Intel CEO Paul Otellini may only take home an annual salary of $700 000 – minus share options – from the chip giant, but he's got a nice little earner on the side as a board member of Google which, in the three years he's served, has secured him a windfall of $22,3-million.
The Mercury News explains that while Google board members don't receive cash compensation for their time, they are instead paid in Google stock. Otellini, it adds, was granted an option when he joined the board in April 2004 to buy 65 000 shares for $35 a share, or $2,28-million. During its IPO in August of that year, an auction process priced Googgle shares at $85. It has soared since then.
The Mercury News continues: "Otellini sold 23 833 shares of Google from November 16 to November 20 at an average per-share price of $638.15, giving him a profit of more than $600 per share. He sold 21 666 shares in 2006 at an average price of about $400 per share. His total profit on his Google options so far: $22.3 million."
It then goes on to break down the number of meetings and actions the board has had to attend to, calculating that Otellini has been involved in a maximum of 48 board-related events since his appointment.
This, it says, works out to compensation of about $464 000 per Google board event.
More at www.mercurynews.com .