Intel to top execs: Company doing better? OK, have a carrot
Chipzilla reorgs exec pay to make them 'more accountable'
Intel has decided to shake up executive pay at the firm to make top employees more accountable for the company's earnings at a time when its main cash cow, the PC market, is struggling to make money.
Chipzilla has decreed that performance-based awards for senior execs will no longer have a minimum value, so in theory they could fall all the way to zero if the firm doesn't meet the thresholds for shareholder returns.
Intel is also going to up the number of employees that own stock from 50 to 350, further linking pay to performance at the firm.
"One of the top priorities of new CEO Brian Krzanich is to further strengthen our culture of accountability, engagement, and empowerment," the company said in a letter to stockholders.
"These changes are designed to help drive positive business results by further increasing accountability and enhancing the link between individual pay and company performance."
Intel was slow to realise that the shrinking PC market wasn't going to recover any time soon and its chips needed to be repurposed for mobile devices.
Since Krzanich came onboard, he has been trying to shake things up at the firm, concentrating on mobile processors and reorganising business divisions.