Intel CEO Otellini's pay package jumps 17 percent
Intel CEO Paul Otellini saw his pay package jump in fiscal 2009 by 17 percent, which included performance-linked awards for guiding the company out of the recession, as a pay freeze for all employees was lifted, the company said.
Otellini got a total compensation, including cash and equity awards, of $14.12 million in fiscal 2009, compared to a package of around $12.1 million in fiscal 2008, Intel said in a filing with the U.S. Securities and Exchange Commission on Monday.
Otellini’s base salary for fiscal 2009 was $1 million, similar to the previous year, but his cash compensation jumped 28 percent to $6.25 million to reflect the company’s financial performance in 2009. He also received equity benefits totaling $7.87 million tied with company performance.
The increase was tied partly to Intel’s increased profit in fiscal 2009, according to the filing. The company’s net income increased by 12 percent in 2009, excluding some extraordinary charges, compared to the previous year. However, including all charges, the company’s net income fell by 17 percent, dragged down by $1.45 billion in fines paid to the European Commission, and a settlement agreement payment to Advanced Micro Devices of $1.25 billion.
Intel also removed pay freezes to employees in the wake of better performance, the company said in the filing. Intel in early 2009 froze salary increases across the company in the wake of poor economic conditions.
The total compensation for Sean Maloney, Intel’s executive vice president, was around $6.27 million, growing 27 percent. Maloney, considered by many to be the heir apparent to Otellini, is currently on medical leave recovering from a stroke.
Intel benefited from a stabilization of PC shipments in the second half of last year, which resulted in increased chip shipments. Otellini in September said that the chip industry was on the brink of recovery after either flat or declining PC shipments in 2008.
“This is an environment where we have had the worst recession in 70 years,” Otellini said during a keynote at the Intel Developer Forum in September. “The market is poised for a resurgence and we will see how 2010 plays out,” he said.
However, the compensation for AMD’s CEO Dirk Meyer declined by 14 percent in 2009, after the company cut the pay of its employees due to the economic downturn, according to a document filed with the SEC. Meyer received compensation of around $4.55 million, down from $5.27 million in 2008. His base salary declined to $792,685 from $856,732.