AMD CEO to Receive $33 Million in Stock Awards as NVIDIA AI Competition Heats Up

AMD CEO to Receive $33 Million in Stock Awards as NVIDIA AI Competition Heats Up

This article is not intended as investment advice. The author does not hold any positions in the stocks mentioned.

AMD CEO Lisa Su’s Compensation Package: An Overview

In a recent SEC filing, Advanced Micro Devices (AMD) has disclosed a lucrative compensation package for CEO Lisa Su. Her remuneration includes a base salary of $1.3 million and an impressive $33 million worth of stock options. These options are set to be granted in August, with their vesting contingent upon her performance, and are scheduled to mature by 2028.

AMD’s Recent Market Performance

The stock market has recently shown strong enthusiasm for AMD, particularly after shares rallied by 28% in June. This surge was fueled by favorable analyst sentiment regarding the company’s position in the GPU and AI sectors. As AMD continues to innovate, it is positioned as a formidable competitor against industry giants like Intel and NVIDIA.

A Unique Competitive Edge

AMD maintains a distinctive place within the semiconductor landscape, effectively challenging both Intel and NVIDIA, despite their differing market focuses. The company has successfully captured a portion of Intel’s market share in data center CPUs. Analysts have expressed optimism that AMD’s GPUs may soon rival NVIDIA’s offerings in artificial intelligence applications.

AMD’s Diverse Product Portfolio

Unlike NVIDIA, AMD stands out as one of the few GPU manufacturers catering to both consumer gaming markets and enterprise solutions, including AI accelerators. This diversified product line enables AMD to capitalize on burgeoning demand, especially given NVIDIA’s struggles with pricing and supply constraints.

Details on Executive Compensation

Alongside Su’s substantial pay package, AMD has also outlined the compensation for several other top executives. CFO Jean Hu and CTO Mark Papermaster will earn base salaries of $800, 000 and $870, 000, respectively.

Equity Awards Breakdown

The compensation structure also reflects significant differences in equity awards. Su’s package includes $33 million in equity, which significantly surpasses the awards for her peers—Papermaster will receive $10 million, while Hu will be granted $8.5 million. These equity awards will be allocated on August 15, based on the 30-day average closing price of AMD shares.

Performance-Based Incentives

Notably, Su’s equity awards will include a combination of 75% performance-based restricted stock units (PRSUs) and 25% time-based stock options. The vesting of these PRSUs hinges on AMD’s stock price performance from August 15, 2025, to August 15, 2028, along with performance metrics relating to AMD’s earnings for fiscal year 2027.

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