"Beginning in April 2004, a broad group of managers and executives, representing about one-third of InterDigital's workforce..In 2004..InterDigital will recognize expenses of approximately $3 million and $4 million, respectively, related to the cash-based LTI and restricted stock units"
Ronnie, a couple of questions for you based on your accounting explanation and IDCC's PR about the cost breakdown in 2004:
(1) Does this mean that the total "manager" bonuses in 2004 (for 2003 performance) was actually closer to $11M !! (i.e. not just the $7M cost expensed in 2004, which already seemed very high to me)?
(2) What do you get for an estimated average salary for the top "1/3 of IDCC's workforce" and average bonus in 2004 based on the 2004 total amount of bonuses (i.e. $11M)?
[based on my very rough assumptions about labor costs and headcounts, I am getting numbers like ~$220K-$250K salary and ~110K bonus respectively, or ~50% bonus level on top of already high salaries? Where salary above includes benefits, which might be about ~30% rate.]
As we will likely see another round of large LTI and RSU grants in a couple of weeks (for 2004 performance), (1) what do you anticipate for the total actual cost of 2005 grants (including all the vesting periods) and (2) how much of that might be expensed in 2005 (including 2004 vesting and the first year of 2005 grants)?
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