Intel CEO Returns, Received Over 200 Billion KRW in Compensation Last Year

Pat Gelsinger Intel CEO
Photo by AP News

[Asia Economy Reporter Jeong Hyunjin] Pat Gelsinger, who left Intel and returned as CEO in February last year, received more than 200 billion won in compensation last year alone, becoming the second highest-paid CEO among S&P 500 companies.

According to the Wall Street Journal (WSJ) and others on the 30th (local time), Intel disclosed to the U.S. Securities and Exchange Commission (SEC) that CEO Gelsinger received a compensation package worth $178.6 million (approximately 220 billion won) last year. WSJ reported that this made him the second highest-paid CEO among S&P 500 companies, following David Zaslav, CEO of Discovery, who received $246.6 million last year.

Examining the compensation package received by CEO Gelsinger, it included a base salary of $1.1 million, $140.4 million in stock, $29.1 million in options, and an additional $5.1 million in other compensation. Most of this is paid over 3 to 5 years, and the payment is influenced by Intel’s stock price performance. WSJ explained that for him to receive $45 million in compensation, Intel’s stock price must at least triple within five years.

Intel stated that the compensation was based on considering his experience and capabilities upon his return after 30 years at Intel and then leaving to become CEO of the cloud computing company VMware, as well as the fact that he lost about $500 billion in equity compensation at VMware. They also mentioned that leading change at Intel is a very challenging task. Given the need to quickly respond to market changes due to global semiconductor demand expansion and supply shortages caused by the COVID-19 pandemic, his abilities are essential, which explains the compensation.

Intel’s stock closed at $51.43, down 1.57% from the previous day, and WSJ reported that it has fallen more than 9% since the announcement of Gelsinger’s return in January last year. Since his return, CEO Gelsinger has announced plans to re-enter the foundry business and build large-scale production facilities in Arizona, USA, and Germany, and has actively secured incentives from the Joe Biden administration, which is focusing on resolving semiconductor supply chain issues.

Intel disclosed that CEO Gelsinger’s total direct compensation for this year is expected to be around $26.3 million, significantly lower than last year. This includes a base salary of $1.25 million and stock worth $21.5 million. WSJ reported that CEO Gelsinger previously stated he donates more than half of his annual compensation and has steadily increased his donation ratio.

This content was produced with the assistance of AI translation services.