Intel climbs as shareholders vote against exec compensation: filing
Intel (NASDAQ:INTC) shares climbed early Tuesday after it published a filing on Monday that said shareholders of the semiconductor giant voted against the compensation of some of its top executives.
The vote is advisory and does not initially impact the pay of Intel (INTC) executives, including Chief Executive Pat Gelsinger, but it does send a signal investors are closely watching the company's performance.
According to the filing, roughly 921 million shares voted to approve the pay package for Gelsinger and others, accounting for roughly 34.2% of the total shares. The remaining 1.77 billion, or 65.8% of shares, voted against the package.
Last month, Gelsinger said that ongoing supply chain issues that have impacted Intel (INTC) and other semiconductor companies for nearly two years are not likely to end anytime soon.
Intel (INTC) shares climbed more than 1.5% to $43.77 in early trading on Tuesday.
At its February investor day, Intel (INTC) said it expects profit margins to decline in 2022 and hold steady due to heavy investments, before climbing once again in 2025.
Gross margins are likely to decline to 52% in 2022 on an adjusted basis, while being between 51% and 53% in 2023 and 2024. In the following years, it's expected to climb back to a range of 54% to 58%.
In March, Intel (INTC) disclosed that Gelsinger earned $178.59 million in 2021, including a one-time equity award worth roughly $110 million. In contrast, the median Intel employee made $104,400, the filing said.
Investment firm Citi recently said AMD (AMD) and Intel (INTC) could be impacted by a weakened PC market, as notebook shipments came in below estimates for the fourth month in a row.