Intel Shareholder Votes Against Executive Compensation Plan

Intel shareholders overwhelmingly rejected the company’s executive compensation last week, according to an regulatory filing published on Monday. The decision is a major victory for employee advocates who have been fighting increases in salary and bonuses at tech giants like Google parent Alphabet Inc (GOOGL).

Intel’s shareholders have voted to approve a package of compensation for Chief Executive Officer Pat Gelsinger, sending the signal that some investors see him as turnaround artist and others don’t. Overall 34% Of shares were cast in support while 67 percent opposed it with 1.77 billion opposing votes overall.

Shareholders are showing their dissatisfaction with executive compensation packages by voting against them. This latest vote is just another example of how shareholders have become more vocal about what they want in terms of pay and benefits for top executives.

AT&T shareholders opposed an executive compensation measure in April. This is not the first time that they have voted against such packages, and it’s likely to happen again soon enough – 16 companies had rejected pay plans by As You Sow’ activist investor group over just three years.

Intel CEO Gelsinger took over in February 2021, and she received a compensation package worth $178.59 million later that year.

The hefty paycheck included over $1 million in salary, a $1.75 million bonus, over $140 million in stock awards, and nearly $30 million in option awards.

Intel has been trying to turn itself around under the leadership of CEO Brian Gelsinger. He took over in 2012, and his first order was for cutbacks: $6 billion from reduced spending on assembly lines as well as factory construction; giving up market share while building new chip factories that will produce both contract-made CPUs ( processors )and their own designs is what he means when talking about “spending heavily.”

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Intel’s CEO, Brian Gelsinger may not receive some of the equity he was awarded because it depends on how Intel’s stock performs over five years. As reported by The Wall Street Journal in January 2019 at this time (and as far down date), there have been no payouts made yet due to lower than expected performances from both investors and share prices alike.

Last year’s compensation measure failed to gain much momentum, only 38% of employees supported it. Intel’s Proxy statement highlights the feedback from last year’s vote and how they are taking it seriously this time around. Intel’s senior leadership for 2021 includes several high-profile departures, including Sandra Rivera who is leaving her post as general manager of data center business. 3 executives left the company this year and one plans to retire by month’s end.

Intel is committed to engaging with their stockholders and addressing any concerns they may have. They have already taken specific steps in response, including making changes that will make the company’s overall compensation approach easier for investors as well clarifying goals of annual performance bonuses while increasing transparency levels on pay structures at each level within itself .

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