Intel's former CEO, Pat Gelsinger, is set to leave the company with a severance package exceeding $10 million, as revealed in a filing with the Securities and Exchange Commission (SEC) today.

The separation agreement outlines that Gelsinger will receive payments over 18 months, including $1.875 million—equivalent to 18 months of his $1.25 million base salary—and $5.16 million, representing 1.5 times his current target bonus of 275% of his base salary.

Gelsinger also qualifies for a pro-rata share of his 2024 annual bonus, projected at $3.15 million based on performance, bringing his total potential payout to $10.18 million.

Gelsinger’s departure on December 1 follows a challenging year for Intel, marked by a 30% drop in valuation in August after reporting a net loss of $1.6 billion, compared to a $1.5 billion profit the previous year. The chip giant responded by cutting 15% of its workforce, impacting 15,000 employees.

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While Gelsinger's severance pales in comparison to some high-profile exits, it reflects Intel's diminished market position. When Gelsinger took the helm in 2021, Intel's market cap was more than double its current $103 billion valuation.

Intel's board has appointed interim co-CEOs David Zinsner, the company's CFO, and Michelle Johnston Holthaus, general manager of Intel’s client computing group, while a search for a permanent successor is underway.

According to Bloomberg, Intel CEO Pat Gelsinger was given the option to retire or be dismissed after the board lost confidence in his plans to turn around the chipmaker. The decision followed a meeting last week where Gelsinger discussed Intel’s efforts to regain market share and close the gap with Nvidia. He chose to step down, sources familiar with the matter said.