After 'Optimizing' and Brain Drain, AMD awards CEO $500K Bonus

[caveman-jim]

A new SEC filing today indicates AMD's Compensation Committee have awarded bonuses to three Executive Officers:

On February 10, 2012, the Compensation Committee (the "Compensation Committee") of the Board of Directors of Advanced Micro Devices, Inc. approved a bonus award for each of the following Named Executive Officers: Mr. Thomas Seifert, the Company's Senior Vice President and Chief Financial Officer and Mr. Harry Wolin, the Company's Senior Vice President, General Counsel and Secretary, for fiscal year 2011, under the Executive Incentive Plan (the "Plan").

The bonus awards consist of cash payments in the amount of $227,945 for Mr. Seifert and $178,670 for Mr. Wolin. Pursuant to the Plan, the bonus opportunities were based on the achievement of a pre-established key company-wide corporate financial measure, non-GAAP operating income. In addition, the Compensation Committee approved a cash bonus award for Mr. Rory P. Read in the amount of $530,770, which is equal to 150% of the portion of his base salary from August 25, 2011 through December 31, 2011, and is consistent with the terms of the employment agreement between Mr. Read and the Company. These bonus awards will be paid in March 2012.

AMD Newscenter

[NoHero]

That is disgusting. I remember when Steve Jobs took a $1 dollar salary because Apple was doing bad, so he can help turn the company around and he did. Taking 500k bonus when your company is borderline stable and after lay offs of some of the best sought after talent is just disgusting.

[Greasy]

That is disgusting.

What he said.

[caveman-jim]

I remember when Steve Jobs took a $1 dollar salary because Apple was doing bad, so he can help turn the company around and he did.

While that's true, SJ also took massive stock options so his income was derived from that, which just happened to be lower tax rate, and an income he could pass on to his family after his death. Not quite as altruistic, but I'm not disagreeing with the rest of your post.

[NoHero]

While that's true, SJ also took massive stock options so his income was derived from that, which just happened to be lower tax rate, and an income he could pass on to his family after his death. Not quite as altruistic, but I'm not disagreeing with the rest of your post.

Which gives him more incentive to perform as stock value is derived from stock performance. I think that is a pretty ingenious way to pay a CEO.

[caveman-jim]

If all you care about is stock price, yes.

[XSBagage]

How many people can you employ for $500k?

I don't think Read's salary is that crazy if you compare it to other CEOs. As his total salary comes out to less than a million I doubt that he is at those dazzling multiples of 100-200x more than an average wage.

[xxJACKxx]

If all you care about is stock price, yes.

Having been downsized out of a multibillion dollar corporation myself, I would say that is very likely.

[QUINTIX]

I'm a right wing nut, so I am slightly biased

How many people can you employ for $500k?

Exactly. We are not talking about "all the money from the layoffs." Put all three bonuses together and it is just under a million. Their operating income for all of 2011 was over a third of a billion. So these bonuses are less than 1/300th AMD's operating income for FY2011.

I think you would agree that buisiness leaders, especially in the technology field, are slightly more valuable than TV celebs and athletes.

[Crisler]

I think you would agree that buisiness leaders, especially in the technology field, are slightly more valuable than TV celebs and athletes.

They would be if they actually led at anything. AMD is down in the CPU market with only their low end chips being worht the money to buy. They have introduced a new video card lineup with a price point that is way outside the performance gian of their previous models.

I mean seriously these guys have not really grown the company and they get a bonus?

[noko]

They would be if they actually led at anything. AMD is down in the CPU market with only their low end chips being worht the money to buy. They have introduced a new video card lineup with a price point that is way outside the performance gian of their previous models.

I mean seriously these guys have not really grown the company and they get a bonus?

And faster then their competition for a cheaper price . Do not understand logic or premise of locking one's prices to a previous genration. What the 7970 was suppose to be sold at $379 while it slaughters the competition and then chunk change out all the 6xxx series too? While costing significantly more to make (new young process, 3gb of faster DDR5, more complex board with 384 bit lanes). The 7970/50's are at a very good price for the supply/demand, actually maybe a little too cheap. But glad it is at it current offerings, well worth it.

[clutch22]

All corporations do this kind of stuff. Screw the engineers/r&d/sales people that are actually making the company money...and lavishly reward the higher ups who contribute nothing but take credit for everything.

As far as I'm concerned, when companies with public stocks do this kind of stuff, its legalized embezzlement.


As for the 7970, it's a nice card, but its also $550. The 7950 is $450. The 7770 (128bit) costs quite a bit more than a 6870 and is also quite a bit slower. Their CPUs aren't competitive with Intel's right now and they just had a ton of layoffs. Why are they giving out bonus's to corprate again?

[buckshot23]

All corporations do this kind of stuff. Screw the engineers/r&d/sales people that are actually making the company money...and lavishly reward the higher ups who contribute nothing but take credit for everything.

As far as I'm concerned, when companies with public stocks do this kind of stuff, its legalized embezzlement.


As for the 7970, it's a nice card, but its also $550. The 7950 is $450. The 7770 (128bit) costs quite a bit more than a 6870 and is also quite a bit slower. Their CPUs aren't competitive with Intel's right now and they just had a ton of layoffs. Why are they giving out bonus's to corprate again?

Let's see. You would rather get a cut rate CEO to run the company? For the 7770, don't buy it. It isn't your business (unless you have stock) what the CEOs are paid. 500k isn't that much money either.

[noko]

Let's see. You would rather get a cut rate CEO to run the company? For the 7770, don't buy it. It isn't your business (unless you have stock) what the CEOs are paid. 500k isn't that much money either.

lol, that is what I was thinking, he only got 500k!?

Then again he hasn't really done anything significantly in the rather short period of time that shows yet. Well besides loosing some of the . . . . talent . . .

[Flyordie]

Yea....... I was informed of this back on Feb 3rd. Lets just say stock holders are not very happy.

[clutch22]

Let's see. You would rather get a cut rate CEO to run the company? For the 7770, don't buy it. It isn't your business (unless you have stock) what the CEOs are paid. 500k isn't that much money either.

Throwing money at someone doesn't increase their intelligence or ability to make sound business decisions. All the higher ups are doing is taking money out of the company and giving it to each other. Their CPU's aren't competitive and haven't been since the C2D came out and their current graphics cards are way over priced. The solution? Fire the engineers and throw the money at the CEO.

How about putting all available resources towards making a competitive CPU and bringing the cost of their current graphics cards down to a reasonable level?

And yes, I still have shares in AMD which is probably why this annoys me more than most.

[XSBagage]

Throwing money at someone doesn't increase their intelligence or ability to make sound business decisions. All the higher ups are doing is taking money out of the company and giving it to each other. Their CPU's aren't competitive and haven't been since the C2D came out and their current graphics cards are way over priced. The solution? Fire the engineers and throw the money at the CEO.

How about putting all available resources towards making a competitive CPU and bringing the cost of their current graphics cards down to a reasonable level?

And yes, I still have shares in AMD which is probably why this annoys me more than most.

Well that is only partly true. You're not going to find a decent CEO without a decent wage (compared to other CEO's). You could always promote somebody to be the CEO but at AMD I don't think that was an option, because said person would need time to learn his job.
I think you just need regulation (Oh God he said it! The evil word!) in these kinds of matters. A CEO's total wage cannot exceed that of 10 times the average total wage of the workforce at said company.
Either everybody suddenly gets raises or CEO's have a more reasonable wage and perhaps a long term vision, as they have to work perhaps 10 years to earn what they're earning in one year now.