Intel Reports Inducement Grants under Nasdaq Listing Rule 5635(c)(4)
SANTA CLARA, Calif., February 18, 2021 – Intel (Nasdaq: INTC) today announced that it made the following inducement grants to Pat Gelsinger in connection with his appointment as Intel’s new Chief Executive Officer. Such grants were made under the Intel Corporation 2021 Inducement Plan, which Intel’s Board of Directors approved and adopted on February 11, 2021. These grants were included in Mr. Gelsinger’s offer letter and were previously described in the Form 8-K filed by Intel with the SEC on January 14, 2021.
Mr. Gelsinger’s inducement grants (the “Gelsinger Inducement Grants”) consist of the following:
- A grant of performance stock units that may be earned based on relative total shareholder return performance, with a target number of 368,965 Intel shares subject to the grant, and with a potential to earn up to 200% of such target share number upon maximum performance.
- A grant of time-based restricted stock units, with 421,620 Intel shares subject to the grant.
- A grant of performance stock units that may be earned based on stock price growth at threshold, target and maximum levels, with a target number of 457,789 Intel shares subject to the grant, and with a potential to earn up to 200% of such target share number upon maximum performance.
- A grant of performance-based stock options that may be earned based on at least 30% stock price growth, with 2,083,638 Intel shares subject to the grant.
- A grant of performance stock units that may be earned based on a tripling of Intel’s stock price, with 3,275,199 Intel shares subject to the grant.
- As a result of Mr. Gelsinger’s election to purchase Intel shares from Intel equal to an amount of $10,000,000, a grant of matching time-based restricted stock units based on the number of shares purchased by Mr. Gelsinger, but capped in an amount of $10,000,000 in aggregate value, which share number underlying the grant will be determined using the simple average of Intel’s share trading prices for the 30 consecutive days preceding the grant date in March 2021.
The Gelsinger Inducement Grants were approved by Intel’s Compensation Committee on February 11, 2021, pursuant to a delegation by Intel’s Board of Directors and were or will be issued as inducement equity grants pursuant to Nasdaq Listing Rule 5635(c)(4), as an inducement material to Mr. Gelsinger entering into employment with Intel.
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Released Feb 18, 2021 • 5:00 PM EST