Replies to post #74580 on InterDigital Inc (IDCC)

[Corp_Buyer]

"ridiculous to pay people with stock that they are not allowed to sell" -

The concern seems to be a self-serving compensation committee that awards EXCESSIVE pay and stock to the point where management DUMPS stock frequently on the market resulting in lost credibility and significant DILUTION.

I would not be concerned about THOUGHTFUL and JUDICIOUS stock grants that managers VALUED and sold SPARINGLY only as NEEDED, rather than DUMPING every year without even holding stock long enough for capital gains tax treatment.

All these actions are taken by management at GREAT COST to INVESTORS and SHAREHOLDERS.

IMO, this scenario is the great and valid concern, not just the insider sales, but the whole scenario we have at IDCC resulting from self-dealing, cronyism, lack of alignment with shareholders, "100% or more achievement", etc., etc..

MO,
Corp_Buyer

[ziploc_1]

It was a nice courtesy to Merritt that Campagna allowed him to sell first. They both understood that this would depress the stock price. This saved Merritt almost $20,000. When Campagna sold, he received less for his shares since the price had already been lowered because of Merritt's sale. I'm sure that next time Merritt will return the compliment and let his boss go first. Too bad the public isn't in a position to receive such gentlemanly courtesy. I suppose the public should be grateful that we can buy these guy's stock with our hard earned money. Perhaps if they bot some stock with their hard earned money, the interests of management and shareholders would "be better aligned" as Campagna says.

[ziploc_1]

The potential for abuse when managers of public companies sell their shares is great. This is the reason that the SEC has rules for insider trading. The shareholders could profit from insider trading in the following way. Before insiders dump their stock on the open market, the company would have the option to have buy the stock at a price equal to the average price for the preceding year. If an independant management committee did not want to excercise this option, then the stock could be sold on the open market. This would tend eliminate management's manipulating the price in the weeks before they sold and give the public an idea of management's appraisal of the value of the stock by their decision to buy the stock or not.