Intel Corporation has announced the resignation of CEO Pat Gelsinger after less than four years at the helm. Pat Gelsinger’s departure follows a tumultuous tenure marked by ambitious but costly turnaround plans that failed to reverse the company’s declining fortunes.
A regulatory filing revealed Pat Gelsinger could receive up to $12 million in severance, which includes 18 months of base salary amounting to $1.9 million, 1.5 times his target bonus of $3.4 million, and a pro-rated bonus for his tenure in 2024, Reuters news report said.
The decision to part ways reportedly came after an intense board meeting last week, where directors expressed dissatisfaction with Pat Gelsinger’s turnaround strategy. Intel’s revenue has plummeted nearly one-third to $54 billion since he took over, and its market capitalization has dipped below $100 billion for the first time in 30 years.
Intel shares initially rose by 6 percent on the news but closed down 0.5 percent on Monday. The company has significantly lagged behind its peers in capitalizing on the AI boom, with rivals like Nvidia surging in value.
Pat Gelsinger’s plan to refocus on Intel’s contract manufacturing business — intended to challenge competitors like Taiwan’s TSMC — strained the company’s finances, causing cash flow issues despite increased capital expenditures. His controversial remarks about Taiwan also strained relations, leading to the loss of a discounted manufacturing deal with TSMC.
The company has appointed two interim leaders while it searches for a permanent replacement to guide Intel through its ongoing challenges.
