Form 4: AMD Executive Mark Papermaster Reports Stock Transactions

Chief Technology Officer Mark Papermaster reports acquisition and disposal of AMD stock and derivative securities, including stock options and restricted stock units, on August 9, 2024.

Summary

• On August 9, 2024, Mark Papermaster, Chief Technology Officer & EVP of Advanced Micro Devices Inc. (AMD), reported transactions involving AMD's common stock and derivative securities.
• These transactions include the acquisition of 217,054 shares of common stock and the disposal of 91,078 shares to cover tax obligations related to vested restricted stock units (RSUs) and performance-based stock units (PRSUs).
• Papermaster also acquired 38,857 Performance Stock Units (PRSUs) and 12,952 Restricted Stock Units (RSUs) and 25,432 stock options.
• Following these transactions, Papermaster beneficially owns 1,686,601 shares of AMD common stock, 38,857 PRSUs, 12,952 RSUs and 25,432 stock options.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The vesting of PRSUs suggests that AMD has achieved certain performance goals. The transactions are routine and expected.

Positives

• The acquisition of shares through vested PRSUs indicates that performance targets were met, reflecting positively on AMD's performance.
• The grant of new PRSUs, RSUs and stock options aligns Papermaster's interests with those of the shareholders, incentivizing continued performance.

Negatives

• The disposal of shares to cover tax obligations, while standard practice, slightly reduces Papermaster's direct holdings in AMD.

Risks

• The value of the PRSUs is contingent on AMD's future stock performance and earnings per share growth, which are subject to market risks and competitive pressures.
• The vesting of the new PRSUs is dependent on Papermaster's continued employment with AMD through August 9, 2027.

Future Outlook

The number of PRSUs that may be earned between 2024 and 2027 will be determined by the Compensation and Leadership Resources Committee based on AMD's performance relative to the S&P 500, absolute stock return, and EPS growth.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies and are often viewed as a signal of management's confidence in the company's future prospects. The vesting of PRSUs indicates that AMD has met certain performance targets, which is a positive sign for investors.

Comparison to Industry Standards

• Executive compensation packages including stock options, RSUs, and PRSUs are standard practice among large technology companies such as Intel, NVIDIA, and Qualcomm.
• The vesting schedules and performance metrics used for PRSUs are typically aligned with industry benchmarks and company-specific strategic goals.
• Comparing AMD's executive compensation structure and stock ownership with those of its peers can provide insights into the company's governance practices and alignment of management incentives with shareholder value.

Stakeholder Impact

• The vesting of PRSUs and RSUs benefits the executive, aligning their interests with shareholders.
• The company's performance, as reflected in the vesting of PRSUs, can impact shareholder value.

Next Steps

• The Compensation and Leadership Resources Committee will determine the number of PRSUs earned based on AMD's performance through August 9, 2027.
• Earned and vested PRSUs will generally be settled on the later of August 15, 2027, or the date following the Committee's determination of performance.

Key Dates