Corp, I hope all the pro unlimited option crowd over the next few weeks open their closed minds and re-read your excellent posts on the subject of options and management compensation. The pro unlimited option crowd obviously believes the big lie that has been going on in techland for the past few years that you will not be able to hire talented people without giving away investors wealth. Or the other lie that there is no cost to granting options. I know IDCC will not be in the forefront of the change that is necessary for our stock market to get back on its long term growth rate with its current management. I will be voting my shares no on 2 out of the 3 proposals just so management knows that there are many of us out here that are fed up with being their unlimited meal ticket.
In order for our stock market to get back on track one of the major mistakes of the past decade that must change is the almost unlimited use of stock options at companies who can afford to pay its management with cash. I have no problem with limited use of options but Wall Street and IDCC have gone way over the edge in terms of excessive use of options.
I have no problem at all with rewarding management.
I have no problem with management getting rich off of their efforts.
From the shares that have already been given to them, they will all stand to become multi millionaires for their efforts. Some have never sacrificed at all in the process. Using our CFO as an example, he came along after there was well over $80 million in the bank and has been rewarded with cash compensation very handsomely. I understand his position better than that of most other members of management having been in accounting since 1986. Now add to that the number of options he has received and he stands to become rich from being in the right place at the right time. He does not deserve another option nor do any other members of the management team. The fact that they choose to sell at times does not mean that we should give them more today. If they want more because they see the same potential that we do, let them do what we do, use their hard earned cash from salaries.
For those in management that actually took lower salaries in exchange for options during the period '95-'97, they were given options in exchange for that time period. There is no need to continue rewarding them today for the sacrifices made for those few years or to make the mistake of using that as a reason to give them more today.
Today all members of management are being paid at a minimum going market cash salaries and in most cases above market salaries for employment at a 300 person company. The only exception to this is Harry who knows a good thing when he can take it. He refuses to take a payment for his services as board chairman, which is supposed to be a part time position, and instead takes shares of stock, not options. Last year we gave him 50,000 shares, or the equivalent of $1,000,000 for part time employment. This level of compensation must stop.
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