Pat Gelsinger, Intel's former CEO, is walking away with a substantial severance package, according to a recent filing with the Securities and Exchange Commission (SEC). The package, which includes a payment equal to 18 months of his base salary and a pro-rata bonus, could total up to $10.18 million.

The agreement, entered into by Intel and Gelsinger, will see the former CEO receive a payment of $1.875 million, equivalent to 18 months of his base salary of $1.25 million. Additionally, he will receive 1.5 times his current target bonus, which is 275% of his base salary, amounting to $5.16 million. Both of these payments will be made over an 18-month period through the usual payroll process.

Furthermore, Gelsinger will receive a pro-rata payment equal to 11/12ths of his 2024 annual bonus, which works out to around $3.15 million. However, this payment is contingent on company performance and has additional conditions. As a result, the total severance package could range from $7 million to $10.18 million.

Gelsinger's departure from Intel, effective December 1, marks the end of his nearly four-year tenure as CEO. He has been replaced by co-CEOs David Zinsner and Michelle Johnston Holthaus, who previously served as CFO and GM of Intel's client computing group, respectively.

The news of Gelsinger's departure initially sent Intel's shares surging, but they later settled at roughly the same figure they had been before the announcement. This volatility may be a sign of the continuing uncertainty surrounding the chip giant's future as it transitions to foundry chip manufacturing mode.

The significant severance package has raised eyebrows, with some questioning the justification for such a large payout. However, it is worth noting that Gelsinger's tenure was marked by significant efforts to revamp Intel's manufacturing capabilities and improve its competitiveness in the market.

As Intel moves forward under new leadership, the company will need to navigate the challenges of the rapidly evolving semiconductor industry. The success of its transition to foundry chip manufacturing mode will be crucial to its future success, and the new leadership will need to make tough decisions to ensure the company remains competitive.

In conclusion, Gelsinger's departure and the subsequent severance package have raised important questions about the future of Intel and the semiconductor industry as a whole. As the company embarks on a new chapter, it will be closely watched by investors, analysts, and industry observers alike.