Intel Welcomes Former Qualcomm Executive With Hefty Package

In order to keep ahead in the chip market, Intel has recruited rivals expertise.

Intel has recently employed rival Qualcomm’s former executive. Reportedly, the company has offered $25 million worth salary package. Venkata Murthy Renduchintala, the new executive of Mountain View based firm will have an essential role in the company’s business. Titled as “executive vice president”, Reduchintala will be responsible for managing its product businesses. 

The “compensation package” holds a sign-on bonus valued at $8.1 million along with an initial award of $8.1 million worth restricted stock units. Other “remuneration details” of Renduchintala, include a basic salary of $900,000 per year, up to $2.1 million cash bonus and a $6 million worth equity award based on the performance each year. The information was deduced from the offer letter, which was annexed with a filing carried out by Intel with the Securities and Exchange Commission on Friday.

Renduchintala has previously invested his expertise in Qualcomm, which is the giant in the wireless modem chips and processors market that is extensively used in the smartphones. For quite some time now, Intel has been trying to bring its business parallel to the rival but the efforts did not turn out to be fruitful.

In November, Intel declared about the recruitment of Mr. Renduchintala with the firm but did not disclose his remuneration package. The Californian firm “client” products include chips for tablets, computers, and mobile phones. They also include a wide series of devices that relate to the recent trend dubbed as the “Internet of Things.” Mr. Reduchintala’s responsibility includes the supervision of the Intel’s “client products.” Moreover, its architecture group will also be reporting to him.

Talking about the compensation package of the new executive, a spokeswoman expressed that his remuneration package highlights the wide spectrum of responsibility which he holds under the ambit of the new offered role. She also stated that the offered pay package is right in line with the organization’s “market competitiveness” targets.

In comparison with other companies, the package is moderate. She added that in order to equalize his value lost by resigning from his services for the previous employer, sign-on award and new-hire grant are included in the compensation package.
In case an event arises and Mr. Reduchintala’s tenure in the organization ends with the termination before he could be awarded his hiring bonus, Intel’s offer letter proclaims that he will be entitled to a possible payment of $16.2 million. The letter also purports that in the event of his termination, he will be eligible for several severance payments.

Among other perquisites offered by the tech business, the other benefits in the pay package includes air travel ticket – first class – and  the use of a private jet, in the situation where the commute to the domestic location is conventionally difficult, the letter states. It has agreed to award the conveyance allowance, which covers the travelling cost from his home in Southern California to the office headquarters based in Santa Clara, Calif. The package also includes “temporary housing costs”. In addition, it is offering a “comprehensive” relocation package, which will assist him to move to the San Francisco Bay Area.

While referencing to the company’s perquisite regarding its new executive travelling, Michelle Leder, founder of the financial research service, said, “It’s not uncommon to have a senior executive live in one place and commute to another on the company’s dime—especially a senior exec like Murthy.”

Intel Corporation stock price was $28.64 at the closing time of the market, last Friday. It is more than probable that the new exec’s expertise will be beneficial for the company and it is likely to boost its business.