AMD 2004 Annual Report Download - page 148

VP PERFORMANCE RECOGNITION PROGRAM
For example, if AMD’s 3-year ROE is 10% and the S&P ROE is 10%, the difference is 0. Therefore, a multiplier of 1.0 is generated for the ROE
component. If AMD’s 3-year Sales Growth is 30% and the WSTS Sales Growth is 10%, the difference is 20%. Therefore, a multiplier of 2.0 is
generated for the Sales component.
The Combined LTP Target Multiplier is calculated as follows:
(ROE Component Multiplier x 50%) + (Sales Component Multiplier x
50%) = Combined LTP Multiplier
So, in the example above, the Combined LTP Multiplier is 1.5:
(1.0 x 50%)+(2.0 x 50%)=1.5
For either factor, the threshold performance level must be met in order for an LTP award to be generated. The maximum multiplier when both
factors are added is two (2.0).
B. LTP Award Calculation
The LTP award is calculated as follows:
Combined LTP Multiplier x LTP Target (30%) x Base Salary = LTP
V. Plan Funding, Maximum Awards and Carryovers
The Corporate Component of the STP is funded by a maximum of three percent of AMD’s adjusted Operating Profit, as defined in section VIII, for any
given Plan Year. In the aggregate, if the Corporate awards exceed the 3 percent limit, each Participant’s award will be scaled back to conform.
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Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005