Summary Compensation

The following table lists the annual compensation for the fiscal years 2007, 2006, and 2005 of our CEO, current and former CFOs, and our three other most highly compensated executive officers in 2007 (referred to as listed officers).

Name and Principal Position	Year	Salary ($)	Stock Awards ($)	Option Awards ($)	Non-Equity Incentive Plan Compensation ($)	Change in Pension Value and Non-Qualified Deferred Compensation Earnings ($)	All Other Compensation ($)	Total ($)

Craig R. Barrett Chairman of the Board	2007	358,300	409,900	3,969,700	1,394,100	88,000	102,100	6,322,100
	2006	463,000	47,700	6,410,200	1,110,400	36,000	222,200	8,289,500
	2005	610,000	—	6,308,100	2,727,800	1,898,000	196,500	11,740,400
Paul S. Otellini President Chief Executive Officer	2007	770,000	595,100	6,034,700	3,964,200	—	178,000	11,542,000
	2006	700,000	352,000	6,699,000	1,772,700	46,000	236,700	9,806,400
	2005	608,300	—	7,600,800	2,683,400	1,171,000	158,500	12,222,000
Andy D. Bryant⁽¹⁾ Executive Vice President, Finance and Enterprise Services Chief Administrative Officer	2007	455,000	357,700	3,124,500	1,673,400	—	114,000	5,724,600
	2006	355,000	117,300	4,888,000	1,178,500	49,000	148,200	6,736,000
	2005	330,000	—	4,963,700	1,765,000	1,235,000	100,300	8,394,000
Stacy J. Smith Vice President Chief Financial Officer	2007	305,000	135,600	548,500	953,000	—	261,700⁽²⁾	2,203,800
	2006	235,000	22,300	485,100	430,200	11,000	57,000	1,240,600
	2005	202,000	—	450,500	580,100	371,000	37,000	1,640,600
Sean M. Maloney Executive Vice President General Manager, Sales and Marketing Group Chief Sales and Marketing Officer	2007	390,000	429,000	3,207,200	1,493,900	—	98,300	5,618,400
	2006	290,000	87,100	4,678,400	1,019,000	7,000	127,200	6,208,700
	2005	270,000	—	4,823,400	1,530,700	210,000	79,600	6,913,700
David Perlmutter Executive Vice President General Manager, Mobility Group⁽³⁾	2007	357,200	379,700	1,619,600	1,255,200	300,700	393,700	4,306,100
	2006	258,500	106,600	1,753,700	680,300	206,100	190,300	3,195,500
	2005	196,700	—	1,663,800	839,100	99,600	44,700	2,843,900
Total	2007	2,635,500	2,307,000	18,504,200	10,733,800	388,700	1,147,800	35,717,000
	2006	2,301,500	733,000	24,914,400	6,191,100	355,100	981,600	35,476,700
	2005	2,217,000	—	25,810,300	10,126,100	4,984,600	616,600	43,754,600

(1)	Mr. Bryant served as Chief Financial Officer until October 16, 2007.
(2)	In 2004, Intel arranged for a third party to provide Mr. Smith with a mortgage on his home in connection with his relocation from England to California. The loan principal was $950,000, the interest rate was 1.16%, and the term was five years. Mr. Smith paid off this mortgage in December 2006 (prior to his becoming an executive officer). In January 2007, Mr. Smith received a one-time payment of $210,000 (including a tax gross-up of $74,000) to replace the benefit that Mr. Smith gave up by paying off the low-interest loan prior to the original due date. The remaining $51,700 consists of profit sharing contributions.
(3)	Mr. Perlmutter receives his cash compensation in Israeli shekels. The amounts reported above in the "Salary," "Non-Equity Incentive Plan Compensation," and certain amounts within the "All Other Compensation" columns were converted to U.S. dollars using a rate of 3.94 shekels per dollar calculated as of December 29, 2007. The "All Other Compensation" column for Mr. Perlmutter consists of the following amounts (in U.S. dollars):

Year	Annual Israeli Site Bonus	Study Fund	Relocation

2007	—	400	393,300
2006	31,500	19,300	139,500
2005	30,100	14,600	—

Total Compensation.

Total compensation as reported in the Summary Compensation table was relatively flat from 2006 to 2007 for listed officers, primarily because increases in performance-based cash compensation were offset by decreases in SFAS No. 123(R) expense for outstanding option awards. CEO Paul S. Otellini received total compensation of $11.5 million in 2007, or 0.2% of Intel's 2007 net income of $7 billion. Intel's listed officers received total compensation of $35.7 million in 2007, or 0.5% of net income.

Equity Awards.

Under SEC rules, the values reported in the "Stock Awards" and "Option Awards" columns of the Summary Compensation table represent the dollar amount, without any reduction for risk of forfeiture, recognized for financial reporting purposes related to grants of options and RSUs to each of the listed officers. We calculated these amounts in accordance with the provisions of SFAS No. 123(R) for 2007 and 2006, and SFAS No. 123 for 2005.

We calculate compensation expense related to 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 compensation expense related to 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. We amortize compensation expense over the service period and do not adjust the expense based on actual gains or losses. The compensation expense in the "Stock Awards" and "Option Awards" columns is related to RSUs and options awarded in 2007 and prior years.

To illustrate how we recognize compensation expense, assume that an employee received an option to purchase 100,000 shares of stock at the beginning of 2007 with a grant date fair value of $500,000 calculated using the Black-Scholes pricing model. This option vests over four years in 25% annual installments. Under SFAS No. 123(R), Intel would recognize compensation expense of $125,000 in each of 2007, 2008, 2009, and 2010 (the service period). However, under our form of award agreements, the vesting of stock options and RSUs—and thus the annual accounting expense reported in the Summary Compensation table—may accelerate based on the employee's age and years of service. For employees over 60 years of age, upon retirement the employee would generally receive an additional year of vesting for every five years of service to Intel. Alternatively, if an employee's age plus years of service equal 75 or above, the employee would receive an additional year of vesting (Rule of 75). This acceleration shortens the service period and increases the amount of compensation expense reported in a given year. In the above example, if the employee were Rule of 75 eligible, the employee would be entitled to an additional year of vesting upon retirement. The service period would then be three years, and Intel would recognize compensation expense of $166,666 in each of 2007, 2008, and 2009. The amount of this compensation expense is not affected by changes in the price of our common stock after the grant date.

The following table includes the assumptions used to calculate the compensation expense reported for 2007, 2006, and 2005 on a grant-date by grant-date basis.

	Assumptions
Grant Date	Volatility (%)	Expected Life (Years)	Risk-Free Interest Rate (%)	Dividend Yield (%)

11/12/97	36	6.5	6.6	0.1
1/20/98	36	6.5	5.3	0.2
4/25/00	42	6.5	6.2	0.1
4/10/01	47	6.0	4.9	0.3
10/31/01	47	6.0	4.9	0.3
11/27/01	47	6.0	4.9	0.3
3/26/02	49	6.0	3.7	0.3
4/9/02	49	6.0	3.7	0.3
11/25/02	49	7.0	3.7	0.3
1/22/03	50	8.9	3.7	0.4
4/22/03	55	4.0	2.0	0.4
1/21/04	46	9.0	3.8	0.5
4/15/04	51	4.0	3.0	0.6
7/15/04	50	4.0	3.3	0.7
10/14/04	49	6.0	3.4	0.8
2/2/05	26	7.8	4.1	1.4
4/21/05	27	4.8	3.9	1.4
4/21/06	27	4.8	5.0	2.0
1/18/07	26	6.7	4.8	2.2
4/19/07	25	4.8	4.6	2.1

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 Executive Officer Incentive Plan 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 ($)

Craig R. Barrett	2007	1,344,000	50,100	1,394,100
	2006	1,050,000	60,400	1,110,400
	2005	2,632,000	95,800	2,727,800
Paul S. Otellini	2007	3,840,000	124,200	3,964,200
	2006	1,680,000	92,700	1,772,700
	2005	2,585,000	98,400	2,683,400
Andy D. Bryant	2007	1,610,400	63,000	1,673,400
	2006	1,118,800	59,700	1,178,500
	2005	1,698,400	66,600	1,765,000
Stacy J. Smith	2007	915,000	38,000	953,000
	2006	407,900	22,300	430,200
	2005	557,400	22,700	580,100
Sean M. Maloney	2007	1,440,000	53,900	1,493,900
	2006	967,300	51,700	1,019,000
	2005	1,472,800	57,900	1,530,700
David Perlmutter	2007	1,205,400	49,800	1,255,200
	2006	639,200	41,100	680,300
	2005	803,500	35,600	839,100

Change in Pension Value and Non-Qualified Deferred Compensation Earnings.

In December 2005, Intel established the tax-qualified pension plan arrangement that partially offsets the non-tax-qualified deferred compensation obligation of the company. Employees who were participants in the non-qualified deferred compensation plan as of December 31, 2003 were able to consent to a one-time change to the non-qualified deferred compensation plan's benefit formula. In 2005, the amounts reported in this column of the Summary Compensation table were the present value of the employee's entire accrued benefit under the pension plan. The effect of this change to the plan is to reduce the employee's distribution amount from the non-qualified deferred compensation plan by the lump sum value of the employee's tax-qualified pension plan arrangement at the time of distribution.

Since 2006, the amounts reported represented the actuarial increase in the pension plan arrangement. Since the age-65 annuity benefit under the tax-qualified pension plan arrangement is frozen, benefit amounts are not tied to years of service. Thus, the actuarial increases arise solely from changes in the interest rate used to calculate present value and the participant's age becoming closer to age 65. Mr. Perlmutter participates in a pension savings plan and a severance plan for Israeli employees. The changes in pension value reported above 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.

All Other Compensation.

Amounts listed in this column of the Summary Compensation table (except as footnoted) consist of tax-qualified discretionary company contributions to the profit sharing retirement plan of $15,750 in 2007, $15,400 in 2006, and $16,800 in 2005, and discretionary company contributions credited under the profit sharing component of the non-qualified deferred compensation plan. These amounts will be paid to the listed officers only upon retirement, termination, disability, death, or after reaching the age of 70½ for an active employee.

Additional Programs for Mr. Perlmutter

Relocation Package.

In 2006, Mr. Perlmutter relocated to the United States from Israel and will reside in the U.S. for a two-year period. Since this is a temporary assignment, Mr. Perlmutter is receiving a two-way relocation package. The package he is receiving 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. Intel's relocation packages are consistent with market practices and Intel's compensation philosophy and are global in scope. Relocation packages apply to all employees based on set criteria such as duration of assignment, destination for the assignment, family size, and other needs as applicable.

Israel Study Fund.

To encourage continuing education, Intel Israel offers eligible employees the opportunity to participate in a voluntary savings program to which both Intel and the employee contribute. Each month, an eligible employee contributes 2.5% and Intel contributes 7.5% of base salary to the study fund. The contributions are tax-free up to a certain salary amount fixed by legislation. After three years of membership, employees can withdraw the accrued funds for study in Israel or abroad; after six years, employees can use the accrued funds for any purpose. In 2007, Mr. Perlmutter participated in the Israel Study Fund for one month.