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Listed & Nasdaq | Telecommunications Hardware | InterDigital Communications (IDCC) quoteIDCC Stock Quote - News - Chart

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Posted by: Corp_Buyer Member Level  Date: Monday, May 26, 2003 2:22:55 AM
In reply to: jmspaesq who wrote msg# 28198 Post # of 294838  Send a link via email Share on Facebook Tweet this post
ALL: SEE THESE DATA ON ISO NORMS ...

Joel, as backup for my indication of FAIR and REASONABLE ISO pool size and grant rate, see the link below to a data rich and concise presentation below on this subject.

It shows that in general, below 10-12% of employee ISO, the "incentive effect" dominates, and above that point the "dilution effect" dominates.

Specific to IDCC, our overhang is far in excess of the "sweet spot" and our "run rate" is at least 2-3X the norm, even as compared to other companies in the "High Tech" and "Communications" sectors.

See:
http://www.fei.org/download/Ira_kay.ppt

In addition, my opinion as to FAIR and REASONABLE for IDCC comes from 20 years experience leading dozens of major corporate equity transactions (including LBO, Fortune 100 M&A, Venture Capital funding, divesitures, JVs).

So, as you can see, my target expectations for IDCC were not pulled out of "thin air", and quite the contrary. When I first read the 2000 ISO Plan, I truly expected to see 5M shares in the pool. I was shocked to see it was closer to 10M shares. But shareholders approved the 2000 Plan.

And, the 2000 Plan was before the huge pay increases (base and bonus) for management, the 2M share ISO increase approved by shareholders in 2002, another 2M share increase "not approved by shraeholders", the increased use of RSUs with no strike price, the increase in compensation for Directors, the Officer indemnifications by the company, greatly increased insurance costs for Director liability in 2003, and the latest request for 5M MORE ISO shares in 2003.

So yes, I am rightfully disgusted by the clearly EXCESSIVE ISO pool, the excessive grant rate, and the latest request for yet ANOTHER ISO increase of 5M shares.

So, I have votred "NO" on proxy measure #2 and I urge all other shareholders to do likewise. We are well past the "sweet spot" in BOTH ISO overhang and "run rate", so the DILUTION EFFECT is DOMINATING any potential incentive effect.

But, I am sure no amount of data will change your tune, and that is why your 200 posts in the past 10 days touting the management line has no credibility with me, whatever your actual motivations may be.

Corp_Buyer





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