When former CEO Pat Gelsinger abruptly departed this week, Intel revealed on Tuesday that it had agreed to pay him at least $7 million in severance, and perhaps more than $10 million.
In response to growing financial and competitive pressure on the chipmaker, Gelsinger, 63, resigned. Chief Financial Officer David Zinsner and Michelle Johnston Holthaus, who had been in charge of Intel’s PC division, were named as the chipmaker’s two temporary CEOs to succeed him.
Gelsinger’s employment contract with Intel guaranteed him a severance package equal to 18 months’ worth of his salary and his yearly target bonus in the event that he resigned for a valid reason. Intel said it had agreed to pay him that in connection with his retirement in a regulatory filing on Tuesday.
The total value of such payments is just over $7 million.
Additionally, Gelsinger will receive 11 months of his 2024 annual bonus from Intel. The amount of his yearly incentive, which is contingent on the company’s performance, may reach $3.2 million in 2023.
Regarding Zinsner and Holthaus’s temporary positions as co-CEOs, Intel did not provide any further compensation. The business estimated Holthaus’ 2023 remuneration at $9.2 million and Zinsner’s at $8.5 million.
Holthaus was promoted by Intel on Monday to a permanent position as CEO of the company’s recently established Intel Products chip design group in addition to her interim post.
–Mike Rogoway writes on the business and technology in Oregon. You can reach him at 503-294-7699 or [email protected].
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