Intel’s CEO Tan To Receive Whopping Rs 600 Crore Per Year – What’s Behind Massive Paycheck?

Intel has appointed Lip-Bu Tan as its new CEO, replacing Pat Gelsinger. As part of his compensation package, Tan will receive a salary of 69 million dollars (approximately Rs 600 crore) per year, provided he meets performance targets over the coming years, according to filing on Friday with the SEC.

 

 

Tan’s earnings include a base salary of 1 million dollars, along with a 200 per cent performance-based bonus. Additionally, he will receive 66 million dollars in long-term equity awards, stock options, and new-hire incentives.

 

Beyond his salary and stock options, Tan has committed to purchasing Intel shares worth 25 million dollars within the first 30 days of taking over as CEO. Intel said this move reflects his confidence in the company and his commitment to boosting shareholder value.

 

Tan’s appointment comes after Intel’s board decided to oust Pat Gelsinger. Reports suggest that the board was dissatisfied with the slow progress of Gelsinger’s turnaround strategy for the company. His ambitious plans to revive Intel had not yielded expected results, leading to his resignation on December 1, 2024.

 

Lip-Bu Tan is a veteran technology investor with more than 20 years of experience in the semiconductor and software industry. He has built strong relationships across Intel’s ecosystem and is known for his strategic vision in the tech world.

 

Before joining Intel, Tan served as the CEO of Cadence Design Systems from 2009 to 2021. During his tenure, he transformed the company by focusing on customer-centric innovation, which led to more than doubling its revenue and increasing its stock price by over 3,200 per cent.

 

Tan has served on the board of directors at Cadence for 19 years and was executive chairman from 2021 to 2023. He is also the founding managing partner of Walden Catalyst Ventures and chairman of Walden International.

 

Tan holds a Bachelor of Science in physics from Nanyang Technological University in Singapore, a Master of Science in nuclear engineering from the Massachusetts Institute of Technology (MIT), and an MBA from the University of San Francisco. His expertise spans both technology and business strategy.

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