Intel Corp said on Thursday that its board had elected its Chief Operating Officer Brian Krzanich as the chipmaker's next chief executive, replacing Paul Otellini.

Intel shares fell slightly in early trade after the news.

Krzanich, who has worked at Intel since 1982, will take on the top job at the company's annual shareholder meeting on May 16. Krzanich, 52, has been COO since January 2012. The board also elected Ren��e James, 48, to be president of Intel and is expected to expand to 10 members to add Krzanich.

Intel set Krzanich's 2013 compensation package at $10 million including base pay of $1 million, an annual incentive cash target of $2.5 million and equity awards for 2013 with a grant date fair value of $6.5 million.

Intel announced in November that it was looking for a new CEO as Otellini announced plans to retire.

Intel shares fell to $23.68 in early trade after closing at $23.99 on Nasdaq.

(Reporting By Sinead Carew; Editing by Alden Bentley)