AMD's Ruiz 'blew it' in 2007, but still gets raise

Despite AMD's dismal performance in 2007, CEO Ruiz will get a raise.

AMD chairman and CEO, Hector Ruiz, acknowledged last week that 2007 was a bad year for his company, but that didn't stop AMD's board of directors from raising his salary anyway.

"We blew it and we're very humbled by it and we learned from it and we're not going to do it again," Ruiz told financial analysts in New York.

AMD has struggled this year, largely due to technical problems that repeatedly delayed the widespread availability of its Quad-Core Opteron chip, known as Barcelona. As a result, the company saw its financial losses mount -- $US1.6 billion during the first nine months of this year -- while incurring $3.7 billion in long-term debt to help keep the company's operations running.

The announcement Wednesday that AMD plans to take an as-yet unspecified charge for impaired goodwill from its $US5.4 billion acquisition of ATI -- recognition that the graphics-chip vendor is worth less than AMD paid for it last year -- only added to the company's financial woes and dimmed investor enthusiasm. AMD's share price closed at $8.84 Thursday, down 56 per cent from a year ago.

However, those issues will not affect Ruiz's base salary, which has been increased, according to a filing with the US Securities and Exchange Commission released Thursday, the same day that Ruiz apologised for the company's dismal performance.

That filing, which contained a copy of Ruiz's amended [employment agreement], shows AMD raised his annual base salary by 7.4 per cent to US$1,124,000. The amended agreement is dated Dec. 7.

In 2006, Ruiz received a [base salary] of $1,046,358, while stock awards and other forms of compensation raised his total compensation for the year to $12,848,435.

Ruiz's 2006 compensation was significantly higher than Intel CEO and president, Paul Otellini, who took home a [salary] of $700,000 in 2006. Other awards raised Otellini's total compensation in 2006 to $9,806,400.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Sumner Lemon

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?