Intel Corporation (NASDAQ:INTC) has entered into a new compensation agreement with Michelle Johnston Holthaus, the recently appointed Chief Executive Officer of the Intel Products business, according to a recent SEC filing. The agreement, effective as of Monday, outlines a significant increase in Johnston Holthaus’ compensation package.
As per the details of the agreement dated February 28, 2025, Johnston Holthaus’ annual salary has been increased to $1 million, with an annual cash bonus target opportunity that could reach up to $2 million, equating to 200% of her base salary. Additionally, her annual long-term incentive equity award target value has been set at approximately $16 million. Moreover, she has been granted a one-time award of restricted stock units valued at around $5 million.
The new compensation terms follow Johnston Holthaus’ appointment as CEO on December 1, 2024. Under the terms of the agreement, she is also eligible for severance benefits as per the Intel Corporation Executive Severance Plan. In the event that she resigns for a good reason within two years following the appointment of a new CEO at Intel, the benefits would still apply, contingent upon her agreement to a release of claims in favor of the company.
The SEC filing, which serves as the source of this information, includes further details of the agreement in Exhibit 10.1. This move by Intel reflects the company's commitment to aligning executive compensation with leadership responsibilities and business performance.
Intel, headquartered in Santa Clara, California, is a leading company in the semiconductor and related devices industry. The company's decision to adjust its executive pay structure comes amid a competitive market for top executive talent within the tech sector.
In other recent news, Intel Corporation's proposed $28 billion chip production facilities in Ohio are facing further delays, with completion now expected around 2030. This adjustment aligns with market demand and capital management strategies, as shared by Intel's general manager of Foundry Manufacturing. Meanwhile, the company's Panther Lake chips are encountering production challenges, with low yield rates potentially affecting mass production timelines in 2025, according to TF International Securities analyst Ming-Chi Kuo.
On the development front, Intel has expanded its Xeon 6 processor lineup, introducing new CPUs with enhanced performance capabilities for data center workloads. These advancements include improved AI processing and energy efficiency, alongside new Ethernet solutions to support robust business infrastructure. In terms of analyst activity, Mizuho Securities raised its price target for Intel to $23 from $20, maintaining a Neutral rating, while noting potential strategic moves such as spinoffs or sales of certain operations.
Additionally, Fitch Ratings revised Intel's rating outlook to Negative, citing concerns about the company's competitive landscape and de-leveraging pace. Despite these challenges, Intel's strong market positions in PCs and data centers continue to support its credit profile, although competition from AMD (NASDAQ:AMD) and ARM-based servers remains intense.
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