Intel recently shared a presentation with its employees announcing a $2 billion increase in its compensation budget. In the new budget, $1 billion in wages and $1.4 billion in stock compensation have been added. The majority of it will be distributed to current employees, but some will be used to recruit new employees.
According to The Oregonian, which saw the presentation, Intel said in a statement that the pay restructuring was “designed to enable Intel to win the fierce battle for talent in today’s competitive market.” It will “reignite” the company’s culture and “drive” its business strategy.
Intel pays about $4.6 billion annually to its 21,000 local employees in Oregon, which is home to some of the company’s largest manufacturing facilities. It employs approximately 110,000 people worldwide.
In the revised budget, $1 billion in salary and $1.4 billion in stock compensation have been included. It would cost around $20,000 per employee if distributed fairly.
Employees with specialized knowledge and excellent performance, on the other hand, will be targeted disproportionately. Intel may be concerned about competitors poaching talent, a practice that Intel is well-known for.
Intel has a history of underpaying its technicians, according to several industry review sites. The company’s small annual raise is frequently mentioned in bad evaluations. The environment on Intel’s production line is also known to be tight, especially recently. Intel hopes to alleviate some of this anxiety by providing additional paid time off and mental health support programs.
If Intel wants to attract enough people to staff its many planned expansions, which include a $3 billion addition to its Oregon campus, a $7 billion fab in Malaysia, their third Irish fab, and a projected fab in Germany, it needs to make itself more enticing.