How much does Intel CEO get paid?

Intel CEO Lip-Bu Tan. Photo: Intel .

In a filing with the US Securities and Exchange Commission (SEC) on March 14, Intel said new CEO Lip-Bu Tan will receive a salary of $1 million , eligible for a maximum bonus of $2 million /year and some benefits in the coming years.

Tan was appointed CEO of Intel on March 12 with the hope of reviving the American technology icon, which operates in the field of chip design and manufacturing.

Intel shares are up nearly 20% this year, with most of the gains coming this week after Tan was named CEO. He will officially take over on March 18.

In addition to base salary, Tan will also receive long-term equity-linked shares worth $14.4 million , in addition to a $17 million performance bonus in the form of shares.

According to CNBC , the two grants are awarded over a five-year period. However, Tan will not be eligible if Intel’s stock price declines over the next three years. In the event that the stock price outperforms the market, he could receive more shares.

Tan also received a stock option package worth $9.5 million , along with a new hire option grant worth $25 million .

In total, Tan's compensation package is worth about $66 million, including long-term stock awards, salary, bonuses and legal fees.

According to Reuters , Tan's deal with Intel includes three-year business targets, so he is eligible to keep two-thirds of the bonus shares if there is a "change of control" or a significant change in ownership within 18 months of taking office.

“Lip-Bu’s compensation reflects his experience and reputation as a talented technology leader with deep industry experience and market competitiveness,” Intel said in an email to CNBC .

With many years of experience in the semiconductor industry and technology investment, Tan is considered by analysts as a potential candidate for the position of Intel CEO, right after Pat Gelsinger is fired in December 2024.

Gelsinger’s employment contract did not include a “change of control” provision. At the time, he was earning a base salary of $1.25 million , with an annual bonus of up to 275 percent of his base salary. Gelsinger was also eligible for a $12 million severance package before he left the company.

By comparison, Tan’s contract calls for “time as is necessary” to carry out the duties and responsibilities of CEO, while Gelsinger is required to devote “all his time and efforts to Intel.”

Tan currently oversees a number of technology startups, which he invests in through his venture capital fund Walden International.