Exhibit 10.1

 

Named Executive Officer Compensation

 

Table 1 below sets forth the base salaries of the company’s Named Executive
Officers for 2005, as approved by the Compensation Committee of the Board of
Directors of Intel Corporation on February 2, 2005. The Named Executive Officers
were determined in reference to the company’s fiscal year ended December 25,
2004. Each of the Named Executive Officers’ employment with Intel is on an
at-will basis.

 

Table 1

 

Name and Position1

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   Base Salary2 ($)

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Craig R. Barrett

Chief Executive Officer

   610,000

Paul S. Otellini

President and Chief Operating Officer

   1/1/05-5/31/05
6/1/05-12/31/05    550,000
650,000

Andy D. Bryant

Chief Financial and Enterprise Services Officer

   330,000

Sean M. Maloney

Executive Vice President

General Manager, Mobility Group

   270,000

Arvind Sodhani

Senior Vice President and President, Intel Capital

   225,000

 

Each of the Named Executive Officers participates in the Executive Officer
Incentive Plan (“EOIP”), which is described more fully in the company’s 2005
Proxy Statement. Awards under the EOIP are determined by multiplying the
officer’s individual incentive baseline amount by Intel’s earnings per share for
the year (as adjusted by the Compensation Committee) and by a performance factor
established by the Compensation Committee. Individual awards under the EOIP are
capped at $5,000,000 and the Compensation Committee has the discretion to reduce
(but not increase) the award. The actual payouts under the EOIP, which will be
based on the company’s fiscal 2005 results, will not be determined until early
2006.

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1 Effective May 18, 2005, Dr. Barrett will become Chairman of the Board and Mr.
Otellini will become Chief Executive Officer.

2 Except as otherwise indicated base salary is effective from January 1, 2005.

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Each of the Named Executive Officers also participates in the company’s
semiannual cash award program in which they will receive 0.55 day of pay
(calculated based on eligible earnings for the six-month period, including
one-half of incentive baseline amounts as applicable) for every two percentage
points of corporate pretax margin (pretax profit as a percentage of revenue), or
a total payment based on 4% of net income, whichever is greater. Payouts under
this program are made in the first and third quarters of the year based on
corporate performance for the preceding two quarters. The plan also has a
provision for rewarding employees with an additional day of pay for each
six-month period if Intel achieves its customer satisfaction goals for the
performance period.

 

The Named Executive Officers are also eligible to receive stock options under
the Intel Corporation 2004 Equity Incentive Plan. The 2005 stock option awards
to the Named Executive Officers have been disclosed on individual Forms 4 filed
with the U.S. Securities and Exchange Commission pursuant to Section 16(a) of
the Securities Exchange Act of 1934, as amended. In addition, each of the Named
Executive Officers is eligible to receive company contributions to his accounts
in the company’s tax-qualified and non-qualified capital accumulation/retirement
plans. Company contributions to these plans are discretionary and may vary with
the company’s financial performance, particularly revenue and income. Since the
amount of the company contribution to the tax-qualified plan is limited by U.S.
tax law, the excess, if any, is allocated to the individual’s account in the
non-qualified plan. The amount of the 2005 company contribution to these plans
will be determined in early 2006 based on the company’s performance for fiscal
2005.