On March 12th, Intel announced a leadership change in its company and board. Lip-Bu Tan is replacing Pat Gelsinger as the company’s Chief Executive Officer (CEO) and is also rejoining as a board member, having stepped down in August last year. Pat Gelsinger is an expert in semiconductors, and in his new role at Intel, he will lead the company to regain its status in the sector and establish a strong presence in the market.
According to a Bloomberg report, Intel will pay Tan $69 Million in compensation, contingent on performance targets met over the coming years. The reports also said that Tan’s annual package encloses a $1 million base salary, a 200% performance-based bonus, and $66 million in long-term equity awards, stock options, and new-hire incentives.
Lip-Bu Tan’s Plan to Boost Intel’s Market Presence
Tan is determined to boost Intel’s presence in the sectors. He said, “In areas where we have momentum, we need to double down and extend our advantage. On the other hand, we are lagging behind the competition, and we need to take calculated risks to disrupt the market. Also in areas where progress is slower than expected, we need to find ways to pick up the pace.”
These comments from Tan suggest that, despite the recent pressures on Intel due to the losses and slower sales, Intel is committed to revamping its fabrication operations.
Lip-Bu Tan announced that within 30 days of his CEO, he would purchase stocks worth $25 million. Intel, impressed, said that Tan’s initiative shows his belief in the company. “Lip-Bu’s purchase reflects his belief in Intel and commitment to creating shareholder value.”
Intel confirmed that Tan will join as CEO from March 18th this year. The market saw this announcement as promising, and Intel’s stock zoomed by 15% on Thursday, marking a 20% overall gain this year.
