Intel has appointed Lip-Bu Tan as its new Chief Executive Officer, effective March 18, 2025, succeeding Pat Gelsinger. The tech giant made the announcement on Friday, revealing the details of Tan’s employment agreement in a regulatory filing. Tan, a seasoned leader with extensive experience in the semiconductor industry, is set to steer Intel through its transformation into a competitive chip manufacturing and design powerhouse.
Tan’s employment package includes a base salary of $1 million, along with the opportunity to earn an annual cash bonus of up to $2 million. This compensation is part of Intel’s strategy to position Tan as the key figure in its ambitious efforts to reclaim its leadership in the global semiconductor market.
A notable provision in Tan’s contract is a “change in control” clause, which ensures that if a major shift in ownership or company structure occurs within the first 18 months of his tenure, he will retain two-thirds of his stock awards. This provision is expected to safeguard Tan’s interests as he navigates Intel’s next phase of growth.
Comparing Tan’s Contract to Gelsinger’s
In contrast to Tan’s terms, Pat Gelsinger, Intel’s outgoing CEO, had a base salary of $1.25 million and the potential to earn up to 275% of his base salary in annual bonuses, according to previous filings. Additionally, Gelsinger’s contract included the possibility of a significant payout of up to $12 million before his departure, a figure far exceeding Tan’s potential earnings.
Moreover, the contracts differ in the work commitment clauses. While Tan’s agreement stipulates that he must dedicate “such time as is necessary” to fulfill his duties, Gelsinger’s previous contract required him to dedicate his “full business efforts and time to Intel.” This difference highlights Intel’s evolving expectations and Tan’s flexibility in managing his role.
Tan’s appointment has been eagerly anticipated since December 2024, following Intel’s decision to part ways with Gelsinger after his leadership did not yield the expected results. As Tan takes the reins, Intel looks to leverage his expertise to accelerate its growth in both chip manufacturing and design, while navigating the rapidly changing semiconductor industry.
With this strategic leadership change, Intel aims to cement its position at the forefront of technological innovation in the semiconductor sector.
