Attached files
Exhibit 10.16
Alnylam Pharmaceuticals, Inc.
2010 Annual Incentive Program
2010 Annual Incentive Program
Summary Description
In February 2010, the Compensation Committee of the Board of Directors (the Board) of Alnylam
Pharmaceuticals, Inc. (Alnylam or the Company) established the 2010 Annual Incentive Program
(the Bonus Plan) to incent and reward eligible leadership employees based upon their performance
relative to pre-established 2010 corporate and individual goals and objectives, and retain company
leadership by establishing an important element of Alnylams total rewards package consistent with
Alnylams compensation philosophy and operating strategy.
Eligibility
Members of Alnylams Leadership Team, as defined by Alnylams Chief Executive Officer, including
the Chief Executive Officer, President and Chief Operating Officer, Vice Presidents, and Directors
and equivalent level leadership team members, that are employed by the Company before July 1, 2010
and on the day awards are granted under the Bonus Plan, are eligible to receive an annual cash
bonus based upon the achievement of individual and corporate goals and objectives for 2010
(collectively, Plan Participants).
Goals
The corporate goals for 2010 were proposed by the Companys Executive Officers and approved by the
Board. Individual objectives focus on contributions that facilitate the achievement of the
Companys corporate goals. The Compensation Committee approved the individual objectives for the
Companys Executive Officers and Vice Presidents. The individual objectives for the other Plan
Participants have been approved by the Companys Chief Executive Officer.
Awards
Awards under the Bonus Plan, if any, will be determined by first establishing a Plan Participants
individual award, which will be based upon performance against individual objectives for 2010.
Each Plan Participant has an established target opportunity under the Bonus Plan, as set forth in
the table below, representing a percentage of the Plan Participants base salary for 2010. The
individual award will range from 0% to 100% of the Plan Participants target opportunity (capped at
100% of the target opportunity) based upon the Plan Participants individual performance against
his or her 2010 objectives.
2010 Annual Incentive Program Target Opportunities | ||||
Band - Title | Target Opportunity | |||
Chief Executive Officer |
50 | % | ||
President and Chief Operating Officer |
30 | % | ||
Senior Vice President/Vice President |
20 | % | ||
Senior Director/Director |
12 | % | ||
Associate Director |
7 | % |
A corporate performance modifier will then be applied to the individual award. The
corporate performance modifier will range from 0% to 100% and will be based upon the Companys
performance against the 2010 corporate goals; provided, however, that if corporate performance for
2010 falls below a threshold of 50%, the corporate performance modifier will be 0%. The
Compensation Committee retains the ability under the Bonus Plan to exercise its discretion in
adjusting an award higher or lower as it deems appropriate under the specific circumstances. At
the end of 2010, the Compensation Committee will evaluate individual and corporate performance
against the established goals and objectives and determine the amount of the awards, if any, to be
granted under the Bonus Plan. All awards under the Bonus Plan will be made in cash and paid in
January 2011.
Administration; Amendment
The Bonus Plan will be administered by the Compensation Committee of the Board. The Compensation
Committee shall have full power and authority to interpret and make all decisions regarding the
Bonus Plan, which decisions and interpretations shall be final and binding on all Plan
Participants. The Compensation Committee or the full Board may amend the Bonus Plan in any manner
at any time without the consent of any Plan Participant.