Intel's new CEO lands $66M pay deal, with stock performance conditions

[Skye Jacobs]

In a nutshell: As Intel prepares for the arrival of its new CEO, Lip-Bu Tan, a recent regulatory filing has revealed details of his comprehensive compensation package. Tan will receive a base salary of $1 million, with the potential to earn an annual bonus of up to $2 million. However, the bulk of his compensation comes from long-term equity awards and stock options, totaling approximately $66 million.

The package includes a long-term equity grant valued at $14.4 million and a performance grant of $17 million in Intel shares, set to vest over five years. Notably, Tan will only receive these shares if Intel's stock price does not decline over the next three years, with the potential to earn additional shares if the company outperforms the market.

In addition, Tan will receive stock options worth $9.6 million and a new-hire option grant valued at $25 million. This comprehensive package is designed to align his incentives with long-term shareholder value creation. Intel emphasized that Tan's compensation is competitive within the industry and reflects his extensive experience as a technology leader.

Given the broader industry trend of linking executive compensation to performance and equity growth, Tan's package is substantial but not unusual compared to other tech CEOs. Many top executives in the sector receive the bulk of their compensation through stock options and grants, often contingent on meeting specific performance benchmarks.

To qualify for the grants and bonuses, Tan agreed to purchase $25 million in Intel shares within his first month as CEO. Additionally, the compensation package includes provisions for accelerated vesting in the event of a change in control, as outlined in Intel's recent SEC filing.

As Tan takes the helm, Intel is counting on his deep industry expertise to drive a turnaround and sustain the recent momentum in its stock price, which has risen nearly 20 percent in 2025. In a statement, he reaffirmed Intel's commitment to reclaiming its status as a premier foundry, underscoring the company's dedication to the sector despite growing competition from TSMC and Samsung.

Tan previously served as CEO of Cadence Design Systems, a leading electronic systems design company, from 2009 to 2021, and was a board member from 2004 to 2023. Having stepped down last August, he will now also rejoin Intel's board of directors.

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Intel's new CEO lands $66M pay deal, with stock performance conditions

 

[RudyBob]

Good Luck, making sure everyone shows up at the office would be a good first step

 

[Beerfloat]

What a loser. Musk wouldn't work half a day for that at Tesla. Or 20 tweets, whichever comes first.

 

[noel24]

"stock performance conditions". That's what is wrong with modern companies, from every walk of life. CEOs must keep stockholders happy, even if It means milking and eventually antagonizing consumers. Unavailable TSMC PC parts, Boeing planes falling off the sky, even eggs for $1 a piece. Doesn't matter. Unchecked corporate greed. No rich guy wants to manufacture anymore, every one of them wants to put his dollar in a stock that will work for Him. The problem is the market doesn't grow and It is on a path to collapse. Then, another bailout, and then another Ponzi scheme - another .com bubble, another subprime homes, another crypto, another AI.

Yeah, I'm old. Old man screaming at clouds.

 

[SRB]

This is the ENTIRE problem of how modern corporations are run. Intel and the board's only concern are the stock prices. The huge elephant in the room is that stock prices are currently disconnected from the long term viability of companies for the most part. If the market is big on splitting the company, the stocks with reflect that in the NEW Intel share price. And if that causes the company to fold in 6-10 years, who cares? Everyone currently in place gets rich. What ever happened to basing compensation on increasing sales? Product production/sales numbers? Increasing profits in actual dollars while being lax without ignoring margins completely?

The market has a long history of making people rich while making the wrong decision for the long term of the company (General Electric, anyone?). It's not capitalism that's the problem, it's pure greed and these "stock price at all costs" contracts that make doing the right thing for the long term near impossible.

 

[NumberNine]

If his compensation is directly tied to stock performance then they'll have him at a discount during a recession but it doesn't mean he'll be fired. Interesting.

 

[ScottSoapbox]

Perhaps this was the plan all along. They wanted to end the American Christian ex-CEO Gelsinger. So they did.

Intel did terribly under Gelsinger. Was that part of "their plan"? And if so, why did they bring him back to Intel as CEO in the first place?

Time for another layer of tin foil in your hat.

 

[Theinsanegamer]

"stock performance conditions". That's what is wrong with modern companies, from every walk of life. CEOs must keep stockholders happy, even if It means milking and eventually antagonizing consumers. Unavailable TSMC PC parts, Boeing planes falling off the sky, even eggs for $1 a piece. Doesn't matter. Unchecked corporate greed. No rich guy wants to manufacture anymore, every one of them wants to put his dollar in a stock that will work for Him. The problem is the market doesn't grow and It is on a path to collapse. Then, another bailout, and then another Ponzi scheme - another .com bubble, another subprime homes, another crypto, another AI.

Yeah, I'm old. Old man screaming at clouds.

Please explain why Bob Iger is still in charge of disney.

 

[OortCloud]

As other have said - the obsession with stock price is the death of big old corporations. No long term thinking, just scrape some money from the carcass without putting any proper long term viability in place.

 

[Xelions]

Yeah, I'm old. Old man screaming at clouds.

You might be old, but at least you see the truth

 

[Xelions]

The order of things used to be... customers, business, shareholders! At least that's how I remember it! And I'm not that old.

Simple logic, you can't have business without customers and you can't have shareholders without business. So customers make a business work and thus are able to allow the business to return shareholders dividends.

 

[seeprime]

"stock performance conditions". That's what is wrong with modern companies, from every walk of life. CEOs must keep stockholders happy, even if It means milking and eventually antagonizing consumers. Unavailable TSMC PC parts, Boeing planes falling off the sky, even eggs for $1 a piece. Doesn't matter. Unchecked corporate greed. No rich guy wants to manufacture anymore, every one of them wants to put his dollar in a stock that will work for Him. The problem is the market doesn't grow and It is on a path to collapse. Then, another bailout, and then another Ponzi scheme - another .com bubble, another subprime homes, another crypto, another AI.

Yeah, I'm old. Old man screaming at clouds.

Old, wise, or both?

 

[scoffer]

Pick up a cool $66MM ..........F**k around for a year or two....Retire with Golden Handshake....Hey...F*****g Easy Street....... Who cares if Intel go down the toilet......certainly not Mr.Lip Bu Tan..............LOL....