San Diego, Aug 26, 2011 (Shareholders Foundation) -- An investor in Intersil Corporation (NASDAQ:ISIL) shares filed a lawsuit alleging breaches of fiduciary duties by certain directors and officers of Intersil in connection with Intersil’s top executive compensation for 2010.
According to the complaint the plaintiff alleges that the decision to increase executive compensation in 2010 was neither in the best interest of Intersil’s shareholders, nor consistent with the Intersil Board of Director’s pay-for-performance executive compensation policy and that directors breached their fiduciary duties by approving the 2010 executive compensation.

In fact Intersil’s shareholders recently explicitly expressed their disdain for executive pay packages by voting “no” on Intersil's say on pay provision at its May 4 annual meeting.

Nevertheless, while Intersil’s financial performance is still weak its top executives’ compensation rose in recent years and directors approved the 2010 executive compensation.

Despite that Intersil Corp’s 12months Total Revenue increased from $756.97million in 2007 to $822.40million in 2010, it had to report a substantial Net Loss in 2008 of $1.026billion compared to a Net income of $140.48million in 2007. Additionally its Net Income fell from $38.56million for 2009 to $26.39million in 2010 and for the first 13weeks ending on April 1, 2011 Intersil Corporation reported a lower Net Income of $14.13million compared to $27.67million a year earlier. Even though shares of Intersil Corporation (NASDAQ:ISIL) increased from as low as $7.92 per share in December 2008 to slightly over $15 per share in May 2011, NASDAQ: ISIL stock dropped from as high as $33.48 in 07, respectively $$28.15 per share in ’08 and are currently trading at roughly $10 per share.

Despite all those numbers the Intersil’s CEO total compensation rose from $3.16million in 2008 and 2008 to $4.44million in 2010 and the Senior Vice President and CFO’s pay increased from $427,000 in 2008 to $1.34million in 2010.