AMD CEO Pay Raise: $33 Million Equity Award Announced

Advanced Micro Devices (AMD) CEO, one of the leading chipmakers in the world, has made headlines again—this time not for a new product, but for a major decision involving its top executive. The company’s board has approved a significant compensation increase for its Chief Executive Officer, Dr. Lisa Su. She is set to receive an equity award worth $33 million, marking a substantial raise that has stirred attention across the tech industry and business world.

This move highlights AMD’s confidence in her leadership and long-term vision, especially as the company continues to battle competitors like Intel and NVIDIA in the semiconductor space. But what does this pay raise mean for AMD, its shareholders, and the tech industry as a whole?

Let’s take a closer look.

Who is Dr. Lisa Su?

Before diving into the details of the raise, it’s important to understand who Dr. Lisa Su is and why this decision is making waves.

Dr. Lisa Su became CEO of AMD in October 2014. Since then, she has played a key role in turning around the company’s fortunes. Under her leadership:

• AMD launched its successful Ryzen and EPYC processors.
• The company’s market value skyrocketed—from around $2 billion in 2014 to over $200 billion in recent years.
• AMD gained significant market share from Intel in both the consumer and server CPU markets.
• She spearheaded the acquisition of Xilinx, a move that helped AMD expand its reach in data centers, AI, and high-performance computing.

Dr. Su is widely credited for transforming AMD from a struggling chipmaker to a powerhouse in the global semiconductor industry.

Why the AMD CEO Pay Raise Now?

The $33 million equity award isn’t just a bonus. It’s part of a performance-based long-term incentive plan, designed to retain and reward Dr. Su for delivering exceptional results.

According to AMD’s recent SEC filing, the raise was granted based on several factors:

• Strong financial performance over the last five years.
• Market share growth in both consumer and enterprise markets.
• Successful execution of strategic acquisitions like Xilinx and Pensando.
• Maintaining strong shareholder returns.

The company emphasized that the equity award aligns Dr. Su’s interests with those of the shareholders, as it is tied to future performance targets.

What’s in the $33 Million Package?

The equity award includes a mix of Restricted Stock Units (RSUs) and Performance Stock Units (PSUs). Here’s what that means:

• RSUs: These are shares given over a certain vesting period, assuming Dr. Su remains with AMD.
• PSUs: These are shares that vest only if AMD hits specific performance goals like revenue, profit margins, or stock price targets.

This structure ensures that the reward is not a guarantee but depends on future success. If AMD continues to grow and meet its goals, Dr. Su benefits, and so do shareholders.

A Closer Look at AMD’s Recent Growth

To understand the justification for the CEO’s raise, consider AMD’s impressive track record in recent years:

Despite global chip shortages and economic challenges, AMD has remained resilient. It has expanded its role in AI computing, gaming consoles, and data centers, solidifying its position in multiple high-growth markets.

Reactions to the AMD CEO Pay Raise

The announcement has drawn a mixed response from the public, shareholders, and industry experts.

Supporters Say:

• Dr. Su deserves the compensation given her outstanding leadership.
• The raise is performance-based, aligning with shareholder value.
• High compensation is needed to retain top talent in a highly competitive tech landscape.

Critics Argue:

• A $33 million package feels excessive, especially during layoffs in the broader tech industry.
• It sets a precedent for skyrocketing executive pay while wage growth for employees lags behind.
• There are concerns over equity concentration, where top executives hold large shares of company value.

Despite these concerns, institutional investors—who hold the majority of AMD’s shares—have generally supported Dr. Su’s leadership and compensation structure.

How Does Her Pay Compare?

In comparison to other CEOs in the tech space:

• Jensen Huang (NVIDIA CEO) received around $34 million in total compensation recently.
• Pat Gelsinger (Intel CEO) took home around $27 million last year.
• Tim Cook (Apple CEO) earned a much higher $63 million in 2023.

So, Dr. Su’s package, while significant, is in line with industry peers, especially given AMD’s turnaround success.

Impacts on AMD’s Future

Giving a major equity award signals that AMD expects Dr. Su to stay with the company for the long haul.

Here’s how the raise might impact AMD’s future:

1. Leadership Stability

With Dr. Su locked in through performance-based incentives, investors can feel confident about the company’s strategic continuity.

2. Increased Investor Confidence

Such a strong endorsement from the board could send positive signals to Wall Street, indicating that AMD is poised for long-term growth.

3. Employee Morale and Culture

Dr. Su is known for her inclusive leadership style and support for engineering talent. Keeping her at the helm helps maintain AMD’s collaborative culture.

4. Focus on Innovation

With stakes this high, Dr. Su will likely double down on AI, next-gen GPUs, and chiplet technologies, areas that will define AMD’s next chapter.

A Broader Trend in Executive Compensation

The AMD CEO pay raise is part of a broader pattern in the tech world, where top executives are being paid largely through stock awards and performance bonuses, not fixed salaries.

This approach:

• Ties compensation to long-term success
• Limits risk of overpaying during downturns
• Helps retain leaders in a fiercely competitive industry

However, it also adds pressure. If AMD fails to meet its targets, the $33 million equity package could shrink significantly, or even become worthless.

Final Thoughts: Is the Pay Raise Justified?

The $33 million equity award to AMD CEO Dr. Lisa Su is more than just a raise—it’s a vote of confidence, a reward for past success, and a bet on the future.

In an industry where innovation drives everything, having the right person at the top is critical. Dr. Su has proved time and again that she can deliver results. The board’s decision reflects that belief.

But as AMD faces growing competition from Intel, NVIDIA, and emerging players in AI and custom silicon, the road ahead is not easy. Only time will tell if this raise leads to even bigger wins—for Dr. Su, AMD, and its shareholders.

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