AMD 2000 Annual Report Download - page 100

================================================================================
AMD VICE PRESIDENT INCENTIVE PROGRAM
================================================================================
III. Plan Funding
. The VPIP is funded by a maximum of three percent of AMD's adjusted
Operating Income (OI)/1/, for any given Plan Year. In the aggregate, if
calculated bonuses exceed the 3 percent limit, each Participant's bonus
will be scaled back to conform.
. Bonuses will not be paid for any Plan Year in which OI is less than or
equal to $0.
. LTP bonuses generated but not paid due to the above funding limitations
will be carried over for possible payout in future Plan years. (See
provisions under section V.)
IV. Short Term Plan (STP)
The STP uses three different components to measure and reward the
Participant's annual contributions: Corporate, Division and Individual.
The payout opportunity and weight of each component vary depending upon the
Participant's role and the tier to which he/she is assigned by management.
The weighting for Participants with Product Line or Manufacturing
responsibility emphasizes Division Performance.
A. Corporate Performance Bonus (CPB)
The CPB is generated when specific levels of adjusted OI/1/ and EVA
Improvement are achieved relative to the business plan. The OI portion
has a weighting of 70%, while the EVA Improvement portion has a weighting
of 30%. Target multipliers are derived as follows:
Table II
-------------------------------------------------------------------------
Performance Level
-------------------------------------------------------------------------
Threshold Target (1.0 Multiplier) 2.0 Multiplier
-----------------------------------------------------------------------------------------------------------------------------
Operating Income 70% Weighting 25% Of Prior Year OI 100% Of Plan 125% Of Plan
-----------------------------------------------------------------------------------------------------------------------------
Eva Improvement 30% Weighting 25% Of Plan 100% Of Plan 125% Of Plan
-----------------------------------------------------------------------------------------------------------------------------
______________________
/1/ Adjusted Operating Income (OI), referred to as "OI" throughout the plan
document, is OI as reported in the GAAP profit and loss statement, adjusted for
pre-tax income/loss from FASL.
2
Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001