Intel to Pay $25 Million to Former Qualcomm Executive
February 12 2016 - 5:00PM
Dow Jones News
Intel Corp. disclosed a compensation package that could be worth
more than $25 million for an executive recruited from rival
Qualcomm Inc. who will hold a pivotal position at the chip
giant.
The package for Venkata "Murthy" Renduchintala includes an $8.1
million sign-on bonus and an initial award of restricted stock
units also valued at $8.1 million. Mr. Renduchintala, who will
receive an annual salary of $900,000, is eligible for an annual
cash bonus of up to $2.1 million and a performance-based equity
award each year worth up to $6 million, according to an offer
letter Intel included in a filing Friday with the Securities and
Exchange Commission.
Mr. Renduchintala, who was given the title executive vice
president as well as president overseeing most of Intel's product
businesses, previously jointly ran the chip business at Qualcomm,
the biggest maker of wireless modem chips and processors used in
smartphones. Intel has tried for years to get its chips into
handsets with little success so far.
Intel disclosed Mr. Renduchintala's hiring in November but not
his pay package.
His responsibilities include all "client" product—a term that
describes chips for personal computers, smartphones and tablets—as
well as a broad range of devices related to the trend called the
Internet of Things. Intel's systems architecture group also reports
to him.
A spokeswoman for the company said his compensation reflects the
breadth of his new role, and is within Intel's targets for "market
competitiveness" and the median of its benchmark comparisons with
other companies. The sign-on award and new-hire grant only
partially offset the value he lost by leaving his prior employer,
she said.
The compensation package entitles Mr. Renduchintala to
first-class air travel to any domestic location and the use of a
private jet "in the event that domestic travel schedules prove
difficult," the letter states. Intel agreed to cover all costs of
travel between his home in Southern California and Intel's
headquarters in Santa Clara, Calif., including temporary housing
costs. The company also is providing him with what the letter
describes as a "comprehensive" relocation package to help him move
to the San Francisco Bay Area.
The Intel spokeswoman noted that the travel and relocation
assistance are intended to ensure that Mr. Renduchintala's time is
"optimized."
"It's not uncommon to have a senior executive live in one place
and commute to another on the company's dime—especially a senior
exec like Murthy," said Michelle Leder, founder of the financial
research service known as footnoted.
Intel's offer letter also spells out a series of potential
severance payments if Mr. Renduchintala's employment ends during
certain time periods, including $16.2 million if he is terminated
before payment of his hiring bonus.
Write to Don Clark at don.clark@wsj.com
(END) Dow Jones Newswires
February 12, 2016 16:45 ET (21:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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