Summary Compensation

The following table lists the annual compensation for the fiscal years 2008, 2007, and 2006 of our CEO, CFO, and our three other most highly compensated executive officers in 2008 (referred to as listed officers).

Name and Principal Position	Year	Salary ($)	Stock Awards ($)	Option Awards ($)	Non-Equity Incentive Plan Compensation ($)	Change in Pension Value and Non-Qualified Deferred Compensation Earnings ($)	All Other Compensation ($)	Total ($)

Paul S. Otellini President Chief Executive Officer	2008	1,000,000	1,893,300	5,646,400	3,873,300	—	309,600⁽¹⁾	12,722,600
	2007	770,000	595,100	6,034,700	3,964,200	—	178,000	11,542,000
	2006	700,000	352,000	6,699,000	1,772,700	46,000	236,700	9,806,400
Stacy J. Smith Vice President Chief Financial Officer	2008	425,000	313,900	843,300	871,500	—	88,500⁽¹⁾	2,542,200
	2007⁽²⁾	314,400	135,600	548,500	962,200	—	261,700⁽³⁾	2,222,400
	2006	235,000	22,300	485,100	430,200	11,000	57,000	1,240,600
Andy D. Bryant Executive Vice President, Finance and Enterprise Services Chief Administrative Officer	2008	500,000	688,200	2,872,800	1,311,000	—	130,900	5,502,900
	2007	455,000	357,700	3,124,500	1,673,400	—	114,000	5,724,600
	2006	355,000	117,300	4,888,000	1,178,500	49,000	148,200	6,736,000
Sean M. Maloney Executive Vice President Chief Sales and Marketing Officer	2008	500,000	698,100	2,827,600	1,113,300	—	120,100	5,259,100
	2007	390,000	429,000	3,207,200	1,493,900	—	98,300	5,618,400
	2006	290,000	87,100	4,678,400	1,019,000	7,000	127,200	6,208,700
David Perlmutter⁽⁴⁾ Executive Vice President General Manager, Mobility Group	2008	446,100	655,900	2,009,800	1,021,100	280,400	311,000	4,724,300
	2007	357,200	379,700	1,619,600	1,255,200	300,700	393,700	4,306,100
	2006	258,500	106,600	1,753,700	680,300	206,100	190,300	3,195,500
Total	2008	2,871,100	4,249,400	14,199,900	8,190,200	280,400	960,100	30,751,100
	2007	2,286,600	1,897,100	14,534,500	9,348,900	300,700	1,045,700	29,413,500
	2006	1,838,500	685,300	18,504,200	5,080,700	319,100	759,400	27,187,200

⁽¹⁾	In 2008, Intel Foundation made matching charitable contributions on behalf of Mr. Otellini in the amount of $10,000, and on behalf of Mr. Smith in the amount of $4,100.
⁽²⁾	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 in the "Salary" column and $9,200 in the "Non-Equity Incentive Plan Compensation" column.
⁽³⁾	In 2004, Intel arranged for a third party to provide Mr. Smith with a mortgage on his home in connection with his relocation from England to California. The loan principal was $950,000, the interest rate was 1.16%, and the term was five years. Mr. Smith paid off this mortgage in December 2006 (prior to his becoming an executive officer). In January 2007, Mr. Smith received a one-time payment of $210,000 (including a tax gross-up of $74,000) to replace the benefit that Mr. Smith gave up by paying off the low-interest loan prior to the original due date. The remaining $51,700 consists of profit sharing contributions.
⁽⁴⁾	Mr. Perlmutter receives his cash compensation in Israeli shekels. The amounts reported above in the "Salary," "Non-Equity Incentive Plan Compensation," and certain amounts within the "All Other Compensation" columns were converted to U.S. dollars using a rate of 3.87 shekels per dollar, calculated as of December 26, 2008 for 2008, and at a rate of 3.94 shekels per dollar for 2006 and 2007. The "All Other Compensation" column for Mr. Perlmutter consists of the following amounts (in U.S. dollars):

Year	Annual Israeli Site Bonus	Study Fund	Relocation

2008	—	—	311,000
2007	—	400	393,300
2006	31,500	19,300	139,500

Total Compensation.

Total compensation as reported in the Summary Compensation table increased 5% from 2007 to 2008 for listed officers, primarily because increases in salary and stock awards were offset by decreases in performance-based cash compensation and decreases in SFAS No. 123(R) expense for outstanding option awards. CEO Paul S. Otellini received total compensation of $12.7 million in 2008, and Intel's listed officers received total compensation of $30.8 million in 2008.

Equity Awards.

Under SEC rules, the values reported in the "Stock Awards" and "Option Awards" columns of the Summary Compensation table represent the dollar amount, without any reduction for risk of forfeiture, recognized for financial reporting purposes related to grants of options and RSUs to each of the listed officers. We calculated these amounts in accordance with the provisions of SFAS No. 123(R) for 2008, 2007, and 2006.

We calculate compensation expense related to stock options using the Black-Scholes option pricing model. Because we do not pay or accrue dividends or dividend-equivalent amounts on unvested RSUs, we calculate compensation expense related to an RSU by taking the value of Intel common stock on the date of grant and reducing it by the present value of dividends expected to be paid on Intel common stock before the RSU vests. We amortize compensation expense over the service period and do not adjust the expense based on actual gains or losses. The compensation expense in the "Stock Awards" and "Option Awards" columns is related to RSUs and options awarded in 2008 and prior years.

To illustrate how we recognize compensation expense for equity awards, assume that an employee received an option to purchase 100,000 shares of stock at the beginning of 2008 with a grant date fair value of $500,000 calculated using the Black-Scholes option pricing model. This option vests over four years in 25% annual installments. Under SFAS No. 123(R), Intel would recognize compensation expense of $125,000 in each of 2008, 2009, 2010, and 2011 (the service period). However, under our form of award agreements, the vesting of stock options and RSUs—and thus the annual accounting expense reported in the Summary Compensation table—may accelerate based on the employee's age and years of service. If an employee is eligible for retirement vesting acceleration provisions at the date of grant or during the vesting period, such acceleration will result in recognition of expense earlier than the normal vesting period based upon the acceleration provisions for that individual. For example, if an employee's age plus years of service equal 75 or above at the date of the grant, the service period would be shortened to three years, and Intel would recognize compensation expense for one full installment immediately at the grant date ($125,000) and the remaining $375,000 would be recognized evenly in each of 2008, 2009, and 2010 ($125,000 per year).

The following table includes the assumptions used to calculate the compensation expense reported for 2008, 2007, and 2006 on a grant-date by grant-date basis.

	Assumptions
Grant Date	Volatility (%)	Expected Life (Years)	Risk-Free Interest Rate (%)	Dividend Yield (%)

4/10/01	47	6.0	4.9	0.3
10/31/01	47	6.0	4.9	0.3
11/27/01	47	6.0	4.9	0.3
3/26/02	49	6.0	3.7	0.3
4/9/02	49	6.0	3.7	0.3
11/25/02	49	7.0	3.7	0.3
1/22/03	50	8.9	3.7	0.4
4/22/03	55	4.0	2.0	0.4
1/21/04	46	9.0	3.8	0.5
4/15/04	51	4.0	3.0	0.6
7/15/04	50	4.0	3.3	0.7
10/14/04	49	6.0	3.4	0.8
2/2/05	26	7.8	4.1	1.4
4/21/05	27	4.8	3.9	1.4
4/21/06	27	4.8	5.0	2.0
1/18/07	26	6.7	4.8	2.2
4/19/07	25	4.8	4.6	2.1
1/17/08	38	7.5	3.6	2.6
4/17/08	34	4.8	2.9	2.5

Non-Equity Incentive Plan Compensation.

The amounts in the "Non-Equity Incentive Plan Compensation" column of the Summary Compensation table include annual incentive cash payments made under the Executive Officer Incentive Plan and semiannual incentive cash payments. The allocation of payments was as follows:

Name	Year	Annual Incentive Cash Payments ($)	Semiannual Incentive Cash Payments ($)	Total Incentive Cash Payments ($)

Paul S. Otellini	2008	3,724,000	149,300	3,873,300
	2007	3,840,000	124,200	3,964,200
	2006	1,680,000	92,700	1,772,700
Stacy J. Smith	2008	824,600	46,900	871,500
	2007	924,200	38,000	962,200
	2006	407,900	22,300	430,200
Andy D. Bryant	2008	1,250,200	60,800	1,311,000
	2007	1,610,400	63,000	1,673,400
	2006	1,118,800	59,700	1,178,500
Sean M. Maloney	2008	1,064,000	49,300	1,113,300
	2007	1,440,000	53,900	1,493,900
	2006	967,300	51,700	1,019,000
David Perlmutter	2008	970,900	50,200	1,021,100
	2007	1,205,400	49,800	1,255,200
	2006	639,200	41,100	680,300

Change in Pension Value and Non-Qualified Deferred Compensation Earnings.

Amounts reported represent the actuarial increase in the pension plan arrangement (other than for Mr. Perlmutter). Since the benefit that executive officers have earned under the tax-qualified pension plan arrangement is frozen, year-to-year differences in the present value of the accumulated benefit arise solely from changes in the interest rate used to calculate present value and the participant's age becoming closer to age 65. Mr. Perlmutter participates in a pension savings plan and a severance plan for Israeli employees, which are explained further in "Retirement Plans for Mr. Perlmutter" following the Pension Benefits for Fiscal Year 2008 table. The changes in pension value reported above are the increases in the balance of the pension savings plan (less Mr. Perlmutter's contributions) and the increase in the actuarial value for the severance plan.

All Other Compensation.

Amounts listed in this column of the Summary Compensation table (except as footnoted) consist of tax-qualified discretionary company contributions to the profit sharing retirement plan of $13,800 in 2008, $15,750 in 2007, and $15,400 in 2006, and discretionary company contributions credited under the profit sharing component of the non-qualified deferred compensation plan. These amounts will be paid to the listed officers only upon retirement, termination, disability, death, or after reaching the age of 70½ for an active employee.

Additional Programs for Mr. Perlmutter

Relocation Package.

In 2006, Mr. Perlmutter relocated to the United States from Israel with an original assignment for a two-year period, which has been extended for an additional year until August 2009. Since this is a temporary assignment, Mr. Perlmutter is receiving a two-way relocation package. This package contains the same elements as a standard Intel employee relocation package. Intel's relocation packages include monetary allowances and moving services to help employees relocate. The packages are designed to meet the business needs of Intel and the personal needs of Intel employees and their families. Intel's relocation packages are consistent with market practices and Intel's compensation philosophy and are global in scope. Relocation packages apply to all employees, based on set criteria such as duration of assignment, destination for the assignment, family size, and other needs as applicable.

Israel Study Fund.

To encourage continuing education, Intel Israel offers eligible employees the opportunity to participate in a voluntary savings program to which both Intel and the employee contribute. Each month, an eligible employee contributes 2.5% and Intel contributes 7.5% of base salary to the study fund. The contributions are tax-free up to a certain salary amount fixed by legislation. After three years of membership, employees can withdraw the accrued funds for study in Israel or abroad; after six years, employees can use the accrued funds for any purpose. In 2007, Mr. Perlmutter participated in the Israel Study Fund for one month, but in 2008, Mr. Perlmutter did not participate in the program.