20 hours Ago By Paul Sawers
Intel’s newly departed ex-CEO Pat Gelsinger could be walking away with more than $10 million in severance pay. As per a filing with the Securities and Exchange Commission (SEC) today, Intel and Gelsinger entered into a “retirement and separation agreement” which will entitle the former CEO to a payment equal to 18 months of his base salary of $1.25 million, which equates to $1.
875 million. Additionally, he will receive 1.5 times his current target bonus, which is 275% of his base salary — this works out at $5.
16 million. Both these payments will be made over an 18-month period through the usual payroll. But on top of that, Gelsinger will receive a pro-rata payment that’s equal to 11/12ths of his 2024 annual bonus, which works out at around $3.
15 million. However, this is based on company performance and has additional conditions. So in total, Gelsinger will be exiting with at least $7 million, but it could rise to up to $10.
18 million. Gelsinger’s departure, effective December 1, came after nearly four years in the hotseat , and he’s replaced by co-CEOs David Zinsner and Michelle Johnston Holthaus, who have hitherto served as CFO and GM of Intel’s client computing group, respectively. Intel’s shares initially surged on news of Helsinger’s departure, however they later settled at roughly the same figure they’d been before the announcement — a sign, perhaps, of the continuing uncertainty around the chip giant’s future as it continues its transition to foundry chip manufacturing mode.
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