8-KLeadership ChangesExhibits & Filings

BIOGEN INC. 8-K Report, Executive Changes (Jul 1, 2010)

Filed July 1, 2010For Securities:BIIB

Summary

Biogen Idec Inc. announced a significant leadership change on June 30, 2010, with the appointment of George A. Scangos, Ph.D., as its new Chief Executive Officer, effective July 15, 2010. Dr. Scangos, an experienced executive with a strong background in the biotechnology and pharmaceutical sectors, will also join the Company's Board of Directors. His extensive prior roles include CEO of Exelixis, Inc., and leadership positions at Bayer Corporation, making him a key figure in the industry. Investors should note the comprehensive compensation package offered to Dr. Scangos, reflecting the strategic importance of this hire. This includes a substantial base salary, bonus potential, a sign-on bonus, relocation assistance, and significant equity grants in the form of restricted stock units and market stock units. The employment agreement also outlines severance provisions and extended vesting for certain equity awards upon retirement, indicating the company's commitment to retaining and incentivizing its new CEO.

Key Highlights

  • 1Appointment of George A. Scangos, Ph.D. as Chief Executive Officer, effective July 15, 2010.
  • 2Dr. Scangos also appointed to the Biogen Idec Board of Directors as a Class 2 director.
  • 3Dr. Scangos's employment agreement includes a base salary of $1,200,000 and a target bonus of 125% of base salary.
  • 4A one-time sign-on bonus of $500,000 and reimbursement for relocation expenses are part of the package.
  • 5Equity grants include restricted stock units and market stock units valued at approximately $3,375,000 each.
  • 6Severance provisions for termination by the Company without cause or by Dr. Scangos for good reason include two times base salary and target bonus.
  • 7Dr. Scangos brings extensive leadership experience from companies like Exelixis, Inc. and Bayer Corporation.

Frequently Asked Questions

George A. Scangos, Ph.D. has been appointed as the new Chief Executive Officer. He is expected to commence his employment with the Company on July 15, 2010.

Dr. Scangos will receive an annual base salary of $1,200,000, a target annual bonus opportunity of 125% of his base salary, a $500,000 sign-on bonus, and reimbursement for relocation expenses. He will also receive grants of restricted stock units and market stock units valued at approximately $3,375,000 each.

If the Company terminates Dr. Scangos's employment without 'cause,' or if he terminates for 'good reason,' he is entitled to a cash severance payment equal to two times his annual base salary and target annual cash bonus. He would also receive a pro rata portion of his annual cash bonus.

Dr. Scangos has a strong background in the biotechnology and pharmaceutical industries, having served as President and CEO of Exelixis, Inc., and in leadership roles at Bayer Corporation. The Board selected him based on his extensive qualifications, scientific training, industry knowledge, and comprehensive leadership experience.