Qualcomm’s CEO and a number of other executives have reportedly received big bonuses for helping settle a bitter legal battle involving billions of dollars.
The dispute was between Qualcomm and iPhone maker Apple.
According to details provided in a U.S Securities and Exchanges Commission (SEC) filing published on Friday, May 10, the CEO of Qualcomm Steve Mollenkopf led the list of bonus recipients with a massive 40,794 shares of the company’s stock.
The shares’ closing price on Friday was $85.84, which puts his bonus earnings at close to $3,501,757. FactSet provides data that shows Mollenkopf’s total compensation for 2018 was roughly $20 million.
In granting the shares to its execs, Qualcomm appears to be saying that the settlement provides terms that are favorable to its long-term business prospects. The company’s Compensation Committee noted that arriving at a settlement with one of Qualcomm’s “key customers” would result in long-term value for its stockholders.
According to the company’s SEC filing, the bonuses to other Qualcomm executives were distributed as follows:
Qualcomm president Cristiano Amon received 24,930 shares worth about $2,139,991; the CTO James Thompson earned 19,264 shares in bonuses, all worth $1,653,622 and Qualcomm General Counsel Donald Rosenberg was awarded 14,165 shares valued at $1,215,924.
The other bonus went to the company’s interim chief financial officer (CFO) David Wise, who received 2,958 shares valued at $253,915.
Apple and Qualcomm have been involved in a bitter court tussle across the world, with the main battle being about the amount of money Qualcomm charges per chip in regard to its intellectual property.
Although details remain confidential, sources say that Apple and Qualcomm have agreed to a number of things. Among these is agreement that Apple will make a one-time payment to Qualcomm, as well as commit to buying chips from Qualcomm.
The two companies have also agreed on a licensing deal that will see them work together for the coming 6-8 years.
Qualcomm’s noted in its earnings report released earlier last week that it expected revenues of about $4.5 billion and another $4.7 billion from Apple, as a payment to fulfill part of their settlement.
Qualcomm’s stock has surged nearly 50% from the time the two companies announced the settlement.