Intel aims to reprice employee stock options; Otellini total comp tops $12.7M

Intel on Monday told employees that it would reprice its employee stock options. 

In a regulatory filing, Intel detailed plans to reprice stock options at a lower price, similar to what Google did. In addition, Intel said that it would freeze salaries of senior executives in 2009. But stock-option grants are unaffected. 

Intel shareholders will vote on the company's repricing proposal at its annual meeting May 20.

Here are a few details provided by Intel CEO Paul Otellini in a memo to employees:

Intel is granting all eligible employees a special, one-time stock award that will have the same composition as the Focal stock grant you will receive this year. In effect, this doubles the grant size you would have otherwise been awarded.

And.

In May we will ask for stockholder approval of a stock option exchange program. Under the program, employees will be given the opportunity to exchange previously granted, “underwater” options for a smaller number of new options at the market price on the date of exchange. This exchange is based upon a “value for value” program which we believe has a good chance of receiving stockholder approval.

Here's the entire memo from Otellini (click to enlarge):

You can find all the details on Intel's plans including employee and manager FAQs in the SEC documents.

Meanwhile, Intel also disclosed its executive compensation for 2008. Here's a look at the proxy table: