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sschaem
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AMD vs Nvidia

Sat Jul 26, 2014 7:43 pm

After seeing some of the AMD bonus and how bad the company is performing I wanted to look at this closer.

Company A Basic compensation 2013
CEO - 8.2 million
CFO - 4.2 million
Sales, general and administrative - 674 million

Company B Basic compensation 2013
CEO - 6.0 million
CFO - 3.6 million
Sales, general and administrative - 435 million

I will let you guess who is paying their CEO over 8 million... and who is spending over 600 million in administrative overhead.

So AMD budgeted 24 million on the compensation of just 6 people in 2013.
Yet, those officer managed to a net loss of 83 millions on 5.3 billion of revenue.
nvidia officers in contrast, where able to manage a 439 million of net income on just 4.1 billion of revenue.

If AMD could be run as efficiently as nvidia (and keep its R&D budget exactly the same) AMD would have posted 156 million of net income.
AMD would have reduced its debt and interest payment by 8% in those 12 month.
 
ultima_trev
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Re: AMD vs Nvidia

Sun Jul 27, 2014 3:45 am

Then let's hope AMD lays off a few hundred people, starting at the very top with their senior executives.

I sure hope that 8.2 million isn't Rory Read's base salary. Even Steve Ballmer at Microsoft only had a base salary of around 650k. Yeah, they need to lay off Rory Read and give me the CEO position. I'll do it for only 200k/year.
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sschaem
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Re: AMD vs Nvidia

Mon Jul 28, 2014 5:05 am

ultima_trev wrote:
Then let's hope AMD lays off a few hundred people, starting at the very top with their senior executives.

I sure hope that 8.2 million isn't Rory Read's base salary. Even Steve Ballmer at Microsoft only had a base salary of around 650k. Yeah, they need to lay off Rory Read and give me the CEO position. I'll do it for only 200k/year.


Rory Read base is a cool 1 million, with 150% cache bonus, and I believe receives very large amount of stock grant and stock options as retention bonus.

The 150% cash bonus of 1.5 million is based on performance, and from what I can tell Rory Read always collected it, even when AMD had horrible quarters.

Now, if he makes $660,000 month while the company is running like a chicken with its head cut off... imagine how much those AMD guys are going to pay themselves when they recover in 2016.

He makes more in 48h then what most employee make at AMD in a year... And if AMD ever need to replace him ,his contract require a 5 million cash payment + other benefits.
I dont think any of the engineer that got fire got any of that nice gravy.
 
superjawes
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Re: AMD vs Nvidia

Mon Jul 28, 2014 5:54 am

I'm not going to try to justify the trend of executives making much more than the average employee, but retention bonuses are not uncommon when a company is in dire straits. You want some continuity over this period, you want to keep people there (as opposed to taking a job at a successful company), and you also pay them to take the heat. After all, if the company goes under, the executives will get the blame, and that might mean that they never get hired again.

My current company has the same sort of deal going on right now, at least with our CEO. We are pulling for our first break even or better quarter in some time (so we're improving), but he makes significantly more than other CEOs in the industry.
On second thought, let's not go to TechReport. Tis a silly place.

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