Intel paid its chairman and chief executive, Mr Andrew Grove, $3.71 million (£2.7 million) last year, up 6.3 per cent from 1996, as the No. 1 chip-maker's profit growth slowed and its shares rose just 7 per cent for the year.
Mr Grove also made $48.9 million by exercising options for 648,000 shares. His pay included $465,000 in salary, a bonus of $2.79 million, $72,000 in long-term compensation awards and $384,000 in all other compensation, according to Intel's annual proxy filing with the US Securities and Exchange Commission.
The 61-year-old executive was paid $3.49 million and exercised options for $94.5 million in 1996.
His pay rose at about the same rate as the company's stock price, which lagged the 31 per cent rise of the Standard & Poor's 500 Index in 1997.
Intel's profit was hurt last year by the Asian economic crisis and the popularity of low-cost PCs. Results for the first quarter of 1998 released this week showed revenue was £4.4 billion, down more then £4 billion on the same period last year.
Mr Grove will step down next month as chief executive, handing the reins to president and chief operating officer Mr Craig Barrett, as the company gears up to introduce its Merced chip.
"Intel had a tough 1997 and it was a transition year," said Mr Richard Slinn, a money manager at Van Kasper & Co in San Francisco, which owns Intel shares. "We'll see if that transition pays off this year."
Mr Grove was awarded options to buy 72,000 shares at an exercise price of $69.99 per share, which may be worth $8 million assuming Intel stock rises 10 per cent in the next 10 years.
Mr Barrett (58) was paid $2.91 million in 1997, up 9.8 per cent from the $2.65 million he earned in 1996. He was paid $365,000 in salary, $2.19 million in bonus, $60,000 in long-term compensation awards and $295,000 in all other compensation. He did not exercise any options.
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