Company: IDCC
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001193125-25-097149
Chunk: 62

Company: InterDigital, Inc.
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 62
---
4 LTCP are earned based on the achievement of pre-determinedgoal(s) set by the Human Capital Committee. The metric for the 2024 LTCP goal is pro forma EBITDA, which measures overall profitability of the company. Pro forma EBITDA is a supplemental non-GAAPfinancial measure that InterDigital believes provides investors with important insight into our ongoing business performance. Additional information can be found in Appendix A. The Performance Awards, if earned, may vest at the end of the three-year performance period (January 1, 2024, through December 31, 2026) based on specified threshold, target, and maximum levels of pro forma EBITDA during years two and three of the performance period. The highest consecutive trailing four quarters determines goal achievement. If the threshold level of achievement is not met, there is no payout. Achievement 49

of the threshold performance level will result in 50% of target payout. Goal achievement for performance that falls between the amounts established for threshold, target and maximum achievement above is calculated using linear straight-line interpolation between the target achievement level and the actual achievement level. The payout cannot exceed 200% of target. 2024 Special CEO Equity Award In March 2024, the Human Capital Committee approved a one-timeequity award grant to our CEO in order to retain and continue to incentivize him as the company expands its licensing program and to recognize the record setting growth in revenue, adjusted EBITDA, and non-GAAPEPS that we have experienced during our CEO’s tenure. The grant is 100% performance based, split equally between performance-based RSUs and performance-based options with a target value of $5 million (the “Special CEO Award”). The following outlines our record growth from 2020 through 2023:

| Revenue 53% growth |     | Adjusted EBITDA 122% growth |     | Non-GAAP EPS 307% |

The Special CEO Award is earned and vests based on the achievement of specified new revenue milestones over a seven-year period, through December 31, 2030. The goals measure revenue from new license agreements that will contribute to the company’s target of $1 billion in annual recurring revenue by 2030. The maximum potential payout of the Special CEO Award cannot exceed 200% of target and Mr. Chen must continue providing service to the company in order to receive the earned shares. Upon approval by the Human Capital Committee that achievement of one or more revenue milestone goals has been met, a portion of the