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Recently departed Intel CEO Pat Gelsinger could receive more than $10 million in severance pay.
According to A Deposit With the Securities and Exchange Commission (SEC) today, Intel and Gelsinger entered into a “retirement and separation agreement” that will give the former CEO an amount equivalent to 18 months of his $1.25 million base salary, equivalent to $1.875 million. Additionally, he will receive 1.5 times his current target bonus, which is 275% of his base salary – that equates to $5.16 million. These two payments will be made over 18 months through payroll.
But on top of that, Gelsinger will receive a prorated payment equal to 11/12 of his 2024 annual bonus, which amounts to about $3.15 million. But this depends on the company’s performance and has additional conditions. So, in total, Gelsinger will walk away with at least $7 million, with the potential for it to reach $10.18 million.
For comparison, WeWork founder Adam Neumann I got the package out It is worth more than $400 million, while former Yahoo CEO Marissa Mayer He left with $54.9 million In 2016.
It was a A dismal year for IntelThe chip giant saw its valuation drop by about 30% in early August on the back of weak financial results – the company revealed a net loss of $1.6 billion versus a profit of $1.5 billion during the previous year. As a result, Intel laid off 15% of its workforce – 15,000 people – to cut costs.
Gelsinger’s departure, effective December 1, comes after nearly four years in the role, and he was replaced by co-CEOs David Zinsner and Michelle Johnston Holthaus, who had until now served as CFO and general manager of Intel’s Customer Computing Group, respectively. According to A Bloomberg report Yesterday, Gelsinger was given the option to retire, or face ouster, and Intel’s board of directors has now formed a committee to identify a permanent replacement for Gelsinger.
Intel shares It initially spiked on the news After Helsinger’s departure, however, they later settled at roughly the same number as they were before the announcement — perhaps a sign of continued uncertainty around the chip giant’s future as it continues its transition to a foundry chip manufacturing model.
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