Microsoft Faces New Antitrust Case, Intel's Andrew Grove Reaps $3.71 Million Salary

Strategic Insights -

Microsoft Corp., the world's largest software maker, is facing a potential new antitrust case from the Justice Department, unrelated to the company's dominant Windows operating system. This development comes as investigators issue new civil subpoenas to major computer makers. Meanwhile, Intel Corp. Chairman and Chief Executive Andrew Grove received a significant pay package of $3.71 million last year, a 6.3% increase from 1996. Grove also profited from exercising options for 648,000 shares, earning an additional $48.9 million.

Key Takeaways:

  • The Justice Department is considering a new antitrust case against Microsoft Corp. involving the Windows 98 software.
  • Microsoft will reportedly "work very closely" with Justice Department investigators but does not anticipate a delay in the planned May 15 release of Windows 98 to PC makers.
  • Intel Corp. paid Chairman and Chief Executive Andrew Grove $3.71 million last year, up 6.3% from 1996.
  • Grove also earned $48.9 million by exercising options for 648,000 shares.
  • Paul Allen, co-founder of Microsoft, is acquiring Dallas-based Marcus Cable Co., the nation's largest privately held cable television company.
  • The acquisition price is reportedly $2 billion plus assumed $1 billion in debt.
  • A strike by towboat pilots has slowed down barge traffic on the Mississippi and other major rivers.
  • The strike has affected large amounts of barge traffic on the Mississippi and Ohio rivers.
  • John Roach, Chief Executive of Tandy Corp., will resign at year's end and be replaced by President Leonard Roberts.
  • Dell Computer Corp. has licensed Data General Corp.'s Clariion technology for storage on future server products.

Statistics:

  • Justice Department investigators have issued new civil subpoenas to major computer makers at Microsoft Corp.
  • The planned May 15 release of Windows 98 to PC makers is not expected to be delayed.
  • Intel Corp. Chairman and Chief Executive Andrew Grove earned $3.71 million last year.
  • Grove's pay package included $465,000 in salary, a bonus of $2.79 million, $72,000 in long-term compensation awards, and $384,000 in other compensation.
  • Grove also earned $48.9 million by exercising options for 648,000 shares.
  • The acquisition price of Dallas-based Marcus Cable Co. is reportedly $2 billion plus assumed $1 billion in debt.
  • The strike by towboat pilots has stopped large amounts of barge traffic on the Mississippi and Ohio rivers.

Sources:

  • "Microsoft Faces New Antitrust Case." Washington, Justice Department.
  • "Intel's Grove Earns $3.71 Million." Washington, Intel Corp.
  • "Allen Acquires Marcus Cable." Dallas, Paul Allen.
  • "Pilot Strike Slowing Barge Traffic." New Orleans, Pilots Agree.
  • "Roach to Resign as Tandy Chief." Fort Worth, Tandy Corp.
  • "Dell Licenses Clariion Technology." Round Rock, Dell Computer Corp.