New Intel CEO to Receive USD 1 Million Base Salary Annually
- paolo bibat
- Mar 15
- 2 min read
Intel Corporation has unveiled the compensation package for its newly appointed Chief Executive Officer, Lip-Bu Tan, in a regulatory filing.
Tan's compensation structure includes a base salary of $1 million annually, with eligibility for a performance-based bonus of up to 200% of his base salary, potentially reaching $2 million.
The majority of his compensation comes in the form of long-term equity awards, stock options, and new-hire incentives, valued at $66 million. In a show of confidence in Intel's future, Tan has committed to purchasing $25 million worth of Intel shares within his first 30 days as CEO.
Set to assume the role on March 18, 2025, Tan succeeds Pat Gelsinger, who was ousted by the board in December 2024. As an industry veteran and former Intel board member, Tan is expected to lead efforts to revitalize Intel's position in the semiconductor industry. His appointment has already had a positive impact on Intel's stock, which has surged 20% year-to-date, with a 15% jump following the announcement.
Tan's employment agreement includes a unique clause allowing him to retain two-thirds of his stock awards if a "change in control" or significant ownership shift occurs within 18 months of his start date.
This provision was not present in Gelsinger's contract. Additionally, Tan's contract stipulates that he devote "such time as is necessary" to perform his duties as CEO, allowing him to remain involved with startups through his venture capital firm, Walden International.
In a memo to Intel employees, Tan expressed his commitment to the company's success, acknowledging the challenges ahead but emphasizing his belief in Intel's potential.
As the company faces hurdles in its transition to becoming a successful chip manufacturing and design firm, stakeholders are optimistic that Tan's extensive experience and leadership will guide Intel towards renewed growth and innovation in the semiconductor industry.
