Summary
Advanced Micro Devices, Inc. (AMD) filed an 8-K report on January 21, 2009, detailing significant executive compensation adjustments. In response to prevailing economic conditions, the Compensation Committee of the Board of Directors approved across-the-board reductions in annual base salaries for all named executive officers, effective February 1, 2009. This move reflects a company-wide effort to manage costs and align executive compensation with the challenging business environment. Key executives, including the Executive Chairman and the President and CEO, will see their base salaries reduced by 20%. Other senior officers will experience a 15% reduction. These salary cuts will also indirectly reduce potential annual bonus payouts, as bonus targets are typically a percentage of base salary. Amendments to employment agreements for the Executive Chairman and President/CEO have been executed to formalize these changes.
Key Highlights
- 1Across-the-board reduction in annual base salaries for all named executive officers approved by the Compensation Committee, effective February 1, 2009.
- 2Executive Chairman, Dr. Hector de J. Ruiz, will have his annual base salary reduced by 20% to $899,200.
- 3President and CEO, Mr. Derrick Meyer, will have his annual base salary reduced by 20% to $720,000.
- 4Other senior officers, including the CFO, will see a 15% reduction in their annual base salaries.
- 5Reductions in base salary will also lead to a decrease in potential fiscal 2009 annual bonus payments.
- 6Employment agreement amendments have been signed by Dr. Ruiz and Mr. Meyer to reflect these salary changes.
- 7The filing includes exhibits detailing the specific amendment agreements with Dr. Ruiz and Mr. Meyer.