8-KLeadership ChangesExhibits & Filings

INTEL CORP 8-K Report, Executive Changes (Feb 18, 2021)

Filed February 18, 2021For Securities:INTC

Summary

Intel Corporation (INTC) filed an 8-K on February 18, 2021, to announce the adoption of the Intel Corporation 2021 Inducement Plan (the "Inducement Plan"). This plan is designed to grant equity awards, such as stock options and RSUs, to new employees who meet specific Nasdaq inducement award criteria. Importantly, the Inducement Plan was approved by the Board without stockholder approval, utilizing an exception under Nasdaq Listing Rules. The primary purpose of this filing is to formalize equity awards related to the recent appointment of Patrick Gelsinger as Chief Executive Officer. While the Inducement Plan has a reserve of 8,000,000 shares, only awards previously disclosed in connection with Mr. Gelsinger's hiring and his personal investment in Intel shares will be granted under this specific plan. This includes a matching RSU grant for his $10 million investment in Intel shares.

Key Highlights

  • 1Intel adopted the 2021 Inducement Plan to grant equity awards to key new hires.
  • 2The plan allows for stock options, RSUs, and other stock-based awards.
  • 3Adoption of the plan was approved by the Board without requiring stockholder approval, per Nasdaq rules.
  • 48,000,000 shares of common stock are reserved for issuance under the Inducement Plan.
  • 5The Inducement Plan's primary current use is to formalize equity awards for newly appointed CEO Patrick Gelsinger.
  • 6This includes a matching RSU grant for Mr. Gelsinger's personal investment of $10 million in Intel shares.

Frequently Asked Questions

The Inducement Plan is designed to provide Intel with a mechanism to grant equity awards, such as stock options and RSUs, to new employees. These grants are intended to be an inducement for individuals to join Intel and its subsidiaries, and they must meet specific criteria outlined by Nasdaq Listing Rules.

While the plan is available for new employees meeting Nasdaq's inducement grant standards, the filing specifies that currently, only Patrick Gelsinger, Intel's CEO, is a participant. The awards to Mr. Gelsinger were previously disclosed in connection with his January 2021 appointment.

As part of his appointment, Mr. Gelsinger invested $10 million in Intel shares. The Inducement Plan facilitates a matching grant of restricted stock units (RSUs) to Mr. Gelsinger, covering a number of shares roughly equivalent to his investment.

No, the Inducement Plan was adopted by Intel's Board of Directors without seeking stockholder approval. This was made possible by relying on an exception within Nasdaq Listing Rule 5635(c)(4) for inducement awards.