Intel bets $69M on new CEO Lip-Bu Tan; Investors cheer

Intel Corporation has appointed Lip-Bu Tan as its new Chief Executive Officer, offering him a compensation package valued at approximately $69 million. Tan's pay includes a base salary of $1 million, a performance-based bonus equivalent to 200% of his salary, and $66 million in long-term equity awards, stock options, and new-hire incentives, according to a company filing on Friday.

Additionally, Tan has committed to purchasing $25 million worth of Intel shares within his first 30 days as CEO—a move Intel says demonstrates his confidence in the company’s future and dedication to driving shareholder value.

Tan steps into the role following the board’s decision to part ways with former CEO Pat Gelsinger. A seasoned semiconductor industry leader and former Intel board member, Tan is now tasked with revitalizing the company’s position as a dominant force in the chip industry.

His appointment has already had a notable impact on the market. Intel’s stock has climbed 20% this year, with a sharp 15% rise on Thursday following the announcement of Tan’s leadership.

Tan, 65, will officially assume his new role on March 18 and will also return to Intel’s board after previously stepping down in August 2024.