Intel, which nominally got a new CEO this week, traditionally published a report for US regulators, in which it revealed the structure and amount of his salary. Lip-Bu Tan will receive at least $1 million per year, but due to bonuses and incentives, this amount could grow to $69 million over several years.
Image Source: Intel
Of course, it would be appropriate to talk about such a remuneration amount only if certain indicators are achieved. For example, the bonus reaches 200% of the base salary, so under favorable circumstances, the CEO’s annual remuneration will reach $3 million per year. In the form of securities and other incentives, the head of Intel will be able to receive another $66 million over several years. Part of the remuneration is tied to the dynamics of Intel’s stock price over the next three years. If it is unsatisfactory, Lip-Bu Tan will not receive additional shares. The incentive system is calculated for a five-year period. If the company changes hands during this time, Tan’s payments will accelerate.
In addition, Lip-Bu Tan agreed to buy $25 million worth of Intel stock in his first 30 days in this position, thereby expressing confidence in the future of the company he is heading. In fact, before he starts earning money in this position, he will have to spend a lot. However, he will receive the same $25 million from Intel for the very fact of being appointed to the position of its head, so the money, in fact, will remain in the company. Lip-Bu Tan will be officially appointed CEO of the company on March 18, at which time he will return to the board of directors after leaving it in August last year.