8-KLeadership Changes

ALNYLAM PHARMACEUTICALS, INC. 8-K Report, Executive Changes (Feb 6, 2009)

Filed February 6, 2009For Securities:ALNY

Summary

Alnylam Pharmaceuticals, Inc. (ALNY) announced the implementation of its 2009 Annual Incentive Program (the "Plan") through an 8-K filing on February 6, 2009. This program is designed to incentivize employees, including executive officers, through annual cash bonuses tied to the achievement of both individual and corporate performance goals for the fiscal year 2009. The structure of the plan indicates a performance-driven compensation approach, aiming to align employee efforts with the company's strategic objectives. The program outlines specific target bonus opportunities as a percentage of base salary for various roles, with the Chief Executive Officer having the highest target at 50%. Individual awards will be determined by performance against individual objectives, ranging from 0% to 100% of the target opportunity. Furthermore, a corporate performance modifier, ranging from 0% to 100%, will be applied, with a threshold requiring at least 50% of corporate performance for any modifier to be applied. The Compensation Committee retains discretion over final award determinations, with payouts expected in January 2010.

Key Highlights

  • 1Alnylam has established a 2009 Annual Incentive Program (Plan) to provide cash bonuses to employees, including executive officers.
  • 2Bonuses are contingent on achieving both individual and corporate performance goals for fiscal year 2009.
  • 3The CEO has the highest target incentive opportunity at 50% of base salary.
  • 4Individual awards can range from 0% to 100% of the participant's target opportunity based on individual performance.
  • 5A corporate performance modifier (0% to 100%) will be applied, with a minimum threshold of 50% corporate performance required for any modifier to be considered.
  • 6The Compensation Committee has discretion to adjust award amounts.
  • 7Any awarded bonuses are scheduled to be paid in January 2010.

Frequently Asked Questions

The program's main purpose is to incentivize employees, including executive officers, by offering annual cash bonuses. These bonuses are directly linked to the achievement of specific individual and corporate performance goals set for fiscal year 2009, thereby aligning employee efforts with the company's strategic objectives.

Bonus payouts are determined in two stages. First, an individual award is calculated based on performance against individual objectives, ranging from 0% to 100% of the participant's target opportunity. Second, this individual award is subject to a corporate performance modifier, which can range from 0% to 100%, depending on the company's overall performance against its 2009 corporate goals. A minimum corporate performance threshold of 50% must be met for any modifier to apply.

Any bonuses awarded under the 2009 Annual Incentive Program are expected to be paid in January 2010, following the evaluation of individual and corporate performance at the end of 2009.

While individual and corporate performance are the primary drivers, the Compensation Committee retains the discretion to adjust award amounts higher or lower as it deems appropriate under specific circumstances. This allows for flexibility in recognizing exceptional contributions or addressing unforeseen situations.