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Former AMD CEO nets 22% pay increase, $12 million parting gift

Ann Bednarz | March 15, 2011
Dirk Meyer received compensation worth $5.5 million in his final year as CEO at Advanced Micro Devices. But that's not all he left with. AMD expects to pay Meyer $12 million in severance in 2011.

FRAMINGHAM, 15 MARCH 2011 - Dirk Meyer received compensation worth $5.5 million in his final year as CEO at Advanced Micro Devices (AMD). But that's not all he left with. AMD expects to pay Meyer more than double that amount as part of a severance agreement in the works.

In AMD's 2010 fiscal year, ended Dec. 25, Meyer received a $925,381 salary (down 17% from his $792,685 salary in 2009). He also received stock awards valued at $2.5 million at the time they were granted (up 40% from $1.8 million in 2009) and option awards valued at $2.1 million (up 10% from $1.9 million).

No bonus was awarded to Meyer, who resigned from the post of CEO in January of this year amid complaints that he didn't focus enough on tablets and other mobile devices. (Thomas Seifert, the company's CFO, is AMD's interim CEO.)

Meyer's other compensation and perquisites totaled $10,329, which includes $5,513 for company 401(k) contributions, $3,491 for imputed income related to life insurance, $700 for patent awards, $397 for a family member's travel, and $228 for tax gross-ups.

Overall, Meyer's 2010 pay package climbed 22% compared to 2009, when he netted $4.5 million.

AMD, meanwhile, grew revenue and profits by 20% and 55%, respectively, in 2010. Revenue came in at $6.5 billion, up from $5.4 billion in 2009. Net income hit $471 million, up from $304 million in the prior year.

When AMD reported its fourth-quarter and year-end financial results, the company also disclosed that it expects to make a separation payment of approximately $12 million to Meyer during the first quarter of 2011.

Meyer's total 2010 pay is calculated using data supplied in a proxy statement filed with the SEC on March 10. The following figures are taken from the summary compensation table: salary, stock awards, option awards and all other compensation. The estimated value of equity awards represents the grant date fair value of performance shares and stock options granted during the fiscal year.

 

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