SCOTTS VALLEY — VirnetX, a software patent company in the internet security market that secured a $200 million licensing settlement last year with Microsoft Corp., has given two top executives big pay raises, according to a filing with the Securities and Exchange Commission.
The base salary for Kendall Larsen, founding chief executive officer, president and chairman, was increased from $302,500 in 2010 to $420,000 for 2011, retroactive to Jan. 1. His targeted cash incentive for last year increases from 35 percent of his base salary to 50 percent this year and the amount of his available stock option shares grows from 35,000 to 50,000.
The company compensation committee also increased the numbers for William Sliney, part-time chief financial officer since July 2007. Sliney’s base salary went from $48,100 last year to $60,000 this year retroactive to Jan. 1. His cash bonus incentive of 35 percent of his base salary increased to 50 percent and his available stock options went from 8,750 to 10,000.
The raises were decided after “a comprehensive review” of market data provided by an independent consulting firm as well as the executive performances, according to the SEC filing.
In the 12 months, VirnetX shares have ranged from $4.03 to $28.89. On Thursday, shares closed down 17 cents to $22.74.
In other company business, VirnetX announced this week that it has added another defendant to a growing list of large tech companies it is suing for patent infringement.
The company, which has 48 existing and pending patents relating to secure internet communication, has added Avaya as a defendant in a pending federal case alleging that Mitel Networks and Siemens Enterprise are violating three of its patents.
In another similar suit filed last year, the company has sued Apple, Cisco, NEC and Aastra.
The company reported last month in its annual report that while the plan is to earn revenues from software and technology licensing and from marketable products, it does not currently have any sources of revenue from operations.
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