Replies to post #99629 on InterDigital Inc (IDCC)

[Corp_Buyer]

OD- per IDCC "In 2004..InterDigital will recognize expenses of approximately $3 million and $4 million, respectively, related to the cash-based LTI and restricted stock units", so the RSU charge in 2004 was $4M and per Ronnie, if these RSUs vested over 2 years, then there is ANOTHER $4M charge in 2005 for the 2nd year of vesting from the 2004 grant, so in total for bonuses under the new plans we have $3M [cash] + $4M [1st year vesting in 2004] + $4M [2nd year vesting in 2005] = $11 MILLION TOTAL BONUS VALUE granted in 2004 !!!!???

Now if this $11M is for 100 people, then we have about ~$110K EACH and if that is about 50% average, then we have total SALARY average of $220K !!!??? [i.e. SALARY NOT INCLUDING BENEFITS]

BTW, these labor costs seem to tie out to the P&L if you make some reasonable assumptions about labor costs as a percentage of total expenses.

IMO, it seems our labor costs are EXCESSIVE and bonuses are FAR out of control.

TIA,
Corp_Buyer

[Corp_Buyer]

OD- to put this in perspective, prior to 2003, we were incurring about 7% dilution of PROFITS per year due to stock option grants, which shareholders and ISS concluded were excessive and voted to stop.

Under the new BONUS plans (which were NOT shareholder approved) it seems management granted themselves bonuses in early 2004 of about 10% of our 2003 REVENUES.

We need less dilutive, more professional, and more shareholder aligned top management.

MO,
Corp_Buyer

[Corp_Buyer]

"RSU awards are calculated based on the target percentage of base salary of an eligible participant divided by the Company’s closing share price on the date of the RSU award (i.e., April 1, 2004 for the initial Program cycle)."

So, does this mean it is in management's SELF INTEREST to have a LOWER stock price around March/April, when the RSUs are granted???

Accordingly, there is absolutely no reason to expect management to do or finalize anything to increase the stock price prior to the upcoming RSUs grants, right?

Then, like magic, maybe there will be some positive events that come to fruition only after the next RSU grant and prior to the ASM?

MO,
Corp_Buyer