March 9, 2005

When International Displayworks (IDWK) announced back in September that it was hiring Intel (INTC) executive Thomas Lacey as its new CEO, the stock, which had been trading at under $5 on the bulletin boards, suddenly perked up, which turned into very good news for Lacey, 46, since he had received 1 million options at $3.85 a share under his employment agreement. But those options take four years to fully vest and he won’t be able to sell the first of them until this September. Luckily, the company also gave him a signing bonus of 51,948 shares, which the company valued at $200K back in September, or about 60% of his annual salary of $300K. But given that the stock closed yesterday at $9.80, that signing bonus is now worth over $500K. Half of those signing bonus shares were immediately exercisable, though Lacey doesn’t appear to have sold any yet, despite the fact that other insiders have been pretty busy selling their shares.

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