Qualcomm’s top executives received massive bonuses after settling the company’s raging legal battle with Apple.
The bonuses were revealed in an SEC filing. They included a stock bonuses worth $3.5 million for Qualcomm CEO Steve Mollenkopf.
In addition to Mollenkopf, other Qualcomm executives given varying stock bonuses include the company president, CTO, general counsel, and interim CFO.
In its SEC filing, Qualcomm said that the deal reflects the “long-term shareholder value” resulting from the company’s new agreement with one of its “key customers.” Shortly after agreeing to settle their legal battles, Qualcomm penned a deal to bring its 5G chips to future iPhones.
“The newly granted shares further reinforce that Qualcomm believes the terms of the settlement were favorable. Apple and Qualcomm had faced off in courts around the world over how much Qualcomm charges for the intellectual property inside of the chips that enable devices like the iPhone to connect to cellular networks.”
Apple’s deal with Qualcomm
The exact terms between Apple and Qualcomm haven’t been made public. They include a one-time payment made by Apple, an agreement from Apple to buy Qualcomm chips and licensing agreement lasting between 6-8 years. Qualcomm’s earnings report shows that it expects to bring in between $4.5 billion and $4.7 billion due to the deal.
Qualcomm shares have increased 50% since agreeing to its settlement with Apple.
Had Apple and Qualcomm gone to court, the patent battle could have involved damages of up to $30 billion. That would have made this the biggest legal battle of its kind.