Shoutout Pat Gelsinger
140M awarded in stock bonuses for 2021while his company’s (Intel) stock has fallen over 50% during his tenure.
Thats what I call highway robbery. I can’t believe he baited his BoD that hard to give him such high comp. Any more absurd instances like this that you guys know of?
*Ahem* All the companies involved in 2008 *cough*
Any details on his stock comp though? IE lockups, vesting, straight out grant pricing vs ESPP, etc?
Not sure. But Intel has had 4 consecutive quarters of falling sales. He’s really doing a phenomenal job
"Gelsinger may not get some of the equity he was awarded — the actual payouts depend on the performance of Intel’s stock over five years. As of the end of January, Intel said, the payout of these awards is tracking at 0% because Intel stock is trading lower than when Gelsinger took over."
https://www.cnbc.com/2022/05/16/intel-shareholders-reject-executive-pay…
Cannot, will not, reward bad governance. So long as he doesn't try to pull some reverse split, buyback shenanigans or create a new share class to game the system, let the stock trade openly/honestly based on actual results. I'm a big Intel fan, but they have to actually compete now since AMD is coming out swinging lately, the ARM consortium isn't here to just play tiddly-winks, and even nVidia is pushing into the general computing space outside of their GPU background.
Intel killed their RISC business, Optane, SSDs and even their networking services. Only positive is they're trying rolling out a 3nm process, but the CCP of all governments are calling anti-trust on the foundry acquisition and roll-out.
I agree. Shareholders need to hold executives accountable. Sometimes it takes an activist shareholder to go to bat for the rest of the little guys and the asset managers who often blindly 'vote with management.' I know someone who did that as a lowly BOM. Literally keyed in cusips and voted with management on every proxy for one of his job requirements. Otherwise, execs are like, F the shareholders, I need my bonus, comp, and perks.
Yeah...Guessing this is/was a passive mutual fund / ETF? Otherwise there's so many DEF14A questions to go around.
Basically. But still! Even in the CFA curriculum it states this as potentially unethical as one should not take a blanket approach to proxy voting.
Yep. Not to get all gritty, but makes you wonder if he'd plead the Nuremburg defense of "I was just taking orders from on high"? Doesn't excuse it because I agree it's unethical and very much non-fiduciary. Especially since a lot of these fools are filing schedule 13's at the same time broadcasting they own at least 5% of the shares and many of them show up in the Q/K as significant shareholders/customers of over 10% ownership. AKA, their vote(s) move the needle, and they know it. Not to mention how many times did they not disclose the DEF14A information to their shareholders when asked so the shareholders could essentially "write their representatives" about how they want them to vote. But of course, the SEC being the poster child of regulatory capture that it is, won't do squat so it'll keep going on or garner a weak fine at most.
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