Intel's new CEO to receive $1 million salary
Intel's newly appointed CEO, industry veteran Lip-Bu Tan, is set to receive a base salary of $1 million, with the potential to earn up to $2 million in bonuses each year, according to a regulatory filing. Additionally, he is eligible for about $66 million in stock options and grants tied to his performance over the next few years.
Tan, a seasoned chip industry veteran and longtime tech investor, was named Intel's CEO last week, replacing Pat Gelsinger, who stepped down in December. According to a report by CNBC, Tan's appointment has already given Intel's stock a boost, with shares rising nearly 20% in 2025, largely driven by investor optimism following the announcement.
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The bulk of Tan's compensation comes in the form of long-term equity awards. He'll receive $14.4 million in stock units and a $17 million performance grant, both vesting over five years. However, Tan won't see a penny of those shares if Intel's stock price drops over the next three years. On the flip side, he could earn even more if the company outperforms the market.
Tan's contract also includes a $9.6 million stock option package and a $25 million new-hire grant. In a show of confidence, Tan has agreed to personally buy $25 million worth of Intel shares and hold them to qualify for these awards.
One notable clause in Tan's contract is the "change in control" provision, which allows him to keep two-thirds of his stock awards if Intel undergoes a significant ownership shift within 18 months of his joining. This clause wasn't part of Gelsinger's agreement, highlighting the unique challenges Tan faces as he takes the helm of the struggling chipmaker.
In an email, Intel described Tan's compensation as "market competitive", emphasising that the majority of his pay is tied to long-term shareholder value creation, as per the report by CNBC. The company is betting big on Tan's deep industry expertise and track record as a tech investor to turn around its fortunes.
Tan, who remains actively involved with startups through his venture capital firm Walden International, will officially start as CEO on March 18. His mission? To steer Intel through its rocky transition into a successful chip manufacturer and design powerhouse. With millions on the line, all eyes will be on Tan to deliver.
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