In 2021 Earning Of Intel CEO Was 1,711 Times Higher Than Average Worker Of The Firm

In 2021 Earning Of Intel CEO Was 1,711 Times Higher Than Average Worker Of The Firm
Voiced by Amazon Polly

Yet another instance of the high level of pay disparity between the top honchos and the average workers in global corporations became evident after it was revealed that the CEO of Intel Corp, Pat Gelsinger’s 2021 earning was 1,711 folds more than what the average worker at the American chipmaker was given. This data is for only the 11 months that he had been working at the company since being appointed to the position in February last year.

This was revealed in a regulatory filing by the company earlier this week. 

For context, the former CEO Bob Swan’s earnings in 2020 were 217 times more than the average Intel employee.

In 2021, Gelsinger was paid $178.6 million, with stock awards accounting for about 79% of his total salary, which was nearly 698 percent more than Swan’s income in 2020.

In the United States, executive pay has been increasing. Tim Cook, the CEO of Apple Inc, earned 1,447 times the average Apple employee’s compensation in 2021. Despite the opposition of proxy consulting firm Institutional Shareholder Services, Apple shareholders accepted the remuneration deal.

At the annual stockholders meeting on May 12, Intel has requested shareholders to vote in support of executive compensation.

There was no official comment on the issue from Intel. 

Also Read: US Dollar’s Dominance Could Be Threatened By West’s Russia Sanctions, Warns The IMF

After taking over as CEO of Intel, which was formerly the world leader in chip-making technology, Gelsinger launched a turnaround strategy to help the business reclaim its dominance in the semiconductor sector, which is currently led by Taiwan Semiconductor Manufacturing Co.

Intel’s stock rose 6.8% last year after falling nearly 17% the year before as the company grappled with a manufacturing crisis and competition.

Intel unveiled the first outlines of a $88 billion investment plan spanning six European Union countries, including a significant investment in Germany, earlier this month. find out more.

Before returning to Intel as its CEO, Gelsinger was the CEO of VMWare Inc. Before leaving Intel, he had worked there for 30 years.

According to the regulatory document, his pay included one-time new-hire equity awards with a target value of nearly $110 million.

According to the SEC filing, Gelsinger’s target total direct remuneration for 2022 is $26.3 million, which is in line with the market’s 50th percentile for a CEO of Intel’s size.

The $26.3 million compensation for 2022 is “based on our peer companies, and for a CEO with both his extensive experience as a CEO and his unique technical expertise in the technology that drives Intel’s business,” Intel said in the filing document.

The basic pay for Gelsinger in 2022 is $1.25 million. Under the Intel Executive Annual Performance Bonus Plan, he has a 275 percent annual cash bonus target, a total annual and quarterly cash bonus target opportunity of $3.57 million, and a long-term incentive equity award of $21.5 million.

Also Read: The US President Decides To Release Oil From Reserves To Stabilize Prices

WANT MORE NEWS LIKE THIS?

Sign up to receive our weekly email newsletter and never miss an update!