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Intel CEO Pat Gelsinger, with U.S. President Joe Biden (not pictured), announces the tech firm’s program to physique a $20 cardinal works successful Ohio, from the South Court Auditorium connected the White House field successful Washington, January 21, 2022.
Jonathan Ernst | Reuters
Intel executives volition instrumentality staggered base-pay cuts conscionable days aft the chipmaker reported abysmal fourth-quarter earnings, the institution said Wednesday. But the cuts to basal wage are conscionable a tiny portion of full compensation.
The cuts volition interaction executives ranging from CEO Pat Gelsinger to mid-level managers. Gelsinger volition person his basal wage chopped by 25%, oregon by astir $312,000.
The immense bulk of Gelsinger's compensation, however, is from banal awards and options. Gelsinger's basal wage was $1.25 million, according to his connection letter, oregon conscionable a tiny fraction of his astir $179 cardinal successful full compensation for 2021, his archetypal twelvemonth successful the apical job.
Intel's wage cuts volition besides interaction executives further down the line. Executive squad members volition instrumentality a 15% cut. Senior managers and midlevel managers volition spot wage slashed by 10% and 5%, respectively. Lower-level employees would not beryllium affected by wage cuts, the institution told The Wall Street Journal.
"As we proceed to navigate macro-economic headwinds and enactment to trim costs crossed the company, we've made respective adjustments to our 2023 worker compensation and rewards programs. These changes are designed to interaction our enforcement colonisation much importantly and volition assistance enactment the investments and wide workforce needed to accelerate our translation and execute our semipermanent strategy," the institution said.
The institution reported a nett nonaccomplishment of $644 cardinal for the 4th fourth of 2022 and offered a anemic 2023 outlook including a 40% year-over-year diminution successful income successful the March quarter. Intel rival AMD, connected the other hand, bushed connected some the apical and the bottommost lines but guided down 10% for the upcoming quarter.
Intel shares were level successful pre-market trading.
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