14 DAY TRIAL // The alleged raise AMD's CEO and Chairman got last week proved to be the result of a misinterpreted SEC filing. The compensation document AMD had submitted read that Ruiz's base salary had been increased from $1,046,358 in 2006 to $1,124,000.
AMD officials made it clear that the mentioned compensation was negotiated for the last year and Ruiz did not get any raise during 2007. Ruiz may receive a yearly raise between 150 and 450 percent of his annual income, but only if he manages to accomplish some undisclosed performance targets.
Ruiz may also get additional money only if he manages to "contribute to the accomplishment of AMD's long-range business goals, the success of various corporate strategies in which you participated in reaching those goals, and the unique services in connection with the maintenance or increase in stockholder value of AMD", as the contract stipulates.
A closer look at the contract reveals a plethora of benefits and clauses. Ruiz gets a $25,000 yearly compensation for tax preparation and financial planning. Moreover, Hector Ruiz can not be forced to live more than 50 miles outside of Austin, Texas, or else AMD will be forced to pay Ruiz "double the maximum salary and bonuses up to $10 million, a pro-rated salary, bonuses and other compensation, plus two years of medical and dental benefits to the family".
According to AMD spokespersons, Ruiz's compensation plan has been signed long ago, when the company was financially stable. However, the plan was amended on December 7, 2007 - namely a few days before AMD's analyst meeting.
"Perhaps the confusion is caused by the fact that Hector received a raise earlier in the prior year and the wording of the 8-K filing may not have been as clear as it could have been, but I can assure you that Hector's compensation did not change and he is not receiving a raise", said Michael Silverman, an AMD PR representative.
AMD's CEO Hector Ruiz remains the best paid CEO in the semiconductor industry, with or without the 7.4 percent raise. Those who have been intrigued by the alleged extra cash Ruiz was going to make can rest at ease, since his year's work is only worth $1,124,000.