Intel named its new CEO on Friday. The tech giant appointed Lip-Bu Tan as its new chief executive officer (CEO) and revealed that he would receive a base salary of $1 million along with an opportunity to earn an annual cash bonus of up to $2 million.
Disclosing these details via a regulatory filing, the US chipmaker said that Tan will assume the role on March 18, 2025, reported Reuters. Tan, an experienced leader in the semiconductor industry, has been given the responsibility to oversee Intel’s transformation into both a successful chip manufacturing firm and a competitive chip design company.
The executive’s employment agreement included a three-year performance target. If a “change in control” or significant shift in ownership occurred within 18 months of his tenure, he would remain eligible to retain two-thirds of his stock awards. His selection for the position was widely anticipated since December, following Intel’s decision to part ways with CEO Pat Gelsinger.
Major Differences In Tan and Gelsinger’s Contracts
Unlike Tan’s contract, Gelsinger’s employment terms did not include the “change in control” provision. His base salary stood at $1.25 million, and he was eligible for annual cash bonuses of up to 275 per cent of that amount, as per regulatory filings. Additionally, Gelsinger had the potential to receive up to $12 million as a payout before his departure from the company.
Another distinction in their contracts lay in the work commitment clauses. Tan’s agreement requires him to dedicate “such time as is necessary” to fulfill his duties, whereas Gelsinger’s contract mandated him to devote his “full business efforts and time to Intel.”
While taking on his new role at Intel, Tan continues to stay engaged with startups through his venture capital firm, Walden International, where he remains an active investor.
