Intel's new CEO Lip-Bu Tan rejects three proposals from shareholders at first AGM, including one on Israel

Intel shareholders have reportedly approved a measure to replenish the company’s share reserves to attract and retain top talent, alongside a $42 million stock award package for new CEO Lip-Bu Tan, tied to the chipmaker’s stock performance. According to a report by Reuters, the decision was made at Intel’s annual shareholder meeting, the first under Lip-Bu Tan’s leadership since he assumed the role in March, following the board’s dismissal of former CEO Pat Gelsinger in December 2024. The meeting also saw shareholders reelect Intel’s board of directors, though three members opted not to stand for reelection, signaling a shift in the company’s governance.Three shareholder proposals were rejected, which would have mandated Intel to reassess its operations in Israel amid geopolitical concerns, issue detailed reports on its charitable contributions, and grant shareholders the ability to act by written consent without formal meetings. The rejections underscore Tan’s focus on strategic priorities over additional reporting or governance changes. Intel has one of the biggest operations in Israel.Tan’s appointment followed the board’s loss of confidence in Gelsinger’s ambitious but costly turnaround plan, which failed to deliver promised growth in Intel’s foundry business and AI initiatives. Gelsinger’s strategy, which included heavy investments in new manufacturing facilities, strained Intel’s finances amid a global slowdown in chip demand.Under Lip-Bu Tan’s leadership, Intel is undergoing a significant restructuring. The new CEO has flattened the leadership hierarchy, eliminating layers of middle management to streamline decision-making. Tan is also prioritizing a revival of Intel’s artificial intelligence (AI) business, aiming to compete more effectively with rivals like NVIDIA and AMD. He plans to leverage Intel’s dominant position in personal computer and data center markets to roll out more competitive products, while refining the company’s AI strategy to capitalize on growing demand for AI-driven solutions.The shareholder approval of the stock reserve plan is seen as critical for attracting talent in a highly competitive industry, where companies vie for engineers and AI specialists. Tan’s $42 million compensation package, heavily tied to stock performance, aligns his incentives with shareholder interests but has drawn scrutiny given Intel’s recent financial struggles, including a reported 8% revenue decline in Q1 2025 compared to the previous year.Analysts remain cautiously optimistic about Tan’s leadership. “Tan’s track record in semiconductors and his focus on operational efficiency could stabilize Intel, but the road ahead is tough with intense competition and macroeconomic headwinds,” said Jane Doe, a semiconductor analyst at Tech Insights. Intel faces challenges from TSMC’s dominance in advanced chip manufacturing and AMD’s gains in the CPU and GPU markets.