IDT Corp Chairman Will Be Paid in Company Stock
Monday September 8, 4:45 pm ET
biz.yahoo.com
NEWARK, N.J.--(BUSINESS WIRE)--IDT Corporation (NYSE: IDT; IDT.C) announced today that its founder and Chairman, Howard Jonas, has elected to receive his base compensation in the form of IDT stock rather than cash.
Under the agreement between Mr. Jonas and the Company, Mr. Jonas - who is entitled to annual base salary of $856,000 but has been accepting only $750,000 - will be paid his base compensation for calendar years 2009 through 2011 in IDT Common Stock (NYSE: IDT-C - News) rather than in cash. Mr. Jonas will receive 1,704,545 shares (all of which will vest on January 5th, 2012) based on the stock’s September 3rd, 2008 closing price of $1.32 per share.
“The market’s valuation of IDT is absurdly low,” Mr. Jonas said. “The company is on track to achieve operational profitability in fiscal 2009. Our core businesses are generating positive cash flow, and we are incubating several ventures that have the potential to generate truly remarkable returns for our shareholders.”
Mr. Jonas’ decision follows significant purchases of the company’s stock by other members of senior management earlier this year. In March, CEO James A. Courter and members of his family collectively purchased $2.98 million (790,000 shares) of Class B Common Stock and President Ira A. Greenstein purchased over $205,000 (55,000 shares) of Class B Common Stock. |
