Revealing the "huge" salary of the new CEO of Intel Corporation

Intel Corp. appointed Mr. Tan as CEO on Wednesday, entrusting the industry veteran with leading its troubled transformation into a successful chipmaker and chip designer. He will officially take over on March 18.

Hé lộ mức lương — New CEO Lip-Bu Tan will receive a base salary of $1 million, plus an annual bonus that could reach $2 million.

Mr Tan's employment agreement includes a three-year performance target that allows him to retain two-thirds of his bonus shares if a "change of control", or a significant change in ownership, occurs within 18 months of joining.

Thanks to his extensive experience in the chip industry and his role as a longtime tech investor, Mr. Tan has been considered a candidate for the top job since December, when Intel fired CEO Pat Gelsinger.

Under Intel rules, Mr. Gelsinger’s employment agreement does not contain a “change of control” provision. His contract includes a base salary of $1.25 million, and he is eligible for an annual cash bonus of up to 275% of that salary.

Intel shares jumped more than 14% on Thursday, as Wall Street cheered the decision to appoint former board member Lip-Bu Tan as CEO, who left in August 2024 over disagreements over the chipmaker's direction, after years of underperformance in the market.

Tan will be tasked with turning around the AI-driven semiconductor boom, after Intel’s stock lost about 60% of its value during a period when the Nasdaq Composite Index and the S&P 500 both doubled.

In addition, Mr. Tan is also eligible for a payment of up to $12 million before leaving the company.

Another difference in the wording of the contract is that Mr. Tan is required to devote “the time necessary” to perform his duties and responsibilities as CEO, while Mr. Gelsinger is required to devote “all of his business efforts and time to Intel.”

For now, at least, Mr. Tan remains actively involved in startups, where he invests through his venture capital fund, Walden International.

Born in Malaysia, raised in Singapore, and now a naturalized U.S. citizen, Mr. Tan came to the United States during his formative years for graduate school, studying nuclear engineering at the Massachusetts Institute of Technology (MIT). He then moved to California for business school and founded the venture capital firm Walden International in 1987.

In addition to his role as chairman of Walden International, a venture capital firm, Mr. Tan is also the longtime CEO of Cadence Design Systems, a chip design software company. Mr. Tan has steered Cadence toward providing software for complex designs and has worked closely with Taiwan Semiconductor Manufacturing Co. (TSMC), a company that has been committed to manufacturing since its inception.

During Mr. Tan's tenure at Cadence, the company's stock rose 3,200% and it won Apple as one of its biggest customers as the iPhone maker switched from suppliers like Intel to developing its own chips.

Source: https://www.baogiaothong.vn/he-lo-muc-luong-khung-cua-tan-giam-doc-dieu-hanh-tap-doan-intel-192250315142244382.htm