Chipmaker Intel (NASDAQ:INTC) has announced that Lip-Bu Tan, the newly appointed CEO, will receive a base salary of $1 million, along with eligibility for an annual cash bonus of up to $2 million.
Key Highlights:
- Base Salary: $1 million
- Annual Cash Bonus: Up to $2 million
- Appointment Date: Wednesday, March 18
- Performance Target: Three-year agreement
Employment Agreement Details
Tan's employment agreement includes a three-year performance target. He is also eligible to retain two-thirds of his stock awards if a "change in control" or significant ownership shift occurs within 18 months of his joining the company.
Background
Tan's appointment follows the departure of Intel’s previous CEO, Pat Gelsinger, in December. With extensive experience in the chip industry and technology investing, Tan was a leading candidate for the position.
Comparison with Previous CEO
Gelsinger's employment agreement did not include the "change in control" clause. His contract included a $1.25 million base salary and eligibility for annual cash bonuses up to 275% of that amount. Gelsinger was also eligible for a payout of up to $12 million upon departure.
In Summary:
Lip-Bu Tan's compensation package reflects Intel's commitment to a smooth leadership transition as he takes the helm to guide the company through a critical period.
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