Incoming Intel Corp chief executive officer Lip-Bu Tan (陳立武), who was named to the position last week, would receive compensation valued at about US$69 million if he reaches targets over the coming years.
The package includes a salary of US$1 million, plus a 200 percent performance-based bonus, the chipmaker said in a filing on Friday.
The package also includes US$66 million in long-term equity awards, stock options and new-hire incentives.
Photo: Reuters
Separately, Tan agreed to buy US$25 million in Intel shares in the first 30 days of taking the job.
“Lip-Bu’s purchase reflects his belief in Intel and commitment to creating shareholder value,” the company said in a statement.
On Wednesday last week, Intel announced Tan was filling the role left vacant when the board ousted his predecessor, Pat Gelsinger. The semiconductor industry veteran, who previously served as an Intel board member, is tasked with trying to return the company to the forefront of an industry that it dominated for decades.
Tan, 65, would assume the role tomorrow, the company said.
He would rejoin the board as well after stepping down in August last year.
Intel’s stock has rallied this year, gaining 20 percent, including a surge of 15 percent on Thursday following the announcement of Tan’s appointment.
Tan, a Malaysian-born executive, grew up in Singapore, where he attended Nanyang University and studied physics. He later went to the Massachusetts Institute of Technology, gaining a masters in nuclear engineering. He gave up his studies for a doctorate in that field and left for the University of San Francisco, where he got an MBA.
After working in venture investing, he joined the board of Cadence Design Systems Inc in 2004. He became coCEO in 2008 after incumbent Michael Fister left and then took sole possession of that role in 2009. Tan ran the company for more than a decade before moving to the position of chairman, which he occupied until 2023.
“During his time as CEO, Cadence more than doubled its revenue, expanded operating margins and delivered a stock price appreciation of more than 3,200 percent,” Intel chairman Frank Yeary said in a separate statement. “He also knows Intel well, both as a partner when he ran Cadence and having recently served on our board.”
If Tan cannot orchestrate a similar turnaround at Intel, “it was probably unfixable,” Bernstein Research senior analyst Stacy Rasgon said.
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