2010 Summary Compensation

The following table lists the annual compensation for fiscal years 2010, 2009, and 2008 of our CEO, CFO, and our three other most highly compensated executive officers in 2010 (referred to as listed officers).

2010 Summary Compensation Table

Name and Principal Position   Year   Salary
($)
  Bonus
($)(1)
  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
  2010   1,000,000   30,400   6,236,800   1,082,200   6,790,000   131,000   382,100   15,652,500
  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
Stacy J. Smith
Senior Vice President
Chief Financial Officer
  2010   475,000   10,400   2,281,700   816,200   1,575,000   55,000   100,600   5,313,900
  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
Andy D. Bryant
Executive Vice President,
Technology, Manufacturing,
and Enterprise Services
Chief Administrative Officer
  2010   520,000   12,800   4,601,800   744,600   2,292,300   135,000   144,600   8,451,100
  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
David Perlmutter(2)
Executive Vice President
and General Manager,
Intel Architecture Group
  2010   506,200   11,200   3,002,300   1,182,900   1,837,000   221,600   398,100   7,159,300
  2009   453,900     3,051,400   993,500   1,376,600   145,600   389,700   6,410,700
  2008   446,100     980,300   2,083,100   1,021,100   280,400   311,000   5,122,000
A. Douglas Melamed(3) Senior Vice President General Counsel   2010   600,000   12,600   2,342,200   496,400   1,887,500     21,500   5,360,200
                                   
                                   
Total   2010   3,101,200   77,400   18,464,800   4,322,300   14,381,800   542,600   1,046,900   41,937,000
  2009   2,378,900     15,127,100   3,715,400   9,660,200   571,600   870,000   32,323,200
  2008   2,371,100     7,026,200   8,351,800   7,076,900   280,400   837,400   25,943,800
(1) This was a special bonus paid to all eligible employees, including the listed officers, for their contribution in achieving an Intel milestone: Intel's first year when revenue exceeded $40 billion. This special bonus is equivalent to three days of compensation.
(2) Mr. Perlmutter receives his cash compensation in Israeli shekels. The amounts reported above in the "Salary," "Bonus," "Non-Equity Incentive Plan Compensation," and certain amounts within the "All Other Compensation" columns were converted to U.S. dollars using a rate of 3.59 shekels per dollar, calculated as of December 25, 2010 for 2010; 3.80 shekels per dollar, calculated as of December 24, 2009 for 2009; and 3.87 shekels per dollar, calculated as of December 26, 2008 for 2008. In 2009, Mr. Perlmutter received an additional $10,800 for relocation that was not previously reported due to the late timing of a supplier invoice; this amount has been added to the table above.
(3) Mr. Melamed was hired in November 2009 and was not a listed officer in fiscal year 2009 or 2008.

Total Compensation

Total compensation as reported in the Summary Compensation table increased 13% from 2009 to 2010 for listed officers (excluding Mr. Melamed, who was not a listed officer in fiscal year 2009 or 2008), primarily because of increases in payouts under our performance-based cash compensation.

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. The grant date fair values of OSUs are provided to us by Radford, an AonHewitt consulting company.

The following table includes the assumptions used to calculate the aggregate grant date fair value of awards reported for 2010, 2009, and 2008 on a grant-date by grant-date basis.

    Assumptions
Grant Date   Volatility
(%)
  Expected Life
(Years)
  Risk-Free
Interest Rate
(%)
  Dividend Yield
(%)
                 
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
1/22/10   30   5.1   2.0   3.1
4/15/10(1)   n/a   n/a   0.8   2.6
(1) RSUs were the only awards granted on this date; therefore, the "volatility" and "expected life (years)" assumptions were not applicable.

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   2010   6,524,000   266,000   6,790,000
    2009   5,110,000   141,500   5,251,500
    2008   3,724,000   149,300   3,873,300
Stacy J. Smith   2010   1,484,000   91,000   1,575,000
    2009   1,131,500   43,300   1,174,800
    2008   824,600   46,900   871,500
Andy D. Bryant   2010   2,180,500   111,800   2,292,300
    2009   1,800,100   57,200   1,857,300
    2008   1,250,200   60,800   1,311,000
David Perlmutter   2010   1,738,700   98,300   1,837,000
    2009   1,327,200   49,400   1,376,600
    2008   970,900   50,200   1,021,100
A. Douglas Melamed   2010   1,780,000   107,500   1,887,500

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 and Mr. Melamed). 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 Mr. Perlmutter and Mr. Melamed) had an overall increase in 2010 because the interest rate used to calculate present value decreased from 6.1% for 2009 to 5.8% for 2010. They had an overall increase in 2009 because the interest rate decreased from 6.7% for 2008 to 6.1% for 2009. 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 2010 table. The changes in pension value reported above in the Summary Compensation table 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. Mr. Melamed was not eligible to participate in the pension plan until January 1, 2011.

All Other Compensation

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

Name   Year   Retirement Plan
Contributions
($)
  Deferred
Compensation
Plan Contributions
($)
  Matching
Charitable
Contributions
($)
  Relocation
Payments
($)
  Total All Other
Compensation
($)
                             
Paul S. Otellini   2010   14,700   364,900   2,500       —       382,100
    2009   14,700   275,700   —       —       290,400
    2008   13,800   285,800   10,000       —       309,600
Stacy J. Smith   2010   14,700   85,900   —       —       100,600
    2009   14,700   62,400   5,000       —       82,100
    2008   13,800   70,600   1,500(1)   —       85,900
Andy D. Bryant   2010   14,700   129,900   —       —       144,600
    2009   14,700   93,100   —       —       107,800
    2008   13,800   117,100   —       —       130,900
David Perlmutter(2)   2010       —       398,100       398,100
    2009       —       389,700(3)   389,700
    2008       —       311,000       311,000
A. Douglas Melamed   2010       —       21,500       21,500
(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 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 2011. 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. 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.
(3) In 2009, Mr. Perlmutter received an additional $10,800 for relocation that was not reported due to the late timing of a supplier invoice.

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