AMD 1994 Annual Report Download - page 43

AMD EXECUTIVE BONUS PLAN
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o The EBP is funded by a maximum of 3 percent of AMD's reported Operating
Income.
III. SHORT TERM PERFORMANCE PLAN (STPP)
The STPP bonus is earned by achieving specific levels of Corporate
performance against reported Operating Income. In addition, a portion of
the STPP is based on the achievement of Division performance objectives as
established by the Office of the CEO.
STPP awards vary depending on actual performance against planned Operating
Income and Division objectives. Target awards are earned when planned
objectives are achieved. If Operating Income and Division performance
objectives are exceeded, then awards up to the maximum may be earned.
Conversely, in poor performance years, STPP payouts will be greatly reduced
or eliminated.
STPP PLAN PARAMETERS:
o The Corporate portion makes up a minimum of 80% of the STPP payout,
while the Division portion comprises no more than 20% of the STPP
payout.
o For any payout to occur on the Corporate portion of the STPP, the
current year's actual Operating Income must be greater than 25% of the
prior year's reported Operating Income (the "threshold"), and in no case
be less than $0. The Office of the CEO retains discretion on payouts of
the Division performance portion of the STPP.
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Source: ADVANCED MICRO DEVIC, 10-K, March 07, 1995