InterDigital Inc. (IDCC), the technology and patent licensing company run by CEO Bill Merritt, said its board’s compensation committee gave raises to two of five top executives and increased long term incentive plan payments to four of five executives.
Merritt will be paid a base salary of $620,000 in fiscal year 2016, which begins April 1. That is the same salary he received in fiscal 2015. His short term incentive plan target level is 100% of his salary. His long term incentive plan payment was increased to $1.925 million from $1.575 million.
The long term incentive plan payments are only paid out in three years if Merritt and/or other executives meet all the targets set by the board
Richard Brezski, InterDigital’s chief financial officer, will be paid a salary of $385,000, which reflects a raise compared with the $350,000 he received last year. His short term incentive plan target remained the same at 60%. His long term incentive plan compensation also remained the same at $700,000.
Scott McQuilkin, senior executive vice president, innovation, will be paid $415,000, the same salary as last year. His short term incentive plan target remained at 75%, while his long term incentive plan pay was raised to $1.1 million from $1 million.
James Nolan, executive vice president, IoT Solutions, will be paid a salary of $385,000, which reflects a raise from $360,500 last year. His short term incentive plan target remains 60% and his long term incentive plan pay was increased to $750,000 from $600,000.
The increase in Nolan’s salary reflects a change in his duties. He previously was in charge of the company’s solutions divisions.
Lawrence Shay, senior executive vice president, future wireless, and chief intellectual property counsel, will be paid a salary of $437,750, which is the same as last year. His short term incentive plan target remains 75% and his long term incentive plan pay was increased to $1.1 million from $1 million.
The change in Shay’s compensation also reflects a change in his duties, which now involve responsibility for overseeing all of the company’s activities pertaining to cellular wireless technology, including long-term research and development under InterDigital Labs, participation in wireless standards bodies, the negotiation and administration of license agreements, the advancement of market-ready technologies toward commercialization and strategic patent sales and joint ventures. Previously he was executive vice president and chief intellectual property counsel.
The company said in a filing with the Securities and Exchange Commission that for Merritt, 20% of the target LTCP payout will be in the form of restricted stock units that vest based on continued service after the end of the three-year cycle. Another 20% will be in in the form of stock options, which vest ratably over three years and have a seven-year term. The rest will be in the form of performance-based restricted stock units based on the company's achievement during the 2016-2018 cycle of pre-approved goals established by the committee.
The company filing noted that for each other named executive officer, 25% of the target LTCP payout will be in the form of time-based restricted stock units; 25% will be in the form of stock options; and 50% will be in the form of performance-based restricted stock units.
“The board’s compensation committee uses a variety of data, including industry peer benchmarks, to ensure that our compensation is in line with our industry while incenting performance,” said Patrick Van de Wille, an InterDigital spokesman, in an emailed statement.
Shares of InterDigital are currently trading at around $53.71 a share and have traded between $41.01 and $60.69 over the past year.
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