AMD 2000 Annual Report Download - page 104

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AMD VICE PRESIDENT INCENTIVE PROGRAM
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V. Long-Term Plan (LTP)
The LTP rewards sustained corporate performance for both ROE and sales
growth relative to competitive measures over a rolling three-year period.
The LTP has an annual target bonus of 30% of base salary and a maximum
opportunity of 60% for all Participants, subject to proration provisions in
Section VII. The model below illustrates the LTP cycles.
Long-Term Performance Plan Model
[GRAPH APPEARS HERE]
A. LTP Plan Components
Specifically, the LTP is comprised as follows:
. ROE Component: compares AMD's three-year ROE against the three-year
ROE for the S&P 500.
. Sales Component: compares the difference between AMD's three-year
sales growth and the three-year semiconductor industry sales growth,
as published by Worldwide Semiconductor Trade Statistics (WSTS)/3/.
Target multipliers are derived as follows in Table VI:
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/3/ Semiconductor industry data may be modified to be more representative of
AMD's product offerings. For instance, the DRAM market segment may be excluded
from the Total Semiconductor Sales data.
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Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001