Genzyme Corporation (NASDAQ: GENZ) announced today that it has adopted new annual and long-term incentive plans for senior executives that will be utilized beginning in 2010. The plans are designed to align incentive compensation with a broader set of measures of company performance. The new incentive compensation program for senior executives is the culmination of a review process first announced last spring.
“These incentive plans were carefully developed following a long and thorough review”
“These incentive plans were carefully developed following a long and thorough review,” said Genzyme board member and Compensation Committee chair Charles Cooney, Ph.D., a member of the Massachusetts Institute of Technology faculty, and faculty director of MIT’s Deshpande Center for Technological Innovation. “The plans provide shareholders with more transparency into executive compensation decisions, and will encourage senior executives to make decisions that drive growth and shareholder value.”
The company’s senior executive annual incentive plan awards bonuses based on corporate and individual performance. The prior annual incentive plan used one metric - operating income - to measure corporate performance. The new plan includes two corporate financial performance measures: revenue and cash flow return on invested capital. It also includes key business objectives that center on three areas, organization renewal; pipeline advancements; and the recovery of the Personalized Genetic Health business.