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AMD's Rick Hegberg  (Source: AMD)
AMD loses another executive

In late August, DailyTech reported that Henri Richard would leave his position as executive vice president and chief sales and marketing officer for AMD on September 8. Richard had been with the company since 2002 and saw the Sunnyvale, CA-based company go through good times (Opteron successes) and bad times (post ATI acquisition difficulties).

Today, The Wall Street Journal is reporting that another AMD executive is jumping ship. Rick Hegberg, AMD's VP of worldwide sales, is leaving the company although a company representative declined to indicate when the resignation would take place or his prospects afterwards.

Hegberg was a former ATI employee and came to AMD after the 2006 acquisition. Hegberg is also the second former ATI executive to leave AMD -- former ATI CEO Dave Orton left in July.

It's interesting that three key executives are abandoning the company prior to the release of Barcelona. AMD's native quad-core processor family is just around the corner and the company has already announced pricing for the new chips.

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RE: Normal departure after merger?
By Adonlude on 9/5/2007 12:36:55 PM , Rating: -1
3 key execs being forced out right before the release of AMD's next major product that many hope will allow them to hold some ground against Intel? I think this is a bit of wishful thinking on your part.

More like rats fleeing a sinking ship.

RE: Normal departure after merger?
By Polynikes on 9/5/2007 1:00:37 PM , Rating: 4
Call me crazy, but despite AMD's rather serious troubles of late, I'm confident they can endure these hard times.

I'll just be buying Intel CPUs for a while.

RE: Normal departure after merger?
By 16nm on 9/5/07, Rating: -1
RE: Normal departure after merger?
By Targon on 9/5/2007 3:07:23 PM , Rating: 2
Dumping execs? After ANY merger, there will be those who leave because they don't feel comfortable in the post-merger environment. In the case of Dave Orton, going from being top dog to someone who has to answer to others may not have been something he would enjoy. So, he gave it a try, then decided that he would rather leave.

Seriously, how many jobs have YOU had where the job was great, but the chemistry between you and your co-workers just didn't feel right for you? It's not about pay, or the job, or how the company is doing, it is really about how much you enjoy your job.

ATI was already going through competition stress dealing with NVIDIA, so the situation AMD is in really shouldn't be seen as being all that different. The only difference is that you have a future, since the merger DOES provide a lot of great long-term potential.

In the long run, we will see the merger move up the schedule for 65nm and 45nm GPUs thanks to AMD experience researching these technologies. That should help the GPU side of things quite a bit.

RE: Normal departure after merger?
By 16nm on 9/5/2007 3:23:51 PM , Rating: 2
Dumping execs?

No, no. You entirely missed my point. Probably you are too emotional about AMD. It's not about dumping execs. It is about dumping the WRONG execs, i.e. ATI execs. Should be keeping the ATI staff as much as possible -they seem able to execute in a competitive environment (an ability that eludes Hector).

RE: Normal departure after merger?
By Nik00117 on 9/5/07, Rating: 0
By vignyan on 9/6/2007 2:07:00 AM , Rating: 2
This is a computer industry with billions of dollars at stake. People getting cocky is fine... but companies getting cocky is something that is not ideal... Agreed that AMD was way too "cocky" in trying to show intel down... but that was not the reason that they failed. Its just that Intel came up with a better product... And their success is attributed to their products...

Grow up!

RE: Normal departure after merger?
By vignyan on 9/6/2007 2:01:39 AM , Rating: 2
In the long run, we will see the merger move up the schedule for 65nm and 45nm GPUs thanks to AMD experience researching these technologies

I dont think AMD is having any significant investment in the development of 45nm. All of the AMD's 45nm will be coming from IBM and other manufacturing partners.

BTW, Nvidia is not leaving things all alone, they are on-schedule for their 50nm chips due out early next year.

By Viditor on 9/6/2007 3:15:03 AM , Rating: 3
All of the AMD's 45nm will be coming from IBM and other manufacturing partners

It was actually a joint development of AMD and IBM out of East Fishkill...AMD invested over $.5 billion on the development tools, as did IBM.

RE: Normal departure after merger?
By BitJunkie on 9/5/2007 1:01:10 PM , Rating: 2
Or they reached the end of thier tie-in period following the acquisition and are now free to leave?

Most buyouts that I've seen make some provision to tie management and key staff to a slot for a period - if they leave prior to that, they can pass up on a large chunk of cash / share options.

Of course, they could just be sacking the guys who screwed channel partners in order to keep Mr Dell happy.

RE: Normal departure after merger?
By deeznuts on 9/5/2007 1:33:09 PM , Rating: 3
Yes but if so, for public companies, these arrangements/reasons are announced so the appearance of rats jumping ship aren't conjured up.

By BitJunkie on 9/6/2007 4:47:41 AM , Rating: 2
Are they? At least in the UK there's no legislation that says one MUST make such announcements. So then consider which scenario looks better:

1) Exec jumps given the first opportunity at the end of his tie-in with company.

2) Exec in pushed by said company.

Then place both of those scenarios in the context of a company that's trying to improve the perceived credibility of it's management.

If he did leave on his own, then making the announcement means people know he did and the company appears "weak". If they don't make an announcement then there's always the rather helpful speculation that they are cutting dead wood and being ruthlessly efficient business people thus looking stronger and more in control.

I place my money on the last of those options.

"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer
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