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What bad year? AMD's Hector Ruiz gets a raise

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December 14, 2007 3:36:47 AM

What the hell was AMD thinking, he needs to resign and fast. Dirk Meyer needs to take over, and soon.
December 14, 2007 3:38:57 AM

I don't understand how a raise, and all of these enthusiast ideas are even possible to R&D when the company is in a boat-load of debt.
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December 14, 2007 3:44:33 AM

unfathomable...truly unbelievable. That guy should have been handed a pink slip instead!
December 14, 2007 3:49:22 AM

Since this is a public company, I wonder if stock holders can demand an explanation to WTF he did to deserve this raise. This is turning into quite a soap opera.
December 14, 2007 4:21:03 AM

Capitalism...is beyond me.
December 14, 2007 6:07:22 AM

perhaps Hector set everything just like the investors wanted, to get a huge takeover & stuff..
buy cheap, let it be bought, then it will inflate.
who knows.
a b à CPUs
December 14, 2007 8:56:20 AM

The amount of the raise wouldn't happen to be......




Fourty Percent :o  :heink:  :lol:  :o  :heink:  :lol:  :na: 


{couldn't resist...} ;) 
December 14, 2007 9:34:26 AM

It was probably cheaper to give him a raise than to fire him...and as they say in the corporate world, "You f**k up, you move up".
December 14, 2007 9:46:17 AM

I think that everyone is greatly underestimating Mr. Ruiz. I believe he has a few tricks up his sleeve for 08 that everyone will be surprised with. But then again, only time will tell.
December 14, 2007 9:50:05 AM

RPAaggieDude said:
I think that everyone is greatly underestimating Mr. Ruiz. I believe he has a few tricks up his sleeve for 08 that everyone will be surprised with. But then again, only time will tell.


I hope for his (and AMD's) sake he does.
December 14, 2007 10:10:57 AM

He's obviously convinced the board of directors that this is, indeed the case..
Ryan Adds
December 14, 2007 10:15:10 AM

dont you know in business.. the less you do the more you make. He just happened to do so much less he gets a fat raise even when the company cant even afford to be in business without outside help to start with. if i were the outside investors funding the outrageous quarterly losses i would yank the funding immediately after seeing that kind of crap. I hate the thought of no intel competition because of high prices, but theres a limit to what can be allowed to happen in situations like this. heck maybe the US gov will step in like they did for Chrysler look where they are now....
a c 159 à CPUs
a b À AMD
December 14, 2007 11:05:58 AM

I disagree. It's probably cheaper to give hector a raise than hire a new ceo. Amd probably can't even afford a severance package for hector.
a b à CPUs
December 14, 2007 11:16:40 AM

+1 vote for Dirk Meyer.

December 14, 2007 12:36:50 PM

Ruiz should have voluntarily taken a pay cut down to $50K.


It would have been highly symbolic for the entire workforce and might have inspired some to pitch in more for the common good (of the company).
December 14, 2007 1:29:40 PM

Why doesnt AMD pay Hector with stocks? Then hed see what hes done
December 14, 2007 2:09:35 PM

Ycon said:
Why doesnt AMD pay Hector with stocks? Then hed see what hes done


That would've been interesting, for sure.

He'd seriously have to try to make the company hit all it's targets, so his own stocks would rise.
What is more interesting is that after reading about the analysts meeting, there was no mention of Intel, even the oft used "monopoly" speel. That was different.
December 14, 2007 2:57:32 PM

They should take Hectors pay and put it on something useful, like R&D.
December 14, 2007 3:02:53 PM

stocks are apart of his portfolio.
December 14, 2007 3:18:06 PM

What's weird is that Hector typically makes more money than Paul Otellini from Intel (I think one year it was on the order of double). I don't know if that makes Paul a nice guy or a Hector an overpaid, lying, cheating embezzeler, but it's interesting.
December 14, 2007 5:23:06 PM

wolverinero79 said:
What's weird is that Hector typically makes more money than Paul Otellini from Intel (I think one year it was on the order of double). I don't know if that makes Paul a nice guy or a Hector an overpaid, lying, cheating embezzeler, but it's interesting.


I think it leanz toward the later.
December 14, 2007 5:49:28 PM

Kamrooz said:
What the hell was AMD thinking, he needs to resign and fast. Dirk Meyer needs to take over, and soon.


I don't know why AMD boards gave out that pay raise or why Mr Ruiz accepted it.

The good thing about it is it costs taxpayers nothing and more important, no pink slips were handed out to rank and file employees. So far...
December 14, 2007 9:45:09 PM

Hector Ruin should be dumped as soon as possible. AMD needs a new direction without him at the helm.
a c 97 à CPUs
December 14, 2007 11:23:39 PM

Ycon said:
Why doesnt AMD pay Hector with stocks? Then hed see what hes done


They do. Pretty much every officer in any company is paid a fair-sized portion of their income in stock and they are expected to keep some multiple of their annual income in stock holdings so that they do have a personal incentive for the company's stock price to appreciate. Trust me, Ruiz would feel the stock price drop in his own personal bottom line if he decided to sell (but he'd have to plan and announce a stock sale 6 months or so in advance due to SEC insider trading regulations.) And also remember, you haven't lost any money if your stocks drop in price until you sell. That is why investing is really a long-term endeavor- ride out the bad times and you haven't lost a thing. Of course, the IRS still taxes you for money you haven't actually made when your stocks do well but you haven't sold (capital gains) but that's another discussion altogether...
December 15, 2007 4:07:28 PM

Quote:
What's weird is that Hector typically makes more money than Paul Otellini from Intel (I think one year it was on the order of double). I don't know if that makes Paul a nice guy or a Hector an overpaid, lying, cheating embezzeler, but it's interesting.


Quote:
What the hell was AMD thinking, he needs to resign and fast. Dirk Meyer needs to take over, and soon.

Ruiz is paid more than Otellini because pay is commensurate with difficulty of the work and also partially counters performance of the stock.

Intel is easy to manage - it has lots of resources and money, has the overwhelming majority of the market, and has an existing culture that makes it quite competitive for a company of that size. People would kill to be its CEO.

Same isn't true for AMD. They probably gave Ruiz a raise to lessen the chances of his resigning, as they couldn't find someone better suited. Perhaps either Meyer does not (yet) want the position, or they don't have a better candidate to replace Meyer.
December 15, 2007 6:19:08 PM

WR said:
Quote:
What's weird is that Hector typically makes more money than Paul Otellini from Intel (I think one year it was on the order of double). I don't know if that makes Paul a nice guy or a Hector an overpaid, lying, cheating embezzeler, but it's interesting.


Quote:
What the hell was AMD thinking, he needs to resign and fast. Dirk Meyer needs to take over, and soon.

Ruiz is paid more than Otellini because pay is commensurate with difficulty of the work and also partially counters performance of the stock.


As with everything else about AMD this year, the timing of the announcement couldn't have been worse. Same week, AMD files with SEC Hector's 7.4% pay raise and says its going to write off some of the 3.2B in assets it has on the books for ATI. Add to that the negative press coverage from Analyst Day and the stock closing Friday at a new 12 mo. low, and it's not surprising that the pay raise is raising some eyebrows.

Earlier this year, Cramer had Ruiz on his Wall of Shame, but Cramer was pretty much the only one who was vocally calling for Ruiz's head. Now, there's practically a chorus of folks begging for Ruiz's head, heart, and nards on a platter. The market is afraid that Ruiz doesn't really have a plan (at least not a viable one) to get AMD back to profitability. The lack of real concrete news about asset light on Thursday just reinforced that belief.
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