Summary Compensation

The following table lists the annual compensation for the fiscal years 2009, 2008, and 2007 of our CEO, CFO, and our three other most highly compensated executive officers in 2009 (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	2009	1,000,000	6,684,000	1,182,000	5,251,500	174,000	290,400	14,581,900
	2008	1,000,000	4,343,100	2,881,800	3,873,300	—	309,600	12,407,800
	2007	770,000	922,300	6,485,600	3,964,200	—	178,000	12,320,100
Stacy J. Smith Senior Vice President Chief Financial Officer	2009	425,000	2,391,700	789,900	1,174,800	74,000	82,100	4,937,500
	2008	425,000	808,700	1,657,800	871,500	—	85,900	3,848,900
	2007⁽¹⁾	314,400	592,900	1,106,400	962,200	—	261,700	3,237,600
Andy D. Bryant Executive Vice President, Technology, Manufacturing, and Enterprise Services, and Chief Administrative Officer	2009	500,000	3,000,000	750,000	1,857,300	178,000	107,800	6,393,100
	2008	500,000	894,100	1,729,100	1,311,000	—	130,900	4,565,100
	2007	455,000	686,600	1,216,600	1,673,400	—	114,000	4,145,600
Sean M. Maloney Executive Vice President and General Manager, Intel Architecture Group	2009	500,000	3,120,700	1,132,600	1,513,100	31,000	96,500	6,393,900
	2008⁽²⁾	500,000	1,096,800	2,285,400	1,120,300	—	120,100	5,122,600
	2007	390,000	906,300	1,726,200	1,493,900	—	98,300	4,614,700
David Perlmutter⁽³⁾ Executive Vice President and General Manager, Intel Architecture Group	2009	453,900	3,051,400	993,500	1,376,600	145,600	378,900	6,399,900
	2008	446,100	980,300	2,083,100	1,021,100	280,400	311,000	5,122,000
	2007	357,200	780,100	1,540,900	1,255,200	300,700	393,700	4,627,800
Total	2009	2,878,900	18,247,800	4,848,000	11,173,300	602,600	955,700	38,706,300
	2008	2,871,100	8,123,000	10,637,200	8,197,200	280,400	957,500	31,066,400
	2007	2,286,600	3,888,200	12,075,700	9,348,900	300,700	1,045,700	28,945,800

⁽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 in the "Salary" column and $9,200 in the "Non-Equity Incentive Plan Compensation" column.
⁽²⁾	In 2008, Mr. Maloney's "Non-Equity Incentive Plan Compensation" was $7,000 higher than previously reported; this amount has been added to the column.
⁽³⁾	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 3.80 shekels per dollar, calculated as of December 24, 2009 for 2009; at 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 2007.

Total Compensation

Total compensation as reported in the Summary Compensation table increased 25% from 2008 to 2009 for listed officers, primarily because of increases in stock awards and performance-based cash compensation. The increase in stock awards was principally due to the investment grants of options in 2009 and the adoption of OSUs as the primary annual equity vehicle. CEO Paul S. Otellini received total compensation of $14.6 million in 2009, and our other listed officers received total compensation of $24.1 million in 2009.

Equity Awards

Under SEC rules, the values reported in the "Stock Awards" and "Option Awards" columns of the Summary Compensation table reflect the aggregate grant date fair value of grants of stock options and stock awards to each of the listed officers in the years shown.

We calculate the grant date fair value of 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 the grant date fair value of 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 use a Monte Carlo simulation model to calculate the grant date fair value of OSUs.

The following table includes the assumptions used to calculate the aggregate grant date fair value of awards reported for 2009, 2008, and 2007 on a grant-date by grant-date basis.

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

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
1/23/09	51	7.5	2.7	4.2
4/16/09	46	4.8	1.6	3.5

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 EOIP 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	2009	5,110,000	141,500	5,251,500
	2008	3,724,000	149,300	3,873,300
	2007	3,840,000	124,200	3,964,200
Stacy J. Smith	2009	1,131,500	43,300	1,174,800
	2008	824,600	46,900	871,500
	2007	924,200	38,000	962,200
Andy D. Bryant	2009	1,800,100	57,200	1,857,300
	2008	1,250,200	60,800	1,311,000
	2007	1,610,400	63,000	1,673,400
Sean M. Maloney	2009	1,460,000	53,100	1,513,100
	2008	1,064,000	56,300⁽¹⁾	1,120,300
	2007	1,440,000	53,900	1,493,900
David Perlmutter	2009	1,327,200	49,400	1,376,600
	2008	970,900	50,200	1,021,100
	2007	1,205,400	49,800	1,255,200

⁽¹⁾	In 2008, Mr. Maloney's semiannual incentive cash payment was $7,000 higher than previously reported; this amount has been added to the column.

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 in the tax-qualified pension plan arrangement is a fixed dollar amount payable at age 65, 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. The listed officers (other than for Mr. Perlmutter) had an overall increase in 2009 because the interest rate used to calculate present value decreased from 6.7% for 2008 to 6.1% for 2009. They had a decrease in 2008 because the interest rate increased from 5.6% for 2007 to 6.7% for 2008. 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 2009 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

The amounts in the "All Other Compensation" column of the Summary Compensation table include tax-qualified discretionary company contributions to the profit sharing retirement plan, discretionary company contributions credited under the profit sharing component of the non-qualified deferred compensation plan, matching charitable contributions from the Intel Foundation, payments in connection with listed officer relocations, and study fund payments, as detailed in the table below. Amounts included in the "Profit Sharing Retirement Plan Contributions" and "Profit Sharing Deferred Compensation Plan Contributions" columns will be paid to the listed officers only upon retirement, termination, disability, death, or after reaching the age of 70½ for an active employee.

Name	Year	Profit Sharing Retirement Plan Contributions ($)	Profit Sharing Deferred Compensation Plan Contributions ($)	Matching Charitable Contributions ($)	Relocation Payments ($)	Study Fund Payments ($)	Total All Other Compensation ($)

Paul S. Otellini	2009	14,700	275,700	—	—	—	290,400
	2008	13,800	285,800	10,000	—	—	309,600
	2007	15,750	162,250	—	—	—	178,000
Stacy J. Smith	2009	14,700	62,400	5,000	—	—	82,100
	2008	13,800	70,600	1,500⁽¹⁾	—	—	85,900
	2007	15,750	35,950	—	210,000⁽²⁾	—	261,700
Andy D. Bryant	2009	14,700	93,100	—	—	—	107,800
	2008	13,800	117,100	—	—	—	130,900
	2007	15,750	98,250	—	—	—	114,000
Sean M. Maloney	2009	14,700	81,800	—	—	—	96,500
	2008	13,800	106,300	—	—	—	120,100
	2007	15,750	82,550	—	—	—	98,300
David Perlmutter⁽³⁾	2009	—	—	—	378,900	—	378,900
	2008	—	—	—	311,000	—	311,000
	2007	—	—	—	393,300	400	393,700

⁽¹⁾	In 2008, the Intel Foundation made a matching charitable contribution on behalf of Mr. Smith in the amount of $1,500, not $4,100 as previously reported; we have subtracted $2,600 from the amount reported for him in 2008 in the "All Other Compensation" column of the Summary Compensation table.
⁽²⁾	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.
⁽³⁾	In 2006, Mr. Perlmutter relocated to the United States from Israel with an original assignment for a two-year period, which has been extended until August 2010. 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 the assignment, destination for the assignment, family size, and other needs as applicable.