Pat Gelsinger’s Multimillion-Dollar Intel Severance Package
Pat Gelsinger, the recently departed CEO of Intel, is set to receive a lucrative severance package exceeding $10 million, according to a recent filing with the Securities and Exchange Commission (SEC). This agreement between Intel and Gelsinger includes various components that make up this substantial sum.
The Breakdown
Gelsinger’s severance pay will consist of several components, including 18 months of his base salary, amounting to $1.875 million, and 1.5 times his current target bonus, totaling $5.16 million, spread out over an 18-month period. Additionally, he will receive a pro-rata payment equivalent to 11/12ths of his 2024 annual bonus, approximately $3.15 million. In total, Gelsinger could walk away with a minimum of $7 million, with the potential to reach $10.18 million.
Comparison to Other Executives
In comparison to other high-profile executive exits, such as WeWork founder Adam Neumann’s $400 million package or former Yahoo CEO Marissa Mayer’s $54.9 million departure in 2016, Gelsinger’s severance falls within the same range of multimillion-dollar payouts.
Intel’s Turbulent Year
This significant payout comes amid a challenging year for Intel, marked by a 30% drop in valuation in early August following poor financial results that led to a net loss of $1.6 billion. The company responded by laying off 15% of its workforce, amounting to 15,000 employees, in a cost-cutting measure.
Gelsinger’s exit from Intel, effective December 1, after nearly four years at the helm, has ushered in a new era with co-CEOs David Zinsner and Michelle Johnston Holthaus taking the reins. As the board searches for a permanent replacement for Gelsinger, the company faces uncertainty in the midst of its transition to a foundry chip manufacturing model.
In conclusion, Pat Gelsinger’s substantial severance package highlights the complexities of executive compensation in the corporate world, shedding light on the inner workings of one of the tech industry’s giants.
