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Compensation and Benefits
Rewarding employees for their personal performance,
sharing Intel’s success with employees and encouraging
employees to help drive company growth have always
been the cornerstones of Intel’s compensation philosophy.
In 2005, Intel announced improvements in both
employee compensation and healthcare benefits.
Beginning in 2006, compensation to employees will be an above-market, cash-based, pay-for-performance
incentive program, and use restricted stock units (RSUs) as a supplement to Intel’s ongoing stock
option program. This addition of RSUs allows the company to maintain eligibility for stock awards for all
employees (known as “broad-based participation”) while maintaining our commitment to stockholders on
limiting company dilution. These compensation design changes reinforce Intel’s commitment to attract,
hire, motivate and maintain the best workforce.
Intel has long been a leader in offering consumer-driven healthcare plans to its employees. These plans
place purchasing power and healthcare decision-making in the hands of employees. The plans have
shown early signs of helping to control healthcare costs, and those savings are passed on to enrolled
employees.
We frequently review our health plan supplier pricing and design offerings. For 2006, we introduced
supplier changes that will enable better and more transparent pharmacy pricing as well as increased
flexibility and in-network access to benefits. For 2007 and beyond, we have a long-term strategy that
focuses on employee engagement in health and wellness, disease management, and optimizing our plan
design and suppliers.
Intel is also involved in several collaborative efforts with other large employers and healthcare companies
to drive key initiatives designed to improve healthcare quality and access for our employees, including
e-visits and physician and hospital quality initiatives.
Our newly formed Digital Health Group works with healthcare providers, purchasers, technology vendors
and government decision makers to develop policies that will help accelerate the adoption of healthcare
information technology.
For more information on working at Intel, visit the Jobs at Intel web site.
Intel Compensation and Benefits At a Glance
In 2005, the value of Intel’s Employee Cash Bonus Program (ECBP) equaled 17.8 days of pay, or 6.8% of
increased compensation for all employees. ECBP was up slightly from 2004, primarily as a result of our
improved pre-tax profit margin.
In 2005, employees did not receive the extra days of pay from performance on our Customer Excellence
Program. The percentage of customers “delighted” remained a few points below the 75% required for the
bonus payout.
During this same period, the corporate-wide average Employee Bonus (EB) plan multiplier was 3.76,
up approximately 31% compared to 2004.
Intel Corporate Responsibility Report 2005 • Our Business
www.intel.com/go/responsibility
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