Jakarta – Pat Gelsinger suddenly resigned from his position as CEO of Intel after serving for four years. He is set to receive a severance package worth over USD 10 million, or approximately IDR 159.3 billion.
According to documents recently filed with the Securities and Exchange Commission (SEC), Intel and Gelsinger signed a ‘retirement and separation agreement.’
Under this agreement, Gelsinger will receive an amount equivalent to 18 months of his base salary. Gelsinger’s base salary is USD 1.25 million per year, meaning he will receive USD 1.875 million.
In addition, he will receive a bonus of 1.5 times his current target bonus, which is equivalent to 275% of his base salary, totaling USD 5.16 million. Both payments will be made over an 18-month period.
Furthermore, Gelsinger will also receive a pro-rata payment equal to 11/12 of his annual bonus for the year 2024, amounting to approximately USD 3.15 million. However, the amount of this pro-rata bonus depends on the company’s performance and has additional conditions. So, in total, Gelsinger will retire with at least USD 7 million, with a potential maximum payout of up to USD 10.18 million, as reported by TechCrunch on Wednesday (December 4, 2024).
For comparison, former Yahoo CEO Marissa Mayer resigned from her position in 2016 with a severance package of USD 54.9 million. Meanwhile, WeWork founder Adam Neumann received a severance of over USD 400 million.
Gelsinger’s resignation, which took effect on December 1, 2024, came after he had served as Intel’s CEO for nearly four years. He first joined Intel at the age of 18 and has worked at the chip giant for over 40 years.
According to a Bloomberg report, Gelsinger was given two options by Intel’s board of directors: retire or be fired, and he chose the former. Intel is now led by two interim co-CEOs, CFO David Zinsner and GM of Intel’s Client Computing Group, Michelle Johnston Holthaus.
This year has been a rough one for Intel, as the company saw its valuation drop by about 30% in early August due to disappointing financial reports. As a result, Intel laid off 15% of its workforce, equivalent to 15,000 people, to cut costs.
