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Intel to freeze salaries, let employees exchange stock options

March 24, 2009|Bloomberg News

Intel Corp. said Monday that it would freeze salaries and exchange employee stock options as the economic slump has weighed on chip orders and its share price has slumped.

The Santa Clara, Calif., company, whose profit fell 24% last year, has suspended raises, according to a regulatory filing. The freeze includes executives, though Intel said the value of Chief Executive Paul Otellini's compensation rose 10% to $12.7 million last year.

Intel also will let workers exchange underwater stock options for ones with lower prices. The company is seeking shareholder approval to issue as many as 235 million new shares for the exchange program.

The company joins other technology firms in revising compensation policies as consumers and companies curb spending for their products.

Intel's stock price has fallen by one-third in the last year. On Monday, its shares rose 87 cents, or 5.9%, to $15.52.

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