Intel cuts stock payouts for its CEO

The Intel logo is pictured at the company's booth during the Tokyo Game Show in Chiba prefecture on September 15, 2022. (Photo: AFP)

SAN FRANCISCO, Nov. 22 (Xinhua) -- Intel said Tuesday it has reduced potential stock payouts for CEO Pat Gelsinger.

The cuts come as the company has begun layoffs as part of a broader plan to reduce corporate spending.

The compensation changes reflect a desire "to further strengthen the alignment of Mr. Gelsinger's new hire performance-based equity awards with his commitment to long-term stockholder value creation," Intel said in a regulatory filing Tuesday.

On Feb. 15, 2021, Gelsinger returned to Intel, the company where he had spent the first 30 years of his career, from CEO of VMware with a compensation package valued at 179 million U.S. dollars.

Nearly all of that value came in stock bonuses Gelsinger would only receive if the company's share price climbed.

In practice, the stock of Intel has fallen from 61.81 dollars when Intel hired Gelsinger in February 2021 to 29.15 dollars in early trading Tuesday.

As Intel planned to spend 60 billion dollars building new factories around the world, the company's sales are in steep decline because of reduced demand for PCs and competition.

On Tuesday, the company said it had revised Gelsinger's new-hire payouts. To receive some performance-based stock options the company's share price must increase to 74.47 dollars instead of 64.54 dollars, as originally required. And the stock must stay above that higher threshold for 90 consecutive days, instead of 30 days.