Summary
Amgen Inc. (AMGN) filed an 8-K on December 13, 2007, to report amendments to its Amended and Restated Performance Award Program. These changes, effective December 10, 2007, primarily alter the definition of 'retirement eligible' for participants in the program. The key modification lowers the age requirement for retirement eligibility. Previously, participants had to be 65 years old to be considered retirement eligible. The amended program now defines retirement eligibility as either being 65 years of age or being at least 55 years of age with a minimum of 10 years of service with the company. This change is designed to provide greater flexibility for long-term employees nearing retirement and ensure continued focus on performance.
Key Highlights
- 1Amgen amended its Performance Award Program, effective December 10, 2007.
- 2The definition of 'retirement eligible' for performance awards has been updated.
- 3Retirement eligibility is now met at age 65 OR at age 55 with at least 10 years of service.
- 4This change impacts outstanding and future grants of performance units under the program.
- 5Retirement-eligible participants will receive full payout of prior year awards and a pro-rated payout for the year of retirement.
- 6Payouts are made at the conclusion of the applicable performance cycle.
- 7The Performance Program is a long-term, stock-based incentive designed to align executive compensation with superior operating results and shareholder value.
Frequently Asked Questions
The main purpose of this 8-K filing is to announce amendments to Amgen's Amended and Restated Performance Award Program, specifically changing the criteria for retirement eligibility.
The definition has been broadened. Previously, an employee needed to be at least 65 years old. Now, an employee is considered 'retirement eligible' if they are at least 65 years old, or alternatively, if they are at least 55 years old and have completed a minimum of 10 years of service with Amgen or its affiliates.
For participants who are 'retirement eligible' under the new definition and choose to retire, they will be eligible to receive the full payout of all outstanding performance unit awards granted in prior years. They will also receive a pro-rated payout for any award granted in the year of their retirement, provided it occurs at the conclusion of the applicable performance cycle.
This amendment specifically affects participants in the Amended and Restated Amgen Inc. Performance Award Program, which is typically designed for executives and key employees as a long-term incentive to focus on achieving superior operating results and delivering value to stockholders.