Intel shareholders voted last week against the company’s executive compensation program, including a কে 178.6 million payout to CEO Pat Gelsinger, according to a regulatory filing released Monday.
About 1.78 billion votes were cast, about 54.2% of chip-producing giant shareholders, against executive compensation, while 932 million votes were cast in favor. About 577 million votes were abstained or brokers were non-votes.
The vote is advisable and will not take effect immediately, but it does indicate that a growing number of stockholders are pushing back Intel’s thick executive compensation packages, which lose first-quarter results targets, but forecast lower growth for the second quarter. The vote scrutinizes CEO Pat Gelsinger and his ন্ট 43.5 billion plan to revitalize Intel, including a € 33 billion European spending stream to expand Intel’s presence across the block and reduce semiconductor chip shortages.
According to the filing, Alyssa Henry, Square’s executive vice president and the 57th richest self-made woman, Forbes, Was placed on Intel’s board of directors by a narrow margin. While 1.36 million stockholders voted to keep him as director of Intel, 1.34 million voted to remove him – a rare close number in the shareholders’ vote.
“We take feedback from our investors very seriously, and we are committed to engaging with them and addressing their concerns,” Intel said in a statement. Fate. The company added that it has taken specific steps to address investors’ questions and explicitly link pay with performance, but added that “there is definitely more work to be done.”
The company added, “Intel’s board of directors will work with Alyssa Henry to address the overboarding concerns raised by stockholders.”
Executive Pay Pushback
This is not the first time that shareholders have voted against the executive compensation package in recent months. Shareholders in AT&T, Philips and General Electric have all voted against an increase in CEO pay and executive compensation packages following this year’s poor results.
Proxy votes against executive pay at S&P 500 companies became more common last year, according to a report by As You Soy, a shareholder advocacy group focused on ESG issues. Shareholders have voted in favor of returning a record number of executive compensation after many companies disclosed earnings with “questionable practices and metrics” – such as simplifying performance targets during the COVID-19 epidemic.
In 2021, a record 16 companies lost their executive salaries by more than half of their investors – 10 in 2020 and seven in 2019, according to the report.
In the case of Intel, Gelsinger, who took over as CEO in February 2021, was hired to turn the company around and bring it back to its former glory. Intel is expanding the company’s presence and manufacturing capacity in the United States and Europe, hoping to beat rival AMD.
There’s a lot going on for Gelsinger. If all goes according to plan and Intel’s stock triples in five years, the new CEO will carry a full $ 180 million salary package signed in 2021.
“The Compensation Committee believes that it was in the best interests of Intel and its stockholders to have 73% of the CEO’s new-higher equity award to achieve the ambitious stock price increase,” Intel said in its proxy filing published in May 2022.
The guarantee of Gelsinger’s payment is far away because things stand still today. Intel’s stock turnover was low when Gelsinger led, a situation that was not helped by the company’s first-quarter earnings report; Intel predicts that its second-quarter earnings and profits will fall below Wall Street expectations, citing weak demand in its largest market (PC) and increased supply chain uncertainty due to the COVID-19 lockdown in China. Shares of Intel reportedly fell 4%.
This story was originally shown on Fortune.com