Investing.com -- Chipmaker Intel (NASDAQ:INTC) has announced that its newly appointed CEO, Lip-Bu Tan, will receive a base salary of $1 million.
In addition to this, he will also be eligible for an annual cash bonus of up to $2 million, according to a regulatory filing made by the company on Friday.
Tan, an industry veteran, was named as Intel’s CEO on Wednesday. The company has tasked him with leading a critical transition to a successful chip manufacturing firm and chip design house. Tan is set to take charge on March 18.
The new CEO’s employment agreement includes a three-year performance target. This agreement makes him eligible to retain two-thirds of his stock awards if there is a "change in control" or a significant shift in the company’s ownership within 18 months of his joining.
Tan’s appointment comes after Intel’s previous CEO, Pat Gelsinger, was ousted in December. Tan, with his extensive experience in the chip industry and as a longtime technology investor, had been seen as a contender for the top job since then.
Gelsinger’s employment agreement did not include the "change in control" clause that is part of Tan’s contract. Gelsinger’s contract included a base salary of $1.25 million, and he was eligible for annual cash bonuses of up to 275% of that, as per regulatory filings.
Gelsinger was also eligible to receive as much as $12 million as payout before his departure from the company.
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