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Barrett passes Grove as top wage earner at Intel

CEO Craig Barrett took home $3.4 million in cash and 108,000 stock options in 1999, according to a SEC filing, besting compensation awarded to chairman Andy Grove.

Although he became CEO in early 1998, Intel chief Craig Barrett didn't become the company's highest paid employee until 1999, according to documents filed with the Securities and Exchange Commission.

Barrett took home $3.4 million in cash compensation and 108,000 stock options as Intel's CEO in 1999, according to a proxy statement filed by Intel with the SEC. That bested the compensation awarded to chairman Andy Grove, who earned $3.3 million in salary and bonuses and 108,000 stock options.

In 1998, however, the rankings were reversed. Then, Grove took home $2.8 million to Barrett's $2.6 million. That same year, each received 744,000 options. Grove, who had served as Intel's CEO for years, announced he was giving the CEO title to then-president Barrett in March 1998.

The 1999 compensation package, however, did not make Barrett the highest paid executive in the processor world, at least in terms of salary and bonuses.

Advanced Micro Devices (AMD) chief executive Jerry Sanders pulled in $3.8 million in straight compensation for the year because of a $2 million bonus. Although AMD lost money in 1999, the board awarded Sanders an extra $2 million for taking on additional responsibilities after president Atiq Raza left.

In 1999, Barrett had his first full year at the helm of the chip giant. It was also one of the more tumultuous years for Intel. Barrett launched the company into a plan to more strongly diversify from its core processor business. A new division concentrating on Internet services was created, and the company spent more than $6 billion in acquiring other companies, mostly in the communications field.

During the same year, the company recovered market share in the budget PC sector but then got stung by a shortage of processors for high-end PCs at the end of the year. Intel also had a fairly high number of bug reports and product delays in 1999.

Compensation was tied to performance, according to Intel's filing. Barrett does not have a formal employment contract. The company reported revenues of $29.4 billion in 1999, up 12 percent from revenue of $26.2 billion in 1999, and earnings of $8.1 billion excluding acquisition costs, a 29 percent increase over earnings of $6.3 billion in 1998.

Other Intel executives who received compensation packages in excess of $1 million include Gerhard Parker, executive vice president of the new business group; Paul Otellini, general manager of the Intel Architecture Business Group; and Les Vadasz, president of Intel Capital, the company's venture capital arm.