Intel Press Release

Sharing Intel's Success: Employees Collect $820 Million In Bonus And Profit Sharing For Their Contributions In 1996

New Across-The-Board Stock Program Begins in 1997

SANTA CLARA, CA, February 11, 1997 – All employees at Intel Corporation are now eligible for stock options – just the latest positive news in a record-breaking year for Intel and its employees. In addition to the new stock program, employees shared in Intel's success through two employee cash bonus programs, a special one-time bonus and maximum Intel contributions to the employee retirement program. The total amount paid to Intel's employees in cash profit-sharing and retirement contributions in 1996 – approximately $820 million – was more than Intel's total revenues in 1981and about equal to Intel's net income for 1991.

"This outstanding year would not have been possible without the remarkable efforts of Intel employees around the world," said Craig Barrett, Intel's chief operating officer. "Our bonus and profit sharing programs are one way we can recognize their significant achievements -- with the largest total bonus payout, to the greatest number of people, in our company's history."

Sharing Intel's Success Through "Total Compensation" Intel's overall compensation and benefits program is based on a philosophy known as Total Compensation. The T-Comp program is designed to attract, retain and reward the people necessary to create Intel's long-term growth and profitability. T-Comp includes cash compensation, bonus and profit sharing, employee retirement benefits and stock plans.

Employee Payouts Largest in Intel's History
Intel employees benefited through payouts from several programs:

  • Employee Cash Bonus Program (ECBP): ECBP is designed to encourage all Intel employees to focus on the performance of the company and allow Intel, in turn, to increase employees' direct annual compensation by sharing the company's overall financial success. Total payout for this program in 1996 amounted to an extra 26.9 days pay -- more than a month's additional salary for every Intel employee – for a total of $214 million. All Intel employees worldwide receive this cash profit-sharing twice a year (January and July) for the preceding six months.
  • Employee Bonus (EB): In 1996 Intel broadened its T-Comp program by extending this Employee Bonus to all employees. The EB is a profitability-based program that focuses on two factors: growth in corporate earnings per share and achievement of an employee's business segment group goals. In 1996 the program, which is designed to vary the level of employee compensation depending on the employee's ability to directly impact company results, paid employees a total of $360 million.
  • "Thanks for 1996" Bonus: To recognize the important role played by employees in Intel's record-breaking year in 1996, a special "Thank You" bonus was awarded to all employees worldwide on January 14. This one-time, special bonus was $1,000 for U.S. employees (prorated for fractions of the year) and an amount adjusted for local pay rates in countries outside the U.S. The total amount paid out was $45 million.
  • Sheltered Employee Retirement Program (SERP): Intel's retirement plan is designed as a partnership between the company and the employee. For the ninth consecutive year, Intel contributed the maximum allowed by law to the employee retirement plan: 12.5% of employees' pay or a total of approximately $200 million.

Stock Options Extended to All Intel Employees
Intel's stock program has long been among the best in the industry – and a highly valued benefit for participating employees. In just the last year, for example, the value of Intel's shares has increased about 180%. All Intel employees have long been able to participate in the stock purchase plan; effective this year, they will also all be eligible for stock options. This makes Intel one of only a very few companies—and an even smaller number of large manufacturing companies – with an across-the-board option program.

"Our employees are the backbone of Intel. We believe strongly that sharing the rewards of Intel's success with more of the people who contribute to that success is the right thing to do," said Kent Liebman, director of worldwide compensation and benefits at Intel. "We also believe that this will help us meet our strategic business objectives by strengthening our recruiting and retention efforts and giving more employees a personal stake in the company's future performance."

* Other names and brands may be claimed as the property of others.