Intel is cutting executive pay across the company in a bid to cut costs after reporting its worst quarterly earnings in years last week. CEO Pat Gelsinger will take a 25 percent cut to his base salary this year, the chipmaker said Jan. 31, although it may hardly scratch his total compensation.
Intel shares ticked up less than 1 percent in today’s (Feb. 1) morning trading.
Gelsinger’s executive team will take a 15 percent pay cut. Senior managers will take a 10 percent cut, and mid-level managers will see their paycheck shrink by 5 percent. Hourly workers and employees below the seventh tier in Intel’s system won’t be affected, the company said.
In a statement, Intel said the pay reductions will help support investments needed to implement its turnaround plan, which includes introducing new chip production technology and building new plants in Europe and the U.S.
For Gelsinger, a 25 percent salary cut will likely have little impact on his overall compensation. In 2021, the most recent year of available compensation data, Gelsinger earned a total of $179 million. Only $1.1 million was his base salary. He received $1.75 million in a cash hiring bonus and nearly $170 million in stock awards.