Summary
Amgen Inc. (AMGN) filed an 8-K on March 4, 2010, reporting on executive compensation decisions made by its Compensation and Management Development Committee on March 3, 2010. The report details the approval of performance units and associated performance goals for the 2010-2012 period, which are structured similarly to the prior 2009-2011 period. These awards will be based on 2010 revenue and adjusted EPS, with a relative total shareholder return (TSR) multiplier applied at the end of the three-year period. The comparator group for TSR has been updated to include Gilead Sciences Inc. Additionally, the filing outlines the 2009 annual cash incentive awards granted under the Executive Incentive Plan (EIP) for named executive officers. The company certified its performance against 2009 goals, achieving a composite score of 151.2% across various metrics, including revenue growth, adjusted EPS growth, pipeline development, Denosumab advancement, and compliance infrastructure improvement. Based on these results and the Committee's discretion, specific cash incentive awards were approved for the named executive officers, which were less than the maximum possible amounts but reflected strong company performance.
Key Highlights
- 1Amgen approved performance unit awards and goals for the 2010-2012 performance period under the 2009 Equity Incentive Plan.
- 2The 2010-2012 performance goals are based on 2010 revenue and adjusted EPS, with a relative Total Shareholder Return (TSR) multiplier at the end of the period.
- 3The comparator group for the relative TSR calculation now includes Gilead Sciences Inc.
- 4The Compensation Committee approved 2009 annual cash incentive awards for named executive officers under the Executive Incentive Plan (EIP).
- 5Amgen achieved a composite score of 151.2% against its 2009 performance goals.
- 6Specific 2009 EIP cash awards were granted to named executive officers, with Kevin Sharer receiving the largest award of $3,790,000.
- 7The company intends for these awards to satisfy Section 162(m) requirements for performance-based compensation.