InterDigital Inc (IDCC)

[loophole73]

corp_buyer

The compensation committee has made a determination that the overall operations for 2005 have met the goals. It is the operations that have made the accounting function possible. Many of our CPA's believe that IDCC would be perfectly OK in booking income from Nok in light of the confirmation of the final ICC arbitration award by the SDNY. It appears that IDCC has opted to not book income, but has decided that the company operations achieved in 2005 have made it possible to engage the reversal function of which you complain. It is the chicken before the egg scenario.

The committee sets the goals and interpret the value of operations in light of the goals. It is their call, not yours or mine. They are certainly in a much better position to make a decision as to the value of the operations for 2005 than you. Any incentive based compensation plan must have both objective and subjective components when you have an IDCC model business plan.

You have an uphill fight against the goal interpretation of the compensation committee. 2005 was a very successful year for IDCC and 2006 is starting even better.

MO
loop