8-KLeadership Changes

ALNYLAM PHARMACEUTICALS, INC. 8-K Report, Executive Changes (Feb 22, 2010)

Filed February 22, 2010For Securities:ALNY

Summary

This Form 8-K filing by Alnylam Pharmaceuticals, Inc. (ALNY) on February 22, 2010, primarily details the Compensation Committee's authorization of the 2010 Annual Incentive Program (the "Plan"). This program, structured similarly to the previous year's, allows for cash bonuses to be awarded to specified employees, including executive officers, based on the achievement of both individual and corporate goals set for 2010. The structure of the Plan involves setting individual award opportunities as a percentage of base salary, which can then be adjusted based on individual performance. Subsequently, a corporate performance modifier, ranging from 0% to 100% (with a 50% performance threshold required for any modifier to apply), will be applied to the individual award. The Compensation Committee retains discretion in final award determination, with payouts expected in January 2011. This announcement provides insight into the company's performance-based compensation strategy for its employees and leadership.

Key Highlights

  • 1Alnylam Pharmaceuticals has established its 2010 Annual Incentive Program, designed to reward employees, including executives, through cash bonuses.
  • 2Bonus eligibility and amounts are tied to the achievement of both individual and corporate performance goals for the 2010 fiscal year.
  • 3The program utilizes a tiered structure where individual award opportunities are set as a percentage of base salary.
  • 4Individual performance against set objectives can result in an award ranging from 0% to 100% of the target opportunity.
  • 5A corporate performance modifier, ranging from 0% to 100%, will be applied to the individual award, contingent on meeting corporate goals.
  • 6A minimum corporate performance threshold of 50% is required for any corporate performance modifier to be applied; below this, the modifier is 0%.
  • 7Final award determinations will be made by the Compensation Committee in early 2011, with payments scheduled for January 2011.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce the establishment and details of Alnylam Pharmaceuticals, Inc.'s 2010 Annual Incentive Program, which outlines the company's cash bonus structure for employees based on performance.

Bonuses are determined by first assessing individual performance against set objectives, which influences the individual award opportunity (0-100% of target). This is then further adjusted by a corporate performance modifier (0-100%) based on the company's achievement of overall corporate goals.

While individual performance is assessed, a key threshold is the corporate performance. If Alnylam's corporate performance for 2010 falls below 50% of its approved goals, the corporate performance modifier will be 0%, meaning no additional bonus factor will be applied based on corporate results.

Awards will be determined after the end of the 2010 fiscal year, with payments expected to be made in January 2011.