Intel CEO Pat Gelsinger is stepping down after three decades with the company, including four years as CEO. The chipmaker has struggled against rivals like Nvidia and Taiwan Semiconductor Manufacturing Co., and Gelsinger’s departure comes as part of a four-year turnaround plan.
Gelsinger will receive over $7 million in severance and other compensation, including 18 months of his base salary and half of his target bonus. He also receives an annual 2024 bonus pro-rated to 11 months, which could be upwards of $3 million.
In a statement, Gelsinger expressed pride in the company’s accomplishments but acknowledged the challenges faced by Intel. “Leading Intel has been the honor of my lifetime,” he said. “I can look back with pride at all that we have accomplished together.”
The company has formed a search committee to find Gelsinger’s permanent replacement, and two senior leaders will serve as interim co-CEOs until then. The board aims to restore investor confidence after struggling financially.
Intel has received billions of dollars in federal funding under the CHIPS Act, which provides grants, loans, and tax credits to chipmakers. The company initially awarded $11 billion but reduced it due to a $3 billion contract with the Department of Defense.
Source: https://www.foxbusiness.com/markets/intels-pat-gelsinger-departing-chipmaker-millions-severance