InterDigital Inc (IDCC)

[olddog967]

Corp-Buyer: Could you explain how you arrived at your 2004 bonus amount of about $11 million. Since expenses, accruals, cash payments and amorizations are involved in regard to bonuses, you have to define what you are referring to.

For your information, here are the target bonus amounts for various management levels under the long term incentive program:

Program Targets
 
The following Program targets are based on organizational levels (or a specific officer position within the Company) and that organizational level’s (or the specific officer’s) base salary. The percentages are used to calculate the opportunity to receive the LTIP cash bonus component of the Program and the amount of the RSU award component of the Program:
 
•      Manager/Sr. Manager & Technical Equivalent – 40%
•      Director/Sr. Director & Technical Equivalent – 45%
•      Functional VP – 50%
•      Chief Executive Officer – 120%
•      Chief Operating Officer – 100%
•      General Patent Counsel – 100%
•      Chief Financial Officer – 90%
•      Chief Technology Officer – 90%
•      Sr. Business Development Officer – 90%
•      General Counsel – 80%
•      Chief Strategic Standards Officer – 80%
•      Sr. Engineering & Programs Officer – 80%
•      Sr. Human Resources Officer – 80%
•      Fellow, ASIC/DSP – 70%
 
RSU awards are calculated based on the target percentage of base salary of an eligible participant divided by the Company’s closing share price on the date of the RSU award (i.e., April 1, 2004 for the initial Program cycle).