Rajesh Pankaj
InterDigitalAbout Rajesh Pankaj
InterDigital’s Chief Technology Officer (CTO) since July 2022, age 60. PhD in Electrical Engineering and Computer Science from MIT; B.Tech. from IIT Kanpur. Former SVP, Engineering and Head of Corporate R&D at Qualcomm, overseeing research in 5G/4G LTE, AR, AI and Edge Computing; inventor/co-inventor on 230 patents worldwide . InterDigital’s 2024 results: revenue $869M (+58% YoY), adjusted EBITDA margin 63%, GAAP EPS $12.07, non‑GAAP EPS $14.97; TSR 81.1% in FY24 and 42.0% annualized over three years . The executive compensation program is explicitly pay‑for‑performance, with heavy equity weighting and performance metrics tied to revenue, innovation (patent filings), and pro forma EBITDA .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Qualcomm | SVP, Engineering; Head of Corporate R&D | ~1997–2022 | Led global R&D in 5G/4G, AR, AI, Edge; broad technology portfolio leadership |
| Qualcomm | Various R&D and engineering roles | 25 years | Drove research, patents, standards contributions; 230 patents worldwide |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| — | — | — | No external board roles disclosed for Pankaj in proxy |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $233,692 | $490,000 | $490,000 |
| Target Bonus (% of Base) | 75% | 75% | 75% |
| Actual STIP Bonus ($) | $735,000 | $492,450 | $735,000 |
| Other Compensation ($) | $69,292 | $31,055 | $6,327 |
Notes:
- 2024 STIP paid at 200% of target based on corporate performance (revenue, patent filings, culture initiatives), yielding $735,000 for Pankaj .
- Other Compensation primarily supplemental long‑term disability insurance ($6,327 in 2024) .
Performance Compensation
Annual STIP (Cash)
| Metric | Weight | Target/Threshold | Actual | Component Payout |
|---|---|---|---|---|
| Total Revenue | 60% | Threshold $460M; Target $560M (excl. Samsung TV catch-up); +0.5% per $1M above target | $708M used for STIP (excl. catch-up) | 104% |
| Innovation (First Patent Filings) | 30% | Target 800 filings | 985 filings | 37% |
| Evolution (Human Capital Initiatives) | 10% | Execute culture plan | Achieved | 10% |
| Deferred Samsung TV catch-up (from 2023) | — | Max 66% add-on | 49% due to 200% cap | 49% |
| Overall Corporate Achievement | — | Capped at 200% | 200% | 200% |
Personal performance multiplier: 100% for Pankaj in 2024; overall STIP paid at 200% of target .
LTCP (Equity) – 2024 Grants and Structure
| Vehicle | Metric | Target Award Value ($) | Grant Date | Units/Details | Vesting |
|---|---|---|---|---|---|
| Performance‑Based RSUs | Pro forma EBITDA (highest trailing 4Q in yrs 2–3) | $1,150,000 | 3/15/2024 | Target 11,210; Threshold 5,605; Max 22,420; Grant-date FV $575,000 (50% probability) | Earn over 1/1/2024–12/31/2026; eligible to vest 3/15/2027 |
| Time‑Based RSUs | Time-based | $1,150,000 | 3/15/2024 | 11,210 RSUs; Grant-date FV $1,150,000 | Ratable over 3 years (approx. 1/3 annually) |
Prior LTCP performance:
- 2022 LTCP pro forma EBITDA thresholds $150M / $200M / $250M; company achieved $386M for 2023 trailing 4Q, exceeding “Superior,” leading to 200% vesting in March 2025 (affects outstanding awards granted in 2022) .
New‑hire performance awards (2022):
| Milestone | Diversified Revenue Platform Goal ($) | Aggregate Vest % | Date Achieved |
|---|---|---|---|
| 1 | 25M | 30% | Q3 2021 |
| 2 | 60M | 60% | Q3 2021 |
| 3 | 95M | 100% | Q3 2021 |
| 4 | 130M | 150% | Q3 2021 |
| 5 | 155M | 210% | Q3 2023 |
| 6 | 205M | 300% | Q4 2024 |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership (Common Shares) | 40,794 shares |
| Shares Outstanding (Record Date) | 25,952,236 (record date: 4/16/2025); 25,976,136 used elsewhere in proxy tables |
| Ownership as % of Outstanding | ~0.16% (40,794 / 25,952,236) |
| Unvested Time‑Based RSUs at 12/31/2024 | Multiple grants totaling: 4,502; 18,013; 15,013; 22,517; 7,055; 11,326 units with respective market values at $193.72 close |
| Unvested Performance‑Based RSUs at 12/31/2024 | Multiple grants totaling: 18,013; 22,517; 5,292; 5,663 units (threshold or max eligible) with respective market values at $193.72 |
| Options | No options reported outstanding for Pankaj as of 12/31/2024 |
| Hedging/Pledging | Hedging prohibited by insider trading policy; none of the reported shares are pledged |
| Stock Ownership Guidelines | Executives: ≥2× base salary; compliance as of 12/31/2024; retain ≥50% after‑tax shares until met |
| Clawback | Clawback policy adopted (2023) in compliance with Nasdaq/SEC; recoupment upon restatement |
Employment Terms
| Provision | Economics / Terms |
|---|---|
| Role/Start | CTO; joined July 2022 |
| Severance (No CIC) | 1.5× base salary; COBRA for 12 months; pro‑rata vesting of time‑based RSUs; pro‑rata vesting of performance equity in final year only; requires separation agreement |
| Severance (CIC + Qualifying Termination, double trigger) | 2× base salary + 1× target bonus; 24 months COBRA; performance equity pays at greater of target or actual; time‑based RSUs vest in full; requires termination within 12 months post‑CIC |
| STIP under CIC | Target STIP paid (for NEOs) upon qualifying CIC termination |
| Restrictive Covenants | Separation agreement includes non‑disparagement, non‑solicit and other standard covenants; NDAIA obligations |
| Deferred Compensation | No 2024 deferrals recorded for Pankaj; plan available to eligible executives |
Illustrative potential payouts as of 12/31/2024 (company’s table):
- Termination without Cause: Severance $735,000; Life & Health benefits $31,792; LTCP value vesting $10,607,546 .
- CIC + Qualified Termination: Severance $980,000; STIP $367,500; Life & Health benefits $63,583; LTCP value vesting $21,487,361 .
Multi‑Year Compensation Summary (NEO totals)
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | $233,692 | $490,000 | $490,000 |
| Bonus ($) | $233,333 | $466,667 | — |
| Stock Awards ($) | $3,660,037 | $1,125,000 | $1,725,000 |
| Option Awards ($) | — | — | — |
| Non‑Equity Incentive (STIP) ($) | $735,000 | $492,450 | $735,000 |
| All Other ($) | $69,292 | $31,055 | $6,327 |
| Total ($) | $4,931,354 | $2,605,172 | $2,956,327 |
Compensation Structure Analysis
- High equity mix and performance orientation: Average 72% of NEO target comp in equity; Pankaj’s 2024 LTCP split 50% performance RSUs / 50% time RSUs, reinforcing alignment to profitability (pro forma EBITDA) and shareholder returns .
- STIP rigor and cap: Corporate performance fully capped at 200% with revenue target excluding Samsung TV catch‑up and explicit innovation filings target; disciplined approach to avoid double counting prior period revenue .
- Governance features: Double‑trigger change‑of‑control, no tax gross‑ups, clawback policy, prohibition on hedging; stock ownership guidelines with enforced retention until compliance .
- Equity plan design: 2025 Equity Plan prohibits repricing, dividends only on vesting, independent committee administration; no evergreen; reasonable share reserve .
Risk Indicators & Red Flags
- Repricing/Modification: Prohibited under 2025 Plan; no evidence of repricing .
- Hedging/Pledging: Hedging banned; no pledging disclosed .
- Clawbacks: Implemented per SEC/Nasdaq; mitigates restatement risk .
- Say‑on‑pay: Strong support (~97% in 2024), reducing governance risk .
Expertise & Qualifications
- Technical depth: 230 patents; leadership across wireless, AR, AI, Edge—critical to InterDigital’s licensing and R&I strategy .
- Performance linkage: Innovation output targeted (patent filings); profitability (pro forma EBITDA) drives long‑term equity vesting; strong 2024 operational outcomes .
Equity Award Detail (Outstanding at 12/31/2024)
| Award Type | Grant Date | Unvested Units | Market Value Basis |
|---|---|---|---|
| Time‑based RSUs (multiple grants) | 8/15/2022; 3/31/2023; 3/15/2024 | 4,502; 18,013; 15,013; 22,517; 7,055; 11,326 | $193.72 closing price; values shown in proxy per grant |
| Performance‑based RSUs (multiple grants) | 8/15/2022; 3/31/2023; 3/15/2024 | 18,013; 22,517; 5,292; 5,663 (threshold/max eligible) | $193.72 closing price; values shown in proxy per grant |
| Stock Options | — | — | None outstanding |
Investment Implications
- Alignment: High proportion of at‑risk and performance‑conditioned equity tied to profitability (pro forma EBITDA) suggests strong incentive alignment; hedging ban, ownership guidelines, and clawback further reinforce shareholder alignment .
- Retention: Significant unvested RSUs and multi‑year performance cycles (2024–2026 LTCP; vest in 2027) provide retention hooks; severance terms are moderate (1.5× base w/o CIC; 2× base + 1× bonus with CIC), balancing retention and governance .
- Performance signaling: 2024 corporate metrics and 2022 LTCP superior achievement (200% vest in Mar‑2025) indicate execution momentum in profitability and licensing; watch for subsequent vesting events that may create discretionary sale windows for executives per trading policy constraints (no hedging) .
- Overhang/Share usage: Equity plan share reserves are structured with responsible burn rates and no evergreen; mitigates dilution risk while preserving incentive capacity .
Overall, Pankaj’s package emphasizes innovation output and profitable growth, with clear double‑trigger CIC protections, no gross‑ups, and robust governance—characteristics supportive of long‑term value creation and manageable retention risk .