Intel is making it more difficult for CEO Pat Gelsinger to earn a significant portion of his compensation package, even as such awards have become increasingly out of reach due to a tanking stock price.
The x86 giant on Tuesday announced amendments to how and when Gelsinger can receive payouts from the new hire performance-based equity awards
he was granted upon becoming CEO in February 2021. The changes were laid out in a
8-K regulatory filing with the US Securities and Exchange Commission.
The modifications, among other compensation changes for top executives outlined, were enacted in reaction to a
sharp rebuke by investors earlier this year to the pay practices of Intel's top officers. Shareholders had voted in a nearly two-to-one ratio against the compensation packages for the chipmaker's top execs. While it was non-binding, Intel said at the time that it took the vote seriously.
In general, the alterations to Gelsinger's new hire performance-based equity awards increased the "stock price performance hurdles for certain awards," while "lengthening the period during which stock price performance hurdles must be maintained," according to the SEC filing.
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