Intel's Pat Gelsinger departing chipmaker with millions in severance

Core Points - Pat Gelsinger, former CEO of Intel, has resigned after a 30-year career with the company, including four years as CEO, amid ongoing struggles against competitors like Nvidia and TSMC [2][5] - Intel is currently undergoing a four-year turnaround plan to improve its competitiveness in chipmaking [2] - Gelsinger's severance package is estimated to exceed $7 million, which includes 18 months of his base salary and a pro-rated annual bonus for 2024 [3][4] Compensation Details - Gelsinger's severance includes 18 months of his base salary of $1.25 million and one-and-a-half times his target bonus of 275% of his base salary [3] - The total compensation package is projected to be just over $7 million, with an additional potential bonus for 2024 that could exceed $3 million based on performance [4] Leadership Transition - Following Gelsinger's departure, David Zinsner and Michelle Johnston Holthaus will serve as interim co-CEOs while the board searches for a permanent replacement [7] - The search for a new CEO has already commenced, with a committee formed to expedite the process [7] Financial Context - Intel has received nearly $8 billion in federal funding under the CHIPS Act, aimed at boosting semiconductor manufacturing in the U.S. [9][10] - The funding amount was reduced due to a $3 billion contract from the Department of Defense [10]