Intel Reduces Pension Provision. Hoards $14 billion.
These top chaps have an amazing cheek. Here comes Intel’s management saying it will reduce its payments into its employees’ retirement plans. How much cash does Intel have in the bank? $14 billion.
What does that say about Intel’s attitude to its employees?
At the same time, of course, Intel is looking to give staffers a chance to exchange their worthless stock options for stock options which are worth something.
Apparently Intel needs to motivate its 84,000 staff, of whom 87 per cent have stock options of which 99 per cent are worthless.
In a filing with the US Securities and Exchange Commission Intel stated: “Many of our employees are engineers, scientists, and other specialists who are working on important multiyear research and development projects or have skills that they have developed over the years and would be difficult to replace.”
The stock option swap will cost Intel nothing, says Intel. That leaves the company with $14 billion to maintain the value of its employees’ pensions.