8-KLeadership Changes

BIOGEN INC. 8-K Report, Executive Changes (Mar 2, 2012)

Filed March 2, 2012For Securities:BIIB

Summary

This Form 8-K filing by Biogen Idec Inc. (now Biogen Inc.) on March 2, 2012, primarily announces a key executive change. Gregory F. Covino is appointed as the new Vice President, Finance, and will assume the role of Chief Accounting Officer (CAO) following the Q1 2012 earnings report. This appointment is significant as it brings in new leadership for financial reporting and control functions. The filing details Mr. Covino's extensive background in finance and accounting, including his previous roles at Boston Scientific and Hubbell Incorporated, highlighting his experience in areas like internal audit and financial activities of large divisions. The accompanying compensation package for Mr. Covino includes a base salary of $310,000 and a target annual cash incentive of 35% of his base salary. Furthermore, he will receive a long-term incentive grant valued at approximately 90% of his base salary, comprising cash-settled performance shares and market stock units, to be granted under the company's 2008 Omnibus Equity Plan. Investors should note this change in CAO as it could impact financial reporting processes and transparency.

Key Highlights

  • 1Biogen Idec Inc. announced the upcoming appointment of Gregory F. Covino as Vice President, Finance, effective April 2, 2012.
  • 2Mr. Covino will succeed the current Chief Accounting Officer (CAO) after the filing of the Q1 2012 Form 10-Q.
  • 3Mr. Covino brings a strong financial background with prior experience at Boston Scientific Corporation and Hubbell Incorporated.
  • 4His previous roles include Vice President, Corporate Analysis and Control Executive and Vice President, Finance, International at Boston Scientific.
  • 5Mr. Covino's compensation package includes a base salary of $310,000 per year.
  • 6He is eligible for an annual cash incentive and will receive a long-term incentive grant valued at approximately 90% of his base salary.
  • 7The long-term incentive grant will consist of cash-settled performance shares and market stock units under the 2008 Omnibus Equity Plan.

Frequently Asked Questions

Gregory F. Covino is expected to join Biogen Idec as Vice President, Finance, on April 2, 2012, and will be appointed Chief Accounting Officer, replacing the current CAO after the filing of the Q1 2012 Form 10-Q.

Mr. Covino has extensive experience in finance and accounting. He most recently served as Vice President, Corporate Analysis and Control Executive at Boston Scientific Corporation, and prior to that, as Vice President, Finance, International. He also held several finance positions at Hubbell Incorporated, including Vice President, Chief Accounting Officer and Controller.

Mr. Covino's compensation includes a base salary of $310,000 per year, a target annual cash incentive of 35% of his base salary, and a long-term incentive grant with an aggregate value of approximately 90% of his base salary. This long-term grant will be composed of cash-settled performance shares and market stock units.

Mr. Covino is expected to start as Vice President, Finance on April 2, 2012, and will be appointed Chief Accounting Officer after the filing of Biogen Idec's Quarterly Report on Form 10-Q for the period ending March 31, 2012.