Advanced Micro Devices (NASDAQ: AMD) stock inclined during intraday trading Tuesday after the chipmaker announced executive pay hikes and equity awards.
Advanced Micro Devices has introduced notable adjustments to its executive compensation structure.
In a recent filing with the SEC, the semiconductor company disclosed that its Board of Directors and Compensation and Leadership Resources Committee have sanctioned salary increases and long-term incentive awards for several senior executives.
Salary Adjustments
Effective July 1, 2024, Lisa T. Su, the Chair, President, and CEO at AMD, will see her annual base salary rise from $1.2 million to $1.26 million. Jean Hu, the Executive Vice President, Chief Financial Officer, and Treasurer, will receive a salary increase from $725,000 to $760,000. Philip Guido, Executive Vice President and Chief Commercial Officer, and Forrest Norrod, Executive Vice President and General Manager of Data Center Solutions, will also see their salaries increase to $750,000 each, up from $725,000 and $710,000, respectively.
Equity Awards
In addition to these salary adjustments, Advanced Micro Devices (NASDAQ: AMD) executives will receive equity awards under the company’s 2023 Equity Incentive Plan on August 9, 2024. These awards are substantial, with Dr. Lisa Su targeted to receive equity valued at $28.68 million, Jean Hu at $8 million, Philip Guido at $6 million, and Forrest Norrod at $7 million.
The equity awards will consist of performance-based restricted stock units (PRSUs) and time-based stock options or restricted stock units (RSUs). For Dr. Su, 75% of the target value will be in PRSUs, with the remaining 25% in stock options. Other executives will receive a mix of 60% PRSUs, 20% stock options, and 20% RSUs.
The number of PRSUs that can be earned ranges from 0% to 250% of the target based on AMD’s stock price performance relative to the S&P 500 Index and the company’s non-GAAP earnings per share growth. The PRSUs are subject to vesting conditions and performance criteria over three years, with the potential for accelerated vesting in the event of a change of control.
Stock options will vest over four years with a seven-year term, while RSUs will vest annually over four years. The company has structured these long-term incentives to align executive interests with shareholder value and retain crucial leadership talent within AMD.
Advanced Micro Devices (NASDAQ: AMD) Stock Movement
AMD stock jumped 4.20% on Tuesday, closing at $164.31, marking a 2.53% increase for the week. The trading volume was 57,838,608 shares, higher than the average daily volume of 52.30 million.
