Intel is paying over $23 million to bring in eBay's former CFO
Intel
Swan's hiring was a bit of a surprise, given his lack of experience in the chip business. He was most recently a partner at private equity firm General Atlantic, and before that, has spent 9 years as eBay's CFO.
But perhaps what's more surprising is his lofty pay package that exceeds $23 million in total, according to a regulatory filing.
Swan will get an $850,000 base salary, but is eligible for an annual bonus of $1.2 million and a hiring bonus of $5.5 million. On top of that, his new hire stock grant and annual equity award could each be worth $9.5 million and $6.5 million, respectively.
Swan's compensation package is particularly interesting because it shows Intel's willingness to pay big bucks to bring in outside executives, even as the company's going through a massive cost cutting plan that involves its biggest layoff in history. Just last year, Intel gave a $25 million pay package to former Qualcomm exec Venkata "Murthy" Renduchintala to hire him as the company's number two executive.
Tricky timing
"We do note a continuation of high pay for new talent however, with Mr. Swan's package coming in at a bit over $23 million," Bernstein's analyst Stacy Rasgon wrote in a note.
It'll be interesting to see how Intel's current employees take these high compensation packages given that the rest of the company is going through a painful reorganization process. We did previously hear rumblings from a number of current and former employees who questioned the logic behind these big pay packages.
Still, Rasgon says Swan's hiring is a "reasonably positive" move given his experience in restructuring at a private equity firm. At eBay, he also oversaw more than 30 acquisitions and helped with the spinoff of PayPal.
"Mr. Swan's most recent role in private equity (Operating Partner at General Atlantic), may enable him to bring a skillset to bear on Intel's ongoing restructuring and refocusing, as well as investing for growth…Overall our initial (outside-in) impressions of this hire are reasonably positive," Rasgon wrote.
- I quit McKinsey after 1.5 years. I was making over $200k but my mental health was shattered.
- Some Tesla factory workers realized they were laid off when security scanned their badges and sent them back on shuttles, sources say
- I tutor the children of some of Dubai's richest people. One of them paid me $3,000 to do his homework.
- Why are so many elite coaches moving to Western countries?
- Global GDP to face a 19% decline by 2050 due to climate change, study projects
- 5 things to keep in mind before taking a personal loan
- Markets face heavy fluctuations; settle lower taking downtrend to 4th day
- Move over Bollywood, audio shows are starting to enter the coveted ‘100 Crores Club’