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INTELL Compensation 2013


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INTELL Compensation

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INTELL Compensation 2013

  1. 1. UNIVERSITI UTARAMALAYSIAOTHMAN YEOP ABDULLAHGRADUATE SCHOOL OFBUSINESSBSMH 5143Compensation and BenefitsManagementCompensation Best PracticesINTELLBy;812399813315813379813397814284
  2. 2. Presentation Overview• Introduction INTELL - Sau Yee• Base Salary & Bonuses - Pridiv• Allowance - Syahrulniza• Short and long term incentives - Teh Safina• Benefits - Huda
  3. 3. Introduction INTELL Founded in 1968 to build semiconductor memoryproducts. Intel introduced the worlds first microprocessor in 1971. Impressed by Penangs location, workforce and localgovernment support, Intel had invested $1.6 million byNovember 1972 to start its first offshore assembly plant(A1). Today, Intel Penang is home to a high-tech campus with10 buildings; including one of Intels largest assemblyand test sites and a design and development center.
  4. 4. Introduction INTELLVisioncreate and extend computing technology toconnect and enrich the lives of every personon earth.Intel Public PolicyIntel works with governments, organizations,and industries around the world to advocatepolicies that encourage new ideas, promotefair commerce, and protect resources.
  5. 5. INTELL ValuesCustomer Orientationlisten and respond to the customers,suppliers and stakeholders. clearlycommunicate mutual intentions andexpectations.DisciplineEnsure a safe, clean and injury-freeworkplace. Make and meetcommitments.QualityAchieve the highest standards ofexcellence Do the right things rightContinuously learn, develop andimprove
  6. 6. Code of ConductFive principlesof conducting Intel-related business Conduct Business with Honesty and Integrity Follow the Letter and Spirit of the Law Treat Each Other Fairly Act in the Best Interests of Intel and AvoidConflicts of Interest Protect the Company’s Assets and Reputation
  7. 7. Goal & PerformanceIntel rank in green powerSince 2008, Intel has been the largestvoluntary purchaser of green power in theU.SInspiring young innovatorsIn 2012, Intel reached 7 million studentsthrough the Intel International Scienceand Engineering Fair, a program ofSociety for Science & the Public.Empowering girls and womenIn 2013, supported the launch of the “GirlRising” film which highlight theimportance of investing in the educationof girls and women to advance economicopportunity.
  8. 8. Base Pay @Intell Factors determine base pay: relevanteducation, skills, experience, and jobperformance Total direct compensation Performance-based cash compensation The Compensation Committee Actual pay positions vary by individual
  9. 9. Base Pay @Intell - 2011 performance-based compensation 91% - totaldirect compensation performance-based cash - 31% on average total direct compensation in the form ofequity awards - 60% on average
  10. 10. Base Pay @Intell Total cash compensationbase salary + performance-based cashcompensation cash compensation is paid under the annualincentive cash plan based
  11. 11. Base Pay @Intell - Best Practices Match & Lead pay structure Pay system based on:- Skills & Knowledge- Performance Based payment
  12. 12. Bonus @Intell Employee Bonus (EB)- mentioned in the job contract- focusing on skilled and managementstaff- Bonus are financial and non financial- Obj : as motivation and retention tool Employee Cash Bonus Program (ECBP)- solely based on performance- targeted at new employees
  13. 13. Compensation philosophy and practices At Intel the compensation committee andIntel’s management use the compensation tohelp recruit, retain and motivate theiremployees. Compensation also as the way tocompany depends on for current and futuresuccess. Intel believe that the proportion of at risk,performance based compensation should riseas an employee’s level of responsibilityincreases. Intel’s compensation philosophy is reflectedas key design priorities that govern thecompensation decisions.
  14. 14. There are key designs for compensation atIntel:I. are to align with stockholders interests.II. Then compensation benefits also help tomotivate employees to achieve theirbusiness goalsIII. Compensation also can give a balanceperformance objectives and time horizons.IV. Through compensation also, Intel will recruitand retain the highest caliber of employeesV. will encourage employee stock ownershipand also manage the cost and dilutionVI. help maintain consistency in the way thatexecutive officers and the broaderemployee population are compensated.
  15. 15. Benefits at Intel(1.) Allowences ii. Allowances- allowances are vary as well in terms ofshift allowances and also car allowances. Shiftallowances are for the production employees whoengage in shifty basis and also their pay depends onthe shift. Meanwhile for extra working hours will begiven extra income as well referring to how manyworking hours. Car allowances on the other hand isfor those in sales and marketing department whoneed to travel all time to promote and branding Intelexternally. They will be given certain survival amountfor the car usage.
  16. 16. EMPLOYEE’S BENEFITS PLANGreat Place to Work (GPTW) BenefitsHelp employees to balance their work andpersonal responsibilities.Stock ProgramsOpportunity to have their own company stockCorporate Officer Stock Ownership GuidelinesFor Intels executive officersGuidelines were set up by Boards(specifies the number of shares that executiveofficers need to accumulate and hold within 5years of appointment or promotion)
  17. 17. Short Term Incentives Medical Incentives Annual Leave Incentives Bonuses Commissions The Like-reward
  18. 18. Long Term Incentives Stock Option Incentive Cash Payment
  19. 19. Incentive Cash Payment Annual Incentive Cash Payments Semiannual Incentive Cash Payments.
  20. 20. Annual Incentive Cash The Compensation Committee sets annualincentive cash target for each executiveofficer. Following the end of the year the annualincentive cash target amount is multiplied byan annual incentive cash multiplier, which isthe average of three performance ratios.
  21. 21. The three performance ratiosare based on: Intel’s current-year net income or adjustednet income relative to Intel’s average netincome used in the calculation over theprevious three years. Intel’s net income growth or adjusted netincome growth relative to that of the marketcomparator group Satisfaction of Intel operational performancegoals.
  22. 22. Semiannual Incentive CashPayments Calculates payouts based on Intel’s corporateprofitability which links compensation tofinancial performance. Payouts are communicated as a number ofextra days of compensation, with executiveofficers normally receiving the same numberof extra days as other employees
  23. 23. EMPLOYEE’S BENEFITS PLANPurpose of Employee’s Benefit Plan to attract, retain and motivate employees expectation of job, life and economicsecurity benefits are subject to governmentregulation (Eg: EPF, Socso) to be more competitive compared to othercompany in the same industry
  24. 24. EMPLOYEE’S BENEFITS PLANIntel’s Benefits Plan Healthcare BenefitsDental and vision correction coverage, andsupplemental coverage including dependentcoverage available at discount rate. Life and Accident InsuranceInsurance cost paid by Intel
  25. 25. EMPLOYEE’S BENEFITS PLANRetirement Plan Intel will contribute 12% of an employee’smonthly earnings to employees’ EPFaccount. Retirement gift payout ( age ≥ 55 andminimum 10 years of service with Intel )Employee Assistance Program (EAP) Helps family enjoy a happy, healthy andproductive life Provide confidential access to short-termprofessional counseling service, togetherwith work or life services. (Eg: freechildcare and eldercare assistancecounseling)
  26. 26. THANK YOU