After the board of Intel (INTC, Financial) voiced discontent with Pat Gelsinger's recovery plans, the company's Chief Executive Officer announced his resignation. The ruling came three years into Gelsinger's tenure. A Tuesday filing with the Securities and Exchange Commission states that the former CEO is expected to get a severance payout valued at almost $10 million.
The deal covers 18 months of Gelsinger's annual basic pay of $1.25 million plus 1.5 times his $3.4 million target bonus spread over the same length. Based on company performance, Gelsinger is also entitled for a pro-rata portion of his 2024 bonus, computed as 11/12th of the target.
Intel confirmed Gelsinger's leaving on Monday, stating the board had given him choices on either retirement or removal. The corporation suffers continuous difficulties keeping its competitive posture in the semiconductor sector; it has not revealed its future leadership direction.
Though earnings fell short of expectations in the face of growing competitiveness, Gelsinger's tenure witnessed notable investment in manufacturing capacity. Intel stock is finally going up about 20% in the past three months, despite all the problems. To sustain the uptrend ahead, though, would take much more.
