if we dont get the best engineers and they will only come if we have good salaries and an option package.idcc is competeting with companys that give big time options
Great point. Some people seem to believe that all IDCC has to do is sit on its patent portfolio and wait for the royalties to come in, but, as IDCC's history itself shows, it's not that simple. More than 95% of all patents go back to the public domain without ever earning any income. It actually takes smart businessmen to monetize any patent portfolio.
For example, none of the naysayers have any clue that at the end of 2002, IDCC generated more royalties per share (>$7/share) than other other company in history and that IDCC is poised to generate more royalties per share (>$7/share) in the next 4 years than the previous 22 years since its 1981 IPO.
However, IDCC has to keep on updating and improving its patent portfolio in order to make it easier for the majors to license its 3G portfolio. That means that IDCC has to keep on recruiting new talent.
In particular, Ericsson and Motorola appear to be under severe pressure from its institutional investors to lower its cost structure. Restructurings are inherently demoralizing so some top quality engineers are just waiting to defect to the right place and you can bet that the bidding war for those world-class talent will be ferocious.
IDCC has outperformed 99% of the wireless industry during the last 2 years and it has the best chances of any wireless company in generating the most returns during the next 2 years. IDCC's management and employees deserve to be rewarded accordingly. That's just common sense.
Why should IDCC's management and employees only get average sized-salaries and option packages when they have delivered superior results?
Why would a hotshot wireless engineer want to work for IDCC when they only get average-sized salaries and option packages for superior results?
What many small-minded people here fail to grasp is that a meritocracy that rewards performance attracts increasingly higher quality talent. IDCC is a turnaround company that is now starting its growth stage and it deserves the room to grow into that kind of meritocracy.
Fortunately, Art, the change of hands from weaker hands to stronger hands continue, at the individual investor level and at the institutional level.
BSW
P.S. No yummy ribs for the naysayers, y'hear! LOL.
