Intel’s Pat Gelsinger departing chipmaker with millions in severance

Intel’s former CEO Pat Gelsinger is in line to receive millions of dollars in severance and other compensation following his decision this weekend to step down and retire from the struggling chipmaker.

The 63-year-old Gelsinger resigned from Intel and its subsidiary, Mobileye, on Sunday, Dec. 1, after spending three decades of his career at the company, including the last four years as its CEO. The chipmaker has struggled amid the rise of rivals like Nvidia and Taiwan Semiconductor Manufacturing Co., and Gelsinger’s departure comes in the midst of a four-year turnaround plan aimed at bolstering Intel’s chipmaking competitiveness.

Intel said in a filing with the Securities and Exchange Commission (SEC) that under Gelsinger’s  covering 18 months of his current base salary of $1.25 million, plus one-and-a-half times his current target bonus of 275% of his base salary that would be payable over 18 months. 

Taken together, the payments amount to just over $7 million. Gelsinger is also in line to receive his annual 2024 bonus pro-rated to 11 months, which could be upwards of more than $3 million but is variable based on the company’s performance.

INTEL CEO PAT GELSINGER RETIRES AS CHIPMAKER STRUGGLES

Former Intel CEO Pat Gelsinger is due to receive millions of dollars in compensation as severance following his resignation from the chipmaker. (Photographer: Patrick T. Fallon/Bloomberg via Getty Images / Getty Images)

“Leading Intel has been the honor of my lifetime – this group of people is among the best and the brightest in the business, and I’m honored to call each and every one a colleague,” Gelsinger said in a statement. “Today is, of course, bittersweet as this company has been my life for the bulk of my working career. I can look back with pride at all that we have accomplished together.”

He also acknowledged the difficulties the chipmaker has faced, adding that it “has been a challenging year for all of us as we have made tough but necessary decisions to position Intel for the current market dynamics. I am forever grateful for the many colleagues around the world who I have worked with as part of the Intel family.”

SHOULD STRUGGLING INTEL RECEIVE BILLIONS IN TAXPAYER DOLLARS?

Intel CEO Pat Gelsinger delivers a speech at Taipei Nangang Exhibition Center during Computex 2024, in Taipei on 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 significant progress in regaining manufacturing competitiveness and building the capabilities to be a world-class foundry, we know that we have much more work to do at the company and are committed to restoring investor confidence,” Frank Yeary, independent chair of the board of Intel,…