By Anjali Sharma
NEW YORK – Intel Corp.’s newly named CEO, Lip-Bu Tan will receive a compensation package valued at $69 million as he takes over the leadership on March 18, according to the company press release issued on Monday.
The company said in an exchange filing that his pay includes a base salary of $1 million, a 200 per cent performance-based bonus, and $66 million in long-term equity awards, stock options, and incentives.
Tan has committed to purchase $25 million worth of Intel shares within his first 30 days in office in addition to his compensation.
The company stated that this investment reflects his confidence in Intel’s future and his commitment to enhance shareholder value.
Tan served as an Intel board member, will also rejoin the board after stepping down in August 2024.
He is taking over from Pat Gelsinger, with the key task of strengthening Intel’s position in the semiconductor industry.
Tan expressed his enthusiasm, stated “I am honored 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 sparked a positive market response, with Intel’s stock surged 15 per cent on Thursday. Overall, the company’s shares have gained 20 per cent this year.
According to a report by market analyst Omdia last year, the US semiconductor giant may drop to fourth place in global chip sales for the first time in the third quarter (Q3) of 2024.
As per the report, SK Hynix is projected to generate record revenue of $12.8 billion in the July-September period, overtaking Intel to become the world’s third-largest chip manufacturer.
Media reported that this would be the first time SK Hynix has outperformed Intel since Omdia began tracking global semiconductor revenue in 2002.
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