Saturday, January 06, 2007

Former Rambus Inc. CEO options terminated worth $25 million

Rambus Inc. announced that 2,736,800 stock options owned by its former CEO Geoff Tate due to expire November 13, 2006, were conditionally extended. Mr. Tate did not meet his obligations and the extended options expired on December 1, 2006.

Press Release here.

The Rambus Inc. proxy for the May 10, 2006, shareholder's meeting reported (page 35) that on December 31, 2005, the value of Mr. Tate's vested and unvested options totalled $10,498,816 and $1,907,170, respectively. This value was based upon a market share price of $16.19 minus the exercise price.

The share price on December 1, 2006 was $21.51 or $5.32 above the share price of December 31, 2005 when Mr. Tate's 2,736,800 were valued nearly $10.5 million.

One can not help but wonder what Rambus asked Mr. Tate to do that he failed to do, instead allowing $25 million to expire on the table?

Mr. Tate has walked away from a from millions of dollars previously:

On January 16, 2006, 665,000 unvested options and 500,000 unvested common stock equivalents were unilaterally released by Mr. Tate as it was "his wish to conform his compensation going forward as a non-employee Board member of ours to our current policies with respect to Board and executive compensation."

1 comment:

Threejack said...

Hey Treowth,

About the question you posed at iHub...

re: One has to wonder what Rambus Inc. asked Tate to do that he did not do, allowing the $25 million of options to expire on the table.

Imagine if these were the choices:

Rambus asked Mr. Tate to:

A) Stand in for Mr. Hughes at the spring shareholders meeting and field Rude John Dowd's next question.

B) Surrender to the authorities and bunk up with Bubba Surehappytomeetyou at the Los Altos County Jail.

C) Challenge Mr. Appleton to a Winner-Take-All Ultimate Fight at Scruffy Duffy's.

If these were his choices, imagine Mr. Tate would believe he got his money's worth ;-)


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