some of us longer term shareholders see the benefit of retaining the brain trust inside the company.
In my opinion you both have valid cases. Yes, it is essential for Intel to retain their talent and options/grants are a means toward that end. Shares need to be bought back to prevent dilution. Otherwise the same money would be going out in salaries. It's gonna cost Intel either way.
As for dividends, I too would like to see an increase in dividends and to Intel's credit they are doing just that. The yield is now respectable and more importantly the rate of increase is itself increasing. To long term holders of INTC that can offer greater appeal than share buybacks, beyond that necessary to prevent dilution, because additional buy backs only benefit those who sell, not loyal shareholders who hold for the long haul.
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