8-KLeadership Changes

BIOGEN INC. 8-K Report, Executive Changes (Feb 15, 2008)

Filed February 15, 2008For Securities:BIIB

Summary

Biogen Idec Inc. (BIIB) announced on February 15, 2008, the approval of a new retention bonus program by its Compensation and Management Development Committee, effective February 12, 2008. This program is designed to incentivize key executive officers, excluding Mr. Mullen, by offering a bonus opportunity of 100% of their annual base salary for the fiscal year 2008. The payout of these retention bonuses is contingent upon the achievement of specific company performance goals for 2008, namely revenue and earnings per share, each carrying a 50% weighting. The actual bonus amount can vary between 0% and 150% of the target opportunity, based on the company's performance relative to these targets. The bonuses are scheduled for payment in March 2009, with continued employment through the payment date being a prerequisite for receipt, barring specific change-in-control or involuntary termination events.

Key Highlights

  • 1Biogen Idec implemented a new retention bonus program for executive officers (excluding Mr. Mullen) on February 12, 2008.
  • 2The program offers a target bonus opportunity of 100% of each executive's annual base salary for 2008.
  • 3Bonus payouts are tied to the achievement of 2008 revenue and EPS goals, each weighted at 50%.
  • 4Actual bonus payments can range from 0% to 150% of the target opportunity based on performance.
  • 5Retention bonuses are scheduled to be paid in March 2009.
  • 6Continued employment through March 2009 is required to receive the bonus, with specific exceptions for change-in-control or involuntary employment actions.
  • 7The terms related to change-in-control and involuntary employment actions are defined within the 2005 Biogen Idec Inc. Omnibus Equity Plan.

Frequently Asked Questions

The primary purpose of the retention bonus program is to incentivize and retain key executive officers by providing a financial reward tied to company performance and continued employment through the payout date.

The bonus amount is determined by the achievement of Biogen Idec's 2008 revenue and earnings per share (EPS) targets, with each goal weighted at 50%. The payout can range from 0% to 150% of the executive's target bonus opportunity, which is set at 100% of their annual base salary.

An executive would still be entitled to receive their bonus if Biogen Idec undergoes a corporate change in control or a corporate transaction, and the executive experiences an involuntary employment action. The amount received in such cases depends on the timing of the termination relative to December 31, 2008.

No, the program includes all executive officers of the Company except for Mr. Mullen.