8-KLeadership Changes

ALNYLAM PHARMACEUTICALS, INC. 8-K Report, Executive Changes (Mar 27, 2007)

Filed March 27, 2007For Securities:ALNY

Summary

Alnylam Pharmaceuticals, Inc. (ALNY) filed an 8-K on March 27, 2007, announcing the implementation of an Executive Stock Option Bonus Plan for 2007. This plan allows for annual bonuses to be awarded in the form of common stock options to executive officers, contingent upon achieving specified individual and corporate objectives. Additionally, executives can receive extra stock options for performance exceeding individual goals. The filing details the maximum stock option awards eligible for the named executive officers, including the CEO, COO, and VP of Finance. These options are expected to be granted in December 2007, with an exercise price set at the fair market value on the grant date. The vesting schedule is phased, with 25% vesting after one year and incremental vesting of 6.25% every three months thereafter, fully vesting by the fourth anniversary of the grant date. This plan is a significant component of executive compensation, aligning employee incentives with company performance.

Key Highlights

  • 1Alnylam Pharmaceuticals has established an Executive Stock Option Bonus Plan for 2007.
  • 2Executive bonuses will be awarded in the form of common stock options.
  • 3Awards are tied to the achievement of both individual and corporate objectives.
  • 4Additional stock options are available for exceeding individual performance goals.
  • 5Maximum stock option awards for key executives (CEO, COO, VP Finance) are disclosed.
  • 6Options are expected to be granted in December 2007 at fair market value.
  • 7A structured vesting schedule over four years is outlined for awarded stock options.

Frequently Asked Questions

The plan's purpose is to incentivize executive officers by awarding them common stock options as an annual bonus. These awards are directly linked to the achievement of pre-defined individual and corporate performance objectives for 2007, and potentially for exceeding individual goals, thereby aligning executive interests with company success.

The stock options are anticipated to be granted in December 2007, during a regularly scheduled Board of Directors meeting. The exercise price for these options will be set at the fair market value of Alnylam's common stock on the date the options are officially granted.

The stock options will have a graded vesting schedule. Specifically, 25% of the granted options will vest on the first anniversary of the grant date. Subsequently, an additional 6.25% of the shares will vest at the end of each three-month period following the first anniversary, continuing until the fourth anniversary of the grant date, at which point all options will be fully vested.

Yes, the filing specifies the maximum number of stock options each named executive officer is eligible to receive under the plan, assuming all corporate objectives are met and the executive exceeds their individual performance objectives. These maximums are subject to adjustments for events like stock splits.