InterDigital Inc (IDCC)

[jai]

Jim,

The investors do not want to sell they want to send a message to management. The messege is.

1. We are not satisfied with the stock price performance of the company to date and do not agree that you have hit 100% of the 2003 goals.

2. Because we are not satified we do not believe you should be overly compensated with RSU's and bonuses.

It is perfectly fine to exercises ones right as a shareholder and voice displeasure.

I think their are two very, very different issues at hand that are getting combined.

The first issue is licence signing. This is indeed an extremely difficult and slippery task. It takes time. We have Nokia probbly slowing everything down untill 2005. Because of this revenues will be limited and the stock price will suffer. I do not fault management for this.

The second issue is excess compensation above salary. Every shareholder found out in March that they not only lost all 30% to 40% of their investment but they must wait 12 months to get their investment back. Again out of the control of management and frustrating for the long term shareholder.

Now we have some bad timing for IDCC management. The ASM is coming up and they need to publish the 2004 compensation plan. This press release could not have come at a worse time and caused shareholder sentiment to become negative.

So the negative posts that I've read here in the 3 weeks since this press release have been fair. I've seen many CEO's forfeit compensation in years where stock prices have severly declined.

So when we see statements like this
"strengthen alignment with shareholder interests."
We get angry. If they truely wanted to align themselves with shareholder interests they would hold off on compensation until the stock price breaks $20.