Intel’s Former CEO To Receive About $12 Million Payout

Intel former CEO Pat Gelsinger could get as much as $12 million as a payout, a regulatory filing showed on Tuesday, following his ouster from the struggling U.S. chipmaker.

TakeAway Points:

• A regulatory filing on Tuesday revealed that Pat Gelsinger, the former CEO of Intel, might receive a payment of up to $12 million after being fired from the faltering U.S. chipmaker.
• As the business recovers from the dismissal of Pat Gelsinger, Intel is contemplating hiring an outsider as CEO, a move that is almost unique.
• The executive search agency, Spencer Stuart, has been engaged by Intel to carry out the procedure.
• Recently fired director Lip-Bu Tan has also been approached by the company’s board to see whether he would be interested in taking over as CEO.

Up to $12 million will be paid to Gelsinger

The company said the severance payment would include $1.9 million as base salary for 18 months and 1.5 times his target bonus of $3.4 million, payable over 18 months.

Gelsinger is also eligible for his annual bonus for the 11 months he served as CEO in 2024, bringing the total to about $12 million, according to a Reuters calculation.

Gelsinger was forced out less than four years after taking the helm of the company, handing control to two lieutenants as Intel searches for a permanent replacement.

Intel Considers An Outside CEO

Intel is considering hiring an external candidate to replace ousted CEO Pat Gelsinger and has hired executive search firm Spencer Stuart to identify potential successors

Intel’s board has also made overtures to recently departed director Lip-Bu Tan about whether he would be interested in the top job at the struggling chipmaker, said one of the people.

An outside CEO would break from tradition at the chipmaker, which has historically promoted from within. While Gelsinger was hired from VMware in 2021, he had spent decades at the company in roles of increasing seniority. Gelsinger’s predecessor Bob Swan was Intel’s first true outside hire, but Swan was considered by many to be a stop-gap CEO and was then removed amid pressure from activist investor Third Point.

The shortlist of candidates could not be fully learnt, but Bloomberg, citing people familiar with the matter, reported that Marvel Chief Matt Murphy was among those being considered.

Representatives for Intel did not return multiple requests for comment. Tan, whose involvement in the replacement process was first reported by Reuters, could not be reached for comment.

Interim executive chair Frank Yeary and a board-level committee are overseeing the search for a new CEO, Intel disclosed in a regulatory filing, and the process remains in its early stages.

Intel’s board may opt for an internal promotion, and internal candidates could include CFO David Zinsner or Intel products chief MJ Holthaus, the interim co-CEOs.

Intel abruptly ousted CEO Pat Gelsinger over the weekend, with people familiar with the matter previously saying that the board had lost faith in his ability to execute on a turnaround at the chipmaker, which has been lagging behind Nvidia for more than a year.

Gelsinger will receive roughly $10 million in severance, Intel disclosed in a regulatory filing.