SAN FRANCISCO (Reuters) -Intel shareholders on Tuesday approved a measure by the chipmaker aimed at topping up share reserves to attract and retain new employees, and compensation for its new CEO Lip-Bu Tan.
Intel shares fell 1.6% in early afternoon trading after dropping 36% in the past year.
Shareholders approved the Santa Clara, California-based company’s board of directors, though three members did not stand for reelection. Tan, who took the helm in March after the board ousted former CEO Pat Gelsinger in December, will get stock awards of $42 million depending on how Intel’s shares perform.
Three shareholder proposals were rejected. The proposals would have required Intel to reassess its operations in Israel, produce new reports on charitable giving and give shareholders the right to act by written consent.
The shareholders meeting was the first for Tan. The board had lost confidence in Gelsinger’s costly turnaround plan after he failed to deliver on lofty promises.
Tan has begun to restructure Intel by flattening the leadership hierarchy and articulating a plan to rebuild its artificial intelligence business and cut its large middle management layer.
Tan said he intends to leverage Intel’s large share in the personal computer and data center markets to deliver more competitive products, and will refine its AI strategy.
(Reporting by Stephen Nellis and Max A. Cherney in San Francisco; Editing by Franklin Paul and Richard Chang)
