Director Compensation
We pay our non-employee Directors a base fee of $50,000 with additional role-based compensation as noted
below:
Role
2014 Cash
Compensation
BoardMember (Base) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$50,000
Committee Chairs (Additional)
Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$24,000
Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$15,000
Nominating &Gov. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10,000
Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10,000
CommitteeMember (Additional)
Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10,000
Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 7,500
Nominating &Gov. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 5,000
Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 5,000
Scientific/Medical . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10,000
If the Board creates new committees, we anticipate that the non-employee members of such new committee
will receive additional compensation for their role on those committees. We do not pay Board members
additional compensation for attending Board meetings, but we do reimburse them for the expenses they incur to
attend the meetings.
In 2014, each non-employee Director also received automatic stock award grants under our Directors’ Plan.
On July 1, 2014, under the Directors’ Plan, each of our non-employee Directors serving at that time received an
option to purchase 16,000 shares of our common stock, at an exercise price of $35.53 per share, the fair market
value of the common stock on the date of the grant, based on the closing sales price reported on the Nasdaq
Global Select Market, and an RSU for 2,667 shares. The options and RSUs vest over a four-year period in equal
annual installments.
The following table shows for the fiscal year ended December 31, 2014 certain information with respect to
the compensation of all our non-employee Directors:
Director Compensation for Fiscal 2014
Name
Fees Earned
or Paid
in Cash
($)
Stock
Awards
($)
Option
Awards
($)
(1)
All Other
Compensation
($)
Total
($)
Spencer R. Berthelsen. . . . . . . . . . . . . . . . . . $ 85,000 $ 94,759 $ 316,388
— $ 496,147
Breaux B. Castleman. . . . . . . . . . . . . . . . . . . $ 60,000 $ 94,759 $ 316,388
— $ 471,147
Joseph Klein . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,000 $ 94,759 $ 316,388
— $ 471,147
Joseph Loscalzo
(2)
. . . . . . . . . . . . . . . . . . . . . $ 65,000 $ 278,846 $ 932,098
— $1,275,944
Frederick T. Muto . . . . . . . . . . . . . . . . . . . . . $ 55,000 $ 94,759 $ 316,388
— $ 466,147
Joseph H. Wender . . . . . . . . . . . . . . . . . . . . . $ 86,500 $ 94,759 $ 316,388
— $ 497,647
(1) Amounts represent the aggregate expense recognized for financial statement reporting purposes in accordance with FASBTopic
ASC 718 (‘‘ASC 718’’) for stock and option awards granted to the Directors. ASC 718 expense for the option awards is based on the
fair value of the awards on the date of grant using an option-pricing model. The fair value of RSUs is based on the market price of our
common stock on the date of grant. For more information, please see Note 5,
Stockholders’ Equity
, of the consolidated financial
statements in this Form 10-K regarding assumptions underlying valuation of equity awards.
(2) Includes an option to purchase 22,500 shares of our common stock and an RSU for 3,750 shares of our common stock, which were
automatically granted to Dr. Loscalzo under the Directors’ Plan when he joined our Board.
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