Intel CEO Pat Gelsinger’s $12 Million Severance: What Employees Should Know

Intel Corp.’s recent announcement of a $12 million severance package for outgoing CEO Pat Gelsinger has sparked significant interest. Severance packages for executives often come under scrutiny, especially when tied to challenging financial circumstances, as seen with Intel’s struggles during Gelsinger’s tenure.

Here’s what you need to know about his severance package and what it highlights for employees and executives navigating job transitions.

The details of Gelsinger’s severance package

According to Intel’s regulatory filing, Gelsinger’s severance package includes:

• Base salary: $1.9 million, paid over 18 months.
• Bonus: 1.5 times his target bonus of $3.4 million, also payable over 18 months.
• Annual bonus: Compensation for the 11 months he served as CEO in 2024.

This brings the total severance payout to an estimated $12 million.

Gelsinger’s exit follows a turbulent period for Intel, marked by a staggering $16.6 billion quarterly loss, a halted dividend, and a 60% decline in the company’s share price since he took over in 2021.

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• Intel Layoffs: How severance works
• ‘Six-Million-Dollar’ Hydro One CEO Walked Away from $10M Severance?
• Executive Employment Contracts: Definition & Negotiating
• Do I get severance if I quit?

What can non-executives learn from executive severance packages?

While Gelsinger’s severance package is sizable, it sheds light on key severance principles that apply to employees at all levels in Canada.

1. Severance Protects Employees After Termination

A severance package helps employees transition after losing their job, providing financial stability. Whether you’re a CEO like Gelsinger or an entry-level worker, a severance package should account for your pay, role, years of service, commission, bonuses, benefits and unused vacation.

For employees dismissed without cause (as opposed to alleged termination for cause), your severance package can amount to as much as 24 months’ pay.

2. You Can Negotiate Severance

While executives often pre-negotiate robust severance packages, non-executive employees can also negotiate severance offers at the time of termination. If your employer’s offer doesn’t reflect your full rights, you may have grounds for a wrongful dismissal claim. Secure additional compensation with the help of an employment lawyer at Samfiru Tumarkin LLP.

LEARN MORE
• How to negotiate severance in Ontario
• Should I negotiate severance in Alberta
• Can I negotiate my own B.C. termination package?

3. Termination Clauses May Limit Your Rights

In Canada, some employment contracts include termination clauses that try to cap severance at the minimum required by law. These clauses are often unenforceable due to poor wording or other issues. Have your contract and severance offer reviewed by an employment lawyer to ensure you’re getting everything you’re owed.

Intel’s financial troubles and Gelsinger’s departure

Gelsinger’s exit highlights the challenges Intel faces, including substantial losses and a challenging turnaround strategy. Despite these issues, Intel recognized its contractual obligations to Gelsinger through his severance package.

Takeaways for employees and employers

• For Employees: If you’ve been terminated, ensure you understand your severance entitlements. Use tools like the free Severance Pay Calculator to estimate your compensation and consult with an employment lawyer to secure what you’re owed.
• For Employers: Offering fair severance is a legal obligation, and also a step toward avoiding disputes and legal issues.

Contact us today

If you’ve lost your job and want to ensure you’re receiving the full severance pay you’re entitled to, contact an experienced lawyer at Samfiru Tumarkin LLP. We’ve helped over 50,000 non-unionized employees in Ontario, Alberta, and B.C. secure proper compensation.

Get the compensation you deserve.