Intel Corp.'s new chief executive, Lip-Bu Tan, will get a pay package of about $69 million as he takes the reins on March 18.
Under an exchange filing by the company, his pay package consists of a base pay of $1 million, a performance-related bonus equivalent to 200% of his pay, and $66 million in long-term equity incentives, stock options, and other benefits.
Aside from his salary, Tan has committed to investing $25 million in Intel stock during his first month as CEO. The firm emphasized that this investment reflects his faith in Intel's growth opportunities and his commitment to enhancing shareholder value.
Earlier a board member, Tan will return to Intel's board after leaving in August 2024. His main priority as CEO will be to strengthen Intel's position in the semiconductor sector, replacing Pat Gelsinger.
When he was appointed, Tan expressed his enthusiasm for the position, saying: "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 news was welcomed by the market, and Intel's stock jumped 15% on Thursday. The company's shares have risen 20% so far this year.
In the meantime, a market research report from Omdia indicates that Intel can fall to fourth position in worldwide chip sales in the third quarter (Q3) of 2024.
As stated by the report, SK Hynix is forecast to hit all-time-high earnings of $12.8 billion from July through September to be ranked third largest chipmaker in the world surpassing Intel. In the event of the prediction holding water, it would be the first time that SK Hynix beat Intel since the inception of the semiconductor revenue monitoring in 2002, as noted by Yonhap News Agency.
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