SAN JOSE: Broadcom Inc chief executive officer (CEO) Hock Tan has a clause in his contract extension that would bring hundreds of millions of dollars in stock compensation if the company reaches US$120bil in artificial intelligence (AI) product sales by 2030.
The executive is due to get 610,521 shares of Broadcom if AI revenue hits US$90bil by fiscal 2030, according to a regulatory filing.
That would be worth about US$205.5mil at today’s stock prices.
If the sales reach US$120bil, Tan is poised for 300% of the payout, or about US$616.6mil at current levels.
The package underscores Broadcom’s mission to become a major player in the world of AI computing.
The company has been offering its custom-made chips as an alternative to processors sold by Nvidia Corp, which dominates the AI semiconductor industry.
Last week, Tan said that Broadcom had landed a major new customer in this area – later identified by sources as OpenAI – and indicated that 2026 sales of custom AI chips would be considerably higher than previously forecast.
Speaking at a Goldman Sachs Group Inc conference, Tan declined to detail what he expects for sales from that business next year or in 2027. — Bloomberg
