AMD 2000 Annual Report Download - page 103

================================================================================
AMD VICE PRESIDENT INCENTIVE PROGRAM
================================================================================
The actual DPB is calculated as follows:
--------------------------------------------------------------
Combined DPB Multiplier x DPB Target % x Base Salary = DPB
--------------------------------------------------------------
For Participants in a corporate role, a weighted average DPB multiplier is
calculated using planned sales at the group level. Similarly, Participants
assigned to multiple divisions or groups have a weighted average DPB
multiplier.
C. Individual Performance Bonus (IPB)
Officers and Group Vice Presidents establish individual performance
expectations for each Participant reporting to them. These expectations
might include specific division goals such as product releases, financial
targets and organizational development. The Officer/Group VP then assesses
performance against these expectations and an IPB is recommended. The IPB
target and maximum are 10 percent and 20 percent of base salary,
respectively, for all Participants. However executive management may adjust
the average target percent in any given Plan Year based on the performance
of the Company.
Typical guidelines are outlined in Table V:
Table V
IPB Guidelines
-----------------------------------------------------
IPB
Performance Percentage
Assessment Range
-----------------------------------------------------
Exceptional 16 - 20%
Successful 8 - 16%
Most Goals Met 4 - 8%
Improvement Required 0%
-----------------------------------------------------
D. STP Bonus Calculation
The total STP bonus is calculated as follows:
-----------------------------------------
STP Bonus = CPB + DPB + IPB
-----------------------------------------
5
Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001