Su, Papermaster Poised to Rake in Huge AMD Bonuses

Credit: AMDCredit: AMD

AMD is willing to pay out big rewards to some of the company's top executives to both stay on board and hit performance goals. A Form 8-K filed to the United States Securities and Exchange Commission (SEC) filed earlier this month show the company's board of directors approving a salary increase for CEO Dr. Lisa Su, as well as target bonuses for both Su and CTO Mark Papermaster. Usain Pirzada highlighted the SEC form on Twitter.

The company's board is now offering three awards. For Su, there's a "CEO Annual LTI Award" to Su with a target value of $11,651,000 and a "CEO Value Creation Equity Award" with a target value of $25 million (slightly less than 25 times her salary). For Papermaster, a "CTO Value Creation Equity Award" has a target value of $7 million.

As of July 1, Su's annual salary increased to $1,055,000 (a $55,00 increase). Additionally, her target bonus will increase to 170% of her 2019 base salary, up from 150%.

All three awards will be made in performance-based restricted stock units (PRSUs), stock options, and "time-based restricted stock units." For the CEO Annual LTI Award, Su will be rewarded based on "the Company’s stock price relative to the return on the S&P 500 Index, in each case over the performance period that begins on August 9, 2019 and ends on August 9, 2022," as well as non-GAAP earnings per share growth from fiscal years 2019 to 2021.

The two Value Creation Equity Awards will both be in PRSUs, and the number earned will be tied to "five-year compounded annual growth rate milestones" tied to AMD's 60-trading day average closing stock price from the date of the grant through August 9, 2024. These vest on the third and fifth anniversaries of the rewards, encouraging both Su and Papermaster to stay in their positions for at least that long.

Other conditions of the rewards can be found in the 8-K filing

Recently, Su quashed rumors that she would be leaving AMD for a role at IBM. And if these potential monetary rewards are in her sights, we may know one reason why she plans to stay.

    Your comment
  • TheSecondPower
    I get that consistency and great executives are good for the company, but it's not good for moral to give the CEO a raise the size of an entry-level engineer's salary and a bonus big enough to pay the salaries of over 150 senior engineers. I know other companies are worse at this but it's still disheartening for everybody else in the company.
  • Mandark
    ah, but such is Capitalism. Would you rather it be communistic and only the upper echelon keep all of it instead? (hint, it's almost the SAME THING)

    capitalism leads to the same thing communism does, the pyramid, only the few at the top make anything. difference is capitalism works better and making the rich richer (longer) and takes a much longer time to destroy the underclass
  • TheSecondPower
    I'm not a fan of communism, I just think that the stockholders and executives should, by there own free will, recognize the harmfulness of what they're doing. The free market will probably sort this out via less profitable ARM competitors becoming more capable.