The San Jose, Calif.-based company’s board amended its compensation agreement with Robert Young so that he would be eligible for the immediate vesting of 550,000 stock options if the company completes a spin-off of a business on or before March 31, 2015. The options would have an exercise price equal to Tessera’s Tuesday closing stock price of $13.71.
"The 2012 compensation arrangement provides an additional financial incentive for Bob to pursue a key strategic alternative, and reflects the Board’s continuing efforts to closely align executive compensation with the best interests of stockholders," board Chairman Robert Boehlke said in a statement.
Tessera shares rose 53 cents, or 3.9 percent, to $14.17 in afternoon trading. They are up 11 percent from a 52-week low of $12.77 on June 1. They rose as high as $20.52 in early February.