Intel’s newly departed CEO Pat Gelsinger might be strolling away with greater than $10 million in severance pay.
As per a submitting with the Securities and Exchange Commission (SEC) right now, Intel and Gelsinger entered right into a “retirement and separation agreement” which can entitle the previous CEO to a fee equal to 18 months of his base wage of $1.25 million, which equates to $1.875 million. Additionally, he’ll obtain 1.5 instances his present goal bonus, which is 275% of his base wage — this works out at $5.16 million. Both these funds will likely be revamped an 18-month interval via payroll.
But on high of that, Gelsinger will obtain a pro-rata fee that’s equal to 11/12ths of his 2024 annual bonus, which works out at round $3.15 million. However, that is primarily based on firm efficiency and has further situations. So in complete, Gelsinger will likely be exiting with $7 million on the very least, with the potential to hit $10.18 million.
For comparability, WeWork founder Adam Neumann bagged an exit package deal price properly over $400 million, whereas Yahoo’s former CEO Marissa Mayer left with $54.9 million in 2016.
It has been a dismal 12 months for Intel, because the chip large noticed its valuation drop by some 30% in early August off the again of poor monetary outcomes — the corporate revealed a web lack of $1.6 billion versus a revenue of $1.5 billion over the earlier 12 months. Consequently, Intel laid off 15% of its workforce — 15,000 individuals — to chop prices.
Gelsinger’s departure, efficient December 1, got here after almost 4 years within the hotseat, and he’s changed by co-CEOs David Zinsner and Michelle Johnston Holthaus, who had hitherto served as CFO and GM of Intel’s consumer computing group, respectively. According to a Bloomberg report yesterday, Gelsinger was given the choice of retiring, or face the sack, and the Intel board of administrators has now fashioned a committee to establish a everlasting substitute for Gelsinger.
Intel’s shares initially surged on information of Helsinger’s departure, nevertheless they later settled at roughly the identical determine they’d been earlier than the announcement — an indication, maybe, of the persevering with uncertainty across the chip large’s future because it continues its transition to a foundry chip manufacturing mannequin.
