(Reuters) -U.S. chipmaker Intel's ( INTC ) new CEO Lip-Bu Tan will receive a salary of $1 million and be eligible for an annual cash bonus of up to $2 million, the company said in a regulatory filing on Friday.

The company named Tan as the CEO on Wednesday, tasking the industry veteran to lead a faltering transition to a successful chip manufacturing firm as well as chip design house. He will take charge on March 18.

Tan's employment agreement includes a three-year performance target, making him eligible to keep two-thirds of his stock awards if a "change in control" or a significant shift in the ownership takes place within 18 months of his joining.

Owing to his deep experience in the chip industry and as a longtime technology investor, Tan was seen as a contender for the top job since December, when Intel ( INTC ) ousted CEO Pat Gelsinger.

Gelsinger's employment agreement did not have the "change in control" clause. His contract included a base salary of $1.25 million, and he was eligible for annual cash bonuses of up to 275% of that, according to regulatory filings.

He was also eligible to receive as much as $12 million as payout before leaving the company.

In another difference in the wording of the contract, Tan is required to devote "such time as is necessary" to perform his duties and responsibilities as CEO, while Gelsinger was asked to devote his "full business efforts and time to Intel ( INTC )".

Tan, for now at least, remains actively involved with startups, in which he invests through his venture capital firm Walden International.

(Reporting by Bhanvi Satija in Bengaluru and Stephen Nellis in San Francisco; Editing by Arun Koyyur)