Who is the new CFO of Amgen, and when does the change take effect?

Peter H. Griffith has been appointed as the new Executive Vice President and Chief Financial Officer (CFO) of Amgen. This appointment is effective January 1, 2020. He will join Amgen in a non-executive capacity as Executive Vice President, Finance, starting October 23, 2019, to facilitate a smooth handover.

What is the compensation package for the new CFO, Peter H. Griffith?

Mr. Griffith's compensation includes an annual base salary of $970,000, eligibility for the management incentive plan with a target of 100% of base compensation, a $500,000 sign-on bonus, and a restricted stock unit grant valued at $4,000,000. He will also be entitled to standard executive perquisites and participation in the change-of-control plan.

What are the conditions for the sign-on bonus and severance package?

The $500,000 sign-on bonus is subject to recoupment by Amgen if Mr. Griffith resigns or his employment is terminated by the Company for 'Cause' within 24 months of his hire date. His severance protection, in the event of termination by the Company other than for 'Cause' within three years of his hire date, provides for a benefit multiple of two times his salary and target bonus, plus 18 months of COBRA coverage.

What is happening to the current CFO, David W. Meline?

David W. Meline will no longer serve as CFO effective December 31, 2019. He will remain with Amgen in a non-executive officer role as Executive Vice President, Finance, to assist Mr. Griffith with the transition. Following this transition period, Mr. Meline is expected to retire from the Company.

AMGN 8-K: Leadership Changes

Summary

Amgen Inc. announced a significant leadership change in its finance department through an 8-K filing dated October 22, 2019. Peter H. Griffith has been appointed as the new Executive Vice President and Chief Financial Officer (CFO), effective January 1, 2020. Mr. Griffith brings extensive experience from his prior roles at Ernst & Young LLP, where he held various senior finance and corporate development positions. He joins Amgen initially as an Executive Vice President, Finance, starting October 23, 2019, to facilitate a smooth transition. This appointment signals a strategic move for Amgen's financial leadership. The filing details Mr. Griffith's compensation package, which includes a $970,000 base salary, eligibility for incentive plans, a $500,000 sign-on bonus (subject to clawback), and a $4,000,000 restricted stock unit grant to align his interests with shareholders. Concurrently, David W. Meline will step down as CFO at the end of 2019 but will remain with the company in a non-executive role to aid in the transition before his expected retirement. Investors should note the terms of Mr. Griffith's employment, including severance protections and the definition of 'Cause' for termination.

Key Highlights

1Amgen appoints Peter H. Griffith as new Executive Vice President and Chief Financial Officer (CFO), effective January 1, 2020.
2Mr. Griffith joins Amgen on October 23, 2019, in a non-executive role as Executive Vice President, Finance, to oversee transition.
3David W. Meline will transition out of his CFO role on December 31, 2019, and will assist with the transition before retiring.
4Mr. Griffith's compensation includes a $970,000 base salary, target incentive bonus of 100% of base, a $500,000 sign-on bonus, and a $4,000,000 restricted stock unit grant.
5The sign-on bonus is subject to recoupment if Mr. Griffith resigns or is terminated for 'Cause' within 24 months of his hire date.
6Mr. Griffith will receive standard perquisites, participate in the change-of-control plan, and is entitled to a severance package equivalent to two times salary and target bonus plus 18 months of COBRA coverage in specific termination scenarios.

AMGEN INC 8-K Report, Executive Changes (Oct 23, 2019)

Summary

Key Highlights

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