Intel’s Pat Gelsinger departing chipmaker with millions in severance

Former CEO of Intel Pat Gelsinger He will receive millions of dollars in severance and other compensation following his decision to resign and retire from the struggling semiconductor maker this weekend.

Mr. Gelsinger, 63, resigned from Intel and its Mobileye subsidiary on Sunday, Dec. 1, after spending a 30-year career with the company, including the past four years as CEO. Gelsinger's departure comes amid a four-year turnaround plan aimed at strengthening the company, which has struggled amid the rise of rivals such as Nvidia and Taiwan Semiconductor Manufacturing Co. Intel's chip manufacturing competitiveness.

Under Gelsinger, Intel will pay 18 months of his current base salary of $1.25 million and 1.5 times his current target bonus of 275% of his base salary, Intel said in a filing with the Securities and Exchange Commission. Then he said. It will be paid over 18 months.

In total, the payments amount to just over $7 million. Mr. Gelsinger will also receive an annual bonus in 2024, prorated over 11 months, which could exceed $3 million and vary depending on the company's performance.

Intel CEO Pat Gelsinger steps down as chipmaker struggles

“It has been the honor of my life to lead Intel,” Gelsinger said in a statement. “This group of people is some of the brightest and brightest in the industry, and I am honored to call each and every one of them my colleagues.” said. “Of course, today is bittersweet. This company has been the center of my life for much of my career, and I can look back with pride at all we have accomplished together.”

He also acknowledged the challenges facing chipmakers, adding: “This has been a difficult year for all of us as we have made tough but necessary decisions to position Intel in the global marketplace.” Current market dynamics. I am forever grateful to the many colleagues around the world that I have worked with as part of the Intel family. ”

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Intel CEO Pat Gelsinger speaks at the Taipei Nangang Exhibition Center during Computex 2024 in Taipei, June 4, 2024 (Photo by I-Hwa CHENG/AFP) (Photo by I-HWA) CHENG/AFP via Getty Images) (I-HWA CHENG/AFP via Getty Images)/Getty Images)

“While we have made great progress towards recovery, Competitiveness in manufacturing Frank Yeary, independent chairman of Intel's board of directors, said in a statement.

Two senior executives, David Zinsner and Michelle Johnston Holthaus, will serve as interim co-CEOs as the board conducts a search for a new chief executive, which has already begun. The company said it has established a search committee and will “work diligently and quickly” to find a permanent replacement for Gelsinger.

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Then-Intel CEO Pat Gelsinger shows U.S. President Joe Biden processors and semiconductor wafers during a tour of Intel's Ocotillo campus in Chandler, Arizona, March 20, 2024. (Brendan Smialowski/AFP via Getty Images/Getty Images)

of The Oregonian/OregonLive reported It is unclear whether Mr. Zinsner and Mr. Holthaus will receive additional compensation for serving as Intel's interim CEO, but the company estimates that Mr. Zinsner received $8.5 million in compensation last year and Mr. Holthaus received $9.2 million. It is said that there is

Intel received billions of dollars in funding from the federal government. chips methodprovides subsidies, loans and tax credits to chip makers with the goal of bringing more semiconductor manufacturing back to the United States from overseas.

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Department of Commerce decides to invest approximately $8 billion in CHIPS Act Funding for Intel – However, that amount was less than his original compensation under the law because he had received a $3 billion contract from the Department of Defense.

FOX Business' Daniella Genovese and Breck Dumas contributed to this report.