Intel’s newly appointed CEO, Lip-Bu Tan, is set to receive a $1 million annual salary, along with an annual cash bonus of up to $2 million, according to a recent regulatory filing. Tan, a seasoned technology investor and industry veteran, officially takes over as Intel’s CEO on March 18, 2025. His appointment comes as Intel works to strengthen its position in semiconductor manufacturing and chip design.
Lucrative Compensation Package for Intel’s New CEO
In addition to his salary and cash bonus, Tan’s employment contract includes a significant stock award package. Notably, he will be eligible to retain two-thirds of his stock awards if a “change in control” or major ownership shift occurs within 18 months of his tenure. This clause adds a layer of security to his compensation in the event of a corporate restructuring or acquisition.
Comparing Tan’s Contract to Former CEO Gelsinger
Tan’s contract differs significantly from that of his predecessor, Pat Gelsinger. While Gelsinger had a base salary of $1.25 million and an annual cash bonus of up to 275% of his salary, he did not have a “change in control” clause. Instead, Gelsinger’s package included a payout of up to $12 million before his departure in December 2024.
Another key difference lies in the time commitment required by the CEOs. While Gelsinger was contractually obligated to dedicate his “full business efforts and time to Intel,” Tan’s contract states that he is only required to devote “such time as is necessary” to his role. This flexibility allows Tan to continue investing in startups through his venture capital firm, Walden International.
Lip-Bu Tan’s Vision for Intel’s Future
In a memo to Intel employees, Tan expressed his confidence in the company’s potential despite the challenges ahead. He wrote: “Not to say it will be easy. It won’t be. But I am joining because I believe with every fiber of my being that we have what it takes to win. I believe we have a truly unique opportunity to remake our company at one of the most pivotal moments in its history.”
Tan’s leadership marks a critical turning point for Intel as it aims to reclaim its dominance in the global semiconductor market. With his extensive background in chip investments and strategic business decisions, investors and industry analysts will closely watch how Tan steers Intel’s transformation in the coming years.
