Summary
This 8-K filing from Gilead Sciences, Inc. (GILD) reports on the compensation arrangements for its Chief Financial Officer (CFO), Caroline Dorsa. On December 14, 2007, the Compensation Committee of the Board of Directors approved stock options and performance-based restricted stock units (RSUs) for Ms. Dorsa. These awards are designed to incentivize key executive performance and align her interests with those of the company and its shareholders. The details of these arrangements, including vesting schedules and performance metrics, are provided within the filing.
Key Highlights
- 1Gilead Sciences, Inc. (GILD) filed an 8-K on December 19, 2007, reporting on executive compensation.
- 2Caroline Dorsa, CFO, was granted options to purchase 100,000 shares of Common Stock at an exercise price of $46.21 per share.
- 3The stock options vest 20% after one year of employment and the remainder over the subsequent four years.
- 4Ms. Dorsa also received 24,000 performance-based restricted stock units (RSUs).
- 5Vesting of the RSUs is tied to the attainment of specific performance objectives and continued employment.
- 6Performance objectives for the RSUs include implementing a new finance organization plan, managing finance department expenses, and implementing a new ERP software system.
- 7The RSUs will vest fully upon certain changes in control or ownership of the company, or partially upon Ms. Dorsa's death or disability.
Frequently Asked Questions
The primary purpose of this 8-K filing is to disclose significant executive compensation arrangements, specifically the granting of stock options and performance-based restricted stock units to Gilead Sciences' Chief Financial Officer, Caroline Dorsa.
Ms. Dorsa's compensation package includes an award of 100,000 stock options with an exercise price of $46.21, vesting over five years, and 24,000 performance-based restricted stock units (RSUs) tied to specific company performance goals.
The performance objectives for the RSUs are threefold: 1) implementation of a new organizational plan for the worldwide finance organization, 2) maintaining total finance department expenses at or below a prescribed level, and 3) implementation of a new enterprise resource planning (ERP) software system.
The restricted stock units can vest in full on an accelerated basis upon certain changes in control or ownership of Gilead Sciences. They are also subject to partial accelerated vesting if Ms. Dorsa's employment terminates due to her death or disability, irrespective of whether the performance objectives have been met.