Array BioPharma Inc. Employee Performance Bonus Program Description
Array BioPharma Inc. has an annual performance bonus program for employees, including executive officers. Bonuses are awarded based on company and individual performance goals set by the Compensation Committee at the start of each fiscal year. Eligible employees may receive cash, stock, or stock option bonuses, but there is no guarantee of a bonus each year. The amount awarded depends on performance and is paid as a lump sum after the fiscal year ends. The Compensation Committee has discretion to adjust or amend the program at any time before payment.
EXHIBIT 10.1
ARRAY BIOPHARMA INC.
DESCRIPTION OF PERFORMANCE BONUS PROGRAM
Array BioPharma Inc. (the “Company”) has established an annual performance bonus program for employees, including the Company’s executive officers. Through this program, employees can receive an annual bonus payable in cash, stock or stock option equivalents based on achievement of key Company and individual goals. There is no guarantee that bonuses will be awarded in any given year. The bonus program is intended to strengthen the connection between individual compensation and Company success; reinforce the Company’s pay-for-performance philosophy by awarding higher bonuses to higher performing employees; and help ensure that the Company’s cash compensation is competitive.
At the beginning of the fiscal year, the Compensation Committee establishes the minimum, target and stretch corporate performance goals for the upcoming fiscal year. The goals generally are based on the following objective performance criteria: revenues, earnings per share, year-end cash, clinical development goals with respect to the Company’s proprietary drug programs, operational goals relating to staffing, and new collaborations and out-licensing transactions. Each participant in the bonus program may be eligible to receive a target bonus amount calculated by multiplying the participant’s base salary by a percentage value later assigned to the participant or his or her position with the Company by the Compensation Committee.
Following the end of each fiscal year, the Compensation Committee determines in its discretion the extent to which the company-wide and individual performance goals were attained. Based on this assessment, the Compensation Committee will award bonuses equal to a varying percentage of an employee’s target bonus amount. The Compensation Committee may award a bonus in an amount less than or greater than the amount earned by a participant under the bonus program.
Individual bonuses can vary significantly based on performance. Any bonuses for a particular year are paid as a lump sum cash award, less applicable payroll and other withholdings, in the quarter following that year. The plan can be amended in whole or in part but the compensation committee at any time until paid.
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