Grove’s Pay Rises 6.3% to $3.71 Million in ’97

Intel Corp. paid Chairman and Chief Executive Andrew Grove $3.71 million last year, up 6.3% from 1996, as the No. 1 chip maker’s profit growth slowed and its shares rose just 7% for the year. Grove also made $48.9 million by exercising options for 648,000 shares. His pay included $465,000 in salary, a bonus of $2.79 million, $72,000 in long-term compensation awards and $384,000 in all other compensation, according to Intel’s annual proxy filing with the Securities and Exchange Commission. Grove’s pay rose at about the same rate as the company’s stock price, which lagged the 31% rise of the Standard & Poor’s 500-stock index. Santa Clara-based Intel’s profit was hurt last year by the Asian economic crisis and the popularity of low-cost PCs. Grove will step down next month as chief executive, handing the reins to President and Chief Operating Officer Craig Barrett, as the company gears up for the introduction of its Merced chip. Intel shares fell $2.88 to close at $73.88 on Nasdaq.