8-KLeadership Changes

PFIZER INC 8-K Report, Executive Changes (Dec 15, 2021)

Filed December 15, 2021For Securities:PFE

Summary

Pfizer Inc. (PFE) filed an 8-K on December 14, 2021, detailing amendments to its Global Performance Plan, effective for the 2021 and 2022 performance years. The primary change for the 2021 performance year is an increase in the maximum percentage of an individual's target annual bonus that can be earned, raising it from 200% to 250%. This adjustment aims to better differentiate compensation based on individual performance, while the overall bonus pool funding remains capped at 200% of aggregate target bonuses. For the 2022 performance year, Pfizer is standardizing the bonus target calculation methodology for all participants. Previously, executive officers and a select group of other executives calculated their bonus targets as a percentage of their salary midpoint, whereas most other participants used a percentage of their actual salary earned. The amendment will align all participants to calculate their bonus targets as a percentage of salary earned during the year. These changes are intended to strengthen the alignment between executive pay and company performance.

Key Highlights

  • 1Maximum individual annual bonus potential increased to 250% of target for the 2021 performance year.
  • 2The overall bonus pool funding remains capped at 0% to 200% of aggregate target bonuses.
  • 3Changes are designed to enhance the link between executive pay and individual performance.
  • 4For the 2022 performance year, bonus target calculations will be standardized for all participants.
  • 5All participants will calculate bonus targets based on a percentage of salary earned during the year, effective 2022.
  • 6Prior to 2022, executive officers used a salary midpoint for bonus calculations, which will now be aligned with others.

Frequently Asked Questions

For the 2021 performance year, the maximum bonus an individual can earn is increased to 250% of their target bonus, up from 200%. This aims to allow for greater differentiation of pay based on individual performance.

No, the cap on the total bonus pool funding remains unchanged at 200% of the aggregate target bonuses for all participants. The change only affects the maximum an individual participant can receive relative to their specific target.

Starting with the 2022 performance year, all participants, including executive officers, will calculate their annual bonus targets as a percentage of their salary earned during the year. This standardizes the methodology across the company.

The change is intended to align the bonus target methodology for all participants, ensuring consistency and a clearer connection between salary earned and potential bonus compensation.