Intel has appointed a new CEO, Lip-Bu Tan, after the ousting of Pat Gelsinger in late 2024. This marks a significant shift for the tech giant as it secures a permanent leader following a turbulent period. Tan, a former Intel board member, takes the helm amid a series of strategic decisions aimed at revitalizing the company.
Tan’s compensation package is nothing short of extraordinary. According to a report by CNBC, the new CEO will receive a $1 million annual base salary, with a $2 million yearly bonus. In comparison, Gelsinger’s base salary was $1.25 million, along with performance-based bonuses that could total up to 275%.
In addition to his salary and bonuses, Lip-Bu Tan’s deal includes an impressive long-term equity grant of $14.4 million and a performance grant of $17 million. Both grants are in Intel shares and will be distributed over five years, contingent on Intel’s stock maintaining or increasing in value over the next three years. Tan will also be eligible for stock options worth $9.6 million, as well as a new hire option grant valued at $25 million. The total value of his bonuses could reach around $68 million if all conditions are met.
While the numbers are huge, they are not guaranteed. Much of Tan’s bonus and stock incentives are tied to his performance in the role. If Intel’s stock price falls over the next three years, Tan stands to forfeit both his stock grants and the stock value that comes with them. To ensure he remains aligned with the company’s future success, Tan is also required to purchase and hold $25 million in Intel shares.
Lip-Bu Tan’s appointment comes at a pivotal moment for Intel. The company laid off nearly 15% of its workforce less than a year ago, and its stock had been struggling. However, Tan’s appointment has been met with optimism in the market, with Intel’s stock rallying by 15% shortly after the announcement.
The tech world will be watching closely to see if Lip-Bu Tan can steer Intel toward a more prosperous future, especially given the high stakes tied to his compensation package and the company’s ongoing challenges.
