Intel Slashes Executive Pay After Weak Earnings

Intel (INTC) is reducing its executive compensation a week after the semiconductor and microchip maker reported disappointing financial results.

The latest reductions will range from 5% of base pay for mid-level executives to a 25% pay cut for chief executive officer (CEO) Pat Gelsinger.

The hourly workforce's pay will not be impacted, said Intel in a written statement.

Intel last week reported that its profit margins were plunging as the market for personal computers (PCs) cools after several years of robust growth.

Gelsinger has conceded that Intel has lost market share to rivals such as Advanced Micro Devices (AMD) and Nvidia (NVDA).

In addition to a 5% decrease in pay for mid-level executives, vice president level employees will see 10% pay reductions.

Intel has also lowered its 401(k) matching contributions to 2.50% from 5% previously and suspended all pay raises and bonuses.

Intel’s stock has declined 42% over the last year to $28.26 U.S. per share.