Replies to post #24786 on InterDigital Inc (IDCC)

[Danny Detail]

Corp_Buyer .. RE:"We owe it management and to shareholders to make a reasoned and responsible decision as to the requested pay increase (5M more ISO shares)"

I accept and respect that is what you believe you are doing when you state the vote should be no. Why are you unwilling to afford me the same consideration when I feel the reasoned and responsible decision should be yes?

Regards,
Danny

[infinite_q]

Corp-Buyer, I will vote yes on the options authorization.

You don't seem to understand (1) that most of the options granted go to the engineers developing the patents that are IDCC's bread and butter, or (2) that in an industry like this one it is difficult to attract and retain the best and brightest engineering talent.

You have to look at the number of patent applications and issued patents to judge whether our engineers are performing. You also have to consider how "cutting edge" those patents are. With all the big boys like NOK, ERICY, MOT, QCOM competing for key patents, and grabbing up the best minds in the industry to secure those patents, it is very difficult for a little company like IDCC to attract those same engineers.

If we simply offer the same salary that NOK or QCOM would offer, we won't get the engineers to join our team. The attraction for a highly skilled engineer is to join a startup, or a growth company like IDCC, which is offering lucrative stock options. Those options have vesting periods which help IDCC retain those engineers once they are on board. The value of those options is directly dependent on their ability to deliver key patents and technology that can be turned into revenue. The end result is perfect alignment of the interests of the engineers and the interests of the shareholders.

You are naive to think that IDCC's future is secure without the ability to attract and retain the absolute best wireless engineers in the world. It is not sufficient for IDCC to have marginal talent - they must have the best. If you eliminate options for engineers (in the name of keeping management from getting a bigger piece of the company) you are doing yourself a disservice.