" Intel CEO Paul Otellini Reacts to the Galleon Group Investigation
Monday, October 19, 2009
SUSIE GHARIB: More repercussions today from the big insider trading investigation at hedge fund Galleon Group. IBM put a top executive on administrative leave.
The move came after Robert Moffat, a senior vice president at IBM was arrested for allegedly passing tips to Galleon. An Intel executive was also implicated in the Galleon case. We had the opportunity to sit down with Intel CEO Paul Otellini today. Scott Gurvey began by asking him about Intel's connection to the Galleon insider trading case.
PAUL OTELLINI, PRESIDENT & CEO, INTEL: It was a surprise to us. And to my knowledge, no one at Intel knew about it, including the employee.
And they have not asked for our cooperation. Of course we would give it if they have.
SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: And does it require any special changes at this point in the way that you do business? I mean you must have these kind of protections.
Paul OTELLINI: I don't think so. People are people. And you know, our employees know in the area where he worked they know that there is a zero tolerance policy on this kind of thing. You just don't do it and the sake of your job and who knows what is true. I don't want to proclaim him guilty, but the allegations suggest that he leaked information. Whether he made any money off it or not, I don't know.
GURVEY: The other question of course goes on with some of the anti- trust issues that Intel is facing. There's an AMD lawsuit that begins, I believe goes to trial maybe next year. There is the EU which is still -- which is still outstanding. What is your position at this point on those? I mean is it the point where you are trying to make any kind of a settlement or arrangements or change the way you do things or is this going to be something that will be adjudicated?
Paul OTELLINI: They are on independent paths, independent parallel paths. The AMD case comes to trial in Delaware late March, early April. As much as you can I'm looking forward to that trial because it is the first time that these allegations will be brought forth in the manner which has clear evidentiary rules, third party judicial things, the jury, all the things that we take for granted in America in terms of justice and getting your story out will happen there.
GURVEY: And you're saying the kind of things you don't have in terms of the EU proceedings.
Paul OTELLINI: We certainly didn't see that in Europe. In Europe the same commission that begins the investigation completes the investigation, judges the investigation, levees the fine, is the same group of people. There is no third party independent review of that.
That first happens on appeal which is the quarter first (ph) instance and in Europe and that's probably two to three years out.
GURVEY: The earnings report surprised everybody, surprised them in a very positive way. Is that -- how much of that is cost-cutting? How much of that is new demand that you are seeing?
Paul OTELLINI: This quarter's news was all demand. Demand and some pipeline refilling on inventory which is seasonal. I don't think it is anything that is out of the ordinary. But it was the largest Q2 to Q3 growth of top line that we've seen in three decades plus and so it was very solid quarter. I think more than half of that was probably demand and the other was building the pipe for what looks to be the seasonal Q4 peak. The back to school selling season was very good.
GURVEY: And do you see that going forward in the holiday season with the release now of Microsoft's Windows 7 and things like that?
Paul OTELLINI: Yes, I do. I mean this is a global phenomenon. We saw in Q3 and actually the whole year has been global phenomenon. It's been consumer driven around the world. That's good. That says that when enterprise starts buying again, perhaps next year, you get an additive effect on top of that.
GURVEY: So the consumers will come first. Do you think the enterprise will pick up next year?
Paul OTELLINI: Eventually they have to. The fleets of corporations, the machines are aging pretty rapidly. The average notebook is over four years old, the average desktop is over three years old. That mean these are out of warranty. So the break-fix problem is costing more than buying a new machine at this point.
GURVEY: Let me ask you while you are here, do you have actually a position on some of these health reform strategies? I mean, for example, when you consider the cost factor of having an employee, an American employee versus an employee in any of the other countries that you operate.
Paul OTELLINI : We've had a very proactive program in the U.S. on wellness, employee wellness for three or four years now. And that has allowed to us attenuate the growth for the cost per employee over a three year period.
The things that we're looking at in terms of the legislation are really more focused along that line. So electronic medical records drive productivity up, take errors down, lower costs we like.
The home health care environment, the wellness parts of the program we like. The outcome- based payment systems we like because they are focused on results. Doctors and hospitals that deliver better results will get paid more. That is a good thing. We're not getting in the middle of the debate of who pays and what is the cost. There is enough people in the middle of that one. Whatever system we do get we would just like to be more efficient.
GURVEY: And you are, of course, opening some new facilities in the United States so this hasn't deterred you.
OTELLINI: Our next generation of technology will only be open in the United States this time. All 32 nanometer technologies are here and they're in four factories in the U.S.
GURVEY: What else is coming up that you can tell us about that I haven't asked you about?
Paul OTELLINI: I can't share those secrets with you.
GURVEY: You would have to shoot me.
OTELLINI: I would have to shoot you.
GURVEY: All right then the next time. Thank you.
OTELLINI: You are welcome. "
Source of Post
http://www.pbs.org/nbr/site/onair/transcripts/
intel_ceo_paul_otellini_on_galleon_group_091019/
CEO Paul Otellini - Above the Law ???
Zero Tolerance Policy Says CEO Paul Otellini - I Say Bull … he not only tolerates a WHOLE lot - CEO Paul Otellini Hides information from Shareholders that Could affect them and Legally breaks the law by NOT honoring Contracts.
Monday, October 19, 2009
SUSIE GHARIB: More repercussions today from the big insider trading investigation at hedge fund Galleon Group. IBM put a top executive on administrative leave.
The move came after Robert Moffat, a senior vice president at IBM was arrested for allegedly passing tips to Galleon. An Intel executive was also implicated in the Galleon case. We had the opportunity to sit down with Intel CEO Paul Otellini today. Scott Gurvey began by asking him about Intel's connection to the Galleon insider trading case.
PAUL OTELLINI, PRESIDENT & CEO, INTEL: It was a surprise to us. And to my knowledge, no one at Intel knew about it, including the employee.
And they have not asked for our cooperation. Of course we would give it if they have.
SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: And does it require any special changes at this point in the way that you do business? I mean you must have these kind of protections.
Paul OTELLINI: I don't think so. People are people. And you know, our employees know in the area where he worked they know that there is a zero tolerance policy on this kind of thing. You just don't do it and the sake of your job and who knows what is true. I don't want to proclaim him guilty, but the allegations suggest that he leaked information. Whether he made any money off it or not, I don't know.
GURVEY: The other question of course goes on with some of the anti- trust issues that Intel is facing. There's an AMD lawsuit that begins, I believe goes to trial maybe next year. There is the EU which is still -- which is still outstanding. What is your position at this point on those? I mean is it the point where you are trying to make any kind of a settlement or arrangements or change the way you do things or is this going to be something that will be adjudicated?
Paul OTELLINI: They are on independent paths, independent parallel paths. The AMD case comes to trial in Delaware late March, early April. As much as you can I'm looking forward to that trial because it is the first time that these allegations will be brought forth in the manner which has clear evidentiary rules, third party judicial things, the jury, all the things that we take for granted in America in terms of justice and getting your story out will happen there.
GURVEY: And you're saying the kind of things you don't have in terms of the EU proceedings.
Paul OTELLINI: We certainly didn't see that in Europe. In Europe the same commission that begins the investigation completes the investigation, judges the investigation, levees the fine, is the same group of people. There is no third party independent review of that.
That first happens on appeal which is the quarter first (ph) instance and in Europe and that's probably two to three years out.
GURVEY: The earnings report surprised everybody, surprised them in a very positive way. Is that -- how much of that is cost-cutting? How much of that is new demand that you are seeing?
Paul OTELLINI: This quarter's news was all demand. Demand and some pipeline refilling on inventory which is seasonal. I don't think it is anything that is out of the ordinary. But it was the largest Q2 to Q3 growth of top line that we've seen in three decades plus and so it was very solid quarter. I think more than half of that was probably demand and the other was building the pipe for what looks to be the seasonal Q4 peak. The back to school selling season was very good.
GURVEY: And do you see that going forward in the holiday season with the release now of Microsoft's Windows 7 and things like that?
Paul OTELLINI: Yes, I do. I mean this is a global phenomenon. We saw in Q3 and actually the whole year has been global phenomenon. It's been consumer driven around the world. That's good. That says that when enterprise starts buying again, perhaps next year, you get an additive effect on top of that.
GURVEY: So the consumers will come first. Do you think the enterprise will pick up next year?
Paul OTELLINI: Eventually they have to. The fleets of corporations, the machines are aging pretty rapidly. The average notebook is over four years old, the average desktop is over three years old. That mean these are out of warranty. So the break-fix problem is costing more than buying a new machine at this point.
GURVEY: Let me ask you while you are here, do you have actually a position on some of these health reform strategies? I mean, for example, when you consider the cost factor of having an employee, an American employee versus an employee in any of the other countries that you operate.
Paul OTELLINI : We've had a very proactive program in the U.S. on wellness, employee wellness for three or four years now. And that has allowed to us attenuate the growth for the cost per employee over a three year period.
The things that we're looking at in terms of the legislation are really more focused along that line. So electronic medical records drive productivity up, take errors down, lower costs we like.
The home health care environment, the wellness parts of the program we like. The outcome- based payment systems we like because they are focused on results. Doctors and hospitals that deliver better results will get paid more. That is a good thing. We're not getting in the middle of the debate of who pays and what is the cost. There is enough people in the middle of that one. Whatever system we do get we would just like to be more efficient.
GURVEY: And you are, of course, opening some new facilities in the United States so this hasn't deterred you.
OTELLINI: Our next generation of technology will only be open in the United States this time. All 32 nanometer technologies are here and they're in four factories in the U.S.
GURVEY: What else is coming up that you can tell us about that I haven't asked you about?
Paul OTELLINI: I can't share those secrets with you.
GURVEY: You would have to shoot me.
OTELLINI: I would have to shoot you.
GURVEY: All right then the next time. Thank you.
OTELLINI: You are welcome. "
Source of Post
http://www.pbs.org/nbr/site/onair/transcripts/
intel_ceo_paul_otellini_on_galleon_group_091019/
CEO Paul Otellini - Above the Law ???
Zero Tolerance Policy Says CEO Paul Otellini - I Say Bull … he not only tolerates a WHOLE lot - CEO Paul Otellini Hides information from Shareholders that Could affect them and Legally breaks the law by NOT honoring Contracts.
CEO Paul Otellini cares about Employee Wellness.. Are you Kidding.. Cares about the Quality of life of some but Condones the Total Ruin of Others.. Makes No Sense.
CEO Paul Otellini Claims that this is NEWS TO US - my Guess is when the Shareholders are Faced with the TRUTH about the Iviewit Stolen Patent and the Trillion Dollar Liability that Intel Faces, that CEO Paul Otellini will have the Same Lies to Tell … “It Was a Surprise to Us”. BULL.
I wonder if CEO Paul Otellini is Looking Forward to His Trial as he becomes involved in the Trillion Dollar Patent Heist - in FULL Public View - Coming SOON to a Court Near YOU.
And CEO Paul Otellini seems to be BRAGGING about the Zillions Intel is Making.. Well I can See why if they Do NOT have to Pay for Patents They are Using.
Doe Shareholder Still Have NO Idea About the Trillion Dollar Liability with the Iviewit Stolen Patents and Contracts Intell Assumed .....
Why is CEO Paul Otellini NOT talking about this.
Paul Otellini does know inside information that WOULD definately affect the Price of Intel Stocks and When the Truth is ALLOWED in the US Lack of Justice System.. WELL Intel Corporation and Shareholders Will Certainly Be taking a Financial Hit.
And this Financial Fiasco is Something that THE then "General Counsel" Bruce Sewell KNEW about and So did and DOES CEO Paul Otellini.
CEO Paul Otellini
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