In a remarkable testament to the dynamic shifts within the semiconductor industry, Intel Corp. (INTC) CEO Pat Gelsinger’s total compensation for 2023 soared by 45%, reaching $16.86 million. This increase comes on the heels of Intel’s stock rebounding dramatically by 90.1% in 2023, a sharp recovery from its 48.7% decline in 2022.
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Comparative Analysis with Industry Peers
While Gelsinger’s compensation package saw a significant uplift, it pales in comparison to Advanced Micro Devices Inc. (AMD) CEO Lisa Su’s 2023 earnings, which totaled $30.35 million. Su’s package narrowly edged past her 2022 compensation, maintaining her lead over Gelsinger in the pay stakes by 80%.
Breaking Down Gelsinger’s Pay
Gelsinger’s 2023 compensation mix shifted, with a reduction in salary but increases in stock awards and non-equity incentive plan compensation, the latter reflecting performance bonuses. Notably, Gelsinger also benefited from $112,000 in deferred compensation related to pension value changes, a perk not received the previous year.
Intel detailed the “all other compensation” category, which notably included costs for nonbusiness car service, deemed necessary for Gelsinger’s job performance and security. Other elements of this category covered retirement-plan contributions, financial planning, and charitable contributions made on Gelsinger’s behalf.
AMD’s Su Maintains Compensation Lead
AMD CEO Lisa Su’s compensation structure for 2023 remained robust, with her receiving a mix of salary, stock and option awards, and non-equity incentive plan compensation. Su’s “all other compensation” interestingly included costs for spousal travel on company aircraft for business trips.
A Look at Nvidia’s Jensen Huang
The semiconductor industry’s compensation spotlight also awaits Nvidia Corp. (NVDA) CEO Jensen Huang’s latest earnings reveal, following a year where Nvidia’s stock experienced a staggering 238.9% surge.
With Nvidia’s market cap vastly outpacing both Intel and AMD, the anticipation around Huang’s compensation reflects the company’s leading position in the artificial intelligence sector.
Intel and AMD’s Market Performance
Despite the executive compensation narratives, the stock performance of Intel and AMD underscores the competitive landscape, with Gelsinger’s tenure seeing a 28.5% decline in Intel’s shares, contrasted against AMD’s 92.5% increase.
As the semiconductor industry continues to evolve, the compensation packages of its leading executives remain a focal point, reflecting both the challenges and successes within this critical sector.
