Pat Gelsinger stepped down as CEO of Intel on December 1, 2024. He assumed the position in February 2021. Reportedly, Intel offered him the choice to retire of his own accord or be removed, and the former CEO of VMWare chose to retire. Reportedly, his payout as he retires is estimated to be $12 million given his roles under massive corporations like Mobileye Global Inc., VMware, Inc., and EMC Corporation.
According to a report by Reuters, Pat's severance payment would comprise a $1.9 million base salary for 18 months and a $3.4 million bonus payable over 18 months. He will also be eligible for his annual bonus for the 11 months he served as CEO. Cumulatively, his retirement package comprises $12 million as a payout.
As for what he invented, Pat Gelsinger can be credited with the "creation of key industry technologies like USB and Wi-Fi." According to the official website, Gelsinger was "the architect of the original 80486 processor." Pat led 14 microprocessor programs, and played key roles in the Intel® Xeon® processor families and the Intel® Core™, leading to Intel becoming the world’s preeminent microprocessor supplier."
Pat Gelsinger leaves a slew of setbacks during his almost-three-year tenure: Read more
As reported by TheStreet, Intel struggled in the market during Gelsinger’s tenure, with competitors including Nvidia gaining control of the market shares as they were quicker to utilize AI to their benefit. Intel's stock took hits worth 61% of its value, as reported by MoneyCheck, thereby losing its place in the Dow Jones Industrial Average.
In the wake of Gelsinger's departure, interim Board Chairman Frank Yeary stated,
"While we have made significant progress in regaining manufacturing competitiveness and building the capabilities to be a world-class foundry, we know that we have much more work to do at the company and are committed to restoring investor confidence."
Gelsinger also took to X to reflect on his retirement:
"Leading Intel has been the honor of my lifetime. I am forever grateful for the many colleagues around the world who I have worked with as part of the Intel family and can look back with pride at all that we have accomplished together. Thank you all!"
Pat Gelsinger assumed the role of the company's CEO in February 2021, having stepped in for Bob Swan. He was tasked with revamping the chipmaker. However, reportedly, under his tenure, Intel failed to keep up with delivering new technologies on time, and reports of instability in their CPUs were flooding in. Furthermore, Intel failed to make it as Microsoft's AI PC launch partner.
Notably, the same year he joined, he reportedly strained relations with TSMC by calling out their relations with China. Per Reuters, he said at the time:
"You don't want all of your eggs in the basket of a Taiwan fab."
Per the International Business Times, he was referring to a chip fabrication plant located in Taiwan. In another tech conference later that year, he stated that "Taiwan is not a stable place," even though China can be attributed to producing vast amounts of the global supply of semiconductors.
As for its new Core Ultra 9 200S-series processors, it performed subpar, with Intel VP Robert Hallock conceding that the launch failed to meet expectations.
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In the wake of Pat Gelsinger's retirement, Intel CFO David Zinsner and Intel Products CEO Michelle Johnston Holthaus will be stepping in as interim co-CEOs as Intel looks for replacements to succeed the veteran. Frank Yeary, an independent board chair, will be named interim executive chair.
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