r/technology • u/geoxol • Jan 13 '23 • Bravo! 1 Helpful (Pro) 1

Apple CEO Tim Cook to take more than 40% pay cut Business

https://apnews.com/article/technology-apple-inc-tim-cook-business-d056553b10120c4a968b562cb7ece5d2
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u/gnocchicotti Jan 13 '23

Pat Gelsinger of Intel is my favorite CEO statistic.

CEO of a company with 1/5 the revenue of Apple, and is in stunning decline, made 80% of Tim Cook's compensation in 2022. For a brief time I recall he made more than Satya Nadella and Tim Cook combined.

I assume there are many ways to split this and it changes all the time due to performance targets and stock price, but if I were an Intel shareholder I would be watching that dude very, very closely to say the least. Shareholders voted 2:1 to reject the pay package in rather uncommon rebuke, but guess what the vote is non-binding because America is about funneling money to the top 0.01% and anyone with a pension fund or a 401k can go fuck themselves.

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u/[deleted] Jan 13 '23 edited Jan 13 '23

Pat Gelsinger, and INTC as a whole, is fucking shit. Has been a turn-around story for the last 5 CEOs, it is garbage. I remember when going fabless became the rage and this fucking imbecile decided to double down on in-house foundries, a massively capex intensive segment that is winner-takes-all, and such winner being TSMC for now. It also takes decades to build and have a foundry operational. All this while INTC struggles to even fulfill ETAs on products because of in-house production issues

EDIT: INTC not INTL is the ticker, I messed up

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u/detectiveDollar Jan 13 '23

I don't like Intel, hell I'm invested in AMD, but getting rid of fabs would be a huge mistake.

Fabs give Intel supply, not everyone is on the latest node so they can fab their chips with Intel, and shrinking transistors is getting harder and harder, so Intel may well catch up.

Plus, if Intel leaves the market it'll be what, just Samsung and TSMC left?

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u/[deleted] Jan 13 '23

bro what are you on?? It is a winner-takes-all market, TSMC is the main player and the one everyone goes to. Samsung is 2nd. And a distant one in terms of performance and profitability. INTC can’t even sell their fab services to competitors, they can’t even fulfill their own orders and have to outsource to TSMC.

If you want Trailing Edge semis, there are other fabs to go to. INTC is in a Leading Edge fab business

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u/magmagon Jan 13 '23

Winner takes all implies that the winner produces all the chips, which isn't true. There just isn't enough capacity to do so, so TSMC raised their prices.

For a lot of applications, there's no need to be on the cutting edge. Cost savings are more important in many low margin chip designs, which is why global foundries, microchip, NXP, etc are around. Intel already has contracts for their new fabs in Arizona. Going fabless would be a terrible idea.

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u/slashrshot Jan 13 '23 edited Jan 14 '23

It is also a national security risk when the bulk of your products that carries most of your economy is produced at a single region that is currently in a politically tense situation.

That said, the incentive for capex extensive companies and shareholders returns dont align.
which is ironic because capex companies are the reason why they need a stock market anyway, to raise funding.