 |
Intel CEO Lip-Bu Tan. Photo: Intel . |
In a filing submitted to the U.S. Securities and Exchange Commission (SEC) on March 14, Intel stated that its new CEO, Lip-Bu Tan, will receive a salary of $1 million , be eligible for a maximum bonus of $2 million per year, and several other benefits in the coming years.
Tan was appointed CEO of Intel on March 12th with the expectation of reviving the American technology icon, which operates in the field of chip design and manufacturing.
Intel's stock has risen nearly 20% year-to-date. Most of the gains occurred this week following Tan's appointment as CEO. He will officially take over the position on March 18th.
In addition to his base salary, Tan will also receive long-term equity-related stock worth $14.4 million , alongside a $17 million performance bonus in the form of stock.
According to CNBC , the two grants were awarded for a period of five years. However, Tan would not be eligible if Intel's stock price declined over the next three years. If the stock price outperformed the market, he might 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 was worth approximately $66 million, including long-term stock options, salary, bonuses, and legal fees.
According to Reuters , Tan's agreement with Intel included business objectives for three years. Therefore, he was eligible to retain two-thirds of the bonus shares if there was a "change of control" or significant change in ownership within 18 months of taking office.
“Lip-Bu’s severance pay reflects his experience and reputation as a talented technology leader with extensive industry experience and market competitiveness,” Intel said in an email to CNBC .
With years of experience in the semiconductor industry and technology investment, Tan is considered by analysts to be a potential candidate for the Intel CEO position, following Pat Gelsinger's dismissal in December 2024.
Gelsinger's employment contract did not include a clause regarding a "change of control." At the time, he received a base salary of $1.25 million , with annual bonuses up to 275% of his base salary. Gelsinger was also eligible for $12 million in severance pay before leaving the company.
For comparison, Tan's contract required him to dedicate "the necessary time" to fulfilling the duties and responsibilities of a CEO. Meanwhile, Gelsinger was required to dedicate "all his efforts and time to Intel."
Currently, Tan still manages several tech startups, which he has invested in through his venture capital fund, Walden International.
Comment (0)