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[PP] Intel CEO To Retire.

3K views 37 replies 32 participants last post by  andrew grp 
#1 ·
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http://www.pcpro.co.uk/news/378223/intel-ceo-paul-otellini-to-retire
Quote:
The chip giant hasn't yet announced a successor, saying both internal and external candidates were being considered.

Otellini has worked for Intel for almost 40 years, and took over as CEO in 2005. The firm highlighted the success Intel has enjoyed during his tenure, notably generating "cash from operations of $107 billion".

"Paul Otellini has been a very strong leader, only the fifth CEO in the company's great 45-year history, and one who has managed the company through challenging times and market transitions," said Andy Bryant, chairman of the board. "The board is grateful for his innumerable contributions to the company and his distinguished tenure as CEO over the last eight years."
I remember reading his salary was $1 a year.
No idea how he survived on that.
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#2 ·
Stock options ?
 
#3 ·
#5 ·
Quote:
Originally Posted by th3illusiveman View Post

Hahaha fat chance.
No really, I checked.
Him, Steve Jobs, and Mark Zuckerberg all had $1 yearly salaries. At least for a few years.
Quote:
The visionary who lost his bout with pancreatic cancer on Oct. 5 had an annual salary of $1.00 and not $1 million or $1 billion a year.

He was one of the lowest-paid CEOs of all times, along with Vikram Pandit of Citigroup Inc.,
http://au.ibtimes.com/articles/226816/20111007/steve-jobs-1-annual-salary-thought-ceos.htm#.UKpRJeRWyuI

I guess they came from rich families or something?
 
#6 ·
Quote:
Originally Posted by frickfrock99 View Post

jbs1YKvxdO5qrD.jpg
http://www.pcpro.co.uk/news/378223/intel-ceo-paul-otellini-to-retire
I remember reading his salary was $1 a year.
No idea how he survived on that.
headscratch.gif
I remembered Steve had the same compensation, but at those level they get loads of stock options. He surely isn't asking for charity lol!
Otellini is not included in the list though...

On topic... what a great carreer! He's leaving right before the storm, true, but look how he led the company in 40 years!
 
#7 ·
#8 ·
#9 ·
Quote:
Originally Posted by frickfrock99 View Post

No really, I checked.
Him, Steve Jobs, and Mark Zuckerberg all had $1 yearly salaries. At least for a few years.
http://au.ibtimes.com/articles/226816/20111007/steve-jobs-1-annual-salary-thought-ceos.htm#.UKpRJeRWyuI
I guess they came from rich families or something?
Or they made enough getting to the top that they didn't need anymore. I know I will probably be alone, but I would never allow a company pay me more than $120k unless cost of living(New York or California) required more. There is absolutely no reason I need that much money.
 
#10 ·
the people with high salary, they spend it all on uber expensive stuff and show it off to others
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I would never do that
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#11 ·
Well, he did some amazing work. I wonder what's up next for him? He's got more than enough money to simply retire permanently.

http://en.wikipedia.org/wiki/One-dollar_salary
It's common for insanely-high paid CEOs and other people to switch to a $1 salary, in change for stock options/bonuses. They still make a lot of money, but since their income is technically very low, they don't need to pay taxes on their incomes.
 
#12 ·
Quote:
Originally Posted by frickfrock99 View Post

jbs1YKvxdO5qrD.jpg
http://www.pcpro.co.uk/news/378223/intel-ceo-paul-otellini-to-retire
I remember reading his salary was $1 a year.
No idea how he survived on that.
headscratch.gif
There are reasons for that:

a) Stock options.
b) They have their own stock.
c) They get incentives.

All in all, you don't need a salary when your immediate work will pay-off with both stock options, the ability to make money by increasing the company's worth and with incentive/productivity bonus. Also, they do it to avoid paying taxes... and because it also gives a very clean image of themselves.

Its obvious nobody works for free, and the higher your are, the more money you demand
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By the way:

No salary?

http://www.forbes.com/profile/paul-otellini/

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#15 ·
As was said before, CEO's salaries are often just things to measure eP33ns against other CEO's. So a $1 a year salary is pretty much just of a symbolic gesture.

They make their real money from stock options. That is why people like Warren Buffet, who makes most of his money off of stock, as opposed to how he pays his now semi-famous secretary, can make comments about how much taxes people pay. The tax rate on income and the tax rate on capital gains (from stock) is different.

Having said that, I wish him well in his retirement or what every company he will head. He has done an incredible job at Intel, and the end customers (as well as stock holders), have all benefited from his leadership.
 
#16 ·
At least people can retire from Intel. You usually leave AMD or they leave you :/
 
#17 ·
Quote:
Originally Posted by Pavix View Post

Or they made enough getting to the top that they didn't need anymore. I know I will probably be alone, but I would never allow a company pay me more than $120k unless cost of living(New York or California) required more. There is absolutely no reason I need that much money.
Or you can take the money and do something good with the extra cash
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#18 ·
I guess this a bad thing but none the less Intel should continue doing well

-Sent from my Galaxy Player 4.0-
 
#19 ·
#20 ·
Quote:
Originally Posted by flamingoyster View Post

Stock options, Frickfrock! He didn't need a salary when you consider how much Apple stock was worth.
I am sure they all lived off of bonuses more than anything...you can't live off of stock unless you have so much of it that the dividends are substantial (and in these guys' cases they would have to own about 1/4 of the company to get dividends to pay for their life styles). If they sold their company's own stock it would probably look like insider trading and/or likely cause the stock price to fall.

Though I always get curious when the CEO of a company changes. I like to see if I can notice a change in the company and see how much control the CEO actually had. Though some like Steve Jobs though you for a loop...the company hardly changed when he was "no longer around the board room", but I think it was more due to the rest of the people around Apple wanted to run the company just like Steve Jobs did...otherwise you'd think that Jobs had little control over goings on and the people that are still there now were having their way all the long, but I don't think that is a likely scenario.
 
#24 ·
Quote:
Originally Posted by th3illusiveman View Post

Hahaha fat chance. The guy is a billionaire make no mistake about it.
Anyways, he did a great job market manipulation/illegal business practices/supporting sopa,pipa,cispa,acta Who knows, AMD might have a chance now. Maybe Intel will stop buying out retailers to sell Intel only. If only AMD could get a CEO like him.....
Fixed*

My tinfoil hat is on.
 
#25 ·
Quote:
Originally Posted by Pavix View Post

Or they made enough getting to the top that they didn't need anymore. I know I will probably be alone, but I would never allow a company pay me more than $120k unless cost of living(New York or California) required more. There is absolutely no reason I need that much money.
Are you unmarried without children? Both of those things will quickly change that perspective lol.

You could take your extra money and donate it to a charity of your choosing or invest in a product that interests you. You could also set up a college fund for any children you have, or work to prepare your retirement nest egg. Be industrious with disposable income! There is no reason to feel shame about being compensated well for any work you do.

CEOs might seem like they are overcompensated for their work (this is true in some unsustainable cases), but if you place their total compensation up against the amount of wealth generated as a whole for the company under their tenure the picture is a little different. In a sustainable business model, individuals are compensated based on the relative value they bring. If you place Steve Jobs' total compensation over the years next to Apple's total sales, for example, you start to wonder why these CEOs don't take even more money. I'm not saying my heart bleeds for them and their bank accounts, but I don't find a CEO making millions of dollars from a company generating billions of dollars to be evil or selfish. The $1 salary is absolutely a tax evasion move, but I can't say I wouldn't do the same thing in that situation. The capital gains tax rate is lower than the income tax for the highest bracket. It's pretty simple to understand the motivation here.
 
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