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Intel’s New CEO Gets Pay Package Valued at About $69 Million

X

XYang2023

Well-known member
"$69 million if he reaches targets over the coming years."

(Bloomberg) — Incoming Intel Corp. Chief Executive Officer Lip-Bu Tan, who was named to the position this week, will receive compensation valued at about $69 million if he reaches targets over the coming years.

The package includes a salary of $1 million, plus a 200% performance-based bonus, the chipmaker said in a filing Friday. It also includes $66 million in long-term equity awards and stock options and new-hire incentives.

Separately, Tan agreed to buy $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.

 
blueone said:
Tan is required to buy $25M in INTC shares within 30 days of taking the job. Interesting requirement.
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I prefer this over PG's approach. PG tended to purchase around 10,000 shares whenever the share price dropped significantly—almost every quarter. It was very misleading. Obviously, he could afford to do that; buying 10,000 shares at low prices meant little to him. I always wondered whether he truly meant it when he talked about maximizing shareholder value or if he was actually concerned about the employees being laid off. If that were the case, he should have taken no cash compensation and gone all-in on Intel shares. When he left, he took a large cash severance while others were being let go.
 
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XYang2023 said:
I prefer this over PG's approach. PG tended to purchase around 10K shares whenever the share price dropped significantly—almost every quarter. It was very misleading. Obviously, he could afford to do that; 10K shares at low prices meant nothing to him. I always wondered if he truly believed in the foundry turnaround and was hesitant to lay off employees. If that were the case, he should have taken no cash compensation and gone all-in on Intel shares. When he left, he took a large cash severance when others were being let go.
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Intel probably had to offer more to Pat to cover his VMWare (existing) compensation package.
 
ChrisGar said:
Intel probably had to offer more to Pat to cover his VMWare (existing) compensation package.
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I paraphrased a bit in my previous reply. Basically, I felt that PG's actions were sometimes inconsistent with his words. How could he claim to be acting in the best interests of shareholders while his decisions directly contributed to Intel's current state, forcing the company to take on significant debt and later shed assets (such as percentage shares of the Ireland and Arizona fabs, Altera, Mobileye, etc.)? I always felt he was driven by some ideology. But if that was the case, it represented a serious misalignment. Even if the foundry idea is the right one, failing to manage the company properly to achieve that goal while causing severe financial stress is not only wrong but also highly irresponsible, in my opinion.
 
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blueone said:
Tan is required to buy $25M in INTC shares within 30 days of taking the job. Interesting requirement.
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Is this unusual for Intel?

In my experience it's fairly pretty normal for C-Suite and other top execs to be required to own a certain amount of stock in a company. The companies often "help" by giving shares..
 
Xebec said:
Is this unusual for Intel?

In my experience it's fairly pretty normal for C-Suite and other top execs to be required to own a certain amount of stock in a company. The companies often "help" by giving shares..
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LBT took large positions in $INTC while serving as a board member. It's unclear whether he sold them; if he did, he likely incurred sizable losses. We will know when he starts his role.

https://twitter.com/x/status/1899935478297796960
 
Xebec said:
Is this unusual for Intel?
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Yes. Though Intel did have stock ownership requirements at grade 12 (VP) and above, which varied by level, I don't know if they still have those requirements. It is the $25M in 30 days requirement that seemed on the high and quick sides. Nonetheless, LBT's net worth is estimated to be about $600M, so $25M to him is probably not much. He might not know his net investible assets value to within $25M on any given day. :)
Xebec said:
In my experience it's fairly pretty normal for C-Suite and other top execs to be required to own a certain amount of stock in a company. The companies often "help" by giving shares..
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Agreed.
 
blueone said:
Yes. Though Intel did have stock ownership requirements at grade 12 (VP) and above, which varied by level, I don't know if they still have those requirements. It is the $25M in 30 days requirement that seemed on the high and quick sides. Nonetheless, LBT's net worth is estimated to be about $600M, so $25M to him is probably not much. He might not know his net investible assets value to within $25M on any given day. :)

Agreed.
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But still a million is a million. I think they do track down to that granularity in a fund.
 
Daniel Nenni said:
I remember when Lip-Bu started as Cadence CEO. He bought a large chunk of Cadence stock and I though to myself, that is a good sign, maybe I should buy some as well.

Remember, Lip-Bu is a billionaire, this is not about compensation, this is about his legacy.
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To most people of the billionaire class and especially so in Asian culture, legacy is worth much much much more.
 
Daniel Nenni said:
I remember when Lip-Bu started as Cadence CEO. He bought a large chunk of Cadence stock and I though to myself, that is a good sign, maybe I should buy some as well.

Remember, Lip-Bu is a billionaire, this is not about compensation, this is about his legacy.
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Some people would take this as an financial advice 🤣
 
Seems like "white" Americans are no longer able to successfully run American high-tech companies. Look at Nvidia, AMD, Alphabet, Microsoft, Broadcom, and now Intel... Degrees in snake oil marketing, DEI, and PR not worth much in a true global competition. :) :))
 
meo9725 said:
Seems like "white" Americans are no longer able to successfully run American high-tech companies. Look at Nvidia, AMD, Alphabet, Microsoft, Broadcom, and now Intel... Degrees in snake oil marketing, DEI, and PR not worth much in a true global competition. :) :))
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TIL. Lockheed Martin, SpaceX, and Apple are low tech.

I personally welcome seeing more diversity of thought in these CEOs. I like the variety.
 
blueone said:
Tan is required to buy $25M in INTC shares within 30 days of taking the job. Interesting requirement.
Click to expand...

I would bet this was Lip-Bu's idea. He did the same when joining Cadence. I don't remember it being announced but I do remember seeing the actual trade because it was quite large.

Lip-Bu was also not required to be a full time CEO since he also managed Walden. This is how he does things and I am behind it 100%.
 
Daniel Nenni said:
I would bet this was Lip-Bu's idea. He did the same when joining Cadence. I don't remember it being announced but I do remember seeing the actual trade because it was quite large.

Lip-Bu was also not required to be a full time CEO since he also managed Walden. This is how he does things and I am behind it 100%.
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This kind of "requirement" has become kinda popular. A recent example was snowflake ceo was required to buy $5M of $snow stocks when he stepped up as ceo.

In $INTC case, the "requirement" is fairly large, even for a billionaire. I think it was Lip-Bu's idea, too. And most likely it will serve him well. I certainly hope so.
 
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