Form 4: AMD Executive Philip Matthew Carter Receives Stock Awards

Philip Matthew Carter, Chief Accounting Officer at Advanced Micro Devices (AMD), was granted restricted stock units (RSUs) and performance-based restricted stock units (PRSUs) on December 15, 2024.

Summary

• Philip Matthew Carter, the Chief Accounting Officer of Advanced Micro Devices (AMD), received stock awards on December 15, 2024.
• The awards include 8,094 restricted stock units (RSUs) and 2,648 performance-based restricted stock units (PRSUs).
• The RSUs vest in four equal installments annually starting December 15, 2025, and ending December 15, 2028.
• The number of PRSUs that will vest depends on AMD's stock performance relative to the S&P 500, absolute stock return, and non-GAAP earnings per share growth in 2025 compared to 2024.
• The performance period for the PRSUs runs from August 9, 2024, to August 9, 2027.
• Vesting of the PRSUs is also contingent on continued employment through August 9, 2027, or the one-year anniversary of a change in control, if earlier.
• The actual number of PRSUs earned will be determined by the Compensation and Leadership Resources Committee.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, which is generally positive for aligning interests but not a major market-moving event.

Positives

• The stock awards align the executive's interests with the company's performance and shareholder value.
• The vesting schedule of the RSUs encourages long-term commitment from the executive.
• The performance-based nature of the PRSUs incentivizes the executive to drive strong financial results and stock performance.

Risks

• The actual number of PRSUs earned is dependent on AMD's performance, which is subject to market conditions and other factors.
• The executive must remain employed with AMD through August 9, 2027, for the PRSUs to fully vest, creating a potential risk of loss if employment is terminated.

Future Outlook

The vesting of the stock awards is contingent on continued employment and the company's performance over the next few years.

Industry Context

Stock-based compensation is a common practice in the technology industry to attract, retain, and incentivize key executives.

Comparison to Industry Standards

• Many technology companies, such as Intel, Nvidia, and Qualcomm, use a combination of restricted stock units and performance-based stock awards as part of their executive compensation packages.
• The vesting schedules and performance metrics used by AMD are generally in line with industry standards for similar roles and companies.
• The use of S&P 500 relative performance as a metric is a common practice to ensure that executive compensation is tied to overall market performance.

Stakeholder Impact

• Shareholders may view the stock awards positively as they align executive interests with company performance.
• Employees may see the awards as a sign of the company's commitment to its leadership.

Next Steps

• The executive will continue to work at AMD to meet the vesting requirements.
• The Compensation and Leadership Resources Committee will determine the number of PRSUs earned based on AMD's performance.

Key Dates

Keywords

stock awards, restricted stock units, performance stock units, executive compensation, AMD, vesting, performance metrics, non-GAAP earnings, S&P 500