In a nutshell: As Intel prepares for the arrival of its new CEO, Lip-Bu Tan, a latest regulatory submitting has revealed particulars of his complete compensation package deal. Tan will obtain a base wage of $1 million, with the potential to earn an annual bonus of as much as $2 million. Nonetheless, the majority of his compensation comes from long-term fairness awards and inventory choices, totaling roughly $66 million.
The package deal features a long-term fairness grant valued at $14.4 million and a efficiency grant of $17 million in Intel shares, set to vest over 5 years. Notably, Tan will solely obtain these shares if Intel’s inventory worth doesn’t decline over the subsequent three years, with the potential to earn extra shares if the corporate outperforms the market.
As well as, Tan will obtain inventory choices value $9.6 million and a new-hire choice grant valued at $25 million. This complete package deal is designed to align his incentives with long-term shareholder worth creation. Intel emphasised that Tan’s compensation is aggressive inside the business and displays his intensive expertise as a expertise chief.
Given the broader business pattern of linking govt compensation to efficiency and fairness development, Tan’s package deal is substantial however commonplace in comparison with different tech CEOs. Many high executives within the sector obtain the majority of their compensation by means of inventory choices and grants, typically contingent on assembly particular efficiency benchmarks.
To qualify for the grants and bonuses, Tan agreed to buy $25 million in Intel shares inside his first month as CEO. Moreover, the compensation package deal consists of provisions for accelerated vesting within the occasion of a change in management, as outlined in Intel’s latest SEC submitting.
As Tan takes the helm, Intel is relying on his deep business experience to drive a turnaround and maintain the latest momentum in its inventory worth, which has risen almost 20 p.c in 2025. In a press release, he reaffirmed Intel’s dedication to reclaiming its standing as a premier foundry, underscoring the corporate’s dedication to the sector regardless of rising competitors from TSMC and Samsung.
Tan beforehand served as CEO of Cadence Design Methods, a number one digital programs design firm, from 2009 to 2021, and was a board member from 2004 to 2023. Having stepped down final August, he’ll now additionally rejoin Intel’s board of administrators.