreds of millions of dollars in company shares.

For example, AT&T shareholders voted against the countervailing measure in April. In 2021, shareholders rejected the payroll of executives of 16 companies, according to As You Sow, an activist group of investors.

Gelsinger took over as CEO of Intel in February 2021, and later that year received a $ 178.59 million compensation package, according to financial records. Compensation included a salary of more than $ 1 million, a bonus of $ 1.75 million, stock premiums of more than $ 140 million and option rewards of nearly $ 30 million.

After Helsinger took office, he embarked on a mission to transform Intel as the once dominant chipmaker fell behind in production and began to lose market share over rival AMD. Helsinger said Intel will spend heavily on building new chip factories, and that Intel will simultaneously maker contracts for other chip developers in addition to developing its own chips.

Gelsinger may not receive part of the capital awarded to him – the actual payments depend on the effectiveness of Intel shares for five years. As of the end of January, Intel said the payout of these awards is being tracked at 0% because Intel shares are trading lower than when Helsinger took office.

“The Compensation Committee believed that it was in the interests of Intel and its shareholders to obtain 73% of the shares awarded to the CEO upon hiring, depending on the achievement of the ambitious rise in share prices,” the statement said.

Last year’s compensation measure also failed, receiving only 38% support.

“The committee took the results of this vote seriously and was very focused on gathering and responding to our shareholders’ feedback on Intel’s compensation programs,” Intel said in a statement, referring to last year’s vote.

Other Intel named employees for 2021 also included Sandra Rivera, the company’s general manager of data centers, three former executives who left in 2021, and one executive who plans to leave this month, according to an Intel document.

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