Intel Shareholders Approve CEO Compensation and Equity Incentive Plan Amid Leadership Shift
Intel shareholders on Tuesday approved a new equity incentive plan designed to bolster stock reserves for attracting and retaining talent, as well as a $42 million stock-based compensation package for newly appointed CEO Lip-Bu Tan. The vote took place during the company’s first shareholder meeting under Tan’s leadership.
Intel shares fell 1.6% in early trading, extending a 36% decline over the past year, as investors digest the company’s ongoing leadership and strategic shifts.
Tan, who succeeded Pat Gelsinger in March after the board lost confidence in his high-cost turnaround efforts, will have his compensation tied to Intel’s future stock performance. Tan has already initiated a restructuring plan, which includes flattening the corporate hierarchy, cutting excess middle management, and recalibrating Intel’s artificial intelligence roadmap.
Shareholders also approved the current board of directors, although three members did not seek re-election. Meanwhile, three shareholder proposals were rejected, including:
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A call to reassess Intel’s operations in Israel,
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A demand for new charitable giving transparency, and
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A proposal to allow shareholders to act by written consent.
Tan said he plans to capitalize on Intel’s established positions in the PC and data center markets to deliver more competitive AI products, signaling a strategic refocus in an increasingly crowded chip landscape.