4 Things To Know About New Intel CFO George Davis
Intel once again has a permanent CFO after the chipmaker's previous top finance executive, Bob Swan, was named CEO in late January.
The Santa Clara, Calif.-based company announced on Tuesday after its Data-Centric Innovation Day event that Qualcomm CFO George Davis will become Intel's new chief financial executive, effective Wednesday. Davis, who was also appointed as an executive vice president, is taking over from Todd Underwood, Intel's vice president of finance who was holding the interim CFO role.
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As Intel's CFO, Davis is charged with overseeing the company's global finance organization, which includes accounting and reporting, tax, treasury, internal audit and investor relations.
"With demand for the analysis, transmission and storage of data growing faster than ever, no company in the world is better positioned to capitalize on that opportunity than Intel," Davis said in a statement. "It’s an exciting time for Intel, and I’m looking forward to playing a role in the company’s transformation."
What follows are four important points we learned about Davis, including his tenures at Qualcomm and a previous employer, his role with Intel's IT organization and his executive compensation.
Davis Joins Other Qualcomm Vets On Intel Exec Team
Davis isn't the first Qualcomm executive to join Intel's executive management team. Intel devices group head Cormac S. G. Conroy, Intel artificial intelligence head Naveen Rao, and Intel Chief Engineering Officer Murthy Renduchintala had all previously worked for Qualcomm.
Davis joined Qualcomm in 2013 as an executive vice president and CFO, a role that put him in charge of the company's global finance organization, investor relations team and IT organization. He was also a member of Qualcomm's executive committee, which guides the company's global strategy.
Qualcomm, headquartered in San Diego, Calif., said it has appointed David Wise, a company veteran who now serves as Qualcomm's treasurer, as interim CFO while the company searches for a permanent successor.
"On behalf of the Executive Team, I want to thank George for his dedicated service over the last six years at Qualcomm. We all wish him well in his future endeavors," Steve Mollenkopf, CEO of Qualcomm, said in statement.
Davis' Executive Compensation At Intel
According to Intel's offer letter to Davis that was disclosed in a federal filing, the new CFO will receive an annual cash compensation of nearly $2.5 million, which doesn't include stock grants and awards. Intel CEO Bob Swan's annual cash compensation, by contrast, is $4.68 million.
Davis' annual cash compensation is based on a base salary of $900,000, an annual performance bonus with a targeted payout of nearly $1.5 million and quarterly profit bonuses estimated to reach $83,700. He will also receive a cash hiring bonus of $4 million, $2 million of which will be paid out in 2019.
For stock-based compensation, Davis will be eligible for annual equity grants starting in 2020 that are estimated to amount to $6.5 million, with 80 percent of the shares tied to Intel's stock performance. He will receive 150,000 Intel shares, which will be awarded based on the company's stock price reaching certain milestones — the total could reach 300,000 if the stock grows 100 percent over five years. The executive will also receive a new hire equity grant with a target valuation of $10 million that will vest over three years.
In addition, Davis will have the option to purchase an additional 600,000 Intel shares, but they will only vest if the company's stock price reaches certain milestones.
Shared Time At Applied Materials With Bob Swan
Prior to joining Qualcomm, Davis was the CFO of Applied Materials, a Santa Clara, Calif.-based equipment and services supplier for the semiconductor and flat panel display industries.
Davis joined the company in 1999 as a corporate treasurer and was eventually promoted to the head of Applied Materials' corporate business development group, where he led the company's strategic planning, mergers and acquisitions activity and venture investments. He was then named CFO in 2006.
Intel CEO Bob Swan served on Applied Material's board during part of Davis' 13-year tenure there. Swan's board membership lasted from 2009 to 2016.
Davis Will Oversee Intel's IT Organization
Beyond his normal CFO responsibilities, Davis will also be in charge of Intel's IT organization, the company said.
Intel's IT organization is reportedly in the midst of consolidating some of its outsourced operations to solution provider Infosys.