Intel's new CEO Lip-Bu Tan to receive $69M pay package
What's the story
Intel's newly appointed Chief Executive Officer (CEO), Lip-Bu Tan, will receive a compensation package worth around $69 million. The details of the package were revealed in a recent company filing. It includes an annual salary of $1 million and a performance-based bonus of up to 200%. The package also comprises long-term equity awards, stock options worth $66 million and new hire incentives.
Share acquisition
Commitment to Intel reflected in share purchase
Apart from his pay package, Tan has also promised to buy $25 million worth of Intel shares within the first month of his tenure. The company said, "Lip-Bu's purchase reflects his belief in Intel and commitment to creating shareholder value."
Market revival
Tan's role in revitalizing Intel's market position
Tan, a former Intel board member, has been given the responsibility of bringing the company back in the game of a competitive industry. He will take on his new role on March 18. Tan's appointment follows the ousting of former CEO Pat Gelsinger for failing to revive Intel's product lineup and tackle market-share losses and manufacturing issues.
Stock surge
Stock performance amid leadership change
After the announcement of Tan's appointment, Intel's stock jumped over 15% on Thursday, and has rallied 20% this year. However, despite the gains, the company's shares have plummeted over 54% in the last year amid market uncertainties. This fluctuation highlights the challenges Intel is facing and how new leadership could affect its market performance.