New CEO of Intel awarded $66 million in stock and options in addition to $1 million salary
Intel’s CEO, Lip-Bu Tan, is set to receive a generous compensation package totaling $66 million in stock options and grants, in addition to his $1 million salary, after being appointed this week as the new head of the semiconductor giant. Tan’s appointment comes at a crucial time for Intel, which has been grappling with challenges.
The significant compensation package includes various components, such as a $2 million annual bonus, a long-term equity grant valued at $14.4 million, and a performance grant of $17 million in Intel shares. These grants will vest over a five-year period, contingent upon the company’s performance and stock price. Tan will also receive stock options valued at $9.6 million and a new hire option grant worth $25 million.
Moreover, the compensation plan introduced by Intel for Tan is designed to incentivize long-term value creation and shareholder interests. The company emphasized that the majority of Tan’s compensation is equity-based and tied to performance metrics aimed at driving sustainable growth and profitability in the long run.
Tan will be required to hold $25 million in Intel shares to be eligible for the grants and bonuses. This move aligns his interests with those of shareholders, encouraging him to focus on driving the company’s performance and enhancing shareholder value. If Intel experiences a change of control, Tan could potentially benefit from accelerated vesting, providing him with substantial financial rewards in such a scenario.
The announcement of Tan’s compensation package and appointment as CEO has already had a positive impact on Intel’s stock price, which surged following the news. Investors are hopeful that Tan’s extensive experience and leadership in the technology industry will help steer Intel in the right direction and position it for future growth and success.
Overall, Intel views Tan’s compensation as reflective of his credentials as a seasoned technology leader with a proven track record in driving innovation and growth. The company is confident that Tan’s leadership will enable Intel to navigate through its current challenges and capitalize on new opportunities in the rapidly evolving semiconductor market. Tan’s compensation package, with its emphasis on equity-based incentives, underscores Intel’s commitment to aligning executive compensation with long-term performance and value creation for shareholders.
As Tan prepares to assume his new role at Intel, all eyes will be on him to deliver on the high expectations set by investors and stakeholders. With a comprehensive compensation package in place, Tan is incentivized to lead Intel to a new chapter of growth and innovation, solidifying the company’s position as a key player in the global semiconductor industry.
