This Case is about COMPENSATION

PUBLICATION DATE: November 22, 2011 PRODUCT #: 212047-HCB-ENG

Underwater Engineer at Intel Corporation Case Solution

An investor and an Intel employee, Molly Miller must determine whether to vote FOR or AGAINST Intel’s projected 2009 alternative exchange program. Given fresh declines in Intel’s stock price, more than 99% of Intel’s outstanding employee stock options are “submerged,” and worker motivation and retention are the severe concerns.  In the event stockholders approve the plan, Molly must choose whether to take part in the plan and tender her employee stock options that are submerged. As an employee and a stockholder, Molly must evaluate the advantages and disadvantages of Intel’s planned exchange plan from both viewpoints. Moreover, she must judge the suggestion of Intel in light of the choice strategies pursued by other corporations that have lately faced the issue of employee stock options that are submerged.

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