Shares of Intel closed 14% higher on Thursday, as Wall Street cheered its decision to name former board member Lip-Bu Tan as CEO, who left in August over differences about the chipmaker's direction, after several years of market underperformance.

Intel’s decision to hire a little-known semiconductor dealmaker as its chief executive has cheered investors who want an outsider to turn around the troubled chipmaker. The US group announced on Wednesday that Lip-Bu Tan,

U.S. chipmaker Intel's new CEO Lip-Bu Tan will receive an initial base salary of $1 million, the company said in a regulatory filing on Friday. Tan, who will take charge on March 18, will also be eligible for an annual cash bonus with a target payout of 200% of his base salary.

After months of searching for a new CEO following the abrupt retirement of former CEO Pat Gelsinger, Intel (NASDAQ: INTC) has landed on Lip-Bu Tan. Tan led Cadence Design Systems, a provider of software for designing semiconductor chips,

Lip-Bu Tan will get a $1 million base annual salary for leading Intel, but his performance-related bonuses are worth so much more than that.