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Intel's Shareholders OK Promotions for Top 2 Execs

May 22, 1997|From Bloomberg News

Intel Corp. shareholders on Wednesday approved promotions for the Santa Clara-based chip maker's top two executives, cementing Craig Barrett's status as heir apparent to Chief Executive Andrew Grove.

Barrett, 57, was promoted to president and retains the title of chief operating officer. Grove, 60, added the title of chairman and ceded the president's post. Intel co-founder Gordon Moore, 68, who had been chairman, becomes chairman emeritus.

Shareholders also approved an increase in the shares outstanding in order to implement a 2-for-1 split of the company's stock at their annual meeting. Earlier, the board approved a penny-a-share increase in the quarterly dividend to 6 cents. After the split, the dividend will be 3 cents a share.

Intel shares rose $1.50 to close at $162.50 on Nasdaq.

Barrett was the architect of Intel's aggressive manufacturing strategy in the early 1990s, which has paid off by affording Intel the ability to get new processors to market in large volumes quickly.

Grove is considered the broader concept creator, working on industry issues and long-term strategies.

Barrett "is the nuts-and-bolts man and Grove is the idea guy," said analyst Bruce Raabe of Collins & Co., which owns Intel stock. "They are both key elements of the success of the company."

Barrett has worked for Intel since 1974 and has been head of operations since 1989. He has said he has no plans to change the management style or fundamental strategy at the world's largest chip maker.

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