U.S. chipmaker Intel Corporation (ticker: INTC.O) has announced that its newly appointed CEO, Lip-Bu Tan, will receive an annual salary of $1 million, along with the potential for an annual cash bonus that could reach up to $2 million. This information was disclosed in a regulatory filing made on Friday, following Tan’s appointment.
Tan, an industry veteran with extensive experience in the semiconductor sector and a background as a technology investor, has been tasked with steering Intel through a critical period of transformation. His appointment comes at a time when the company is striving to revitalize its operations as both a leading chip manufacturer and a cutting-edge chip design house. He is set to officially assume his role on March 18.
As part of his employment agreement, Tan has a three-year performance target. This agreement includes a provision that allows him to retain two-thirds of his stock awards if a “change in control” occurs—meaning a significant shift in company ownership—within the first 18 months of his tenure. This clause highlights the company’s desire to align CEO performance with shareholder interests, particularly during a potentially tumultuous time.
Tan’s appointment follows the ousting of previous CEO Pat Gelsinger in December, a change that underscores the urgent need for a new strategic direction at Intel. Unlike Tan’s contract, Gelsinger’s agreement did not include the “change in control” clause; however, it did feature a higher base salary of $1.25 million and allowed for annual cash bonuses amounting to up to 275% of that salary, as detailed in prior regulatory filings.
Given Tan’s substantial experience and insights into the chip industry, he was viewed as a strong candidate for the CEO position, especially as Intel grapples with the challenges of competition and technological advancement in the rapidly evolving semiconductor landscape.
