AMD 2000 Annual Report Download - page 99

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AMD VICE PRESIDENT INCENTIVE PROGRAM
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I. Purpose
The Vice President Incentive Program (VPIP) provides an incentive for AMD's
Vice Presidents (Participants) to maximize both short-term financial
performance against plan, as well as long-term revenue growth and Return on
Equity (ROE). This summary presents an overview of the program. Further
details about how the program is administered, including specific formulas
for each component, can be obtained from Corporate Compensation.
II. Plan Overview
The VPIP consists of two plans (Plans):
. The Short-Term Plan (STP) provides a bonus for achieving planned
performance for the current fiscal year (Plan Year).
. The Long-Term Plan (LTP) annually provides a bonus for sustained
corporate performance over a three-fiscal-year period relative to
external measures.
Within these Plans, Participants are rewarded for meeting or exceeding
performance objectives as follows:
Table I
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Plan Component Measure(s)
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STP Corporate Performance . Adjusted Operating Income vs. Plan
. Economic Value Added (EVA) Improvement vs. Plan
Division Performance . Division Sales vs.
Plan
. Division Operating Profit vs. Plan
Individual Performance . Discretionary Individual & Division-Specific Objectives
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LTP Relative Profitability . AMD ROE vs. S&P 500 ROE over 3 years
Relative Sales Growth . AMD Sales Growth vs. WSTS Sales Growth (3 years)
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A separate communication outlining the assigned target percentages for
each component of the Plans, and division assignments and financial
goals for the STP, will be provided to Participants each year.
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Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001