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Intel's new CEO receives $66 million in options and stock grants on top of $1 million salary
INTCIntel(INTC) CNBC·2025-03-14 23:39

Compensation Package - New Intel CEO Lip-Bu Tan will receive a total compensation of 1millioninsalaryandapproximately1 million in salary and approximately 66 million in stock options and grants vesting over the coming years [1] - Tan's compensation includes an annual bonus worth 2million,long−termequitygrantsvaluedat2 million, long-term equity grants valued at 14.4 million, and a performance grant of 17millioninIntelshares[2]−Thepackagealsoconsistsofstockoptionsworth17 million in Intel shares [2] - The package also consists of stock options worth 9.6 million and a new hire option grant worth 25million[3]PerformanceConditions−Tan′sstockgrantswillvestoverfiveyears,buthewillnotearnanysharesifIntel′sstockpricedeclinesoverthenextthreeyears[2]−Hecanearnadditionalstockifthecompany′ssharepriceoutperformsthemarket[2]−IntheeventofachangeofcontrolatIntel,Tancouldbeeligibleforacceleratedvestingofhisstockoptions[3]CompanyPerspective−IntelstatedthatTan′scompensationreflectshisexperienceandcredentialsasatechnologyleaderandiscompetitiveinthemarket[4]−ThemajorityofTan′scompensationisequity−basedandtiedtolong−termshareholdervaluecreation[4]−Tanhasagreedtopurchase25 million [3] Performance Conditions - Tan's stock grants will vest over five years, but he will not earn any shares if Intel's stock price declines over the next three years [2] - He can earn additional stock if the company's share price outperforms the market [2] - In the event of a change of control at Intel, Tan could be eligible for accelerated vesting of his stock options [3] Company Perspective - Intel stated that Tan's compensation reflects his experience and credentials as a technology leader and is competitive in the market [4] - The majority of Tan's compensation is equity-based and tied to long-term shareholder value creation [4] - Tan has agreed to purchase 25 million in Intel shares to qualify for the grants and bonuses [4] Market Reaction - Following Tan's appointment, Intel shares have increased nearly 20% in 2025, with most gains occurring this week [1]