Business Context and Reporting Period
This Form 8-K Current Report was filed by Advanced Micro Devices, Inc. on January 16, 2009. The report addresses Item 5.02 regarding the departure of directors or certain officers and compensatory arrangements. The primary event reported is the Compensation Committee's approval of across-the-board reductions to annual base salaries for all named executive officers, effective February 1, 2009.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation adjustments.
Material Changes
The material change reported is the reduction of annual base salaries for the following named executive officers, effective February 1, 2009:
- Dr. Hector de J. Ruiz (Executive Chairman): 20% reduction to $899,200.
- Mr. Derrick Meyer (President and CEO): 20% reduction to $720,000.
- Mr. Robert Rivet (EVP, COO, and CFO): 15% reduction to $552,500.
- Mr. Thomas McCoy (EVP, Legal, Corporate and Public Affairs): 15% reduction to $462,400.
Because annual bonus targets are calculated as a percentage of base salary, these reductions will also result in lower fiscal 2009 annual bonus payments, if any.
Guidance, Outlook, and Management Commentary
The filing does not provide financial guidance, outlook, or general management commentary regarding business operations. The action taken reflects a cost-reduction measure by the Compensation Committee. Amendments to employment agreements for Dr. Ruiz and Mr. Meyer were signed to effectuate these changes and are attached as Exhibits 10.1 and 10.2.
Investor Verification Checklist
- Verify the effective date of the salary reductions (February 1, 2009).
- Confirm the specific percentage reductions for each named executive officer.
- Review the attached employment agreement amendments (Exhibits 10.1 and 10.2) for full terms.
- Note that this filing does not disclose the company's overall financial health or liquidity position.