Friday, April 14, 2006

Rambus Inc. opens the vault for Satish Rishi

It has be said that "timing it is everything." If that is true, newly appointed Rambus "C" suiter Satish Rishi may have, well, everything.

On April 11, 2006, new Rambus CFO and Senior VP of Finance Mr. Rishi was awarded 40,000 shares with 5,000 Shares becoming fully vested on 10/23/2006; 5,000 vesting on April 24, 2007; and 10,000 shares vesting in April 2008, April 2009 and April 2010. Cost to Mr. Rishi, nada, zip, zero.

Mr. Rishi was also awarded 220,000 employee stock options with 22,000 shares to fully vest on 10/11/2006 with a portion of the remainder vesting monthly thereafter until fully vested on 4/11/2011.

The strike price for Mr. Rishi's 220,000 options is $40.80. That my dear Ramboids is nearly a quarter million dollars for every dollar Rambus rises following your six year wait for a Hynix jury. Mr. Rishi has had a good week - his options have had a paper increase in value of $641,300.

Suppose Rambus bounces $12.00 after the Hynix jury hands Rambus victory. Mr. Rishi will on paper smile to the tune of $2,640,000.

Slice it anyway you like it, some of that is your money. The more shares you have, the more of it is now not yours.

Timing . . . Mr. Rishi, is a master. The future bodes well for Rambus if Mr. Rishi can do the same for this employer.

Hat tip to Mr. Rishi.

1 comment:

Threejack said...

Lordy, lordy, lordy. This escaped my attention. What a windfall and he hasn't even contributed anything to the team. Come early 2007 when he is awarded his first annual cash and stock "bonus" for performance, it will get our attention again.

Rambus executive compensation is out of control. With all the dough they have been given, why do these fellows even bother to work.

Just my opinion.

Threejack

 
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