Barrett, who willand become chairman at the company, will receive an annual salary of $610,000, according to documents filed Tuesday by Intel with the Securities and Exchange Commission. That's the same salary he got in 2004, when he was CEO for the full year. The board is also recommending that he receive 250,000 stock options in 2005--100,000 less than the year before.
Under the Intel Executive Officer Incentive Plan, Barrett is slated to receive a baseline bonus of $700,000. The actual amount paid will depend on the company's performance in 2005 and be assessed in 2006. Last year, Barrett earned a $1.8 million cash bonus. He cashed in nearly $10.7 million in options in 2004.
Incoming CEOwill see a substantial pay increase. As COO in 2004, he earned a salary of $450,000 and qualified for a bonus that came to around $1.4 million. He received 300,000 stock options in 2004.
Intel's next CEO
In 2005, he will have a base salary of $550,000 until June, when it rises to $650,000. Otellini's baseline bonus will rise from $650,000 to $750,000. The board granted him 400,000 options in February and is recommending granting him another 500,000 in April.
A number of companies, especially those in the tech sector, have recently curtailed the size of their options grants. The move comes asthat will require companies to expense them. Intel has been a .
Barrett has said that as chairman, he will step away from overseeing operations and serve more as a roving diplomat, meeting with government officials on trade and education issues. As CEO, Barrett was known for his "death marches," where he would visit 12 to 13 countries in a two-week period, taking several red-eye flights.
The filing also noted that Andrew Grove, former CEO and current chairman, will resign from the board. A replacement candidate will be announced sometime this year.