Introduction
Intel shareholders have approved a massive $42 million compensation package for CEO Lip-Bu Tan, aligning his pay with the company’s stock performance.
The decision comes amid ongoing restructuring efforts and contentious proposals regarding Intel’s operations in Israel.
With the semiconductor giant navigating a challenging landscape, Tan’s compensation deal underscores the company’s commitment to aggressive transformation and strategic growth.
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Overview of Key Points:
$42 Million CEO Compensation Approved: Intel’s shareholders greenlit a performance-based pay package for CEO Lip-Bu Tan amid restructuring.
Proposals on Israel Operations Rejected: Shareholders rejected calls for an Ethical Impact Assessment of Intel’s business activities in Israel.
Workforce Cuts in Israel: Intel’s workforce in Israel declined to 9,350 in 2025, the lowest since 2013, with further layoffs expected.
Intel’s Restructuring Efforts: Tan is leading a comprehensive restructuring plan, including a 20% workforce reduction and restructured leadership.
Foundry Business Developments: Intel is ramping up production of its 18A process, with two enhanced variants set to enter manufacturing in 2026 and 2028.
Intel CEO’s $42 Million Compensation Plan: What It Entails
Intel’s new CEO, Lip-Bu Tan, who took office in March 2025, received shareholder approval for a $42 million compensation package.
The package is primarily performance-based, tying Tan’s stock awards to Intel’s financial performance.
The approved deal reflects shareholder confidence in Tan’s ability to lead Intel through a critical period of transformation. Tan’s compensation includes substantial stock awards contingent on Intel’s share performance, aligning his incentives with the company’s long-term growth strategy.
Tan’s leadership comes at a pivotal time for Intel. The company is undertaking a significant restructuring plan that includes cutting over 20% of its workforce to streamline operations and reduce costs. Despite these aggressive measures, shareholders appear optimistic that Tan can steer Intel through the current economic headwinds and position the company for long-term success.
Proposals on Israel Operations Rejected
While the CEO’s compensation plan sailed through, Intel shareholders rejected three key proposals, including a contentious call for an Ethical Impact Assessment of the company’s operations in Israel.
Intel’s Board opposed the motion, citing its longstanding investments in Israel and the country’s importance to Intel’s research and development strategy. According to CTech, Intel’s Israel workforce has declined to 9,350 employees in 2025—the lowest since 2013. The workforce reduction comes amid a broader restructuring effort under Tan’s leadership.
Intel has had a major presence in Israel for decades, with significant R&D facilities and chip manufacturing plants in the region. However, the layoffs have raised concerns about Intel’s long-term commitment to the country. According to a report by Reuters, further layoffs are expected throughout 2025 as Intel continues to consolidate its global workforce.
Intel’s Workforce in Israel: A Declining Trend
Intel’s workforce in Israel has been steadily declining in recent years, reflecting broader cost-cutting efforts. The table below illustrates the headcount reduction over the past four years:
| Year | Employee Count in Israel |
|---|---|
| 2021 | 12,000 |
| 2022 | 11,700 |
| 2023 | 10,800 |
| 2025 | 9,350 |
Despite these reductions, Intel continues to emphasize the importance of its Israel operations. Intel Israel has been a key contributor to the company’s technological advancements, particularly in AI, data centers, and chip manufacturing. However, as Intel realigns its business strategy, the future of its workforce in Israel remains uncertain.
Restructuring Under CEO Lip-Bu Tan
Tan’s strategy for Intel includes an aggressive restructuring plan aimed at cost reduction and operational efficiency. According to a memo reviewed by Reuters, Intel plans to cut over 20% of its workforce as part of a comprehensive restructuring initiative.
Additionally, Tan has overhauled the company’s leadership structure. The data center, AI chip, and personal computing divisions will now report directly to him. This streamlined reporting structure is intended to improve decision-making and accelerate the rollout of new products.
Tan’s strategy also includes a focus on AI and advanced computing, areas where Intel aims to regain its competitive edge against industry leaders such as NVIDIA and AMD. Under his leadership, Intel is ramping up its investments in AI capabilities and next-generation chip development.
Intel’s Foundry Business: A Strategic Focus
Intel’s foundry business is another critical component of its restructuring strategy. The company is investing heavily in advanced chip manufacturing to compete with TSMC and Samsung.
The upcoming 18A process, currently in risk production, is a significant milestone in Intel’s manufacturing roadmap. Intel expects to enter volume production of 18A chips by the end of 2025. Additionally, Intel is developing two enhanced variants—18A-P and 18A-PT—that are expected to enter production in 2026 and 2028, respectively.
Intel has also started providing early Process Design Kits (PDKs) for its 14A process to key customers, signaling further progress in its foundry business. The move is part of Intel’s broader strategy to regain its footing as a leading semiconductor manufacturer.
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Investor Concerns and Strategic Outlook
While the $42 million compensation package for Intel CEO Lip-Bu Tan indicates shareholder confidence, the rejection of proposals related to Israel operations suggests underlying concerns. Intel’s restructuring strategy involves significant layoffs, including in Israel, where the company has historically maintained a strong presence.
Intel’s decision to reject the Ethical Impact Assessment proposal highlights its prioritization of business interests over shareholder concerns regarding workforce reductions. The company’s leadership remains focused on achieving its strategic objectives, particularly in AI and foundry operations.
However, with further layoffs expected and continued scrutiny over its operations in Israel, Intel faces a challenging path forward. As the company executes its turnaround plan, maintaining investor confidence and workforce stability will be critical to its long-term success.
Conclusion
Intel’ shareholder meeting marked a key moment, approving a $42 million compensation package for CEO Lip-Bu Tan as he leads a major restructuring.
While shareholders backed his leadership, they rejected proposals concerning Intel’s operations in Israel, reflecting concerns over workforce reductions and ethical issues.
As the company pushes forward with restructuring and next-gen chip investments, Tan’s ability to balance performance and stability will be crucial for Intel’s future in the competitive semiconductor market.
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