[News] Intel Backs CEO’s Compensation and Incentive Program, Rejects Reassessment on Israel Operations

Intel held its first shareholder meeting under new CEO Lip-Bu Tan on Tuesday. As noted by Reuters, shareholders approved a proposal to increase share reserves to support hiring and retention efforts. They also approved a compensation package for Tan, who could receive up to USD 42 million in stock awards tied to Intel’s share performance.

Shareholders rejected three proposals, including one that called on Intel’s Board of Directors to conduct an Ethical Impact Assessment of its business activities in Israel. The Board opposed the motion, citing the company’s significant investments and presence in the country, and warned that any divestment or downsizing could cause substantial harm to the company, according to CTech.

Intel’s workforce in Israel has dropped to its lowest level in more than a decade, with further layoffs expected later this year, CTech notes. By 2025, Intel’s Israel headcount dropped to 9,350—its lowest since 2013—down from 10,800 in 2023, 11,700 in 2022, and 12,000 in 2021, as per the report.

The other two rejected proposals, as reported by Reuters, called for increased transparency on charitable contributions and for granting shareholders the right to act by written consent.

Turnaround Strategy and Restructuring Efforts

Regarding Intel’s turnaround plan, Reuters states that Tan plans to build on the company’s strong position in the PC and data center markets to deliver more competitive products, while also sharpening its AI strategy.

Tan has also launched restructuring efforts at Intel, with the company planning to cut more than 20% of its workforce. The move marks the first major overhaul under Tan, who assumed the CEO role in March, as Bloomberg highlights.

In parallel, Tan is reshaping Intel’s leadership structure to streamline decision-making. As outlined in a memo reviewed by Reuters, the company’s data center, AI chip, and personal-computer chip divisions will now report directly to him.

Foundry Business Progress

Meanwhile, Intel is working to revive its foundry business, with signs of progress emerging through its upcoming 18A process. Now in risk production, 18A is expected to enter volume manufacturing later this year, according to its press release. Moreover, Intel is developing two performance-optimized variants—18A-P and 18A-PT—and has begun providing early 14A Process Design Kits (PDKs) to lead customers.

Read more

• [News] Intel Ramps Up Foundry Race: 14A Risk Production in 2027; 18A Variants Drop in 2026 and 2028
• [News] Intel CEO Lip-Bu Tan Outlines Turnaround Plan, Eyes Divestment of Non-Core Assets

(Photo credit: Intel)