Advanced Micro Devices Inc (AMD)

[sgolds]

wbmw, you conveniently forget the section immediately above it:

3. Stock Options - On your first day of employment (the commencement date),
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subject to the approval of the Compensation Committee of our Board of
Directors, you will be granted a nonqualified stock option to purchase
200,000 shares of AMD common stock at an exercise price equal to the
closing price of AMD common stock on the grant date. Starting in 2001,
your annual grant target is 100,000 options.

Vesting
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200,000 options
. 125,000 vest on the first anniversary of the grant date
. 75,000 vest ratably over the 12-month period immediately
following the first anniversary.

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100,000 options annual grant target beginning in 2001
. 50,000 shares vest on the first anniversary of the grant date
. 50,000 vest ratably over the 12-month period immediately
following the first anniversary.
Actual number of shares granted may be more or less than 100,000,
depending on personal performance and competitive market considerations.

So, for every 10 shares of standard stock, the executive is granted 1 share of restricted stock. The 300,000 shares (at market price) vest over 3 years, the 30,000 restricted shares (at 1c) vest over 5 years. If the executive continues at AMD then he gets an additional 100,000 share grant each year, vesting over 2 years.

Puts it all in a lot better perspective! The restricted shares are, essentially, direct compensation since the executive can get them at negligable cost. Yet the bulk of the shares are the more normal, market price shares - which have value only if the executives lead the company to higher stock prices.