Good morning. As set forth in the notice of the meeting, the official business to be conducted is as follows: first, to elect nine directors to our board; second, to ratify the appointment of our independent auditors; third, to approve the Advanced Micro Devices, Inc. 2011 Executive Incentive Plan; fourth, to approve on a non-binding advisory basis the compensation of our named executive officers as disclosed in the proxy statement; fifth, to approve on a non-binding advisory basis whether a say-on-pay vote should occur every year, every two years, or every three years; and finally, to transact any other business that may properly come before this meeting. Following the formal business of the meeting, the meeting will be adjourned, and Mr. Seifert will deliver his report as Interim Chief Executive Officer of the company. A stockholder question and answer session will follow his report.
I'd like to point out that management will be making forward-looking statements about the company's current plans and expectations. Actual results may differ materially from current plans and expectations, so I encourage you to review our SEC filings where we discuss the risks inherent to our business. You will find particularly detailed discussions in our most recent annual report on Form 10-K for the period ending December 25th, 2010. Finally, please hold your questions until after Mr. Seifert's report is concluded. Now, returning to the business of the meeting, I've been authorized by the board of directors to designate an inspector of the elections and appoint William Marsh of IVS Associates as inspector of elections for this meeting.
Mr. Marsh will determine the number of shares represented at the meeting, the validity of proxies, the existence of a quorum, and the number of votes on all matters voted upon at this meeting. Before we proceed further, is there anyone present who has not voted by proxy, who wishes to withdraw his or her proxy, or who otherwise desires to vote in person at this meeting? You can see Mr. Marsh at the back of the room. The board of directors fixed the close of business on March 7, 2011, as the record date for the determination of stockholders entitled to notice of this meeting and entitled to vote at this meeting. I have a list of stockholders of the company from Computer Share, our transfer agent, showing approximately 686,503,942 shares outstanding on the record date and entitled to vote at this meeting.
This list has been kept on file at our offices in Sunnyvale and Austin for the last 10 days and is available here at the meeting for inspection by any stockholder. I also have an affidavit certifying that proxy materials for this meeting were first mailed on March 14th, 2011, to all stockholders of record on March 7, 2011. The affidavit is available for inspection by any stockholder who may wish to see it after the meeting. The count immediately before the commencement of this meeting of shares present in person or by proxy indicated that 529,916,185 shares of the company's voting stock were present, representing 77% of the outstanding shares of common stock as of March 7, 2011. Based on this number, a quorum is present. I now declare the polls open. The polls will close in approximately 10 minutes.
If there are any proxies that have not been filed, they should be filed now. If any stockholder would like to vote personally by ballot, please see Mr. Marsh at the back of the room. A copy of the minutes of the annual meeting of stockholders of Advanced Micro Devices held on April 29th, 2010, is in my possession for inspection by any stockholder who wishes to inspect it, as we will dispense with a reading of those minutes this morning. The election of directors is the first item on the agenda. The slate of directors recommended by the board of directors is as described in the 2011 proxy. The nine individuals that have been nominated for election are Dr. W. Michael Barnes, Mr. John E. Caldwell, Mr. Henry W K Chow, Mr. Bruce L. Claflin, Mr. Craig A. Conway, Mr. Nicholas M. Donofrio, Ms. H. Paulett Eberhart,
Mr. Waleed Al Muhairi, and Mr. Robert B. Palmer. AMD has adopted a majority voting standard for the election of directors with respect to uncontested elections. This standard requires each director to receive a majority of the votes cast to be elected. I now declare the nominations closed. The second item is the ratification of the appointment of Ernst & Young as independent auditors for the company for the current year. The board of directors unanimously recommends ratification. The third item is to approve the Advanced Micro Devices, Inc. 2011 Executive Incentive Plan to permit the payment of awards that qualify as deductible performance-based compensation under Section 162(m) of the Internal Revenue Code of 1986 as amended. The board of directors unanimously recommends that you vote for this amendment.
The fourth item is to approve on a non-binding advisory basis the compensation of our named executive officers as disclosed in the proxy statement pursuant to the compensation disclosure rule of the Securities and Exchange Commission. The Board of Directors unanimously recommends that you vote for this proposal. The fifth item is to approve on a non-binding advisory basis whether a say-on-pay vote should occur every year, every two years, or every three years. The Board has determined not to make a recommendation on this proposal but to wait and consider the views of our stockholders before making any determination as to the appropriate frequency of the stockholder advisory vote on executive compensation.
The company has determined to view the frequency vote that receives the greatest number of votes cast by the holders of our common stock entitled to vote at this meeting as a recommendation of the stockholders on this proposal. Are there any comments from the floor on any of these items? We have established an order of business. If there is no discussion regarding the proposals, I direct the Inspector of Elections to conduct the voting on the items now before the meeting. The shares of any stockholder who has filed a proxy will be voted by the proxy holders in the manner specified on the proxy form. If there is anyone who has not filed a proxy or who wishes to withdraw his or her proxy and vote personally by ballot, please see Mr. Marsh at the back of the room. I now declare the polls to be closed.
Mr. Marsh, please present the report of the Inspector of Elections.
I am pleased to announce that each of the nominees for directors as offered by the board has been elected by the affirmative vote of a majority of votes properly cast. The appointment of Ernst & Young as the company's independent auditors has been ratified by the affirmative vote of the majority of the shares of common stock having voting power present and entitled to vote on such item. The proposal concerning the 2011 Executive Incentive Plan passed by the affirmative vote of the majority of the votes cast. The proposal concerning the advisory vote on compensation of named executive officers, or more commonly known as say-on-pay, passed by the affirmative vote of the majority of the shares of common stock entitled to vote and present in person or represented by proxy.
The voting results for the proposal concerning the advisory non-binding vote on the frequency of say-on-pay are as follows: 83% of the shares voted for the one-year option, 1% of the shares voted for the two-year option, and 10% of the shares voted for the three-year option. Any stockholder interested in the vote tallies on specific items, please see me after the meeting for the copy of those results. That will conclude my report.
Thank you, Mr. Marsh. The report of the inspector of elections will be on file for inspection by stockholders. On behalf of Mr. Claflin, a formal portion of the meeting is adjourned. At this time, it's my pleasure to introduce AMD Senior Vice President, Chief Financial Officer, and Interim Chief Executive Officer, Thomas Seifert.
Thank you, Harry, and hello, everyone. Thank you for joining us today. The purpose of my remarks today is to provide you with a summary of our achievements in 2010 and to discuss our opportunities and areas of focus for 2011. 2010 was a very significant year of achievement for AMD. First, we demonstrated that our fabless business model works, restructuring our balance sheet and reducing our overall debt. We improved our 2010 gross margin over the prior year, and we generated operating income every quarter in 2010 while producing $355 million of adjusted free cash flow for the year. Second, we showed that our execution engine is on track, taking a clear leadership position in discrete graphics, shipping over 35 million DirectX 11-enabled GPUs in the year.
We built Bulldozer, our new x86 core that produced a substantial improvement in floating-point performance in a platform that featured secure memory utilization and I/O throughput. We shipped our first AMD Fusion family, arguably the most significant advancement in our opinion in processor architecture in decades. Third, we showed once again that we can change the game, making graphics matter, irreversibly shifting the focus of the industry to a more balanced combination of CPUs and robust graphics capability, and changing the category, altering forever the trajectory of processor design and development with our new Accelerated Processing Units, our APUs. As a result, we achieved important firsts and bests in the past year. We had record annual GPU shipments on the strength of our world's first DirectX 11-capable graphics processor line. We set company records for both mobile discrete graphics and workstation graphics products.
In addition, we have held the discrete graphics performance crown for over 18 months and counting. In November, TOP500.org acknowledged that AMD powered more of the top 50 supercomputers worldwide than any other processor vendor. We achieved record client annual revenue and record notebook CPU shipments for the year. We have been adding Lenovo ThinkPad and the famous Sony VAIO platform to our customer portfolio. Of course, we introduced the world's first Accelerated Processing Unit, our APUs, redefining the user experience in networks and thin and light notebooks and segments with our Brazos platform, and producing the most impressive processor in history with our upcoming Llano. Like Brazos, it's going to be a winner. We remain focused on strong financial discipline while achieving each of our major executional milestones.
As a result, AMD is on a solid path to sustained profitability, and I believe we are positioned for continuous profitable growth in 2011. Looking ahead to 2011, I couldn't be more excited about our prospects. In the next few months, we will introduce our new Bulldozer technology that is unquestionably superior for today's content-rich client, as well as virtualized and cloud server environments. Building on our strong customer and partner relationships, we'll work with others in the industry to leverage the impressive computing capabilities unleashed in this area of Fusion products. We will continue to demonstrate our strong financial discipline while looking for opportunities to accelerate our pace. For example, we recently activated a number of key cross-functional initiatives designed to improve productivity and scalability for the company, optimize our go-to-market activities, improve R&D productivity, and generate supply chain efficiencies.
This will enable us to stay focused on growth in our traditional markets while advancing our efforts in chasing opportunities where we can rapidly leverage our unique assets. We know our IP is ideal for supporting the multiple types of computing devices that will enter the market in the times ahead. I believe that as a design leader, AMD is well-attuned to respond to the solutions and technologies that provide experiences regardless of screen size and form factor. AMD is a great company with unique prospects. We have world-class people with the propensity for solving the world's most difficult challenges and a passion to see the next cycle of innovation come to fruition.
We have unmatched assets, starting with the strongest combination of x86 and graphics technology in the world, a business model now much more attuned to embrace industry shifts and a loyal and expanding customer and partner network, all looking for AMD to succeed. In addition, we have solid gross margin expansion opportunities. We are just beginning to launch some of our most exciting products into the sweet spot of our portfolio. We are rapidly prioritizing ways to turn more of our attention to important adjacencies in the industry, adjacencies that will value the unique combination of IP and skills we bring to the table. We like our prospects, and we look forward to continuing our pattern of financial discipline and consistent execution while delivering breakthrough products and platforms that create stronger bonds with customers and partners and vivid experiences for end users around the world.
Thank you for joining us today and for your continued support for this great company. Thank you.
I'd like to open the floor for any questions that you might have. I see nobody having a question. Thank you very much for your participation, and we look forward to doing this again next year.