From my understanding the 30% has already been awarded. It is only the payment that is in question and it is only for the 4 named executives.
Take for example Merritt. His bonus expense was $882,000. 70% of this is to be paid no later than March 15. The 30% of the $882,000 "will be paid upon resolution of the strategic direction of the company’s modem business."
mo
The committee reviewed the performance criteria and accomplishments for the July 1, 2005 through January 1, 2009 program cycle and took note that the company is evaluating a number of strategic options for its modem business, which options could include an acquisition or a partnership to achieve the appropriate scale needed to succeed in the market, as well as the sale of the modem business. Accordingly, the committee approved the following cash payouts to the named executive officers, and seventy percent (70%) of each amount is expected to be paid no later than March 15, 2009. The remaining thirty percent (30%) of each payout due to the named executive officers will be paid upon resolution of the strategic direction of the company’s modem business.
William J. Merritt, President and Chief Executive Officer: $882,000 Scott A. McQuilkin, Chief Financial Officer: $192,500 Lawrence F. Shay, Executive Vice President of Intellectual Property and Chief Intellectual Property Counsel: $402,618 Mark A. Lemmo, Sr., Executive Vice President, Business Development and Project Management: $504,394
The worst cast scenario for the modem business is the most probable scenario in the current economic environment. Looking at the current short interest, I believe the shorts are betting on this to happen.
The most important thing for all of us is to set our expectations correctly, prepare ourselves for the worst case and not to be panic when it does happen.
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