Summary
This 8-K filing from Advanced Micro Devices, Inc. (AMD) on December 28, 2015, details a modification to the grant process for long-term incentive equity awards for key named executive officers. Specifically, the Compensation and Leadership Resources Committee and the Board of Directors elected to use the previously established August 2015 conversion price (based on a 180-day average closing stock price ending August 14, 2015) for the second tranche of equity awards, rather than a new conversion price based on a 180-day average ending December 25, 2015. The primary impact of this decision is that a higher conversion price resulted in a lower number of Restricted Stock Units (RSUs) and, in Dr. Lisa Su's case, stock options, being granted in the second tranche (awarded December 26, 2015) compared to what would have been granted using the later, lower conversion price. The stated rationale for this change was to ensure consistency with the conversion price used for other officer and employee grants made in August 2015.
Key Highlights
- 1AMD is adjusting the conversion price for the second tranche of long-term incentive equity awards granted on December 26, 2015.
- 2The company decided to use the August 2015 conversion price ($2.4267) instead of the December 2015 conversion price for these awards.
- 3This decision means a higher effective stock price was used to convert target dollar values into equity grants.
- 4Consequently, named executive officers (Devinder Kumar, Forrest E. Norrod, Mark D. Papermaster) received fewer RSUs in the second tranche.
- 5Dr. Lisa Su also received fewer RSUs and stock options in the second tranche due to the same adjustment.
- 6The stated reason for the change is to maintain consistency with the conversion price used for other officer and employee grants in August 2015.
- 7No new grants were made; only the conversion price methodology for the second tranche was altered.