Analyst Says AMD Executive Bonuses are "Unbelievable"

Analyst Says AMD Executive Bonuses are

| Source: benzinga Author: Mark Campbell

Analyst Says AMD Executive Bonuses are "Unbelievable"

Analyst Slams AMD for Executive Bonuses which are "Unbelievable" given AMD's recent performance, with a compensations scheme which is to give high ranking AMD Executives like Mark Papermaster, Devinder Kumar and Forrest E. Norrod awards which have a target value of $2 million each and grant their CEO Lisa Su equity awards which amount to $6 million dollars.

These grants are similar to what was awarded in August 2014, but over the past year analysts form Bernstein have claimed that the company has "fallen apart". It is believed that these reward are as part of the companies retention plan as analysts claim that no reward should be necessary for a company which is performing as badly as AMD.

"Last night after the close AMD filed an 8-K2, outlining new, sizeable equity awards made to the senior executive team. These equity awards are a mix of performance-based restricted stock, time-based restricted stock, and stock options."



"We suppose this could also be one last-ditch effort to "align management incentives with shareholders," but at this point it seems far too late for that,"

Given that at the start of this year AMD had to layoff a large number of employees and continue to make cuts in order to balance it's books Bernstein's analyst find such large payments to management as "distasteful". The Bernstein report says that AMD is at a "tipping point" and that if they cannot improve their competitive position that the company may not have a future.

"AMD is at a tipping point, with their core PC business under significant pressure from a weak market and increasingly poor competitive position,"

AMD's position in a few years will largely be dependent on AMD's product lineup next year, as AMD moves onto 14nm FinFET with their all new Zen based CPUs and onto FinFET based GPU designs.

You can join the discussion on AMD's Executive bonuses on the OC3D Forums.

Analyst Slams AMD for "Unbelievable" Executive Bonuses given AMD's recent performance. http://t.co/RP5vMA2rtJ pic.twitter.com/sZCuGVgAaT — OC3D (@OC3D) August 17, 2015

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