I think I've found the culprit, disabling Kernel mode-setting solved the
problem. I have confirmed this on two machines now. It's more likely a
bug in the driver than a problem with compiz. KMS can be turned off
using this guide: https://wiki.ubuntu.com/X/KernelModeSetting.

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Whole desktop becomes very slow, replacing compiz with metacity fixes the 
problem
https://bugs.launchpad.net/bugs/594376
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