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According to an SEC filing on Friday, Tan’s salary will be $1 million annually, with an additional 200 per cent performance-based bonus, apart from other variables.
Intel’s New CEO Lip-Bu Tan. (News18 Hindi)
Lip-Bu Tan, who was appointed as the chief executive officer (CEO) of Intel Corp this week, will receive a compensation package of about $69 million based on performance-based incentives. Intel Corporation on March 12 announced that its board of directors has appointed Lip-Bu Tan as its chief executive officer, effective March 18.
Tan succeeds Interim Co-CEOs David Zinsner and Michelle (MJ) Johnston Holthaus. Tan will also rejoin the Intel board of directors after stepping down from the board in August 2024.
Lip-Bu Tan’s Compensation Breakdown
According to an SEC filing on Friday, Tan’s salary will be $1 million annually, with an additional 200 per cent performance-based bonus. His compensation also includes:
– $66 million in long-term equity awards and stock options
– New-hire incentives to drive company performance
Additionally, Tan has agreed to personally invest $25 million in Intel shares within his first 30 days as CEO. “Lip-Bu’s purchase reflects his belief in Intel and commitment to creating shareholder value,” the company said in a statement.
Lip-Bu Tan Tasked To Lead Intel’s Comeback
Tan, 65, will assume the CEO role on March 18, 2025, succeeding Pat Gelsinger, who was ousted by the board in December. As an industry veteran and former Intel board member, Tan is expected to play a key role in revitalising Intel’s market dominance in the semiconductor industry.
Intel Stock Gains on CEO Announcement
Intel’s stock has surged 20 per cent year-to-date, with a 15 per cent jump on Thursday following the news of Tan’s appointment. Investors look optimistic about his leadership as the company seeks to reclaim its position in the global chip market.
Who Is Lip-Bu Tan?
Tan is a long-time technology investor and widely respected executive with more than 20 years of semiconductor and software experience as well as deep relationships across Intel’s ecosystem. He 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.
He is also a founding managing partner of Walden Catalyst Ventures and chairman of Walden International. He has significant public company board experience, currently serving on the boards of Credo Technology Group and Schneider Electric.
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 the University of San Francisco. In 2022, he received the Robert N. Noyce Award, the Semiconductor Industry Association’s highest honor.
