Tessera board gives CEO incentive for spin-off
SAN JOSE, Calif. (AP) — Tessera Technologies Inc., which licenses miniaturization technology for electronic devices, says that it will give its CEO options to buy 550,000 shares of its stock if the company successfully spins off one of its business segments.
The San Jose, Calif.-based company's board amended its compensation agreement with Robert Young so that he would be eligible for the immediate vesting of 550,000 stock options if the company completes a spin-off of a business on or before March 31, 2015. The options would have an exercise price equal to Tessera's Tuesday closing stock price of $13.71.
"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," board Chairman Robert Boehlke said in a statement.
Tessera shares rose 53 cents, or 3.9 percent, to $14.17 in afternoon trading. They are up 11 percent from a 52-week low of $12.77 on June 1. They rose as high as $20.52 in early February.