Intel CEO earned 1,700 times more than average company worker in 2021

Mr Pat Gelsinger earned S$242 million in 2021, with stock awards making up nearly 79 per cent of his compensation. PHOTO: REUTERS

(Reuters) - Intel chief executive Pat Gelsinger earned 1,711 times as much as the average worker at the United States chipmaker in just 11 months since he joined in February last year, a regulatory filing showed on Wednesday (March 30).

Compared with Mr Gelsinger, former CEO Bob Swan had earned 217 times more than the average Intel employee in 2020.

Mr Gelsinger earned US$178.6 million (S$242 million) in 2021, with stock awards making up nearly 79 per cent of his total compensation, which was about 698 per cent higher than Mr Swan's 2020 pay.

Executive pay has been rising in the US. Apple CEO Tim Cook earned 1,447 times the average employee's salary at the tech giant in 2021. Shareholders of Apple approved the pay package despite proxy advisory firm Institutional Shareholder Services pushing against it.

Intel has asked shareholders to vote in favour of its executives' compensation at the annual stockholder's meeting on May 12. It did not immediately respond to a Reuters request for comment.

After Mr Gelsinger took the reins at Intel, once a world leader in chip-making technology, he unveiled a turnaround strategy for the company to regain its dominance in the semiconductor industry, currently led by Taiwan's Taiwan Semiconductor Manufacturing Company.

Intel's shares rose 6.8 per cent last year after declining about 17 per cent the year before as the company faced a manufacturing crisis and struggled with competition. The shares were up 0.3 per cent at US$52.41 on Wednesday.

Earlier this month, Intel laid out the first details of a US$88 billion investment plan spanning across six European Union countries, including a massive investment in Germany.

Mr Gelsinger was CEO of VMWare before he returned to Intel as its top boss. He had spent 30 years at Intel before leaving.

His compensation included one-time new-hire equity awards with a target value of about US$110 million, according to the filing.

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