Intel Shareholders Approve New CEO Lip-Bu Tan’s Pay, Equity Incentive Plan

Intel (INTC) shareholders have approved the compensation plan for the company’s new CEO, Lip-Bu Tan, along with equity incentives to attract and retain employees.

According to a Reuters report, shareholders also voted to approve Intel’s board of directors, even as three members did not stand for re-election.

Intel’s stock declined 2% at the time of writing.

At the just-concluded annual meeting, Intel shareholders also rejected a proposal that would have required the company to reassess its operations in Israel.

In March, Intel revealed in a filing with the U.S. Securities and Exchange Commission (SEC) that Tan would receive a total compensation of about $69 million.

This includes a $1 million salary and a $2 million bonus. Tan's compensation package also includes an equity grant, a performance grant, stock options, and other awards worth $66 million.

Shareholders have now approved this compensation plan.

Intel appointed Tan in March, months after veteran Pat Gelsinger left the company. Tan has been tasked with steering the company and bringing the focus back on its manufacturing capabilities.

“Intel plays an essential role in the technology ecosystem, both in the U.S. and around the world. And, together, I’m confident we can turn our business around,” Tan said after his appointment, adding that Intel will be an engineering-focused company under his leadership.

The new CEO has also sought to trim Intel’s bloat and bring it to focus on artificial intelligence (AI). For a start, the iconic chipmaker partnered with International Business Machines (IBM) to make its Gaudi 3 AI accelerators available on the IBM Cloud.

Among other reforms, Tan is also reportedly looking to overhaul Intel’s manufacturing operations. 

His predecessor, Gelsinger, also identified a similar issue and gambled on the 18A fabrication process. While Gelsinger’s bet failed, the results of Tan’s approach remain to be seen.

Intel’s shares are down 0.90% year-to-date, and almost 36% over the past year.

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