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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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By konekobot on 9/5/2007 4:07:26 PM , Rating: 1
I'll play devil's advocate and say that these top brass are privy to what's coming down the pipeline. They know the processors, coming out soon, cost tons of money to develop and they probably know the price/performance ratio. They probably know they have nothing in the near future that will compete with intel.

I'm absolutely sure that they have signed comprehensive NDA's, and therefore will never disavow their knowledge. However, that doesn't keep them from doing what they can to protect their pocket books.

As with all things in business-- you buy low and you sell high. The fact that they are selling/leaving now indicates that they know their stock options are about to take a nosedive and it's time to get out. In a couple years when amd has bled as much as it can and occupies a budget-market space w/ integrated graphics solutions and low-power low-performance low-price low-everything chips. That'll be the time to buy-in.

By mars777 on 9/5/2007 8:02:53 PM , Rating: 2
ATI personell doesn't have to compete with Intel, more likely with nVidia. It's ATI Execs that are leaving...

By konekobot on 9/7/2007 3:46:51 PM , Rating: 2
I'm not really saying that ATI has to compete with Intel. I'm saying that the ATI and AMD cheifs have COMMON interest in the form of stock options. Regardless of who is competing with who, the top brass have to be aware of what is coming down the pipeline (graphics or CPU related).

There would be no reason for ANYONE to jump ship if what the near future holds is promising. By leaving now, it only hints that they are planning to sell their investment in the company. It says that they believe they can find some other place to grow their money, because AMD/ATI is probably not that place. It says they know what's about to come and it can't compete... AMD / ATI (and they are the same now) can't compete for market share in the near future of 2 years (that's my guess).

Everyone draws a line between ATI guys and AMD guys, but when the stock is the same it doesn't matter. When you're at the top and you have millions invested, it doesn't matter. You don't say "Bleh... those aren't 'our' people so it doesn't affect me". It's not about technology, or company politics, or business ethics... it's all about money. The big guys' actions are showing that you shouldn't place your bets (invest) in AMD.

"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
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