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Intel CEO Pat Gelsinger Paid Almost $180 Million in 2021

In the 11-month period of 2021 since he was appointed Intel CEO in January/February 2021, Pat Gelsinger raked in 178.6 million, with 79% of his compensation being made up of one-time stock awards. That is roughly 1,711 times the average Intel worker’s income. In comparison, previous CEO Bob Swan was paid 698% less, and 217 times the average company staff income.

The massive pay packet received by Gelsinger likely comes down to his endeavor to turn the American semi-conductor company around, as shareholders hope his appointment counteracts share losses and leads to an increase in stock price.

Before his appointment as Intel CEO, Gelsinger was the head of VMware, where he close to doubled sales figures, and had previously spent 30 years working for Intel. In the company’s annual proxy filing on Wednesday disclosed Gelsinger’s salary and ranked him second among S&P 500 company CEOs, only second to CEO David Zaslav at Discovery Inc. who was paid $246.6 million.

Intel say that the stock awards were based on Gelsinger’s experience, the “considerable challenge of leading Intel’s transformation” and his forfeit of $50 million in equity awards from VMware. He will receive his stock awards over a period of three to five years.

A large portion of Gelsinger’s compensation is only to be awarded provided targets are met, $45 million of which requiring Intel’s value to triple over 5 years. Since he was appointed CEO, Intel shares fell 9%. While lower than the 17% drop the previous year, his performance targets are far from being met as of yet.

Two of Intel’s main semi-conductor manufacturing competitors, Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. have both overtaken the American company over the last few years. Part of Gelsinger’s plan is to invest heavily in the chip manufacturing sector, and have already started to receive major customers such as rival chip developer Nvidia, who were previously with Taiwan Semiconductor Manufacturing Co.

Credit: Intel

As part of the chip manufacturing investment, Intel are spending $20 billion on new Arizona factories and plan for another $20 billion spend for Ohio and $36 billion for similar European Investments.

This advancement is in response to global chip shortages. Intel have also been in talks with the Biden Government and governments in Europe for financial support in the billions for Intel chip factories.

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