Intel’s newly appointed CEO, Lip-Bu Tan, will receive a total compensation package that includes a $1 million annual salary and approximately $66 million in stock options and equity grants, according to a filing with the SEC on Friday.
Tan, a seasoned veteran in the semiconductor industry, was named CEO earlier this week, fueling optimism about a potential turnaround at the company. Intel shares have surged nearly 20% in 2025, with most of those gains coming after the announcement of his appointment. He is set to officially begin his new role next week.
Alongside his base salary, Tan will be eligible for an annual bonus of up to $2 million. His compensation package also includes long-term equity awards, such as restricted stock units valued at $14.4 million and a performance-based stock grant worth $17 million. These grants will vest over five years but are contingent on Intel’s stock performance—Tan won’t receive any of the shares if the company’s stock declines over the next three years. Conversely, he stands to earn additional equity if Intel’s stock outperforms market benchmarks.
In addition, Tan will receive $9.6 million in stock options and a new hire option grant valued at $25 million. Altogether, his compensation includes about $66 million in long-term equity and stock options, on top of salary, bonuses, and legal expenses. If Intel undergoes a change of control, Tan could qualify for accelerated vesting of his awards.
“Lip-Bu’s compensation reflects his experience and credentials as an accomplished technology leader with deep industry expertise and is market competitive,” Intel said in an emailed statement. “The vast majority of his compensation is equity-based and tied to long-term shareholder value creation.”
As part of the agreement, Tan has also committed to purchasing $25 million worth of Intel shares and holding them in order to qualify for his compensation package.