Summary
This 8-K filing from Biogen Idec Inc. (BIIB), dated June 24, 2011, primarily concerns an amendment to the executive severance arrangement for Francesco Granata, Executive Vice President of Global Commercial Operations. The key change extends the deadline for Biogen Idec to assign Mr. Granata additional global responsibilities from July 26, 2011, to July 25, 2012. This extension is crucial as failure to do so, and the subsequent failure to cure after notice, could trigger his severance benefits, which are set at 21 months.
Key Highlights
- 1Amendment to Executive Severance Arrangement for Francesco Granata.
- 2Deadline for assigning additional global responsibilities to Mr. Granata extended to July 25, 2012.
- 3Original deadline for assigning responsibilities was July 26, 2011.
- 4Severance benefits are 21 months if employment is terminated due to lack of assigned global responsibilities and failure to cure.
- 5Mr. Granata must notify the company of a breach by January 29, 2013.
- 6The company has 30 days to cure any such breach after notification.
Frequently Asked Questions
The main purpose of this 8-K filing is to report an amendment to the executive severance arrangement for Francesco Granata, Executive Vice President of Global Commercial Operations, specifically regarding the timeline for assigning him additional global responsibilities.
The deadline by which Biogen Idec must assign additional global responsibilities to Mr. Granata has been extended from July 26, 2011, to July 25, 2012. This directly impacts the conditions under which his 21 months of severance benefits might be triggered.
Mr. Granata is entitled to 21 months of severance benefits if his employment is terminated because Biogen Idec fails to assign him additional global responsibilities and then fails to cure this breach after receiving notice.
Yes, Mr. Granata must notify the company of a breach of the obligation to assign responsibilities no later than January 29, 2013. The company then has 30 days to cure any such breach.