Intel’s new CEO, Lip-Bu Tan, will receive a $1 million base salary and be eligible for an annual cash bonus of up to $2 million, according to a regulatory filing on Friday.
Tan, appointed as CEO on Wednesday, has been entrusted with steering Intel through a challenging transition—revamping its chip manufacturing operations while maintaining its role as a leading chip design house. He will officially assume the role on March 18.
As part of his employment agreement, Tan has a three-year performance target and will be entitled to retain two-thirds of his stock awards if a “change in control” or a major shift in Intel’s ownership structure occurs within 18 months of his appointment.
Due to his extensive experience in the semiconductor industry and reputation as a seasoned technology investor, Tan had been considered a strong candidate for the position since December, when Intel removed former CEO Pat Gelsinger.
Gelsinger’s employment contract did not include the “change in control” clause. His agreement provided a $1.25 million base salary and allowed him to earn annual cash bonuses of up to 275% of that amount, according to regulatory filings. Additionally, he was eligible to receive up to $12 million in severance payments before his departure.
Another notable difference in contract language is that Tan is required to dedicate “such time as is necessary” to fulfill his CEO duties, whereas Gelsinger’s agreement explicitly required him to devote his “full business efforts and time” to Intel.
For now, Tan continues to be actively engaged with startups, investing through his venture capital firm, Walden International.
