Topics
Latest
AI
Amazon
Image Credits:Michael M. Santiago / Staff / Getty Images
Apps
Biotech & Health
Climate
Image Credits:Michael M. Santiago / Staff / Getty Images
Cloud Computing
Commerce
Crypto
Enterprise
EVs
Fintech
fundraise
Gadgets
back
Government & Policy
Hardware
layoff
Media & Entertainment
Meta
Microsoft
secrecy
Robotics
Security
Social
Space
Startups
TikTok
Transportation
Venture
More from TechCrunch
upshot
Startup Battlefield
StrictlyVC
Podcasts
Videos
Partner Content
TechCrunch Brand Studio
Crunchboard
Contact Us
Intel’snewly sidetrack CEOPat Gelsinger could be walk away with just over $ 10 million in severance pay .
As per afilingwith the Securities and Exchange Commission ( SEC ) today , Intel and Gelsinger entered into a “ retirement and detachment arrangement ” that will entitle the former CEO to a payment equal to 18 months of his lowly earnings of $ 1.25 million , which equates to $ 1.875 million . Additionally , he will get 1.5 times his current target bonus , which is 275 % of his base earnings — this works out at $ 5.16 million . Both these payment will be made over an 18 - calendar month period through payroll .
But on top of that , Gelsinger will also obtain a pro rata payment that ’s equal to 11/12th of his 2024 annual incentive , which works out at around $ 3.15 million — however , this is establish on company performance and has additional conditions . So in sum , Gelsinger will be pop off with $ 7 million at the very least , with the potential to hit $ 10.18 million .
Troubled times
It has been adismal class for Intel , as the chip giant saw its valuation drop by some 30 % in former August off the back of poor fiscal results — the company revealed a net going of $ 1.6 billion versus a net of $ 1.5 billion over the previous year . Consequently , Intellaid off 15 % of its workforce — 15,000 masses — to cut costs .
A $ 10 million payout for the CEO of a $ 103 billion company could be deemed on the dispirited side , but it ’s worth noting that Intel ’s market cap was well over threefold that when Gelsinger strike the helm in 2021 . That said , WeWork founder Adam Neumannbagged an expiration packageworth well over $ 400 million , while Yahoo ’s former CEO Marissa Mayerleft with $ 54.9 millionin 2016 , both leave their respective companies in less - than - fine fettle at the metre .
According to aBloomberg reportyesterday , Gelsinger was feed the option of retiring , or face the pocket . His departure , in force December 1 , came after nearlyfour year in the hot hind end , and he ’s replaced by interim co - CEOs David Zinsner and Michelle Johnston Holthaus , Intel ’s CFO and GM of client calculation radical , respectively . The Intel board of directors has formed a search committee to identify a lasting switch .
Intel ’s sharesinitially surged on newsof Helsinger ’s departure ; however , they later on get back at some the same pattern they ’d been before the announcement — a preindication , perhaps , of the keep uncertainty around the chip giant ’s future tense as itcontinues its transitionto a foundry fleck - manufacturing example .
