Intel’s new CEO, Lip-Bu Tan, will receive a $1 million salary. In a recent regulatory filing, the US chip company revealed that Tan is also eligible for an annual cash bonus of up to $2 million. This comes after Intel named Tan as CEO earlier this week. The industry veteran is set to take charge of the company on March 18. He is tasked with leading Intel’s transition to a successful chip manufacturing and design firm.
What Tan’s employment agreement in Intel says
Tan’s employment contract includes a three-year performance goal that would allow him to retain two-thirds of his stock awards if a “change in control” or significant ownership shift occurs within 18 months of his start.
With his background in the chip industry and as a long-time technology investor, Tan was considered a top candidate for the CEO position since December 2024, following Intel’s decision to remove Pat Gelsinger.
To compare, Gelsinger’s contract did not feature a “change in control” clause; it offered him a base salary of $1.25 million along with annual cash bonuses up to 275% of that amount, as noted in regulatory filings. He was also eligible for a payout of up to $12 million before his departure.
While Tan is only required to devote “such time as is necessary” to his duties as CEO, Gelsinger was contractually obligated to dedicate his “full business efforts and time to Intel.”
Meanwhile, Tan will continue to actively invest in startups through his venture capital firm, Walden International.
In a memo sent to Intel employees, Tan wrote: “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. I believe we have a truly unique opportunity to remake our company at one of the most pivotal moments in its history.”