8-KLeadership ChangesExhibits & Filings

ADVANCED MICRO DEVICES INC 8-K Report, Executive Changes (Jun 30, 2010)

Filed June 30, 2010For Securities:AMD

Summary

Advanced Micro Devices, Inc. (AMD) filed an 8-K report on June 30, 2010, primarily to announce the departure of Thomas M. McCoy, Executive Vice President, Legal and Public Affairs. Mr. McCoy will resign from his executive officer role effective June 30, 2010, but will remain with the company in a transitional capacity until December 31, 2010. This transition includes continued base salary, vesting of stock options and RSUs, and benefits coverage through his resignation date. The key financial aspect of this departure is the executive transition agreement, which includes a $4,000,000 performance bonus paid to Mr. McCoy. This bonus is explicitly in recognition of his contributions to the "AMD vs. Intel" antitrust litigation settlement in November 2009 and related achievements. Investors should note this significant payout, which is tied to a major past legal event for the company, impacting current operational expenses and executive compensation structures.

Key Highlights

  • 1Thomas M. McCoy, EVP of Legal and Public Affairs, to resign as an executive officer effective June 30, 2010.
  • 2Mr. McCoy will continue to assist AMD with transition duties until December 31, 2010.
  • 3McCoy will receive his current base salary, continued stock option and RSU vesting, and health benefits through his resignation date.
  • 4A $4,000,000 performance bonus was paid to Mr. McCoy on June 30, 2010.
  • 5The performance bonus is in recognition of Mr. McCoy's contributions to the "AMD vs. Intel" antitrust litigation settlement.
  • 6The agreement constitutes an Executive Transition Agreement and General Release.

Frequently Asked Questions

The 8-K filing announces the departure of Thomas M. McCoy, Executive Vice President, Legal and Public Affairs, from his executive officer role. It details the terms of his transition out of the company, including his continued employment in a non-executive capacity until the end of 2010.

The primary financial implication is a $4,000,000 performance bonus paid to Mr. McCoy. Additionally, AMD will continue to pay his base salary, maintain vesting of his equity awards, and cover his benefits through December 31, 2010, as part of the transition agreement.

The $4,000,000 performance bonus is specifically tied to Mr. McCoy's significant contributions to the "AMD vs. Intel" antitrust litigation, which was settled in November 2009, and other related achievements. This bonus recognizes his efforts in resolving this major legal challenge for the company.

The agreement states that Mr. McCoy will resign from his executive officer role effective June 30, 2010, and will assist with transition duties until December 31, 2010. There is no indication in this filing that he will continue any role beyond that date.