Intel new CEO earns $1 million base salary
Intel appoints Lip-Bu Tan as CEO, offering $1M salary and unique contract terms
Intel has appointed Lip-Bu Tan as its new CEO, with an annual salary of $1 million and the potential to earn an additional $2 million in performance-based bonuses, according to a regulatory filing on Friday.
Tan will officially take over on March 18, replacing Pat Gelsinger, who was ousted in December 2024 after struggling to steer Intel through its competitive and strategic challenges, reports Reuters.
A respected figure in the semiconductor industry, Tan has extensive experience as a technology investor and leader. Intel is counting on his expertise to accelerate its transformation into both a leading chip manufacturing firm and an innovative chip design house.
Stock Awards and Performance Targets
As part of his compensation package, Tan’s contract includes a unique provision that allows him to retain two-thirds of his stock awards if a "change in control" or a significant shift in Intel’s ownership occurs within 18 months of his tenure. This clause was absent from Gelsinger’s contract, indicating a strategic adjustment in Intel’s leadership structure.
In contrast, Gelsinger’s compensation included a base salary of $1.25 million and eligibility for cash bonuses up to 275% of that amount. Additionally, he was entitled to as much as $12 million in payouts before his departure.
Management Approach and Flexibility
Another notable difference in Tan’s agreement is the level of commitment required from him as CEO. While Gelsinger was obligated to devote his "full business efforts and time to Intel," Tan is only required to allocate "such time as is necessary" to fulfill his CEO duties. This wording suggests a more flexible arrangement, potentially allowing him to continue his involvement with Walden International, the venture capital firm he founded, which invests in technology startups.
With Tan at the helm, Intel is entering a critical phase in its strategic overhaul. Investors and industry analysts will closely watch how he balances his leadership role at Intel with his venture capital interests and whether he can successfully drive the company’s shift toward high-performance chip manufacturing and design.
Earlier, Intel Corp. (INTC) shares soared 10% in after-hours trading Wednesday following the announcement of Lip-Bu Tan as the company’s new CEO.
