Advanced Micro Devices Inc (AMD)

[wbmw]

Borusa, Re: Very likely those options were granted some years back, just speculating.

September 28, 2000--AMD today announced the appointment of former Motorola executive Robert J. Rivet, 46, as senior vice president and chief financial officer.

http://www.pcstats.com/releaseview.cfm?releaseID=380

The strike price for Rivet's initial option grant should have been somewhat north of $20, which would be well under water given today's price.

http://chart.yahoo.com/d?a=8&b=20&c=2000&d=9&e=30&f=2000&g=d&s=amd

And in no time since September 28, 2000 did the stock ever drop below $3.10.

I've heard of repricing options before, but there is no way that Rivet should have received options at a strike price of one penny. AMD's executive compensation is way out of line here, and I seriously would like to know how they get away with it, and where it is labeled on their balance sheet.

If anyone knows a reasonable answer for this, please let me know.