On Friday, March 14, 2025, Intel disclosed in an SEC filing that its newly appointed CEO, Lip-Bu Tan, will receive a compensation package totaling $1 million in base salary and approximately $66 million in stock options and grants, vesting over the coming years. Named CEO earlier this week, Tan’s arrival has sparked a 20% surge in Intel (INTC) shares in 2025—most of it post-appointment—fueling optimism that the chip industry veteran can revive the struggling semiconductor giant. As he steps into the role on March 18, here’s a breakdown of his pay and what it means for Intel’s future.
A Deep Dive into Tan’s Pay Package
Tan’s compensation reflects Intel’s high stakes in his leadership:
- Base Salary and Bonus: A $1 million annual salary, modest for a tech CEO, paired with a $2 million performance-based bonus eligibility.
- Long-Term Equity Grants: A $14.4 million stock unit grant and a $17 million performance-based stock award, both vesting over five years. These are contingent on Intel’s stock price holding steady—or growing—over three years, with upside potential if Intel outperforms the market.
- Stock Options: A $9.6 million options package, plus a $25 million new-hire options grant, tying his wealth to long-term stock gains.
- Total Equity Value: Roughly $66 million in stock awards and options, dwarfing his cash pay and aligning his interests with shareholders.
Intel emphasized this structure in a statement: “Lip-Bu’s compensation reflects his experience as an accomplished technology leader… The vast majority is equity-based and tied to long-term shareholder value creation.” Should Intel face a change of control—like a rumored Qualcomm takeover—Tan could see accelerated vesting, per the filing.
Skin in the Game: $25M Stock Purchase
Beyond his pay, Tan has committed to buying $25 million in Intel shares and holding them to qualify for his grants and bonuses. This personal investment—about 1.2 million shares at current prices—signals confidence in Intel’s rebound and mirrors his successful tenure at Cadence Design Systems, where he grew shareholder value dramatically. It’s a bold move for a CEO tasked with reversing Intel’s 2024 slide, when its market cap shed nearly two-thirds.
Why Wall Street Loves Tan
Tan’s appointment has electrified investors. A 14% stock pop on announcement day ballooned to 20% gains year-to-date by Friday, erasing some of 2024’s pain when Intel hit a 50-year low. His track record—transforming Cadence into a $40 billion powerhouse—plus ties to Asia’s chip ecosystem, make him a Wall Street darling. Analysts like Bernstein’s Stacy Rasgon see his “customer service mindset” as key to revitalizing Intel’s foundry and AI ambitions, areas where ex-CEO Pat Gelsinger faltered.
High Stakes, High Rewards
Tan’s equity-heavy pay is a bet on Intel’s recovery. If he can’t lift the stock—currently near $23 after a $100 peak in 2021—his performance grants could vanish. Conversely, outpacing the S&P 500 could net him millions more in shares. With Intel’s Gaudi AI chips lagging Nvidia and its foundry pivot years from fruition, Tan’s $66 million package hinges on execution. The change-of-control clause also nods to takeover buzz, with Qualcomm, Broadcom, and TSMC circling last year.
What’s Next for Intel and Tan?
Starting next week, Tan faces a daunting to-do list: streamline operations, win foundry clients, and catch the AI wave. His $25 million stake and $66 million in equity tie his fate to Intel’s, a structure Intel calls “market competitive” for a leader of his caliber. As the Nasdaq wobbles amid tariff uncertainty, Tan’s early moves—potentially unveiled at Intel’s April earnings call—will signal whether this pay bet pays off. For now, a 20% stock rally suggests investors are all in on Tan’s turnaround vision. Stay tuned as Intel’s new chapter begins.
