InterDigital Inc (IDCC)

[blueskywaves]

We need to focus our advocacy on getting the rules changed IMO, not on creating trouble for one of our personal investments.

....especially not one that has outperformed 99% of the total stock market for the last 2 years due to genuine improvements in its fundamentals. LOL.

My hunch is that executive compensation experts use two distinct peer groups for determining the appropriate compensation levels for a company like IDCC.

The first one is the global wireless industry where aggressive deep-pocketed companies like QCOM and Nokia set the market prices for managerial and technical talent. Top 5% talent. Supply and demand.

The second one is the emerging IPR industry where, again, aggressive companies like QCOM, RMBS and ARMHY set the market prices for managerial and technical talent. Top 5% talent. Supply and demand, again.

IDCC had virtually no influence over those skyrocketing compensation levels before the March 2003 settlement. After the March 2003 settlement, it still has very limited influence; albeit, limited influence that is on the rise thanks to its stock performance and rising cash balances.

It either pays above market rates for talent set by others or it remains small. A small company can't afford stand still if it wants to command premium growth multiples (P/S) consistently.

Therein lies the conundrum for those ponderous shareholders who want to micro-manage the affairs of this company out of some weird sense of entitlement.