Chip-maker sweetens legal victory for top brass with millions in bonuses.
Qualcomm showered its entire executive team with bonuses for favourable settlement of the legal dispute with the Apple.
“In making these grants, the Compensation Committee considered the anticipated long-term stockholder value resulting from these agreements with one of the company’s key customers,” Qualcomm in the SEC filing.
- CEO Steve Mollenkopf was given 40,794 shares of Qualcomm stock that translates to $3.5 million.
- The bonuses to the top brass came after Qualcomm settled a bitter multi-billion-dollar legal battle with Apple.
- Qualcomm and Apple were up against each other in courts across the world over in an intellectual property dispute.
- The legal battle was settled in April with Apple paying an undisclosed amount and a deal to use Qualcomm’s chip in its upcoming 5G iPhone.
Qualcomm and Apple were embroiled in a much-publicized legal battle around the amount Qualcomm’s charges for the IP inside chips it manufactures for Apple that enable its devices to connect to cellular networks.
Favourable Deal for the Chip Maker
The grant of shares to top executive brass reaffirms Qualcomm’s market stand that the settlement was favourable for the chipmaker.
Earlier in May, during Qualcomm’s earnings report, the company stated that it expects additional revenue of $4.5 billion to $4.7 billion as a result of the legal settlement with Apple. Qualcomm also announced recently that it intends to increase bonuses given to its rank-and-file employees, CFO Dave Wise had stated.