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InterDigital, Inc.·4

Mar 17, 5:22 PM ET

Chen Lawrence Liren 4

Research Summary

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Updated

InterDigital (IDCC) CEO Lawrence Chen Exercises Options, Sells Shares

What Happened

  • Lawrence L. Chen, President, CEO and Director of InterDigital (IDCC), had performance-based equity awards vest on March 15, 2026. He received 42,429.858 restricted shares (RSUs and accrued dividend equivalents) and 125,360 derivative units from performance-based awards. To satisfy tax and exercise obligations, 18,451 shares and 9,026 shares (plus two small fractional-share cash settlements) were withheld/disposed at $362.35 per share, generating roughly $9.96 million in value used for taxes/exercise payments. These were vesting/withholding transactions tied to the company’s long‑term compensation program (not open‑market sales).

Key Details

  • Transaction date: March 15, 2026; Form 4 filed March 17, 2026.
  • Prices reported for withheld/disposed shares: $362.35 per share.
  • Withheld/disposed amounts: 18,451 shares ($6,685,720) and 9,026 shares ($3,270,571); two fractional-share cash settlements of $311 and $313. Total ≈ $9,956,915.
  • Acquired/vested: 42,429.858 shares (RSUs + dividend equivalents) and 125,360 derivative units (performance-based stock options/awards).
  • Footnotes summary:
    • F1/F6: 200% of target performance awards from grants (March 31, 2023) vested based on performance, producing the RSUs and performance-based options.
    • F4: Additional restricted stock units from grants on Mar 31, 2023; Mar 20, 2024; and Mar 31, 2025 also vested (with accrued dividend equivalents).
    • F2/F5: Restricted stock units were withheld to satisfy tax liabilities.
    • F3/F5: Fractional shares were cashed out for small cash payments.
  • Shares owned after the transactions: not specified in the provided filing.

Context

  • These were vesting and tax-withholding events (codes A, F and D), not open-market purchases or voluntary sales—common for executives when equity awards vest. The performance awards vested at 200% of target, and the withheld shares were used to cover tax and exercise obligations (a cashless/withholding settlement rather than market sale). The Form 4 was filed two days after the transaction date (filed 3/17/2026 for transactions on 3/15/2026).