AMD 2003 Annual Report Download - page 119

VP PERFORMANCE RECOGNITION PROGRAM
III. Short Term Plan (STP)
The STP uses three different components to measure and reward the Participant’s annual contributions: Corporate, Group and Individual.
The payout opportunity and the weight of each component vary depending upon the Participant’s role and the tier to which he/she is assigned by
management.
The Corporate and Group Performance components of the Plan are split into two six-month performance periods. Planned corporate and operating group
objectives for the first half of the year are generally based on the Board Approved Corporate Budget. Objectives for the second half are established using
the mid-year update of the Corporate Budget.
A. Corporate Performance Award (CPA)
The CPA is earned by meeting or exceeding specific levels of Operating Profit (OP) against the Plan for the performance period.
For each half-year performance period a multiplier is derived based on Actual OP vs. Planned OP. The multiplier is then applied against the CPA
target bonus to determine the accrued award.
• The threshold level, below which the multiplier is zero, is 80% of Planned OP by default. This threshold will be confirmed or revised for any
Plan Year at the discretion of the CEO.
• The multiplier is 1.0 when Actual OP equals Planned OP.
• For performance between 80% and 100% of Planned OP, the multiplier is prorated on a straight-line basis.
For performance above Planned OP in each half-year performance period, a pool of funds is created using a percentage of the OP above Planned
OP. This percentage is determined each year by the Office of the CEO.
• This pool is used to pay individual discretionary awards beyond target performance.
Source: ADVANCED MICRO DEVIC, 10-K, March 09, 2004