AMD 2004 Annual Report Download - page 144

VP PERFORMANCE RECOGNITION PROGRAM
Any pool award generated for the first-half performance period is held in reserve pending the final OP for the year. If, for the year, Actual
OP is below the combined threshold for the two separate performance periods, any pool generated for the first half of the year is forfeited.
There is no maximum accrued award on this component of the Plan. The maximum paid in any year is subject to the Plan funding, maximum and
carryover provisions explained in section V.
The following table illustrates four payment calculation examples for a participant with a CPA target of 10% of pay, a base salary of $225,000, and
a pool of 10% of excess OP:
First Half ($M)
Planned
OP
OP Threshold
(80%)
Actual
OP
Perf.
%
Target Mult.
(Max = 1.00)
$ Pool
for Distribution
Case 1 200 160 240 120 1.00 4.00
Case 2 (Target Perf.) 200 160 200 100 1.00 0.00
Case 3 200 160 220 110 1.00 2.00
Case 4 200 160 170 85 0.25 0.00
Second Half ($M)
Planned
OP
OP Threshold
(80%)
Actual
OP
Perf.
%
Target Mult.
(Max = 1.00)
$ Pool
for Distribution
Case 1 300 240 315 105 1.00 1.50
Case 2 (Target Perf.) 300 240 300 100 1.00 0.00
Case 3 300 240 165 55 0.00 0.00
Case 4 300 240 150 50 0.00 0.00
Annual ($M)
Base
Salary
Combined
OP Threshold
Actual
OP
CPA
Mult.
CPA
Target
Award
%
Award
$
Total $ Pool
for Distribution
Case 1 $ 225,000 400 555 1.00 10.0% 10.00% $ 22,500 5.50
Case 2 (Target Perf.) $ 225,000 400 500 1.00 10.0% 10.00% $ 22,500 0.00
Case 3 $ 225,000 400 385 0.50 10.0% 5.00% $ 11,250 0.00
Pool eliminated
from First Half
since combined
threshold not met
Case 4 $ 225,000 400 320 0.13 10.0% 1.30% $ 2,925 0.00
B. Group Performance Award (GPA)
The GPA depends on Actual Group Operating Profit (OP) versus Planned Group OP. Similar to the CPA, for each half-year performance period a
multiplier is derived based on Actual Group OP vs. Planned Group OP as illustrated in the following graph:
3
Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005