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Ex-AMD chief, Ruiz, lands himself $3 million bonusIt's a rich man's world
By Sylvie Barak: Monday, 13 October 2008, 5:10 PM
AS A REWARD FOR splitting AMD in two, former CEO Hector Ruiz will pick up a hefty three million dollar bonus to go with his new $1.15 million salary as Chairman of The Foundry Co.
Not wanting to make a big deal of the gluttonous pat on the back payout, AMD decided that instead of a press release, it would bury the news in paper instead, sticking it into the firm’s regulatory filing on Friday. After all, what would people think of such excess after AMD had just clawed itself from financial ruin by pimping itself out to Arab oil sheiks?
The $3 million is just frosting on the cake for Ruiz, whose new two-year contract as non-voting chairman of The Foundry Co is rumoured to be worth somewhere in the region of $11.5 million with an annual salary of $1.15 million and potential extra annual bonus of up to 400 per cent of that base salary. Obviously Ruiz must think the credit crunch is a cereal bankers eat at breakfast.
AMD obviously feels that, despite Ruiz bringing the firm to the brink of bankruptcy, he deserves to be lavishly rewarded for helping put together a deal which separates AMD into a chip design firm – partly funded by Abu Dhabi-owned investment firm Mubadala – and The Foundry Co, a majority of whose shares are owned by another investment arm of the Abu Dhabi emirate ATIC.
The move to the "asset smart" model - separating the low-capital, high-margin chip design part of the company from the high-capital, low-margin manufacturing part - is seen by many as the only option AMD had in order to save itself from total financial ruin. The firm’s shares had been rapidly sinking since early 2007, from $20 a share to a weedy $3.81 at market close on Friday.
Of course, the bonus is conditional on Ruiz being able to clear the plethora of regulatory hurdles which still stand in the firms’ way, but those are not expected to pose any special difficulties. Ruiz can probably laugh all the way to the bank. In fact, in this economic climate, he can probably now buy the bank. µ |
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