Intel’s new CEO Lip-Bu Tan will receive an annual salary of $1 million and be eligible for a performance-based cash bonus of up to $2 million, according to a regulatory filing.
Tan’s appointment, announced on Wednesday, comes as Intel strives to recover from a challenging transition in its bid to establish itself as both a leading chip manufacturer and design powerhouse.
The company’s filing also revealed that Tan’s employment agreement includes a three-year performance target. Notably, he will retain two-thirds of his stock awards if a “change in control” — such as a major shift in ownership — occurs within 18 months of his tenure.
Tan, a seasoned technology investor and longtime player in the semiconductor sector, was widely speculated to be a frontrunner for the role after Intel ousted former CEO Pat Gelsinger in December.
Gelsinger’s contract lacked the “change in control” clause. His agreement featured a higher base salary of $1.25 million, with potential annual cash bonuses reaching up to 275% of his base pay, regulatory documents show. He was also eligible for a payout of up to $12 million upon his departure.
Another key difference in the contracts involves time commitment. While Gelsinger was obligated to dedicate his “full business efforts and time” to Intel, Tan’s agreement states he must devote “such time as is necessary” to fulfill his responsibilities. This wording leaves room for Tan to continue his involvement with startups through his venture capital firm, Walden International.
Tan’s leadership will be closely watched as Intel navigates its strategic overhaul in an increasingly competitive semiconductor landscape.
