8-KLeadership Changes

INTEL CORP 8-K Report, Executive Changes (Aug 8, 2018)

Filed August 8, 2018For Securities:INTC

Summary

Intel Corporation (INTC) filed an 8-K on August 8, 2018, primarily disclosing the grant of a special equity award to its interim Chief Executive Officer, Robert H. Swan. The award, approved by the Compensation Committee on August 2, 2018, aims to compensate Mr. Swan for his expanded role as interim CEO, in addition to his existing responsibilities as CFO. The equity award has an approximate target value of $3.27 million on the grant date. It is structured as a combination of time-based restricted stock units (RSUs) and outperformance stock units (OSUs), with each component representing roughly 50% of the award's value. This compensation package is designed to align Mr. Swan's interests with those of shareholders by linking a portion of his compensation to Intel's future performance.

Key Highlights

  • 1Intel granted a special equity award to interim CEO Robert H. Swan.
  • 2The award has a target value of approximately $3,270,000 as of the grant date.
  • 3The award is composed of 50% time-based RSUs and 50% outperformance stock units (OSUs) by value.
  • 4RSUs will vest quarterly over a 3-year period.
  • 5OSUs will vest in February 2021, contingent on Intel's performance during the specified period.
  • 6Specific provisions for accelerated vesting of RSUs and retention of unvested OSUs in case of involuntary termination without cause or voluntary termination for good reason are included.

Frequently Asked Questions

The equity award was granted to Robert H. Swan to reflect his role as interim Chief Executive Officer, acknowledging the expanded responsibilities associated with this position in addition to his role as CFO.

The award has a target aggregate value of approximately $3,270,000 on the grant date.

The award is split equally by value (approximately 50% each) between time-based Restricted Stock Units (RSUs) and Outperformance Stock Units (OSUs). The RSUs vest over three years, while the OSUs vest based on Intel's performance.

In the event of Mr. Swan's involuntary termination without cause or voluntary termination for good reason, the vesting of the RSUs is eligible for acceleration, and he may retain unvested OSUs, subject to the terms of the plan.