Tessera CEO Could Head Spin-Off
California based Tessera Technologies, Inc. has signed a unanimous agreement to amend its compensation arrangement with Robert A. Young, president and chief executive officer.
This gives Young an incentive to pursue the possibility of a business segment spin-off, which is a key strategic alternative within the Board's long-term plan.
The company's Board of Directors has structured the equity portion of Young's 2012 compensation to be contingent upon the successful completion of a spin-off of a business segment on or before March 31st, 2015.
If the company completes such a spin-off, Young will be eligible for the immediate vesting of 550,000 stock options with an exercise price equal to the closing price of the Tessera's common stock on October 2nd, 2012.
"The 2012 compensation arrangement provides an additional financial incentive for Bob to pursue a key strategic alternative, and reflects the Board's continuing efforts to closely align executive compensation with the best interests of stockholders," says Robert J. Boehlke, chairman of the Board of Directors.
Further details regarding the revised compensation arrangement will be provided by the company on a Form 8-K to be filed with the Securities and Exchange Commission.
Tessera Technologies, Inc. is a holding company with operating subsidiaries in two segments: Intellectual Property (IP)and DigitalOptics. Its IP business generates revenue from patented innovations through license agreements with semiconductor companies and outsourced semiconductor assembly and test companies.
Tessera, Inc. provides chip-scale packaging solutions for the semiconductor industry.
