Ousted Intel CEO Pat Gelsinger Walks Away with a Substantial Severance Package

New York – While Pat Gelsinger may have been ousted from his role as Intel’s CEO, he is exiting the company with a financial cushion that underscores the high-profile nature of his departure. According to a filing with the Securities and Exchange Commission, Gelsinger is entitled to a generous severance package that includes 18 months of his base annual salary, which is set at $1.25 million. This amounts to a guaranteed payout of $2.25 million for that period.

Additionally, Gelsinger is set to receive 1.5 times his current target bonus, which is pegged at 275% of his base salary. This bonus payment, approximately $3.4 million, will also be spread over the same 18-month period, bringing the total severance payout to over $5.5 million in salary and bonus. As if that wasn’t enough, Gelsinger will be entitled to 11/12ths of his 2024 bonus, given that he resigned on December 1st, further boosting his financial windfall.

However, the CEO’s compensation package doesn’t end there. Gelsinger also owns approximately 646,000 shares in Intel, a holding that, based on current stock prices, is valued at more than $14.5 million. This substantial sum reflects both his tenure at Intel and the confidence investors once had in the company’s potential under his leadership.

The announcement of Gelsinger’s resignation came on a Monday in early December, marking the conclusion of a challenging chapter for the technology company. Under his leadership, Intel faced significant difficulties, particularly with its stock price, which has tumbled more than 60% during his tenure. Once the epitome of American technological dominance, Intel found itself grappling with severe challenges, including fierce competition from rivals, production delays, and a brain drain as top talent left the company. Furthermore, Intel’s failure to capitalize on the booming artificial intelligence (AI) market, which significantly benefited its competitors, left the company struggling to keep pace.

Gelsinger, who took the reins as CEO in February 2021 after serving as Intel’s chief technology officer, had been tasked with revitalizing the company. Despite his experience and leadership, he was unable to steer Intel back to its former glory. One of the major hurdles during his tenure was Intel’s struggle to recover from production delays, which directly affected the company’s ability to meet market demands. Despite receiving billions of dollars in federal support aimed at bolstering domestic semiconductor production, Intel couldn’t regain its competitive edge.

The situation worsened earlier in 2023 when Intel revealed plans to lay off 15% of its workforce in an effort to cut $10 billion in operational costs. The layoffs, coupled with the mounting financial and competitive pressures, painted a grim picture of the company’s trajectory under Gelsinger’s leadership.

Gelsinger’s departure signals a significant moment in Intel’s history as the company looks for new leadership to chart its course in a rapidly evolving tech landscape. Whether or not his successor will fare better in restoring Intel’s competitive position remains to be seen, but one thing is clear: Gelsinger will leave Intel with a substantial financial legacy despite the challenges faced during his tenure.

Share This to: