Tessera CEO to be compensated if business segment spun off
Oct 4 (Reuters) - Tessera Technologies Inc said it will reward Chief Executive Robert Young with stock options that vest only if he completes the spin-off of one of the chip technology developer's business segments by March 31, 2015.
Tessera has two business segments - the intellectual property segment, which licenses semiconductor packaging technology, and the digital optics segment, which provides technology for mobile phone cameras.
"We've been talking about building up the digital optics business and spinning it off," Chief Financial Officer Richard Neely told Reuters.
"In general, most people believe that's the one that would spin off, and that may be the case," Neely said.
Following a spin-off, Young, a founding investor in the company, will be able to vest 550,000 stock options with an exercise price of $13.71, the stock's Oct. 2 closing, a regulatory filing showed.
Young, who will receive an annual base salary of $684,000, is also eligible for a bonus equal to 100 percent of base salary and will get paid $150,000 per year for travel between Connecticut, where he lives, and the company's headquarters in San Jose, California.
Shares of Tessera closed at $13.64 on the Nasdaq on Thursday.
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