Intel execs land fat bonuses

Craig Barrett and other Intel executives saw their bonuses and stock option grants climb in 2003, but the company now faces a showdown at its shareholder meeting over options.

Barrett, Intel's chief executive officer, earned $610,000 in regular salary in 2003, the same he earned in 2002, but his bonus jumped to $1.51m, up from the $1.07m bonus awarded in 2002, according to a filing with the US Securities and Exchange Commission, posted on Wednesday. Barrett's stock option grant rose to 1.35 million options from 584,000 options in 2002.

Similarly, Paul Otellini, president and the person who will most likely take over for Barrett next year, saw his bonus climb from $612,600 to $867,600 and his stock option grant grow from 664,000 in 2002 to 900,000 in 2003. Otellini's base salary stayed the same, at $350,000.

The filings also contained shareholder proposals that would change how Intel issues stock options. Three proposals come from union-backed pension funds. One would force the company to expense options, while a second would force the company to issue restricted stock instead of options. A third would set performance standards when executives could exercise options.

Intel opposes all three measures, but has come up with a proposal of its own that would allow shareholders to review stock option grants annually. The annual shareholder meeting takes place 19 May.

Michael Kanellos writes for News.com