InterDigital Inc (IDCC)

[blueskywaves]

To manage only 300 employees and to be paid the cash compensation plus the excessive options is a truer yardstick in comparing the pay of IDCC management with other companies.

Give me a break! You don't want to compare IDCC's licensing model with other companies that are also in the licensing business because it doesn't support your preconceived notion about IDCC's excessive compensation.

Now you want to use number of employees??? Amazing. LOL.

Very well, let's take a look.

As of 3/20/2003, IDCC had 300 employees as follows:

 
 R&D                  216 ( 72%) 
 Patent  
 Administration        11 (  4%) 
 Others                73 ( 24%) 
 .... 
 Total                300 (100%) 
 .... 
 

What's the proper measure of productivity for a company dominated by engineers? Patent production, right?

Well, as of its last 10K, IDCC had a total of 240 US patents and 540 foreign patents.

It also had a total of 375 US patent applications and 1,443 foreign patent applications.

In 2002 alone, IDCC was issued 41 US patents and 117 foreign patents. In 2002 alone, it also applied for 780 patents worldwide or 43% of its total patent applications.

More than 95% of all patents expire without generating any income at all so, obviously, the value of a patent portfolio can only be determined by the income it generates, right?

LOL! You come back right, kicking and shouting, to my twin exercises:

1) Name one company that has generated more than $7 per share in cumulative royalty income from its inception to 12/31/2002?

2) Name one company that will generate more than $7 per share in cumulative royalty income during the next 4 years?

Unless you answer those questions honestly then you really don't have a sound basis for your views about executive compensation.

Obviously, management had something to do with that patent production, right? And if you agree that management had something to do with that patent production then management is responsible for the income generated by those patents, right?

The really amusing part of this exercise is that if you compare IDCC's patent productivity and IDCC's executive compensation levels with other companies in the licensing business then there is no way in hell that you can call IDCC's executive compensation program excessive.