SUMMARY OFEXECUTIVE OFFICER COMPENSATION FOR 2006
Exhibit 10.1
SUMMARY OF EXECUTIVE OFFICER COMPENSATION FOR 2006
Executive Officer Compensation for 2006Base Salary and Target Bonus
On March 16, 2006, the Compensation Committee of the Board of Directors of Sepracor Inc. (the Company) approved the annual salaries to be paid to the Companys executive officers during 2006. The Compensation Committee of the Companys Board of Directors may also grant a discretionary bonus to each of the Companys executive officers for work performed by such officer during the year ended December 31, 2006. Each officers bonus for 2006 shall be determined based on, among other things, the Companys overall performance, as well as such officers individual performance, during the fiscal year ended December 31, 2006. Each executive officer has a target bonus for 2006 that is based on a percentage of such executive officers 2006 annual base salary. The table below sets forth the annual base salaries, target bonus percentages and target bonuses for 2006 for each of the Companys executive officers:
Executive Officer |
|
|
| Annual Salary |
| 2006 Target Bonus |
| 2006 Target Bonus |
| ||||||||
Timothy J. Barberich |
|
| $ | 875,000 |
|
|
| 80 | % |
|
| $ | 700,000 |
|
| ||
William J. OShea |
|
| $ | 525,000 |
|
|
| 60 | % |
|
| $ | 315,000 |
|
| ||
Mark H.N. Corrigan, M.D. |
|
| $ | 450,000 |
|
|
| 50 | % |
|
| $ | 225,000 |
|
| ||
David P. Southwell |
|
| $ | 440,000 |
|
|
| 45 | % |
|
| $ | 198,000 |
|
| ||
Robert F. Scumaci |
|
| $ | 430,000 |
|
|
| 45 | % |
|
| $ | 193,500 |
|
| ||
Douglas E. Reedich, Ph.D., J.D. |
|
| $ | 380,000 |
|
|
| 40 | % |
|
| $ | 152,000 |
|
|
Executive Officer Compensation for 2006Stock-Based Awards
Each executive officer may also be granted, from time to time, stock options, restricted stock or other awards pursuant to the Companys stock incentive plans. The stock options granted to executive officers typically vest either (1) upon the achievement of specified corporate objectives or (2) in five equal annual installments commencing one year from the date of grant.
Other Compensation
The Company has also (1) entered into letter agreements with certain of its executive officers, (2) entered into retention agreements with each of its executive officers and (3) agreed to make gross up payments to each of its executive officers in the event that any payments received by them in connection with a change of control constitute parachute payments under Section 280G of the Internal Revenue Code of 1986, as amended. The Company has previously filed these letter agreements, retention agreements and a summary of the 280G gross up plan with the Securities and Exchange Commission.
Bonuses Paid to Executive Officers for Service During Fiscal Year 2005
In addition to the foregoing adjustments to executive compensation, the Compensation Committee of the Companys Board of Directors approved cash bonus payments for the Companys executive officers in consideration of their service to the Company during the fiscal year ended December 31, 2005. The Company made the bonus payments pursuant to its previously announced executive officer bonus program for the fiscal year ended December 31, 2005. The payments were based on, among other things, the Companys overall performance, as well as such officers individual performance during 2005. The table below sets forth such bonus payments.
Executive Officer |
|
|
| Cash Bonus for |
| |||
Timothy J. Barberich |
|
| $ | 330,000 |
|
| ||
William J. OShea |
|
| $ | 382,500 |
|
| ||
Mark H.N. Corrigan, M.D. |
|
| $ | 184,500 |
|
| ||
David P. Southwell |
|
| $ | 147,000 |
|
| ||
Robert F. Scumaci |
|
| $ | 169,000 |
|
| ||
Douglas E. Reedich, Ph.D., J.D. |
|
| $ | 142,600 |
|
|