InterDigital Inc (IDCC)

[blueskywaves]

Bulldzr,

IDCC's compensation strategy is inextricably linked to its growth strategy which includes acquisitions. As you know, IDCC is a unique TDMA/CDMA player today only because of its merger with the Schilling companies in the early 90s.

Aside from boosting its own recruitment program, a generous compensation structure, of course, would make it easier for IDCC to convince potential acquisition or merger candidates to combine forces with it since IDCC now has a cash flow machine. In particular, I think that companies with existing revenue flows in new markets would be perfect for IDCC right now while it waits for 3G (3G TDD in particular) to reach the mainstream. BTW, Mschere has been pointing out potential IDCC acquisitions since the settlement.

From the Proxy Statement:

..........Adoption of the Option Plan Amendment will amend the 2000 Plan by increasing the number of shares of Common Stock available for Awards by five million shares. At March 31, 2003, Awards to purchase 9,748,942 outstanding shares of Common Stock were granted and outstanding under the 2000 Plan, leaving a balance of 1,144,912 additional shares of Common Stock which could be subject to Awards granted under the 2000 Plan. The Board of Directors believes that increasing the number of shares available under the 2000 Plan by five million shares (leaving Awards to purchase 6,144,912 shares of Common Stock available for future grants) is advisable because such Awards reinforce the importance of improving enterprise value over the long-term, and encourage and facilitate employee and director stock ownership, thereby promoting interest in the welfare of the Company by allowing employees and directors to share in the success of the Company and encouraging them to remain in the service of the Company. The 2000 Plan is integral to the Company’s compensation strategies and programs. The 2000 Plan will maintain the flexibility that the Company needs to keep pace with its competitors and effectively recruit, motivate, and retain the caliber of employees essential for achievement of the Company’s success.
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This is IDCC's first promotion after the 3/14 Ericsson settlement. If I'm not mistaken, Brogan was instrumental in crafting the creative Tantivy deal which gave IDCC access to complementary patents without going through the hassles of acquiring a company with no revenues. I think this is the model they will keep on using for pre-revenue companies because the moribund IPO continues to make it a buyers market for wireless technology.

KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--April 1, 2003--InterDigital Communications Corporation, a leading architect, designer and provider of wireless technology and product platforms, today announced that Charlie Brogan has been named as Senior Director of Corporate Development.

In this newly created position, Mr. Brogan will lead the Company's strategic mergers and acquisitions activities. He will be responsible for coordinating the identification, evaluation and execution of acquisition opportunities that complement or extend InterDigital's technology and product offerings.

"I am pleased to appoint Charlie Brogan to the position of Senior Director of Corporate Development," said Rich Fagan, Chief Financial Officer of InterDigital. "With more than twenty years of senior level mergers and acquisitions experience, Charlie will lead InterDigital's corporate development activities at a time of positive momentum for the Company. By creating this position, the Company is accelerating its growth possibilities, enhancing its ability to penetrate new markets, providing InterDigital with access to a broader range of technologies and products to offer to its customers, and strengthening the Company's ability to increase shareholder value."

Mr. Brogan joined InterDigital in 2000 as Director of Business Analysis. He was appointed to Senior Director of Business Analysis in 2001. In this role he has been responsible for managing numerous aspects of the Company's financial operations and contributing to business development activities.
Prior to joining the Company, he served for seventeen years as Principal and President of Brandywine Capital, Ltd., an investment banking consulting firm based in Wilmington, Delaware. Mr. Brogan's experience also includes tenure as Chief Financial Officer of AmeriGas, an industrial gas/welding supply company, and as a partner in a leverage buyout group.

Mr. Brogan earned a Bachelor of Science degree in Chemical Engineering from Manhattan College and a Master's Degree in Business Administration from the University of Delaware. He is a Certified Public Accountant and member of the American Institute of Certified Public Accountants as well as the State CPA societies of Pennsylvania and Delaware.

Mr. Brogan also serves on the Investment Advisory Board for Ulster Project Delaware

http://biz.yahoo.com/bw/030401/15505_1.html

Notice how this dude appears to be tapped into the venture capital and LBO communities?