In a nutshell: As Intel prepares for the arrival of its new CEO, Lip-Bu Tan, a recent regulatory filing has revealed details of his comprehensive compensation package. Tan will receive a base salary of $1 million, with the potential to earn an annual bonus of up to $2 million. However, the bulk of his compensation comes from long-term equity awards and stock options, totaling approximately $66 million. The package includes a long-term equity grant valued at $14.4 million and a performance grant of $17 million in Intel shares, set to vest over five years. Notably, Tan will only receive these shares if Intel's stock price does not decline over the next three years, with the potential to earn additional shares if the company outperforms the market.In addition, Tan will receive stock options worth $9.6 million and a new-hire option grant valued at $25 million. This comprehensive package is designed to align his incentives with long-term shareholder value creation. Intel emphasized that Tan's compensation is competitive within the industry and reflects his extensive experience as a technology leader.Given the broader industry trend of linking executive compensation to performance and equity growth, Tan's package is substantial but not unusual compared to other tech CEOs. Many top executives in the sector receive the bulk of their compensation through stock options and grants, often contingent on meeting specific performance benchmarks.To qualify for the grants and bonuses, Tan agreed to purchase $25 million in Intel shares within his first month as CEO. Additionally, the compensation package includes provisions for accelerated vesting in the event of a change in control, as outlined in Intel's recent SEC filing.As Tan takes the helm, Intel is counting on his deep industry expertise to drive a turnaround and sustain the recent momentum in its stock price, which has risen nearly 20 percent in 2025. In a statement, he reaffirmed Intel's commitment to reclaiming its status as a premier foundry, underscoring the company's dedication to the sector despite growing competition from TSMC and Samsung. // Related StoriesTan previously served as CEO of Cadence Design Systems, a leading electronic systems design company, from 2009 to 2021, and was a board member from 2004 to 2023. Having stepped down last August, he will now also rejoin Intel's board of directors.