Intel’s New CEO, Lip-Bu Tan, To Get Rs 600 Crore Package—But He Must Pay Rs 217 Crore First! Here’s Why

In an extraordinary compensation package, incoming Intel Corp's Chief Executive Officer Lip-Bu Tan will enjoy a pay package of a whopping $69 million (approximately Rs 600 crore). His compensation will include salary, cash bonus, and a mandatory stock purchase worth $25 million (approx Rs 217 crore).

According to a Bloomberg report, if he reaches his targets over the coming years, his pay package will include a salary of $ 1 million. He will also get a 200% performance-based bonus, the company said in its stock exchange filing on Friday. Additionally, he will also get $66 million in long-term equity awards and stock options and new-hire incentives. To be able to enjoy all these benefits as the head of leading semiconductor chip manufacturers, he has to pay millions to purchase Intel shares.

Intel CEO has to buy company shares worth $25 million in next 1 month

Lip-Bu Tan has agreed to buy Intel shares worth $25 million in the first 30 days after taking the job. "Lip-Bu's purchase reflects his belief in Intel and commitment to creating shareholder value," the company said in a statement.

In his first message to Intel employees after taking over the position, Tan shed light on his vision to restore Intel's position in the industry. While admitting that it won't be an easy journey to reclaim the top spot in the industry he expressed confidence that he would be able to take Intel to new heights.
"Not to say it will be easy. It won't be. But I am joining because I believe with every fiber of my being that we have what it takes to win," Tan wrote to employees on March 12.

Who is Intel's new CEO?

Lip Bu Tan is a renowned name in the world of tech and science. With decades of experience in leadership roles in the semiconductor and software industries, he has also built deep relationships across Intel's ecosystem.
He has also served as CEO of Cadence Design Systems from 2009 to 2021, where he led a reinvention of the company and drove a cultural transformation centered on customer-centric innovation. During his time as CEO, Cadence more than doubled its revenue, expanded operating margins and delivered a stock price appreciation of more than 3,200%.
Tan served as a member of the Cadence board of directors for 19 years, from his appointment in 2004 through his service as executive chairman from 2021 to 2023 following his tenure as CEO.
Tan holds a Bachelor of Science in physics from Nanyang Technological University in Singapore, a Master of Science in nuclear engineering from the Massachusetts Institute of Technology and an MBA from San Fransisco University.

Pat Gelsinger's abrupt exit from Intel

The leading semiconductor chipmaker has roped in Tan in the position, which was vacated by the abrupt exit of Pat Gelsinger from the position. After Gelsinger's retirement, David Zinsner and Michelle Johnston Holthaus served as interim co-CEOs.

The departure of Gelsinger, whose career spanned more than 40 years, underscored the turmoil at Intel. The company was once a dominant force in the semiconductor industry but has been eclipsed by rival Nvidia, which has cornered the market for chips that run artificial intelligence systems.