While the semiconductor company's stock appreciated less than 8 percent for the year ending 1997, at 70-1/4, it climbed as high as 100-1/8 last August. During the year, Grove exercised 648,000 stock options, valued at $48.96 million. As reported, Grove will step down as CEO next month, and will be replaced by chief operating officer Craig Barrett. Grove will remain chairman, however.
Grove is stepping down as CEO at a time when Intel faces lower margins and a consumer shift toward low-cost PCs. The chip giant is likely to report its first decline in profits since 1989 when it reports its earnings for calendar 1998 later this month.
Grove's salary increased to $465,000 in 1997, from $425,000 in 1996. He received a bonus of $2.8 million, up from $2.6 million the previous year. The executive also was granted 72,000 stock options, a decline from the 144,000 options he was granted in 1996, according to Intel's annual proxy statement filed with the Securities and Exchange Commission.
Soon-to-be chief executive Craig Barrett made $365,000 in 1997, compared with his 1996 salary of $325,000. His bonus increased to $2.2 million, up from $2 million a year earlier, while his option grant dropped to 60,000 from 96,000 a year earlier.
Barrett did not exercise any options during the year, but he holds 1.8 million options that are exercisable. Those options are valued at $122.9 million based on Intel's closing price on December 27, 1997.
(Intel is an investor in CNET: The Computer Network)