Replies to post #165203 on InterDigital Inc (IDCC)

[lastchoice]

goals could be simple. 3 more top-five licensees by end of '07. and, one of which is this year, (in keeping with their statements). everything else would fall in line...

P.S. dell is sounding the death knell for PCs. handsets are the new holy grail.

[sonic22]

Danny,

Thanks for the response and I agree with ur assessment that the bar was raised and hopefully they deliver. I am persoannaly hoping that that we get at least 1 top 6 3G license by the end of 06. SNE royalty runs out on 12/31/06 and the NOK revenue will stop on 12/31/06 as well. My fear is that without any new significant 3G license our revenue in 2007 will drop to the low 50's which will again provide the uncertainty of prediting IDCC revenue and seeing a 30% reduction in revenue from 3rd and 4th qtr 06. . WM said back in Jan 06 to expect more signed and I expect more by the end of 2006. We got 4 more months to find out and i'm betting that WM gets things done. Again thanks for ur insight.

[Desert dweller]

Danny, I hope you are correct that the goals were increased along with the compensation but nowhere in the filing does it state so. Based on past history, I really doubt if the goals were changed, IMO only the compensation was changed. My gut feeling is that under the old plan, they would have received all of the RSU's if they achieved 100% of the stated goal or even 200% of the stated goal. Now that they have more visibility internally, they probably believe that they will significantly exceed the original goals and for some reason they believe they should get even more.

My feeling on this matter is if they significantly exceed the original goals by let's say 150%, 250% or more, they will be handsomely rewarded by their stock and option holdings. They didn't need nor deserve additional incentives to do what they are being paid for, sign deals and do the best they can. Just because the original goal may have been achievable, and exceedable(is this a word?) doesn't mean that they now should receive even more. They are being compensated extremely well and should be striving to do the best damn job possible. With better internal visibility to me this just smells like a form of backdating which is the investigation du jour for the SEC. Our management must be squeaky clean both in reality and appearances.

In addition, if they scaled back on their stock sales, AND their performance was exceptional, let's say they exceeded their established goals by not 150% but by 250%, their total compensation and net worth would skyrocket due to the performance of the stock. They didn't need to go to the trough once again. All jmho of course.

I hope you are correct but I don't think so in this instance.

[golferwalt]

DannyDetail-In 2005 IDCC went down 17.1% & thus we lost 17.1% of our money; yet management said they reached their performance goal, whatever it was & now they've given themselves a 3for 1 if they reach their new unknown goals.In 16+ years as a IDCC stockholder I've never seen such screwing of the shareholders as is occurring now. The BOD is suppose represent the shareholders best interests,not management first, but as THE Count said most shareholders now are played second fiddle to management througout the whole business community. With the IDCC price increase this year I'm all for management to get an appropriate CASH bonus, but not the continuing thousands of diluting options. God Bless,Walt