In the first quarter of 2008, the committee established base salaries, set the annual incentive cash baselines and operational goals under the Executive Officer Incentive Plan, and determined the equity awards for executive officers. Following the end of the year, the committee approved the calculation of the multiplier to be used in making annual incentive cash payments based on the Executive Officer Incentive Plan formula, determined any individual performance adjustments under the plan, and approved profit sharing contributions to the retirement plan.

In 2006, the committee determined that Intel's compensation levels should be increased because its programs were set at a level significantly below the compensation levels of its peers. To address this situation, the committee began a three-year program, ending in 2008, to increase cash and equity compensation to reach the target percentiles, and mirrors a general effort to increase compensation for employees. Thus, while annual incentive payouts for the listed officers declined for 2008, both on an absolute basis and as a multiple of salary as a result of the dramatic shift in the business environment during the fourth quarter of 2008, the effect of those declines was mitigated by increases to the annual incentive cash baselines designed to bring target compensation to the desired peer group levels.

Mr. Otellini's 2008 Compensation

In 2008, the committee elected to increase Mr. Otellini's base salary by 30% and annual incentive cash baseline by 40%. Both elements were increased in light of peer data indicating that his cash compensation was significantly below the target percentiles set by the committee. Mr. Otellini's base salary was increased less than his annual incentive cash baseline in an effort to increase the proportion of at-risk, performance-based compensation. Based on market data, the committee believes that Mr. Otellini's base salary for 2008 was still below the 25th percentile. Although the committee increased Mr. Otellini's base salary and annual incentive cash baseline in 2008, Mr. Otellini's total cash compensation increased by only 3% because of decreased financial and operating performance in 2008. Based on grant date fair value, Mr. Otellini received a 20% increase in the value of his annual equity awards in 2008 compared to 2007, although the number of options and RSUs granted was flat compared to 2007. The grant date fair value of Mr. Otellini's long-term RSU award was 24% lower than the grant date fair value of the long-term option award that he received in 2007. The net effect of these changes was that Mr. Otellini's total compensation remained relatively flat in 2008 compared to 2007. The committee believes that his total compensation was below the 65th percentile because his annual incentive cash payments were below target due to Intel's financial and operating performance.

		2008 ($)		2007 ($)		Change (%)
Base Salary		1,000,000		770,000		30
Annual Incentive Cash Payments		3,873,300		3,964,200		(2)
Total Cash Compensation		4,873,300		4,734,200		3
Annual Equity Awards (based on grant date fair value)		4,337,400		3,614,400		20
Long-Term Equity Awards (based on grant date fair value)		2,887,500		3,793,500		(24)
Total Compensation		12,098,200		12,142,100		0

Mr. Smith's 2008 Compensation

Mr. Smith was named CFO in October 2007. The committee determined Mr. Smith's compensation in 2008 for the first time. Considering the CFO's increased responsibilities, the committee determined to increase Mr. Smith's base salary for 2008 by 35%, annual incentive cash baseline by 24%, and grant date fair value of his annual equity award by 58% in an effort to provide more market-competitive pay. Based on market data, the committee believes that Mr. Smith's base salary for 2008 was significantly below the 25th percentile for CFOs in our peer group. Mr. Smith's total cash compensation increased 2% in 2008, and his total cash compensation was significantly below the 65th percentile. In 2008, Mr. Smith was also granted a long-term stock option to purchase 45,000 shares and 6,500 long-term RSUs. Primarily because of the increases in his base salary and annual equity awards, Mr. Smith's total compensation increased 26% for 2008. The committee believes that his total compensation was significantly below the 65th percentile. In 2008, the committee compensated Mr. Smith at levels below the 65th percentile for total compensation due to his relatively short tenure as CFO.

		2008 ($)		2007 ($)(1)		Change (%)
Base Salary		425,000		314,400		35
Annual Incentive Cash Payments		871,500		962,200		(9)
Total Cash Compensation		1,296,500		1,276,600		2
Annual Equity Awards (based on grant date fair value)		2,051,000		1,299,800		58
Long-Term Equity Awards (based on grant date fair value)		415,500		399,500		4
Total Compensation		3,763,000		2,975,900		26

(1)	In 2008, Mr. Smith received a retroactive payment related to his promotion in 2007. We have added $9,400 to the amount reported for him in 2007 for "Base Salary," and $9,200 for "Annual Incentive Cash Payments."

Mr. Bryant's 2008 Compensation

In 2008, the committee elected to increase Mr. Bryant's base salary by 10% and annual incentive cash baseline by 7% in an effort to provide more market competitive pay. Based on market data, the committee believes that Mr. Bryant's base salary for 2008 was below the 25th percentile for chief administrative officers and CFOs in our peer group. Mr. Bryant's total cash compensation decreased 15% in 2008, due to annual incentive cash payments that were lower than target because of Intel's decreased financial and operating performance, resulting in his total cash compensation being below the 65th percentile. Based on grant date fair value, Mr. Bryant received a 38% increase in the value of his annual equity awards in 2008 compared to 2007, in line with our target for market competitiveness for annual equity grants. Primarily because of the increases in his base salary and annual equity awards, Mr. Bryant's total compensation increased 10% for 2008. The committee believes that his total compensation was significantly below the 65th percentile because his annual incentive cash payments were below target due to Intel's financial and operating performance.

		2008 ($)		2007 ($)		Change (%)
Base Salary		500,000		455,000		10
Annual Incentive Cash Payments		1,311,000		1,673,400		(22)
Total Cash Compensation		1,811,000		2,128,400		(15)
Annual Equity Awards (based on grant date fair value)		2,623,200		1,903,200		38
Long-Term Equity Awards (based on grant date fair value)		—		—		—
Total Compensation		4,434,200		4,031,600		10

Mr. Maloney's 2008 Compensation

In 2008, the committee elected to increase Mr. Maloney's base salary by 28% and annual incentive cash baseline by 7%. Based on market data, the committee believes that Mr. Maloney's base salary for 2008 was close to the 50th percentile for sales and marketing executives in our peer group. Although Mr. Maloney's total cash compensation decreased 14% in 2008, the committee believes that his total cash compensation remained significantly above the 65th percentile for sales and marketing executives in our peer group. In 2008, the committee compensated Mr. Maloney above the 65th percentile for total cash compensation in an effort to maintain internal equity with other executive vice presidents, reflecting the significance of the position at Intel and his responsibilities. Based on grant date fair value, Mr. Maloney received a 38% increase in the value of his annual equity awards in 2008 compared to 2007, in line with our target for market competitiveness and with grants to other executive vice presidents. In 2008, Mr. Maloney was also granted a long-term stock option to purchase 82,500 shares and 11,750 long-term RSUs. Primarily because of increases in annual equity awards and base salary, Mr. Maloney's total compensation increased 11% for 2008. The committee believes that his total compensation was significantly above the 65th percentile for sales and marketing executives in our peer group but in line with Intel's other executive vice presidents.

		2008 ($)		2007 ($)		Change (%)
Base Salary		500,000		390,000		28
Annual Incentive Cash Payments		1,113,300		1,493,900		(25)
Total Cash Compensation		1,613,300		1,883,900		(14)
Annual Equity Awards (based on grant date fair value)		2,623,200		1,903,200		38
Long-Term Equity Awards (based on grant date fair value)		759,000		729,300		4
Total Compensation		4,995,500		4,516,400		11

Mr. Perlmutter's 2008 Compensation

In 2008, the committee elected to increase Mr. Perlmutter's base salary by 25% and annual incentive cash baseline by 14%. Based on market data, the committee believes that Mr. Perlmutter's base salary for 2008 was below the 25th percentile. Although Mr. Perlmutter's total cash compensation decreased 9% in 2008, the committee believes that his total cash compensation was slightly above the 65th percentile for sector heads in our peer group. Based on grant date fair value, Mr. Perlmutter received a 38% increase in the value of his annual equity awards in 2008 compared to 2007, in line with our target for market competitiveness and with grants to other executive vice presidents. In 2008, Mr. Perlmutter was also granted a long-term stock option to purchase 52,500 shares and 5,000 long-term RSUs. Primarily because of the increases in his annual equity awards and base salary, Mr. Perlmutter's total compensation increased 15% for 2008. The committee believes that Mr. Perlmutter's total compensation was below the 65th percentile. In 2008, the committee compensated Mr. Perlmutter at levels below the target percentile for total compensation because his annual incentive cash payments were below target due to Intel's financial and operating performance.

		2008 ($)(1)		2007 ($)(1)		Change (%)
Base Salary		446,100		357,200		25
Annual Incentive Cash Payments		1,021,100		1,255,200		(19)
Total Cash Compensation		1,467,200		1,612,400		(9)
Annual Equity Awards (based on grant date fair value)		2,623,200		1,903,200		38
Long-Term Equity Awards (based on grant date fair value)		440,200		417,800		5
Total Compensation		4,530,600		3,933,400		15

(1)

Mr. Perlmutter receives his cash compensation in Israeli shekels. The amounts reported above in "Base Salary" and "Annual Incentive Cash Payments" for 2008 were converted to U.S. dollars at a rate of 3.87 shekels per dollar, calculated as of December 26, 2008 (3.94 shekels per dollar for 2007, calculated as of December 29, 2007).