8-KLeadership Changes

ALNYLAM PHARMACEUTICALS, INC. 8-K Report, Executive Changes (Dec 15, 2008)

Filed December 15, 2008For Securities:ALNY

Summary

Alnylam Pharmaceuticals, Inc. (ALNY) filed an 8-K on December 15, 2008, detailing executive compensation for 2009. The company's Compensation Committee approved base salaries and stock option awards for its officers. Notably, in response to broader market conditions and to conserve cash, the company decided to forgo merit increases for all officers in 2009, except for Barry E. Greene, President and Chief Operating Officer, whose salary was adjusted to align with industry peers. Despite the decision to hold most base salaries flat, the Compensation Committee recognized the company's 2008 accomplishments by awarding stock options to each executive officer. These options vest over a four-year period. The filing also provides a comparative view of 2008 and 2009 base salaries for key executives, including the CEO, John M. Maraganore, Ph.D. The exercise price for these options was set at $21.35 per share, reflecting the stock's closing price on December 9, 2008.

Key Highlights

  • 1Company is conserving cash by foregoing most officer base salary merit increases in 2009.
  • 2Barry E. Greene, President and COO, received a base salary increase to $390,000 to remain competitive within the industry.
  • 3CEO John M. Maraganore's base salary remains $525,000 for 2009.
  • 4All executive officers received stock option awards as recognition for 2008 performance.
  • 5Stock options have an exercise price of $21.35 per share, reflecting the closing price on December 9, 2008.
  • 6Options vest over a four-year period, with 25% vesting on the first anniversary of the grant date.
  • 7Dr. John A. Schmidt, Jr., CSO, who joined in October 2008, received a pro-rated option award.

Frequently Asked Questions

The company is freezing most executive base salaries for 2009 to conserve cash. This decision was made by the Compensation Committee in light of broader market conditions and as a recommendation from the company's management.

Yes, all executive officers received stock option awards as recognition for their performance in 2008. The options are intended to reward accomplishments despite the decision to hold base salaries flat for most.

The exercise price for each stock option is $21.35 per share, which was the closing price of Alnylam's common stock on December 9, 2008. The options will vest as to 25% of the shares on the first anniversary of the grant date and an additional 6.25% at the end of each successive three-month period thereafter, completing vesting on the fourth anniversary.

Yes, Barry E. Greene, President and Chief Operating Officer, received an increase in his base salary for 2009 to $390,000. This adjustment was made to ensure his compensation is competitive with similar positions within the company's industry peer group.