Synopsis
Intel's newly appointed CEO, Lip-Bu Tan, will receive a compensation package worth approximately $69 million, which includes a base salary, performance bonuses, and long-term equity awards. He has also committed to purchasing Intel shares valued at $25 million within his first month in office, reflecting his confidence in the company's future.Key Takeaways
- New CEO Lip-Bu Tan's package valued at $69 million.
- Includes a $1 million salary and performance bonuses.
- Tan to purchase $25 million in Intel shares.
- Appointment positively impacts Intel's stock.
- Company may drop to fourth in global chip sales.
New Delhi, March 15 (NationPress) Intel Corp.'s newly appointed CEO, Lip-Bu Tan, is set to receive a compensation package estimated at around $69 million as he assumes his role on March 18. This package comprises a base salary of $1 million, a 200 percent performance-based bonus, and $66 million in long-term equity awards, stock options, and incentives, according to the company’s exchange filing.
Additionally, Tan has pledged to invest $25 million in Intel shares within his first 30 days in office. The company indicated that this investment symbolizes his confidence in Intel's prospects and his commitment to boosting shareholder value.
Having previously served as a board member, Tan is expected to rejoin the board after his tenure as CEO ends in August 2024.
He takes over from Pat Gelsinger, with the significant challenge of reinforcing Intel's status in the semiconductor sector.
Upon his appointment, Tan shared his excitement, stating: 'I am honoured to join Intel as CEO. I have great respect and admiration for this iconic company and see tremendous opportunities to reshape our business to better serve our customers and create value for our shareholders.'
The announcement of Tan's appointment prompted a favorable market reaction, with Intel's stock climbing 15 percent on Thursday. Overall, the company’s shares have appreciated by 20 percent this year.
Meanwhile, a report by market analyst Omdia last year suggested that the US semiconductor giant might fall to fourth place in global chip sales for the first time in Q3 of 2024.
The report anticipates that SK Hynix will achieve record revenues of $12.8 billion in the July-September period, surpassing Intel to become the world’s third-largest chip manufacturer.
This would mark the first occasion that SK Hynix has surpassed Intel since Omdia began tracking global semiconductor revenue in 2002, as reported by Yonhap News Agency.
