Intel’s new CEO could reap more than $400 million—Fortune

In a deep dive into Intel’s high-stakes compensation package for its new CEO, Fortune featured insights from Farient Advisors, highlighting the performance-driven structure of Lip-Bu Tan’s pay plan. According to Farient’s analysis, Tan’s potential earnings could exceed $400 million—but only if he successfully triples Intel’s stock price and outperforms the S&P 500.

Farient CEO Robin Ferracone emphasized the scale of the challenge, noting that Tan is not just executing a turnaround but is “very nearly rebuilding the company.” Meanwhile, Farient Vice President and Chief Data Officer Eric Hoffmann underscored the risk-reward nature of the package, pointing out that Tan’s grants could fail to vest entirely without significant stock price appreciation.

Intel’s compensation structure, which requires Tan to invest $25 million of his own money in company stock, aligns executive incentives with shareholder returns. With a long-term, equity-based approach, this pay plan reflects a growing trend of linking CEO compensation directly to business performance.

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About Robin Ferracone

Founder and CEO, Farient Advisors/GECN Group

New York: (646) 626-6931
Los Angeles: (626) 799-2700
robin.ferracone@farient.com

Robin Ferracone is founder and Chief Executive Officer of Farient Advisors LLC, an executive compensation, performance, and corporate governance advisory firm. Farient helps clients make performance-enhancing and defensible decisions in the best interests of their shareholders and other stakeholders. Robin provides these advisory services to public and private companies.

From 2005 to 2007, Robin was President of the Human Capital business of Mercer, a business that included talent and compensation consulting, software, and data services globally. Prior to that, Robin was Chairman of the U.S. West Region for Mercer’s parent company, Marsh & McLennan Companies; market leader and Worldwide Partner at Mercer; and President and Chairman of SCA Consulting, a firm she co-founded and sold to Mercer.

With over 30 years of consulting experience, Robin advises clients in the areas of business and talent strategies, executive compensation, organization, value management, and performance measurement. She is the author of the book entitled, “Fair Pay Fair Play: Aligning Executive Performance and Pay.” Her work focuses on providing high-impact decision-making support and organizational solutions based on strategic and market insights. In addition, Robin has authored numerous articles, is a regular contributor to Forbes.com and Directorship Magazine, and often is quoted in national publications. She is a frequent speaker for prominent organizations, such as the Council of Institutional Investors, Society for Corporate Secretaries and Governance Professionals, NACD, and The Conference Board.

Robin is currently on the Board of Directors of The Woodlands Financial Group (TWFG) where she serves as chair of the Compensation Committee. She also serves on the Board of WildAid, a global non-profit dedicated to protecting endangered species and reducing climate impacts. Robin is a trustee emeritus of Duke University. In addition, Robin is a member of 50/50 Women on Boards, the National Association of Corporate Directors, Women Corporate Directors, YPO Gold, and the Trusteeship. She formerly served on the Board of Trupanion, Inc., where she chaired the Compensation Committee. Of special significance, Robin has been named to the NACD Directorship 100, a list of the most influential people in corporate governance and the boardroom, an unprecedented 14 times. And, in 2014, she was selected as one of EY’s Entrepreneurial Winning Women, a competition that annually recognizes female entrepreneurs.

Robin received an MBA from the Harvard Business School, where she graduated with high distinction, and a BA summa cum laude in management science and economics from Duke University, where she was elected to Phi Beta Kappa.

 

About Eric Hoffmann

Chief Data Officer

Louisville, Kentucky
(626) 800-3120
eric.hoffmann@farient.com

Eric leads Farient’s data strategy, operational capabilities, partnerships, research, and client insights. With more than 20 years of human resource technology and data analytics experience, Eric’s work at Farient focuses on creating and delivering information and decision support to boards of directors, human resource professionals, and investors. Combining data analytics and visualization, Eric and his team create compelling narratives that lead to business insight and defensible decisions for his clients.

Eric has extensive experience in executive compensation and performance. From March 2005 to January 2011, he was the Technology Solutions Delivery Leader and a partner at Mercer. In support of Mercer’s compensation and benefits data and analytics business, Eric and his global, cross-disciplinary team delivered leading-edge SaaS-based client-facing and operationally driven data analytics solutions. Before that, Eric was a principal at Mercer, where he led a software development team. Eric holds a BS in computer science and mathematics from Purdue University and an MS in computer science from the University of Illinois at Urbana-Champaign.

 

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