Intel CEO Pat Gelsinger raked in US$179 million in 2021

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Intel CEO Pat Gelsinger raked in US$179 million in 2021
Pat Gelsinger (Intel)

Intel reported that its new CEO Pat Gelsinger earned US$178.59 million in total compensation over an 11-month span from when he started in February 2021, until the end of the year.

With the median total compensation of Intel’s roughly 121,000 employee-base being US$104,400, this means Gelsinger’s total annual compensation for 2021 was 1,711-times larger than the average employee.

The figures are based off a new Intel proxy filing with the US Securities and Exchange Commission.

Despite a global supply chain shortage in the chip market, Intel was able to generate all-time revenue record of US$79 billion in 2021, up 1 percent year over year, under Gelsinger‘s leadership.

Breaking down Gelsinger’s US$179 million total compensation

For 2021, Gelsinger received a total base salary of US$1.1 million. He also received a cash hiring bonus of US$1.75 million.

His largest payment, making up approximately 78 percent of its pay, was US$140.4 million in stock awards. Gelsinger also received US$29.1 million in stock option awards.

His total non-equity incentive plan compensation was US$5.1 million. All other compensation for Gelsinger totaled just over US$1 million for a total compensation of US$178.59 million.

Intel’s stock is currently trading at US$51.94 per share.

Intel stock is down 18 percent compared to 30 March 2021, when Intel’s stock was trading at US$63.77 per share.

Intel said when designing Gelsinger’s compensation package, the company, “sought to deliver compensation that was commensurate with Mr. Gelsinger’s capabilities and experience and reflective of the considerable challenge of leading Intel’s transformation.”

“Specifically, in determining the size and structure of his one-time new-hire equity awards, the Compensation Committee considered the value of the compensation that Mr. Gelsinger forfeited by leaving his former employer, his unique skill set, the fiercely competitive market for senior executive talent, the magnitude of the transformation being undertaken by the company, and finally the importance of creating and ensuring alignment with our stockholders,” Intel wrote in its SEC filing.

Regarding the CEO’s new hire equity awards, over 94 percent of Gelsinger’s total compensation package is equity-based “to create immediate alignment with stockholders and provide a stake in the success of the company’s transformation,” Intel said.

Gelsingers compensation package was negotiated privately in January 2021, prior to his CEO announcement.

Gelsinger owns approximately 287,853 shares of Intel, according to the SEC filing.

Gelsinger left VMware as CEO to lead Intel on 15 February 2021, and made several major leadership changes, including the hiring of new Chief Financial Officer David Zinsner this year.

CEO 2022 compensation: US$26.3 Million

Gelsinger’s target total direct compensation for 2022 is set at US$26.3 million in line with the 50th percentile of the market for a CEO of a company of Intel’s size, according to the SEC filing.

The US$26.3 million compensation for 2022 is “based on our peer companies, and for a CEO with both his extensive experience as a CEO and his unique technical expertise in the technology that drives Intel’s business,” Intel said.

Gelsinger’s 2022 base salary for 2022 is US$1.25 million. He has an annual cash bonus target of 275 percent under the Intel Executive Annual Performance Bonus Plan and total annual and quarterly cash bonus target opportunity of US$3.57 million, as well as a long-term incentive equity award of US$21.5 million.

This article originally appeared at crn.com

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