Replies to post #24006 on InterDigital Inc (IDCC)

[Corp_Buyer]

DD- It seems we agree on the problem i.e. shareholder ignorance about capital stock transactions, dilution, etc., but the big question is how to solve the problem. To me, I would like to see complete disclosure about employee stock transactions. For example, maybe a disclosure like the truth in lending act as applied to employee stock transactions. Instead of a big bold statement as to your APR, how about big bold print as to how much these ISO will cost you in dilution if you shareholders approve these ISO options? How about making the default votes on proxies a "NO" vote for dilution matters, so that companies will then have to go out and actively campaign as to why they need additional stock for any reason including ISO? There must be many ways to help the average investor make more informed votes when it comes to capital stock transactions.

Best Regards,
Corp_Buyer

[3GDollars]

loop what amazes me is the recent announcement by Texas Instruments that management stands by its decision to award options amounting to 14% of its stock last year.


However, TI management has stated that the option is for the rnak and file; not for upper management. Unfortunately for us, our management has not stated what are the 5M additional option request is for.

[ed_ferrari]

Desert Dweller, you seem to convieniently forget that companies like TI buy back shares from time to time to balance out the share dilution. In 2002, TI bought back 370 million dollars worth of stock (see page 8 of the 2002 annual report at http://www.ti.com/corp/docs/investor/ar02/ar02.pdf ). Thus, your 14% figure isn't close to reality. You'd probably also be interested in this chart:

http://www.ti.com/corp/docs/investor/analyst/aylesworth/slide15.shtml