Intel prescribes Lip-Bu Tan as CEO.
Courtesy: Intel
New Intel CEO Lip-Bu Tan will receive total compensation of $1 million in salary and involving $66 million in stock options and grants vesting over the coming years, according to filing on Friday with the SEC.
Tan was named as the chief of Intel this week, impulsing hopes that the chip industry veteran can turn around the struggling company. Intel shares are up nearly 20% so far in 2025, and most of those gains came this week, reflecting Tan’s appointment. He starts next week.
Tan will receive $1 million in salary, and he is eligible for an annual bonus importance $2 million.
He will also receive stock units in a long-term equity grant valued at $14.4 million, as affectionately as a performance grant of $17 million in Intel shares. Both grants will vest over a period of five years, although Tan won’t clear any of those shares if Intel’s stock price drops over the next three years. He can earn more pile up if the company’s share price outperforms the market.
Tan will receive a package of stock options worth $9.6 million, as adequately as a new hire option grant worth $25 million.
In total, Tan’s compensation package has about $66 million in long-term tolerance awards and options in addition to salary, bonuses, and legal expenses. If Intel goes through a change of control, Tan could be unmarried for accelerated vesting, according to the filing.
“Lip-Bu’s compensation reflects his experience and credentials as an accomplished technology leader with arcane industry experience and is market competitive,” Intel said in an emailed comment. “The vast majority of his compensation is equity-based and obliged to long-term shareholder value creation.”
Separately, Tan agreed to purchase $25 million in Intel shares and hold them in call for to be eligible for the grants and bonuses.
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