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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Paul Engel who wrote (35164)	7/28/1998 1:58:00 PM
From: Elmer	Read Replies (1) \| Respond to of 1573544

Here's a link to an article that touches on Jerry's generous options. It does confirm that AMD has been repricing options for all employees, not just Jerry. "Repricing the strike price of options, or lowering the per-share price paid to exercise the options, is another contentious issue for investors. Advanced Micro Devices is one company that repeatedly has lowered the strike price of its options, in an effort to keep employees as its stock price plunged. Repricing of options has long been a common practice, aimed at retaining executives as well as a company's rank-and-file employees, said Marty Katz, head of the Western office of William Mercer's executive compensation practice. He pointed out, however, that there has been a philosophical shift recently, with many companies now choosing to reprice options for all employees except their top five executives. Although AMD chief executive Jerry Sanders did not receive any stock option grants in 1997, he did receive over $15 million from cashing in previous grants. "The issue is that Jerry Sanders cashed in options worth $15 million dollars last year, and, given that the stock price was $28 a share five years ago and it's [dropped below that] today, that's quite a feat," said Chris Bohner, research analyst for the AFL-CIO. "A lot of other shareholders didn't have that luxury, especially long-term investors." Scott Allen, an AMD spokesman, said that the company has not repriced options for Sanders since the early '90s and that he does not know whether the options Sanders cashed in last year included grants that previously had been repriced. " news.com EP