8-KLeadership Changes

ALNYLAM PHARMACEUTICALS, INC. 8-K Report, Executive Changes (Mar 25, 2008)

Filed March 25, 2008For Securities:ALNY

Summary

Alnylam Pharmaceuticals, Inc. (ALNY) announced on March 25, 2008, the implementation of an Executive Stock Option Bonus Plan for 2008, as authorized by its Compensation Committee. This plan allows for annual bonuses to executive officers in the form of stock options, contingent upon achieving specific individual and corporate objectives. This initiative underscores the company's strategy to align executive compensation with performance and to incentivize the achievement of key business goals for the year.

Key Highlights

  • 1Introduction of an Executive Stock Option Bonus Plan for 2008.
  • 2Executive bonuses will be awarded in the form of stock options under the 2004 Stock Incentive Plan.
  • 3Option awards are tied to the achievement of pre-defined individual and corporate objectives.
  • 4Executives can receive additional options for exceeding individual performance goals.
  • 5Maximum potential stock option awards are detailed for key named executive officers.
  • 6CEO John M. Maraganore is eligible for up to 40,000 stock options.
  • 7President and COO Barry E. Greene is eligible for up to 25,000 stock options.

Frequently Asked Questions

The main purpose of the Executive Stock Option Bonus Plan for 2008 is to incentivize executive officers by linking a portion of their annual bonus directly to the achievement of specific corporate and individual performance objectives. This aims to align executive interests with shareholder value creation.

Stock options are awarded based on the achievement of written corporate objectives set by the Compensation Committee and individual performance objectives. Executives can also receive additional awards for performance that exceeds their individual targets.

The maximum potential stock option grants, assuming all corporate objectives are met and individual performance is exceeded, are 40,000 for CEO John M. Maraganore, 25,000 for President and COO Barry E. Greene, and 12,500 for VP of Finance and Treasurer Patricia L. Allen. These are subject to adjustments for stock splits or similar events.