AMD 2004 Annual Report Download - page 142

VP PERFORMANCE RECOGNITION PROGRAM
I. Purpose
The Vice President Incentive Program (VPIP) recognizes and rewards AMD’s and SPANSION LLC’s Vice Presidents (Participants) for furthering AMD’s
and SPANSION LLC’s ongoing success against both short- and long-term objectives.
II. Plan Overview
The Short-Term Plan (STP) provides an award for meeting or exceeding planned performance for the current fiscal year (Plan Year).
The Long-Term Plan (LTP) provides an annual award for sustained corporate performance over a three-fiscal-year period relative to external measures.
Within these plans, the performance objectives are as follows:
Plan Component Metric(s)
STP Corporate Performance Award (CPA) Corporate Operating Profit vs. Plan
Group Performance Award (GPA) Group Operating Profit vs. Plan
Individual Performance Award (IPA) Performance against Balanced Scorecard
LTP Relative Profitability AMD Return on Equity (ROE) vs. S&P 500 Return on Equity (ROE) over 3 years
Relative Sales Growth AMD Sales Growth vs. WSTS Sales Growth over 3 years
The following sections discuss the plan provisions in further detail. All awards are subject to the Plan funding, maximum and carryover provisions detailed
in Section V. 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-K, March 01, 2005