ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
value $0.0001 per share |
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LLC |
☒ |
Accelerated filer ☐ | |
Non-accelerated filer ☐ |
Smaller reporting company | |
Emerging growth company |
Page |
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2 |
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Item 10. |
2 |
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Item 11. |
11 |
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Item 12. |
55 |
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Item 13. |
59 |
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Item 14. |
60 |
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61 |
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Item 15. |
61 |
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72 |
Item 10. |
Directors, Executive Officers and Corporate Governance |
Name |
Audit |
Compensation |
Nominating and Corporate Governance | |||
Paul L. Berns |
l |
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Patrick G. Enright |
l |
l |
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Peter Gray |
C |
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Heather Ann McSharry |
l |
C | ||||
Kenneth W. O’Keefe |
l |
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Anne O’Riordan |
l |
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Norbert G. Riedel, Ph.D. |
C |
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Elmar Schnee |
l | |||||
Catherine A. Sohn, Pharm.D. |
l |
l | ||||
Rick E Winningham |
l |
Name |
Age |
Position | ||||
Bruce C. Cozadd |
56 |
Chairman and Chief Executive Officer | ||||
Daniel N. Swisher, Jr. |
57 |
President and Chief Operating Officer | ||||
Renée Galá |
48 |
Executive Vice President and Chief Financial Officer | ||||
Robert Iannone, M.D., M.S.C.E |
53 |
Executive Vice President, Research and Development | ||||
Michael P. Miller (1) |
63 |
Executive Vice President, U.S. Commercial | ||||
Finbar Larkin, Ph.D. |
62 |
Senior Vice President, Technical Operations | ||||
Neena M. Patil |
45 |
Senior Vice President and General Counsel | ||||
Samantha Pearce |
54 |
Senior Vice President, Europe and Rest of World | ||||
Patricia Carr |
49 |
Vice President, Finance and Principal Accounting Officer |
(1) |
Mr. Miller will continue in his position as Executive Vice President, U.S. Commercial until May 31, 2020 (or as extended by mutual agreement with the company) and then transition into a project-based role as Executive Vice President, Special Projects for a three-month period, after which Mr. Miller will retire from the company. |
Item 11. |
Executive Compensation |
(1) |
Following Mr. Young’s resignation from the company on October 25, 2019, Mr. Cozadd served as our interim principal financial officer until Renée Galá was appointed as our CFO and assumed the duties and responsibilities of principal financial officer from Mr. Cozadd as of March 16, 2020. For details regarding Ms. Galá’s compensatory arrangements with the company, please see the company’s Current Report on Form 8-K filed with the SEC on February 25, 2020. |
(1) | For 2017, GAAP net income included a net tax benefit of $148.8 million resulting from provisional estimates based on our analysis of the U.S. Tax Cuts and Jobs Act, or the U.S. Tax Act. For 2019, GAAP net income included a one-time tax benefit of $112.3 million resulting from an intra-entity intellectual property asset transfer. Among other adjustments, the net tax benefits resulting from the U.S. Tax Act for 2017 and from the intra-entity intellectual property asset transfer for 2019 were excluded from non-GAAP adjusted net income. |
(2) | See the section “Reconciliations of Non-GAAP Financial Measures” below for reconciliations between GAAP net income and non-GAAP adjusted net income (and the related per share measures). |
(3) | Represents the compound annual growth rate (CAGR) for the period from 2016 through 2019. |
What We Do |
What We Don’t Do | |
✔ Design executive compensation to align pay with performance✔ Balance short-term and long-term incentive compensation, with the majority of executive compensation being “at-risk”✔ Align performance bonus plan for CEO with that of other executives and non-sales employees, with 100% of CEO’s bonus based on such corporate performance goals as approved by the Board✔ Establish threshold and maximum levels of achievement for payout with respect to financial metrics under performance bonus plan✔ Maintain share ownership guidelines✔ Provide “double-trigger” change in control benefits✔ Prohibit hedging and pledging by executive officers and directors✔ Have 100% independent directors on the compensation committee✔ Hire independent compensation consultant who reports directly to the compensation committee✔ Meet regularly in executive session without management present |
✘ No excessive change in control or severance payments✘ No “single-trigger” cash or equity change in control benefits✘ No repricing of underwater stock options without prior shareholder approval✘ No excessive perquisites✘ No tax gross ups on severance or change in control benefits✘ No post-termination retirement or pension benefits that are not available to employees generally✘ No guaranteed bonuses or base salary increases |
CEO |
Other NEO Average | |
|
• | Attract, incentivize, reward and retain diverse, talented individuals with relevant experience in the life sciences industry through a competitive pay structure. |
• | Deliver balanced total compensation packages to accomplish our business objectives and mission. total compensation |
• | Align pay with our performance. pre-determined levels of performance are achieved against annual corporate objectives approved by our board of directors at the beginning of the year. Likewise, our stock option awards will not provide realizable value and our restricted stock unit, or RSU, awards will not provide increased value unless there is an increase in the value of our shares, which benefits all shareholders. We also have executive share ownership guidelines to further support our ownership culture and align the interests of executive officers and shareholders. |
✔ |
the provision of other services to our company by Radford and its affiliates; |
✔ |
any business or personal relationship of the individual compensation advisors with any compensation committee member; | |||||
✔ |
the amount of fees we paid to Radford and its affiliates as a percentage of Radford’s total revenue; |
✔ |
Radford’s policies and procedures that are designed to prevent conflicts of interest; and | |||||
✔ |
any business or personal relationship of Radford or the individual compensation advisors employed by it with any executive officer of our company; |
✔ |
any ordinary shares of our company owned by Radford or the individual compensation advisors employed by it. |
Component |
Key Features |
Purpose |
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Base Salary |
◆ Fixed level of cash compensation◆ No amount is contractually guaranteed◆ Amounts reviewed and determined annually, and are generally effective by March 1 each year |
◆ Provides fixed level of compensation that is competitive within our industry and geographic areas |
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Performance Bonus Award |
◆ Cash compensation under the performance bonus plan, which is “at-risk” because it is dependent upon achievement of pre-established corporate performance objectives◆ Target bonuses reviewed and determined annually◆ Actual bonuses paid shortly after the end of each year, based on the extent corporate goals are attained as determined by the compensation committee, and for executive officers other than our CEO, their individual contributions toward such achievements |
◆ Provides financial incentives to achieve key corporate objectives that are aligned with our business strategy◆ Rewards individual NEO for contributions aligned with our corporate achievements |
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Long-Term Incentive Compensation |
◆ “At-risk” long-term incentives that only realize value based on performance and is dependent upon our share price◆ Awards reviewed and generally granted annually, early in the year, at time of hire or promotion or in other rare circumstances such as recognition of outstanding performance◆ Awards to executive officers granted shortly after annual or quarterly financial results released to public◆ Stock options and RSUs generally vest over a 4-year period subject to executive officer’s continued service with us; stock option exercise price is set equal to fair market value on date of grant (i.e., closing price on Nasdaq Global Select Market)◆ Executive share ownership guidelines to further support our ownership culture and align the interests of executive officers and shareholders |
◆ Fosters ownership culture◆ Links compensation to long-term success◆ Stock options are a key aspect of our pay-for-performance culture, by providing a return to our executive officers only if the market price of our ordinary shares appreciates over the stock option term◆ RSU awards deliver fewer shares than the stock options therefore helping to manage dilution, while reinforcing the importance of shareholder value creation◆ RSU awards provide a return based on the market price of our ordinary shares; if our share price declines, RSU awards correspondingly decline in value but still maintain value, and therefore, a mix of RSU awards and stock options aligns executive officers’ interests with those of shareholders by minimizing incentive for short-term risk-taking at the expense of realizing long-term value |
Quantitative Objectives |
Weighting |
Actual Results |
Multiplier |
Bonus Pool Funding (3) |
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1. |
Total Revenue Objective (1) |
30% |
Above target: total revenue of $2,173 million (2) |
114% |
34.2% |
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• Stretch goal: Exceed specified Xyrem year-over-year revenue bottle volume growth(4) |
5% |
Above target |
100% |
5.0% |
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• Stretch goal: Exceed budgeted Sunosi prescription volume(5) |
5% |
Below threshold |
0% |
0% |
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• Stretch goal: Exceed budgeted shipment of Vyxeos worldwide vials(6) |
5% |
Below threshold |
0% |
0% |
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2. |
Adjusted Net Income Objective non-GAAP adjusted net income*(1) |
15% |
Above target: non-GAAP adjusted net income* |
146% (7) |
21.9% |
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3. |
Product Development Objectives (8) |
25% |
Achieved at 130% level (8) |
130% |
32.5% |
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Total |
93.6% |
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(1) |
If the specified threshold annual performance level was met (90% of target for the total revenue objective and the adjusted net income objective), then a pre-established scaled performance multiplier (ranging from 50% to 150% for the total revenue objective and 50% to 200% for the adjusted net income objective) would be used to calculate the applicable bonus pool funding percentage attributable to such quantitative objective. The performance multiplier would be zero if performance was below the threshold level, 50% if performance was at the threshold level, and then scaled for performance above 50% up to the applicable maximum level. The performance multiplier was capped for performance above the specified maximum performance level (110% of target for the total revenue objective and 120% of target for the adjusted net income objective). |
(2) |
To calculate the threshold performance achievement level and performance multiplier, the reported revenue of $2,162 million was increased by approximately $11.1 million to adjust for changes in foreign currency exchange rates. |
(3) |
The percentages in this column represent, for each quantitative corporate objective, the weight of the quantitative objective multiplied by the performance multiplier that corresponds to the actual achievement of such quantitative objective. |
(4) |
With respect to the Xyrem revenue bottle growth stretch goal, the performance threshold was set at 3.7% bottle volume growth, below which no addition to the total bonus pool funding would be made. Between 3.7% and 5.2% bottle volume growth, the amount added to the total bonus pool funding percentage would increase from 0% to 5%. Actual achievement of 5.5% bottle volume growth for 2019 was above 5.2% resulting in 5% being added to the total bonus pool funding percentage. |
(5) |
With respect to the Sunosi prescription volume stretch goal, the threshold performance level was set at achievement of 20% above the budgeted Sunosi prescription volume, adjusted for the actual launch date. This stretch goal was inherently difficult to achieve from the outset given that Sunosi had not yet been approved at the start of 2019, and the prospect of a successful mid-year launch was uncertain, particularly in light of market access challenges and the competitive marketplace for Sunosi, including as a result of another new market entrant, pitolisant, expected to launch in 2019. Exceeding the prescription volume budget by between 20% and 50% would have resulted in 0% to 5% (scaled linearly) being added to the total bonus pool funding percentage. Actual Sunosi prescription volume for 2019 was below the threshold level of achievement for prescription volume. |
(6) |
With respect to the Vyxeos worldwide vial shipment volume stretch goal, threshold performance level was set at achievement 15% above the budgeted shipment volume. This stretch goal was inherently difficult to achieve from the outset due to the increasingly competitive marketplace for AML. Exceeding the shipment budget by between 15% and 45% would have resulted in 0% to 5% (scaled linearly) being added to the total bonus pool funding percentage. Actual Vyxeos worldwide vial shipment volume for 2019 was below the threshold level of achievement for shipment volume. |
(7) |
To calculate the threshold performance achievement level and performance multiplier, the reported non-GAAP adjusted net income was increased by $11.1 million to adjust for the impact of business development activities in 2019, including our acquisition of Cavion, Inc. and our purchase of the pan-RAF inhibitor program from Redx Pharma. |
(8) |
With respect to the product development objectives, the compensation committee determined that the actual achievement by the company was 130%, resulting in a performance multiplier of 130%, and therefore, a 32.5% bonus pool funding percentage, based on achievement with respect to the target goals as described below: |
|
Performance Category |
Target Goals and Results | ||
Submissions/Approvals |
This performance category consisted of the following goals: (i) FDA approval of Sunosi (solriamfetol) by the first quarter of 2019; (ii) achieving NDA submission readiness for JZP-258 by the end of 2019; (iii) conducting a Type B meeting with FDA to support filing a supplemental NDA, or sNDA, for Vyxeos for relapsed and refractory AML by the fourth quarter of 2019; (iv) European approval of Sunosi by the fourth quarter of 2019; and (v) global expansion of defibrotide through regulatory submissions in various countries and regulatory approval in Brazil by the first quarter 2019. The compensation committee determined that we had met each of the performance goals for this category except for the European approval of Sunosi by the fourth quarter of 2019. The compensation committee noted the achievement of a positive opinion from the European Medicines Agency’s Committee for Medicinal Products for Human Use for the marketing authorization of Sunosi in the fourth quarter 2019, which led to European approval in January 2020. | |||
Significant Clinical Advancements |
This performance category consisted of the following goals: (i) first patient enrolled in a Vyxeos X-FAST Phase 1b study for first-line fit AML by the fourth quarter of 2019; and (ii) 50% enrollment of patients in a Phase 3 study of oxybate in the treatment of idiopathic hypersomnia by the end of 2019. The compensation committee determined that we had met both of the performance goals for this category. | |||
Early Stage Development |
This performance category consisted of the following goals: (i) first subject dosed in a Phase 1 JZP-458 study by the first quarter of 2019; (ii) a strategic go/no-go decision for first subject dosed in the Phase 1 JZP-458 study by the second quarter 2019; (iii) first patient enrolled in a pivotal Phase 2/3 JZP-458 study by the fourth quarter 2019; and (iv) a strategic go/no-go decision to advance one or more new candidates for investigational new drug enabling activities for a new CombiPlex product candidate by the end of 2019. The compensation committee determined that we had met each of these performance goals for this category, except for the goal regarding making a strategic go/no-go decision to advance a new CombiPlex product candidate. |
* | Non-GAAP adjusted net income is a non-GAAP financial measure that both excludes certain items from our GAAP reported net income and includes certain tax-related adjustments. For more information on our presentation and calculation of non-GAAP adjusted net income, and a reconciliation of non-GAAP adjusted net income to GAAP net income, see “Reconciliations of Non-GAAP Financial Measures” below. In addition, solely for purposes of calculating the performance multiplier for 2019, non-GAAP adjusted net income and the performance objective included additional adjustment as set forth in footnote (7) to this table. |
• | embedding and rewarding inclusive leadership and management behaviors across the company; |
• | continuing to attract and retain talent to drive execution of initiatives in line with the company’s strategy, mission and values; and |
• | building and strengthening the company’s differentiating capabilities and driving organizational efficiencies. |
2018 Pay ($) |
2019 Pay ($) |
Change (%) |
|||||||||||
Target Total Cash Compensation |
1,962,985 |
2,034,415 |
3.6% |
||||||||||
Base Salary (1) |
983,700 |
1,020,000 |
|||||||||||
Target Performance Bonus (2) |
979,285 |
1,014,415 |
|||||||||||
Target Equity Compensation (3) |
9,470,396 |
12,381,420 |
30.7% |
||||||||||
Options |
4,265,610 |
5,379,925 |
|||||||||||
RSUs |
5,204,786 |
7,001,495 |
|||||||||||
Target Total Direct Compensation (4) |
11,433,381 |
14,415,835 |
26.1% |
(1) |
Represents annual base salary rate for the applicable year. 2019 base salary became effective February 16, 2019. |
(2) |
Target amounts are as reported in the Grants of Plan-Based Awards Table for 2018 and 2019, respectively, and reflect the target percentage of base salary earned for each fiscal year. The 2019 amount reflects a target performance bonus of 100% of base salary earned, unchanged from the target performance bonus percentage for 2018. The actual 2019 performance bonus paid was $1,304,500, reflecting 128.6% of the target performance bonus, based entirely on the overall 2019 bonus pool funding percentage of 128.6%. The compensation committee (with approval from the board of directors) determined that the overall 2019 bonus pool funding percentage of 128.6% was applicable to Mr. Cozadd, because, as CEO, Mr. Cozadd is responsible for the company meeting all of its objectives. |
(3) |
The target equity compensation delivered (as presented in the chart) reflects the fair value of the awards as of the grant date, in accordance with FASB Accounting Standards Codification Topic 718, Compensation—Stock Compensation |
(4) |
The compensation committee and board of directors designed Mr. Cozadd’s target total direct compensation to be competitive compared to the market data, appropriate from an internal equity perspective and more heavily weighted towards equity compensation, in line with our pay-for-performance philosophy. The compensation committee believed it was appropriate to provide a modest increase to his base salary in 2019 in recognition of his individual performance, the performance of the company under his leadership and to remain in line with general market increases. As described above, Mr. Cozadd’s target bonus percentage remained the same as in 2018, but the increase in his base salary resulted in a higher target performance bonus opportunity. The compensation committee increased Mr. Cozadd’s target equity compensation for 2019, which resulted in an increase in his target total direct compensation, in recognition of his criticality to the business as a long-tenured CEO and founder, particularly at a point in the company’s life cycle when its executive leadership was undergoing evolution and refreshment. The compensation committee’s recognition of Mr. Cozadd’s criticality to the business was subsequently substantiated and reinforced by the fact that Mr. Cozadd (a former public company CFO) was willing and able to step into the role of interim principal financial officer after Mr. Young’s resignation in the fourth quarter of 2019. |
2018 Pay ($) |
2019 Pay ($) |
Change (%) |
|||||||||||
Target Total Cash Compensation |
1,084,495 |
1,108,750 |
2.2% |
||||||||||
Base Salary (1) |
625,000 |
675,000 |
|||||||||||
Target Performance Bonus (2) |
334,495 |
433,750 |
|||||||||||
Signing Bonus (3) |
125,000 |
— |
|||||||||||
Target Equity Compensation (4) |
4,607,220 |
3,466,798 |
(24.8) |
||||||||||
Options |
2,075,162 |
1,506,379 |
|||||||||||
RSUs |
2,532,058 |
1,960,419 |
|||||||||||
Target Total Direct Compensation (5) |
5,691,715 |
4,575,548 |
(19.6) |
(1) |
Represents annual base salary rate for the applicable year. 2019 base salary became effective February 16, 2019. |
(2) |
Target amounts are as reported in the Grants of Plan-Based Awards Table for 2018 and 2019, respectively, and reflect the target percentage of base salary earned for 2019. The 2019 amount reflects a target performance bonus of 65% of base salary earned, increased from a target performance bonus of 55% in 2018. The compensation committee increased Mr. Swisher’s target performance bonus percentage in consideration of the market data and impact of Mr. Swisher’s position. The actual 2019 performance bonus paid was $560,000, reflecting 129.1% of target performance bonus, based on the overall 2019 bonus pool funding percentage of 128.6% and Mr. Swisher’s individual contributions to achieving both our quantitative and qualitative objectives for 2019. The compensation committee also considered Mr. Swisher’s responsibility for a large and complex function, as well as his significant impact on the company meeting its corporate objectives in 2019. |
(3) |
Represents the cash signing bonus Mr. Swisher received in connection with his appointment as President and COO. To the extent Mr. Swisher had voluntarily resigned within one year of his employment start date, he would have been required to repay the full amount of the signing bonus on or within 30 days of the later of his resignation or termination date. |
(4) |
The target equity compensation delivered (as presented in the chart) reflects the fair value of the awards as of the grant date, in accordance with ASC 718, which was modestly higher than the target equity compensation value approved by the compensation committee as a result of the timing of the grant and an increase in our share price as of the grant date, as described above. Target equity compensation dollar amounts represent the grant date fair value of each stock option and RSU award, as applicable, and have been calculated in accordance with ASC 718 as reported in the Grants of Plan-Based Awards Table for 2019. See the Grants of Plan-Based Awards Table for the number of shares subject to each award. As a result of the timing of Mr. Swisher’s new hire equity awards, he was not eligible to receive regular annual equity awards during 2019. The decrease in target equity compensation from 2018 to 2019 was attributable to Mr. Swisher receiving a larger initial hire grant in 2018 compared to the typical, continuing annual grant received in 2019. |
(5) |
The compensation committee designed Mr. Swisher’s target total direct compensation to be competitive compared to the market data, appropriate from an internal equity perspective and more heavily weighted towards equity compensation, in line with our pay-for-performance philosophy. The compensation committee determined it was appropriate to increase Mr. Swisher’s base salary in an amount necessary to reflect his scope of responsibility and oversight of significant functions within the organization, as well as to maintain competitive positioning relative to the market data and the other NEOs. |
2018 Pay ($) |
2019 Pay ($) |
Change (%) |
|||||||||||
Target Total Cash Compensation |
896,462 |
985,752 |
10.0% |
||||||||||
Base Salary (1) |
580,000 |
625,000 |
|||||||||||
Target Performance Bonus (2) |
316,462 |
360,752 |
|||||||||||
Target Equity Compensation (3) |
2,405,992 |
2,971,541 |
23.5% |
||||||||||
Options |
1,083,695 |
1,291,182 |
|||||||||||
RSUs |
1,322,297 |
1,680,359 |
|||||||||||
Target Total Direct Compensation (4) |
3,302,454 |
3,957,292 |
19.8% |
(1) |
Represents annual base salary rate for the applicable year. 2019 base salary became effective February 16, 2019. |
(2) |
Target amounts are as reported in the Grants of Plan-Based Awards Table for 2018 and 2019, respectively, and reflect the target percentage of base salary earned for each fiscal year. The 2019 amount reflects a target performance bonus of 60% of base salary earned. Mr. Young’s target bonus percentage was increased from 55% in 2018 to 60% in 2019 in consideration of the scope of his responsibility and his contributions to achieving strategic initiatives in line with corporate objectives. Mr. Young resigned from the company in October 2019 and therefore was not eligible to receive a 2019 performance bonus. |
(3) |
The target equity compensation delivered (as presented in the chart) reflects the fair value of the awards as of the grant date, in accordance with ASC 718, which was modestly higher than the target equity compensation value approved by the compensation committee as a result of the timing of the grant and an increase in our share price as of the grant date, as described above. Target equity compensation dollar amounts represent the grant date fair value of each stock option and RSU award, as applicable, and have been calculated in accordance with ASC 718 as reported in the Grants of Plan-Based Awards Table for 2018 and 2019, respectively. See the Grants of Plan-Based Awards Table for the number of shares subject to each award. |
(4) |
The compensation committee designed Mr. Young’s target total direct compensation to be competitive compared to the market data, appropriate from an internal equity perspective and more heavily weighted towards equity compensation, in line with our pay-for-performance philosophy. Consistent with the approach for 2019 equity award grants described above, the compensation committee generally aimed to deliver equity awards to the executive vice presidents of a similar grant date value to those delivered to executive vice presidents in 2018. Mr. Young’s target equity award grant date value and resulting target total direct compensation for 2019 were comparable to 2018. The compensation committee determined it was appropriate to increase Mr. Young’s base salary from an internal pay equity perspective, in an amount that reflects his knowledge and expertise in the role and the criticality of Mr. Young’s role as our CFO. In addition, the compensation committee considered the retention value of his compensation given Mr. Young’s criticality to the company’s business development strategy and the breadth of his impact on the business. As described above, Mr. Young’s higher target performance bonus opportunity shown above resulted from both an increase in Mr. Young’s target bonus percentage to 60% and an increase in his base salary in 2019. |
2018 Pay ($) |
2019 Pay ($) |
Change (%)(1) |
|||||||||||
Target Total Cash Compensation |
— |
927,192 |
— |
||||||||||
Base Salary (2) |
550,000 |
||||||||||||
Target Performance Bonus (3) |
172,192 |
||||||||||||
Signing Bonus (4) |
205,000 |
||||||||||||
Target Equity Compensation (5) |
— |
2,922,079 |
— |
||||||||||
Options |
1,249,216 |
||||||||||||
RSUs |
1,672,863 |
||||||||||||
Target Total Direct Compensation (6) |
— |
3,849,271 |
— |
(1) |
In April 2019, we entered into an employment offer letter with Dr. Iannone pursuant to which he agreed to serve as our Executive Vice President, Research and Development effective May 29, 2019. |
(2) |
Represents annual base salary rate for 2019. Dr. Iannone’s actual salary earned was lower due to him joining the company mid-2019. |
(3) |
The target amount is as reported in the Grants of Plan-Based Awards Table for 2019 and reflects the target percentage of 55% of base salary earned for 2019, taking into account that Dr. Iannone was not employed the entire year. The actual 2019 performance bonus paid was $245,000, reflecting 142.3% of target performance bonus, based on the overall 2019 bonus pool funding percentage of 128.6% and Dr. Iannone’s significant individual contributions to such achievement and outperformance of his research and development organization with respect to the corporate objectives. Specifically, the compensation committee considered Dr. Iannone’s leadership in progressing a multitude of development programs, achievement of regulatory approvals, submissions and progress toward future submissions, and support of scientific diligence in executing corporate development objectives. The compensation committee also noted Dr. Iannone’s short tenure with the company and the immediate impact Dr. Iannone nonetheless had on driving performance with respect to the company’s corporate objectives. |
(4) |
Represents the cash signing bonus received by Dr. Iannone in connection with his appointment as Executive Vice President, Research and Development. In determining the amount of the bonus, the compensation committee considered the inducement value in recruiting Dr. Iannone from his prior employer and the compensatory value of cash and equity forfeited by Dr. Iannone in leaving his prior employer. To the extent Dr. Iannone voluntarily resigns within one year of his employment start date, he would be required to repay the full amount of the signing bonus. To the extent Dr. Iannone’s resignation or termination date is between 12 and 24 months after his employment start date, he would be required to repay $125,000 of the signing bonus paid to him. Such payment would be due on or within 30 days of the later of his resignation or termination date. |
(5) |
Target equity compensation dollar amounts represent the grant date fair value of each stock option and RSU award, as applicable, and have been calculated in accordance with ASC 718 as reported in the Grants of Plan-Based Awards Table for 2019. See the Grants of Plan-Based Awards Table for the number of shares subject to each award. |
(6) |
The compensation committee designed Dr. Iannone’s target total direct compensation to be competitive compared to the market data, appropriate from an internal equity perspective and more heavily weighted towards equity compensation, in line with our pay-for-performance philosophy. In determining his compensation package, the compensation committee considered the company’s executive compensation program and received advice from Radford to design a competitive, market-based compensation package appropriate for a senior executive with Dr. Iannone’s skills and experience and his overall expected contribution to our business. |
2018 Pay ($) |
2019 Pay ($) |
Change (%)(1) |
|||||||||||
Target Total Cash Compensation |
— |
647,529 |
— |
||||||||||
Base Salary (2) |
510,000 |
||||||||||||
Target Performance Bonus (3) |
75,029 |
||||||||||||
Signing Bonus (4) |
62,500 |
||||||||||||
Target Equity Compensation (5) |
— |
2,874,176 |
— |
||||||||||
Options |
1,228,737 |
||||||||||||
RSUs |
1,645,439 |
||||||||||||
Target Total Direct Compensation (6) |
— |
3,521,705 |
— |
(1) |
In July 2019, we entered into an employment offer letter with Ms. Patil pursuant to which she agreed to serve as our Senior Vice President and GC effective July 29, 2019. |
(2) |
Represents annual base salary rate for 2019. Ms. Patil’s actual salary earned was lower due to her joining the company mid-2019. |
(3) |
The target amount is as reported in the Grants of Plan-Based Awards Table for 2019 and reflects the target percentage of 45% of base salary earned for 2019, taking into account that Ms. Patil was not employed the entire year. The actual 2019 performance bonus paid was $100,000, reflecting 133.3% of target performance bonus, based on the overall 2019 bonus pool funding percentage of 128.6% and Ms. Patil’s significant individual contributions to such achievement. Specifically, the compensation committee considered Ms. Patil’s oversight of complex strategic matters and corporate priorities, such as planning and execution of product launches, her performance with respect to supporting the execution of corporate development priorities and her overall criticality to our business, particularly in light of executive officer departures during 2019. |
(4) |
Represents the cash signing bonus received by Ms. Patil in 2019 in connection with her appointment as Senior Vice President and GC. In determining the amount of the bonus, the compensation committee considered the inducement value in recruiting Ms. Patil from her prior employer and compensatory value of cash and equity forfeited by Ms. Patil in leaving her prior employer. The full signing bonus is in the amount of $125,000 paid in two equal installments with the first payment of $62,500 payable on the first regular pay date following Ms. Patil’s employment start date, and the second payment of $62,500 on the first regular pay date occurring 180 days after Ms. Patil’s employment start date. To the extent Ms. Patil voluntarily resigns within one year of her employment start date, she would be required to repay the full amount of the signing bonus on or within 30 days of the later of her resignation or termination date. |
(5) |
Target equity compensation dollar amounts represent the grant date fair value of each stock option and RSU award, as applicable, and have been calculated in accordance with ASC 718 as reported in the Grants of Plan-Based Awards Table for 2019. See the Grants of Plan-Based Awards Table for the number of shares subject to each award. |
(6) |
The compensation committee designed Ms. Patil’s target total direct compensation to be competitive compared to the market data, appropriate from an internal equity perspective, in line with our pay-for-performance philosophy. In determining her compensation package, the compensation committee considered the company’s executive compensation program and received advice from Radford to design a competitive, market-based compensation package appropriate for a senior executive with Ms. Patil’s skills and experience and her overall expected contribution to our business. |
Name |
Ownership Requirement |
Actual Ownership(1) |
||||||
Bruce C. Cozadd |
6.0x |
27.5x |
||||||
Daniel N. Swisher, Jr. (2) |
2.0x |
1.5x |
||||||
Robert Iannone, M.D., M.S.C.E (3) |
2.0x |
0x |
||||||
Neena M. Patil (4) |
2.0x |
0x |
(1) |
Actual ownership calculated based on (a) value of shares owned as of March 31, 2020, using a 90-day trailing average price of $129.29 as of March 31, 2020, divided by (b) 2020 base salary. Under the guidelines, once an officer has reached his or her compliance deadline, such officer’s share ownership will be assessed annually at the end of each fiscal year using the average closing price of the company’s ordinary shares over the 90-day period ending on the last day of the company’s immediately preceding fiscal year. |
(2) |
Mr. Swisher was appointed our President and COO as of January 3, 2018 and, accordingly, has five years from his appointment, or until 2023, to comply with the guidelines. |
(3) |
Dr. Iannone was appointed our Executive Vice President, Research and Development as of May 29, 2019 and, accordingly, has five years from his appointment, or until 2024, to comply with the guidelines. |
(4) |
Ms. Patil was appointed our Senior Vice President and GC as of July 29, 2019 and, accordingly, has five years from her appointment, or until 2024, to comply with the guidelines. |
2016 |
2017 |
2018 |
2019 |
2016-2019 CAGR |
||||||||||||||||
GAAP reported net income |
$ |
396.8 |
$ |
487.8 |
$ |
447.1 |
$ |
523.4 |
||||||||||||
Intangible asset amortization |
102.0 |
152.1 |
201.5 |
354.8 |
||||||||||||||||
Impairment charges and disposal costs |
— |
— |
44.0 |
— |
||||||||||||||||
Share-based compensation expense |
98.8 |
106.9 |
102.4 |
110.6 |
||||||||||||||||
Loss contingency |
— |
— |
57.0 |
— |
||||||||||||||||
Upfront and milestone payments |
23.7 |
101.5 |
11.0 |
104.3 |
||||||||||||||||
Transaction and integration related costs |
13.6 |
— |
— |
— |
||||||||||||||||
Expenses related to certain legal proceedings and restructuring |
6.1 |
6.0 |
— |
— |
||||||||||||||||
Non-cash interest expense |
22.1 |
30.0 |
44.0 |
46.4 |
||||||||||||||||
Loss on extinguishment and modification of debt |
0.6 |
— |
— |
— |
||||||||||||||||
Income tax effect of above adjustments |
(36.7 |
) | (58.8 |
) | (60.9 |
) | (92.9 |
) | ||||||||||||
U.S. Tax Act impact |
— |
(148.8 |
) | (7.5 |
) | — |
||||||||||||||
Income tax benefit related to intra-entity intellectual property asset transfer |
— |
— |
— |
(112.3 |
) | |||||||||||||||
Non-GAAP adjusted net income |
$ | 627.2 |
$ | 676.7 |
$ | 838.6 |
$ | 934.2 |
||||||||||||
GAAP reported net income per diluted share |
$ |
6.41 |
$ |
7.96 |
$ |
7.30 |
$ |
9.09 |
12% |
|||||||||||
Non-GAAP adjusted net income per diluted share |
$ | 10.14 |
$ | 11.04 |
$ | 13.70 |
$ | 16.23 |
17% |
|||||||||||
Weighted-average ordinary shares used in diluted per share calculations |
61.9 |
61.3 |
61.2 |
57.6 |
Name and Principal Position |
Year |
Salary ($)(1) |
Bonus ($)(2) |
Stock Awards ($)(3) |
Option Awards ($)(4) |
Non-Equity Incentive Plan Compensation ($)(5) |
All Other Compensation ($)(6) |
Total ($) |
||||||||||||||||||||||||
Bruce C. Cozadd (7) |
2019 |
1,014,415 |
— |
7,001,495 |
5,379,925 |
1,304,500 |
13,302 |
14,713,637 |
||||||||||||||||||||||||
Chairman and CEO |
2018 |
979,285 |
— |
5,204,786 |
4,265,610 |
980,300 |
13,152 |
11,443,133 |
||||||||||||||||||||||||
2017 |
950,385 |
— |
4,711,828 |
3,669,875 |
961,800 |
10,722 |
10,304,610 |
|||||||||||||||||||||||||
Daniel N. Swisher, Jr. (8) |
2019 |
667,308 |
— |
1,960,419 |
1,506,379 |
560,000 |
13,302 |
4,707,407 |
||||||||||||||||||||||||
President and COO |
2018 |
608,173 |
125,000 |
2,532,058 |
2,075,162 |
400,000 |
12,948 |
5,753,341 |
||||||||||||||||||||||||
Matthew P. Young (9) |
2019 |
601,253 |
— |
1,680,359 |
1,291,182 |
— |
10,585 |
3,583,378 |
||||||||||||||||||||||||
Former Executive Vice President |
2018 |
575,385 |
— |
1,322,297 |
1,083,695 |
365,000 |
9,960 |
3,356,337 |
||||||||||||||||||||||||
and CFO |
2017 |
545,385 |
— |
1,361,800 |
1,060,658 |
315,000 |
9,810 |
3,292,653 |
||||||||||||||||||||||||
Robert Iannone (10) |
2019 |
313,077 |
205,000 |
1,672,863 |
1,249,216 |
245,000 |
8,405 |
3,693,560 |
||||||||||||||||||||||||
Executive Vice President, |
||||||||||||||||||||||||||||||||
Research and Development |
||||||||||||||||||||||||||||||||
Neena M. Patil (11) |
2019 |
166,731 |
62,500 |
1,645,439 |
1,228,737 |
100,000 |
2,375 |
3,205,781 |
||||||||||||||||||||||||
Senior Vice President and GC |
(1) |
The dollar amounts in this column represent base salary earned during the indicated fiscal year. 2019 base salary rates were effective February 16, 2019. For more information on salaries in 2019, see “ Compensation Discussion and Analysis—2019 Compensation Decisions for Our Named Executive Officers—Individual NEO Compensation Decisions |
(2) |
The dollar amounts in this column represent cash signing bonuses paid to Mr. Swisher in 2018 and each of Dr. Iannone and Ms. Patil in 2019. |
(3) |
The dollar amounts in this column reflect the aggregate grant date fair value of all RSU awards granted during the indicated fiscal year computed in accordance with ASC 718, excluding the effect of estimated forfeitures. The grant date fair value of each RSU award is measured based on the closing price of our ordinary shares on the date of grant. These amounts do not necessarily correspond to the actual value recognized or that may be recognized by the NEOs. |
(4) |
The dollar amounts in this column reflect the aggregate grant date fair value of all stock option awards granted during the indicated fiscal year. These amounts have been calculated in accordance with ASC 718, using the Black-Scholes option-pricing model and excluding the effect of estimated forfeitures. Assumptions used in the calculation of these amounts are included in the notes to our audited consolidated financial statements included in the company’s 2019 Annual Report on Form 10-K. These amounts do not necessarily correspond to the actual value recognized or that may be recognized by the NEOs. |
(5) |
The dollar amounts in this column represent the cash bonus awarded under the performance bonus plan for the indicated fiscal year. For more information on the cash bonus awards for 2019, see “ Compensation Discussion and Analysis—2019 Performance Bonus Program” and “Compensation Discussion and Analysis—2019 Compensation Decisions for Our Named Executive Officers |
(6) |
The dollar amounts in this column for 2019 include group term life insurance premiums paid and matching contributions under the 401(k) Plan. |
(7) |
Mr. Cozadd served as our interim principal financial officer from October 25, 2019 through March 16, 2020. |
(8) |
Mr. Swisher was appointed our President and COO as of January 3, 2018. |
(9) |
Mr. Young resigned from his position as Executive Vice President and CFO, effective as of October 25, 2019. |
(10) |
Dr. Iannone was appointed our Executive Vice President, Research and Development as of May 29, 2019. |
(11) |
Ms. Patil was appointed our Senior Vice President and GC as of July 29, 2019. |
Name |
Award Type |
Grant Date |
Approval Date |
Estimated Possible Payouts Under Non- Equity Incentive Plan Awards Target ($)(1) |
All Other Stock Awards: Number of Shares of Stock or Units (#)(2) |
All Other Option Awards: Number of Securities Underlying Options (#)(2) |
Exercise or Base Price of Option Awards ($/Sh)(3) |
Grant Date Fair Value of Stock and Option Awards ($)(4) |
||||||||||||||||||||||||
Bruce C. Cozadd |
Annual Cash |
— |
— |
1,014,415 |
— |
— |
— |
— |
||||||||||||||||||||||||
Annual Option |
2/28/2019 |
2/14/2019 |
— |
— |
125,000 |
140.03 |
5,379,925 |
|||||||||||||||||||||||||
Annual RSU |
2/28/2019 |
2/14/2019 |
— |
50,000 |
— |
— |
7,001,495 |
|||||||||||||||||||||||||
Daniel N. Swisher, Jr. |
Annual Cash |
— |
— |
|
— |
— |
— |
— |
||||||||||||||||||||||||
Annual Option |
2/28/2019 |
2/13/2019 |
— |
— |
35,000 |
140.03 |
1,506,379 |
|||||||||||||||||||||||||
Annual RSU |
2/28/2019 |
2/13/2019 |
— |
14,000 |
— |
— |
1,960,419 |
|||||||||||||||||||||||||
Matthew P. Young |
Annual Cash |
— |
— |
|
— |
— |
— |
— |
||||||||||||||||||||||||
Annual Option |
2/28/2019 |
2/13/2019 |
— |
— |
30,000 |
140.03 |
1,291,182 |
|||||||||||||||||||||||||
Annual RSU |
2/28/2019 |
2/13/2019 |
— |
12,000 |
— |
— |
1,680,359 |
|||||||||||||||||||||||||
Robert Iannone, M.D., M.S.C.E |
Annual Cash |
— |
— |
|
— |
— |
— |
— |
||||||||||||||||||||||||
Initial Option |
8/8/2019 |
5/1/2019 |
— |
— |
30,500 |
137.12 |
1,249,216 |
|||||||||||||||||||||||||
Initial RSU |
8/8/2019 |
5/1/2019 |
— |
12,200 |
— |
— |
1,672,863 |
|||||||||||||||||||||||||
Neena M. Patil |
Annual Cash |
— |
— |
|
— |
— |
— |
— |
||||||||||||||||||||||||
Initial Option |
8/8/2019 |
7/31/2019 |
— |
— |
30,000 |
137.12 |
1,228,737 |
|||||||||||||||||||||||||
Initial RSU |
8/8/2019 |
7/31/2019 |
— |
12,000 |
— |
— |
1,645,439 |
(1) |
This column sets forth the target bonus amount for each NEO for the year ended December 31, 2019 under the performance bonus plan. There are no thresholds or maximum bonus amounts for each individual officer established under the performance bonus plan. Target bonuses were set as a percentage of each NEO’s base salary earned for the fiscal year ended December 31, 2019 and were 100% for Mr. Cozadd, 65% for Mr. Swisher, 60% for Mr. Young, 55% for Dr. Iannone and 45% for Ms. Patil. The dollar value of the actual bonus award earned for the year ended December 31, 2019 for each NEO is set forth in the Summary Compensation Table above. As such, the amounts set forth in this column do not represent either additional or actual compensation earned by the NEOs for the year ended December 31, 2019. For a description of the performance bonus plan, see “ Compensation Discussion and Analysis—2019 Performance Bonus Program |
(2) |
Annual stock options and RSU awards were granted under the 2011 Plan. Each of the annual stock option awards listed in the table above vest or vested as to 25% of the ordinary shares underlying the stock options upon the one year anniversary of the grant date and vest as to the remainder of the shares in 36 equal monthly installments thereafter. Each of the annual RSU awards vest in four equal annual installments on the anniversary of the vesting commencement date of March 5, 2019. In May 2019, Dr. Iannone was appointed as Executive Vice President, Research and Development and in July 2019, Ms. Patil was appointed as Senior Vice President and GC, in connection with which they each received new hire grants of stock option and RSU awards, which were granted under the 2011 Plan. The initial stock option awards granted to Dr. Iannone and Ms. Patil vest as to 25% of the ordinary shares underlying the stock options upon the one year anniversary of their respective hire dates of May 29, 2019 for Dr. Iannone and July 29, 2019 for Ms. Patil and vest as to the remainder of the shares in 36 equal monthly installments thereafter. Each of the initial RSU awards granted to Dr. Iannone and Ms. Patil vest in four equal annual installments on the anniversary of the vesting commencement date of June 5, 2019 for Dr. Iannone and August 5, 2019 for Ms. Patil. As a general matter, the vested portion of stock options granted to the NEOs will expire three months after each NEO’s last day of service, subject to extension upon certain termination situations, such as death or disability, and RSUs will cease vesting upon each NEO’s last day of service. Stock option and RSU awards are subject to potential vesting acceleration as described below under the headings “ Description of Compensation Arrangements—Equity Compensation Arrangements—2011 Equity Incentive Plan Potential Payments upon Termination or Change in Control—Amended and Restated Executive Change in Control Plan and Severance Benefit Plan Description of Compensation Arrangements—Equity Compensation Arrangements—2011 Equity Incentive Plan |
(3) |
Stock options were granted with an exercise price equal to 100% of the fair market value on the date of grant which was $140.03 per share for the February 28, 2019 annual grants and $137.12 per share for the August 8, 2019 new hire grants to Dr. Iannone and Ms. Patil. |
(4) |
The dollar amounts in this column represent the grant date fair value of each stock option and RSU award, as applicable, granted to the NEOs in 2019. These amounts have been calculated in accordance with ASC 718. The grant date fair value of each stock option is calculated using the Black-Scholes option-pricing model and excluding the effect of estimated forfeitures. Assumptions used in the calculation of these amounts are included in the notes to our audited consolidated financial statements included in the company’s 2019 Annual Report on Form 10-K. The grant date fair value of each RSU award is measured based on the closing price of our ordinary shares on the date of grant. |
• | arrange for assumption, continuation, or substitution of a stock award by a surviving or acquiring corporation (or its parent company); |
• | arrange for the assignment of any reacquisition or repurchase rights applicable to any shares issued pursuant to a stock award to the surviving or acquiring corporation (or its parent company); |
• | accelerate the vesting, in whole or in part, and exercisability of a stock award and provide for its termination if it is not exercised at or prior to the corporate transaction; |
• | arrange for the lapse of any reacquisition or repurchase rights applicable to any shares issued pursuant to a stock award; |
• | cancel or arrange for the cancellation of a stock award, to the extent not vested or exercised prior to the effective time of the corporate transaction, in exchange for such cash consideration, if any, as the board of directors may consider appropriate; or |
• | make a payment equal to the excess, if any, of (a) the value of the property that the participant would have received upon the exercise of the stock award over (b) any exercise price payable in connection with such exercise. |
• | arrange for assumption, continuation, or substitution of a stock award by a surviving or acquiring corporation (or its parent company); |
• | arrange for the assignment of any reacquisition or repurchase rights applicable to any shares issued pursuant to a stock award to the surviving or acquiring corporation (or its parent company); |
• | accelerate the vesting and exercisability of a stock award and provide for its termination if it is not exercised at or prior to the corporate transaction; |
• | arrange for the lapse of any reacquisition or repurchase rights applicable to any shares issued pursuant to a stock award; |
• | cancel or arrange for the cancellation of a stock award, to the extent not vested or exercised prior to the effective time of the corporate transaction, in exchange for such cash consideration as the board of directors may consider appropriate; or |
• | make a payment equal to the excess, if any, of (a) the value of the property that the participant would have received upon the exercise of the stock award over (b) any exercise price payable in connection with such exercise. |
Option Awards |
Stock Awards |
|||||||||||||||||||||||||||
Name |
Number of Securities Underlying Unexercised Options (#) Exercisable |
Number of Securities Underlying Unexercised Options (#)(1) Unexercisable |
Option Exercise Price ($) |
Option Expiration Date (2) |
Number of Shares or Units of Stock That Have Not Vested (#)(3) |
Market Value of Shares or Units of Stock That Have Not Vested ($)(4) |
||||||||||||||||||||||
Bruce C. Cozadd |
— |
125,000 |
(6) |
140.03 |
2/27/2029 |
50,000 (11) |
7,464,000 |
|||||||||||||||||||||
40,468 |
52,032 |
(7) |
140.67 |
2/29/2028 |
27,750 (12) |
4,142,520 |
||||||||||||||||||||||
59,468 |
27,032 |
(8) |
136.18 |
3/1/2027 |
17,300 (13) |
2,582,544 |
||||||||||||||||||||||
74,270 |
3,230 |
(9) |
123.36 |
2/24/2026 |
7,750 (14) |
1,156,920 |
||||||||||||||||||||||
72,500 |
— |
175.19 |
2/25/2025 |
— |
— |
|||||||||||||||||||||||
48,784 |
(5) |
— |
166.62 |
2/26/2024 |
— |
— |
||||||||||||||||||||||
73,961 |
(5) |
— |
59.13 |
3/4/2023 |
— |
— |
||||||||||||||||||||||
109,284 |
(5) |
— |
46.83 |
8/8/2022 |
— |
— |
||||||||||||||||||||||
6,895 |
(5) |
— |
11.48 |
3/7/2020 |
(10) |
— |
— |
|||||||||||||||||||||
Daniel N. Swisher, Jr. |
— |
35,000 |
(6) |
140.03 |
2/27/2029 |
14,000 (11) |
2,089,920 |
|||||||||||||||||||||
21,562 |
23,438 |
(15) |
140.67 |
2/29/2028 |
13,500 (16) |
2,015,280 |
||||||||||||||||||||||
Matthew Young (17) |
9,302 |
— |
140.67 |
2/29/2028 |
— |
— |
||||||||||||||||||||||
16,145 |
— |
136.18 |
3/1/2027 |
— |
— |
|||||||||||||||||||||||
20,000 |
— |
175.19 |
2/25/2025 |
— |
— |
|||||||||||||||||||||||
9,000 |
— |
166.62 |
2/26/2024 |
— |
— |
|||||||||||||||||||||||
Robert Iannone, M.D., M.S.C.E |
— |
30,500 |
(18) |
137.12 |
8/7/2029 |
12,200 (19) |
1,821,216 |
|||||||||||||||||||||
Neena M. Patil |
— |
30,000 |
(20) |
137.12 |
8/7/2029 |
12,000 (21) |
1,791,360 |
(1) |
In addition to the specific vesting schedule for each stock award, each unvested stock award is subject to the general terms of the 2011 Plan or 2007 Plan, as applicable, including the potential for future vesting acceleration described above under the heading “ Description of Compensation Arrangements—Equity Compensation Arrangements Potential Payments upon Termination or Change in Control—Amended and Restated Executive Change in Control and Severance Benefit Plan |
(2) |
As a general matter, stock options granted to NEOs expire on the day before the tenth anniversary of their grant date, or earlier in the event of an NEO’s termination of service. In the event of an NEO’s termination of service, stock options generally expire three months after such termination of service, subject to extension under limited circumstances such as if the sale of shares during such time was prohibited by our insider trading policy or if exercise would result in violation of securities registration requirements. For more information, see description under the heading “ Potential Payments upon Termination or Change in Control—Equity Compensation Plans |
(3) |
Each award listed in this column represents an RSU award that vests in four equal annual installments on the anniversary of the applicable vesting commencement date. |
(4) |
The market values of the RSU awards that have not vested are calculated by multiplying the number of shares underlying the RSU awards shown in the table by $149.28, the closing price of our ordinary shares on December 31, 2019. |
(5) |
The number of shares reported reflects the transfer of beneficial ownership of a portion of the indicated stock option awards in 2015 to Mr. Cozadd’s former spouse pursuant to a domestic relations order. |
(6) |
The unexercisable shares subject to this stock option award as of December 31, 2019 vested with respect to 25% of the shares underlying the stock option on February 28, 2020, and the remainder vests monthly from March 28, 2020 to February 28, 2023. |
(7) |
The unexercisable shares subject to this stock option award as of December 31, 2019 vest monthly from January 1, 2020 to March 1, 2022. |
(8) |
The unexercisable shares subject to this stock option award as of December 31, 2019 vest monthly from January 2, 2020 to March 2, 2021. |
(9) |
The unexercisable shares subject to this stock option award as of December 31, 2019 vested monthly from January 25, 2020 to February 25, 2020. |
(10) |
This stock option award was fully exercised in cash by Mr. Cozadd on February 24, 2020. |
(11) |
RSUs awarded on February 28, 2019, vesting in equal annual installments over four years measured from the vesting commencement date of March 5, 2019. |
(12) |
RSUs awarded on March 1, 2018, vesting in equal annual installments over four years measured from the vesting commencement date of March 5, 2018. |
(13) |
RSUs awarded on March 2, 2017, vesting in equal annual installments over four years measured from the vesting commencement date of March 5, 2017. |
(14) |
RSUs awarded on February 25, 2016, vesting in equal annual installments over four years measured from the vesting commencement date of February 25, 2016. |
(15) |
The unexercisable shares subject to this stock option award as of December 31, 2019 vest monthly from January 3, 2020 to January 3, 2022. |
(16) |
RSUs awarded on March 1, 2018, vesting in equal annual installments over four years measured from the vesting commencement date of January 3, 2018. |
(17) |
Mr. Young resigned from his position as Executive Vice President and CFO, effective as of October 25, 2019. The option expiration dates listed in the table for each of Mr. Young’s options outstanding at fiscal year-end are the original option expiration dates pursuant to the terms of his option awards. As a result of his termination of service, each of these previously vested options, to the extent not exercised, expired on February 7, 2020. |
(18) |
The unexercisable shares subject to this stock option award as of December 31, 2019 vest with respect to 25% of the ordinary shares underlying the stock option on May 29, 2020, and the remainder vest monthly from June 29, 2020 to May 29, 2023. |
(19) |
RSUs awarded on August 8, 2019, vesting in equal annual installments over four years measured from the vesting commencement date of June 5, 2019. |
(20) |
The unexercisable shares subject to this stock option award as of December 31, 2019 vest with respect to 25% of the ordinary shares underlying the stock option on July 29, 2020, and the remainder vest monthly from August 29, 2020 to July 29, 2023. |
(21) |
RSUs awarded on August 8, 2019, vesting in equal annual installments over four years measured from the vesting commencement date of August 5, 2019. |
Option Awards |
Stock Awards |
|||||||||||||||||||
Name |
Number of Shares Acquired on Exercise (#) |
Value Realized on Exercise ($)(1) |
Number of Shares Acquired on Vesting (#) |
Value Realized on Vesting ($)(2) |
||||||||||||||||
Bruce C. Cozadd |
— |
— |
32,600 |
4,297,544 |
||||||||||||||||
Daniel N. Swisher, Jr. |
— |
— |
4,500 |
567,045 |
||||||||||||||||
Matthew P. Young |
52,123 |
2,550,338 |
9,018 |
1,187,832 |
||||||||||||||||
Robert Iannone, M.D., M.S.C.E |
— |
— |
— |
— |
||||||||||||||||
Neena M. Patil |
— |
— |
— |
— |
(1) |
The value realized on exercise is based on the difference between the closing price of our ordinary shares on the date of exercise and the applicable exercise price of those options, and does not represent actual amounts received by the NEOs as a result of the option exercises. |
(2) |
The value realized on vesting is based on the number of shares underlying the RSUs that vested and the closing price of our ordinary shares on the vesting date. |
• | A single, lump sum cash severance payment equal to the sum of: (i) the applicable base salary described below, multiplied by the applicable percentage set forth below; plus plus |
º |
The “applicable base salary” is the higher of the executive’s base salary in effect (i) on the date of termination (without giving effect to any reduction in base salary that would constitute grounds for a constructive termination) or (ii) immediately prior to the change in control, without giving effect to any voluntary pay reduction taken by the executive during the 12 months preceding the date of termination or the change in control. |
º |
The “applicable percentage” is 200% for our CEO, executive chairman or president, 150% for senior vice presidents and above and 100% for vice presidents. |
º |
The “applicable bonus percentage” is the greater of (i) the highest amount of any annual bonus paid to the executive for either of the last two calendar years prior to (A) the date of termination or (B) the change in control, in each case expressed as a percentage of the executive’s base salary for the applicable year, and (ii) the higher of the executive’s target bonus for the calendar year in which (A) the termination occurs or (B) the change in control occurs, in each case expressed as a percentage of the executive’s base salary for such year. |
• | Full payment of all of the applicable COBRA premiums for any health, dental or vision plan sponsored by us for a period of up to (i) 24 months for our CEO, executive chairman or president, (ii) 18 months for executive vice presidents and senior vice presidents, and (iii) 12 months for vice presidents, provided that the executive timely elects continued coverage. |
• | Acceleration in full of the vesting and exercisability, as applicable, of outstanding stock options and other equity awards held by the executive. |
• | A “change in control” generally means: (i) a person or group acquires ownership of more than 30% of the combined voting power of our outstanding securities (other than directly from our company); (ii) certain compromises or arrangements sanctioned by the Irish courts, certain schemes, contracts or offers that have become binding on all of our shareholders, certain takeover bids, certain offers or reverse takeover transactions, or a reorganization, merger, statutory share exchange, consolidation or similar transaction involving us, after which our shareholders do not own more than 50% of the combined voting power of the surviving entity or its parent in substantially the same proportion as their ownership of our outstanding voting securities immediately before the transaction, or a person or group acquires ownership of more than 30% of the combined voting power of the surviving entity or its parent, or at least a majority of the members of the board of directors of the parent (or the surviving entity, if there is no parent) following such transaction are not incumbent board members (as defined in (v) below) at the time our board of directors approves the transaction; (iii) our shareholders or our board of directors approves a complete dissolution or liquidation of our company, or a complete dissolution or liquidation of our company otherwise occurs (except for a liquidation into a parent company); (iv) a sale, lease, exclusive license or other disposition of all or substantially all of our assets, other than to certain entities; or (v) individuals who were members of our board of directors as of February 10, 2016 (or members of our board of directors approved or recommended by a majority vote of such members still in office), referred to as “incumbent board members,” cease to constitute at least a majority of the board of directors. |
• | An “involuntary termination without cause” generally means an executive’s employment is terminated for any reason other than for the following reasons: (i) the executive’s unauthorized use or disclosure of confidential information or trade secrets which causes material harm to us; (ii) the executive’s material breach of any agreement with us (or the executive’s material violation of any statutory duty owed to us) after an opportunity to cure; (iii) the executive’s material failure to comply with our written policies or rules after an opportunity to cure; (iv) the executive’s conviction or plea of guilty or no contest to any crime involving fraud, dishonesty or moral turpitude; (v) the executive’s gross misconduct; (vi) the executive’s continued failure to perform his or her assigned duties after notification; or (vii) the executive’s failure to reasonably cooperate in good faith with any governmental or internal investigation of us or our directors, officers or employees. An “involuntary termination without cause” also includes an executive’s termination of employment due to death or disability. |
• | A “constructive termination” generally means an executive resigns employment after any of the following actions are taken or events occur without the executive’s written consent: (i) one or more reductions in the executive’s base salary that results in a total reduction in the executive’s base salary, as in effect immediately prior to the change in control or any higher base salary in effect following the change in control, by more than 10%; (ii) a relocation of the executive’s principal place of employment that increases the executive’s one-way commute by more than 35 miles; (iii) a substantial reduction in the executive’s authority, duties or responsibilities that are in effect immediately prior to the change in control, provided that if the executive holds the same position but the size of the executive’s employing entity or business unit has decreased significantly or our company or the executive’s employing entity ceases to be a publicly-traded corporation, the executive’s authority, duties and responsibilities will be considered to be substantially reduced; (iv) a reduction in the executive’s title; or (v) a substantial increase in executive’s required business travel as compared with the executive’s required business travel prior to the change in control. |
Name |
Benefit |
Involuntary Termination Without Cause or Constructive Termination in Connection with a Change of Control($)(1) |
2011 Plan and 2007 Plan—Certain Corporate Transactions($)(2) |
|||||||
Bruce C. Cozadd |
Lump Sum Cash Severance Payment |
5,100,000 |
— |
|||||||
COBRA Payments |
75,468 |
— |
||||||||
Vesting Acceleration (3) |
17,388,053 |
17,388,053 |
||||||||
|
|
|||||||||
Benefit Total |
22,563,520 |
17,388,053 |
||||||||
Daniel N. Swisher, Jr. |
Lump Sum Cash Severance Payment |
2,666,250 |
— |
|||||||
COBRA Payments |
75,468 |
— |
||||||||
Vesting Acceleration (3) |
4,630,748 |
4,630,748 |
||||||||
|
|
|
|
|||||||
Benefit Total |
7,372,466 |
4,630,748 |
||||||||
Robert Iannone, M.D., M.S.C.E |
Lump Sum Cash Severance Payment |
1,455,208 |
— |
|||||||
COBRA Payments |
53,868 |
— |
||||||||
Vesting Acceleration (3) |
2,192,095 |
2,192,095 |
||||||||
|
|
|
|
|||||||
Benefit Total |
3,701,171 |
2,192,095 |
||||||||
Neena M. Patil |
Lump Sum Cash Severance Payment |
1,204,875 |
— |
|||||||
COBRA Payments |
— (4) |
— |
||||||||
Vesting Acceleration (3) |
2,156,159 |
2,156,159 |
||||||||
|
|
|
|
|||||||
Benefit Total |
3,361,034 |
2,156,159 |
||||||||
(1) |
These benefits would be payable under the change in control plan if the involuntary termination without cause or constructive termination occurred upon or within 12 months following a change in control and assuming such termination took place on December 31, 2019. The forms of stock option and RSU agreements under the 2011 Plan and the 2007 Plan provide for the same vesting acceleration benefit as shown here under the change in control plan, therefore no separate vesting acceleration benefit is listed. Pursuant to the change in control plan, an involuntary termination without cause also includes an individual’s death or disability. |
(2) |
These benefits would be payable under the 2011 Plan and the 2007 Plan if, upon a corporate transaction event, the board of directors exercised its discretion to accelerate the vesting and exercisability of outstanding stock options and RSU awards, assuming the vesting acceleration took place on December 31, 2019. For a description of the potential vesting acceleration provisions in the 2011 Plan and the 2007 Plan, see “ Description of Compensation Arrangements—Equity Compensation Arrangements |
(3) |
The value of stock option and RSU award vesting acceleration is based on the closing price of $149.28 per ordinary share as of December 31, 2019, minus, in the case of stock options, the exercise price of the unvested stock option shares subject to acceleration. |
(4) |
Ms. Patil was not enrolled in the company’s health insurance plans as of December 31, 2019. |
• | To determine our total population of employees, we included all full-time, part-time, regular and temporary employees as of October 1, 2019. |
• | To identify our median employee from our employee population, we calculated the annual target amount of each employee’s 2019 base salary (using a reasonable estimate of the hours worked and no overtime for hourly employees) and bonus or commission, as applicable, and added the estimated value of all equity awards granted during 2019. For purposes of base salaries, bonuses and commissions, we used an estimate based on the rates in effect on October 1, 2019. To estimate the value of stock options, we multiplied the number of shares subject to each stock option by the estimated per share Black-Scholes value based on assumptions disclosed in our 2019 Annual Report on Form 10-K, and to estimate the value of other equity awards, we used the same methodology we use for reporting the value of equity awards granted to our NEOs in our Summary Compensation Table. |
• | In making this determination, we annualized the base salaries, bonuses and commissions of employees who were employed by us for less than the entire calendar year. |
• | Compensation paid in foreign currencies was converted to U.S. dollars based on the average daily exchange rates for the year to date period ending on October 1, 2019. |
• | a $60,000 annual retainer for service as a member of our board of directors (paid quarterly); |
• | a supplemental $50,000 annual retainer for service as the Lead Independent Director (paid quarterly); |
• | a supplemental annual retainer for the chairs of the following board committees in the following amounts: $25,000 for the chairperson of the audit committee, $22,500 for the chairperson of the compensation committee, $20,000 for the chairperson of the nominating and corporate governance committee and $22,500 for the chairperson of the transaction committee (each paid quarterly); and |
• | a supplemental annual retainer for each member of the following board committees other than the chairs, in the following amounts: $15,000 for service as a member of the audit committee, $12,500 for service as a member of the compensation committee, $10,000 for service as a member of the nominating and corporate governance committee and $12,500 for service as a member of the transaction committee (each paid quarterly). |
Name |
Fees Earned Or Paid in Cash ($)(1) |
Stock Awards ($)(2)(4) |
Option Awards ($)(3)(4) |
All Other Compensation ($) |
Total ($) |
|||||||||||||||
Paul L. Berns |
72,500 |
263,270 |
196,803 |
— |
532,573 |
|||||||||||||||
Patrick G. Enright |
87,500 |
263,270 |
196,803 |
— |
547,573 |
|||||||||||||||
Peter Gray |
97,500 |
263,270 |
196,803 |
— |
557,573 |
|||||||||||||||
Heather Ann McSharry |
107,500 |
263,270 |
196,803 |
— |
567,573 |
|||||||||||||||
Seamus Mulligan |
82,500 |
263,270 |
196,803 |
— |
542,573 |
|||||||||||||||
Kenneth W. O’Keefe |
75,000 |
263,270 |
196,803 |
— |
535,073 |
|||||||||||||||
Anne O’Riordan |
63,788 |
660,955 |
502,382 |
— |
1,227,126 |
|||||||||||||||
Norbert G. Riedel, Ph.D. |
95,000 |
263,270 |
196,803 |
— |
555,073 |
|||||||||||||||
Elmar Schnee |
82,500 |
263,270 |
196,803 |
— |
542,573 |
|||||||||||||||
Catherine A. Sohn, Pharm.D. |
82,500 |
263,270 |
196,803 |
— |
542,573 |
|||||||||||||||
Rick E Winningham |
120,000 |
263,270 |
196,803 |
— |
580,073 |
(1) |
The dollar amounts in this column represent each non-employee director’s actual annual cash retainer earned for board services in 2019, which is equal to the aggregate of his or her annual retainer of $60,000 plus his or her annual retainers for service on one or more board committees, and for Mr. Winningham, for service as Lead Independent Director. Each non-employee director’s total fees were earned and payable in four quarterly installments subject to the non-employee director’s continuous service at the end of each quarter. Fees paid to each of Mses. McSharry and O’Riordan and Messrs. Gray, Mulligan and Schnee were paid in Euro. The conversion to U.S. dollars was calculated based on the average exchange rate for each quarter as reported by the OANDA Corporation. Following the Azur Merger, the board of directors did not permit cash retainer fees to be deferred by our non-employee directors pursuant to the Directors Deferred Plan. The total number of ordinary shares previously credited to each individual non-employee director’s phantom stock account under the Directors Deferred Plan as of December 31, 2019 was as follows: 4,691 shares for Mr. Berns; 9,929 shares for Mr. Enright; 22,249 shares for Mr. O’Keefe; and no shares for the other non-employee directors. |
(2) |
The dollar amounts in this column reflect the aggregate grant date fair value of RSU awards computed in accordance with ASC 718. The grant date fair value of each RSU award is measured based on the closing price of our ordinary shares on the date of grant. These amounts do not necessarily correspond to the actual value recognized or that may be recognized by the non-employee directors. |
(3) |
The aggregate number of shares subject to outstanding stock options and RSU awards held by the non-employee directors listed in the table above as of December 31, 2019 was as follows: 31,085 shares subject to outstanding stock options and 1,920 shares subject to outstanding RSUs for each of Messrs. Berns and Mulligan; 8,540 shares subject to outstanding stock options and 1,920 shares subject to outstanding RSUs for Mr. Enright; 34,585 shares subject to outstanding stock options and 1,920 shares subject to outstanding RSUs for Dr. Sohn; 26,585 shares subject to outstanding stock options and 1,920 shares subject to outstanding RSUs for Mr. O’Keefe; 30,085 shares subject to outstanding stock options and 1,920 shares subject to outstanding RSUs for each of Ms. McSharry, Mr. Gray and Dr. Riedel; 22,085 shares subject to outstanding stock options and 1,920 shares subject to outstanding RSUs for Mr. Winningham; 23,785 shares subject to outstanding stock options and 1,920 shares subject to outstanding RSUs for Mr. Schnee; and 11,905 shares subject to outstanding stock options and 4,760 shares subject to outstanding RSUs for Ms. O’Riordan. |
(4) |
The dollar amounts in this column represent the aggregate grant date fair value of each stock option award granted to our non-employee directors in 2019. These amounts have been calculated in accordance with ASC 718, using the Black-Scholes option-pricing model and excluding the effect of estimated forfeitures. Assumptions used in the calculation of these amounts are included in the notes to our audited consolidated financial statements included in the company’s 2019 Annual Report on Form 10-K. These amounts do not necessarily correspond to the actual value recognized or that may be recognized by the non-employee directors. |
Respectfully submitted, |
The Compensation Committee of the Board of Directors |
Dr. Norbert G. Riedel, Ph.D. (Chair) |
Mr. Paul L. Berns |
Mr. Patrick G. Enright |
Dr. Catherine A. Sohn, |
(1) |
The material in this report is not “soliciting material,” is not deemed “filed” with the Commission and is not to be incorporated by reference in any filing of the registrant under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing. |
Plan Category (1) |
Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) |
Weighted-average exercise price of outstanding options, warrants and rights (b) |
Number of securities remaining available for issuance under equity compensation plans (excluding securities reflected in column (a)) (c) |
|||||||||
Equity compensation plans approved by security holders: |
||||||||||||
Amended and Restated 2011 Equity Incentive Plan (2011 Plan) |
6,709,962 |
$ | 108.87 (2) |
12,842,271 (3) |
||||||||
2007 Equity Incentive Plan (2007 Plan) |
12,500 |
46.83 (4) |
— |
|||||||||
2007 Employee Stock Purchase Plan (ESPP) |
— |
— |
1,882,745 (5) |
|||||||||
Amended and Restated 2007 Non-Employee Directors Stock Award Plan (2007 Directors Plan) |
291,370 |
136.28 |
123,897 (6) |
|||||||||
Equity compensation plans not approved by security holders: |
||||||||||||
Amended and Restated Directors Deferred Compensation Plan (Directors Deferred Plan) |
36,869 (7) |
— |
163,816 (8) |
|||||||||
Total |
7,050,701 |
15,012,729 |
(1) |
Each of the equity compensation plans set forth in this table was originally adopted by Jazz Pharmaceuticals, Inc. and assumed and adopted by us in connection with the Azur Merger. In addition, each option that was outstanding under Jazz Pharmaceuticals, Inc.’s equity compensation plans was converted into an option to acquire, on substantially the same terms and conditions as were applicable under such option before the Azur Merger, the number of our ordinary shares equal to the number of shares of Jazz Pharmaceuticals, Inc.’s common stock subject to such option immediately prior to the Azur Merger, at an exercise price per ordinary share equal to the exercise price per share of Jazz Pharmaceuticals, Inc.’s common stock otherwise purchasable pursuant to such option, and each other equity award that was outstanding under Jazz Pharmaceuticals, Inc.’s equity compensation plans was converted into a right to receive, on substantially the same terms and conditions as were applicable under such equity award before the Azur Merger, the number of our ordinary shares equal to the number of shares of Jazz Pharmaceuticals, Inc.’s common stock subject to such equity award immediately prior to the Azur Merger. Other than with respect to the Directors Deferred Plan, each of the equity compensation plans set forth in this table was approved by Jazz Pharmaceuticals, Inc.’s stockholders. |
(2) |
The weighted-average exercise price takes into account 1,156,092 ordinary shares under the 2011 Plan issuable upon vesting of outstanding RSUs, which have no exercise price. The weighted-average exercise price excluding such outstanding RSUs is $131.53. |
(3) |
As of December 31, 2019, an aggregate of up to 27,012,330 of our ordinary shares were authorized for issuance under the 2011 Plan, of which 12,842,271 shares remained available for future issuance. The number of ordinary shares reserved for issuance under the 2011 Plan includes up to 3,335,255 ordinary shares subject to stock awards that were originally granted under the 2007 Plan and the 2003 Equity Incentive Plan that may become available for issuance under the 2011 Plan pursuant to the terms of the 2011 Plan and the 2007 Plan. In addition, the number of shares reserved for issuance under the 2011 Plan automatically increases on January 1 of each year for a period of ten years, starting on January 1, 2013 and continuing through January 1, 2022, by the least of (a) 4.5% of the total number of ordinary shares outstanding on December 31 of the preceding calendar year, (b) 5,000,000 ordinary shares, or (c) such lesser number of ordinary shares as determined by our board of directors. On January 1, 2020, the number of shares authorized for issuance under the 2011 Plan increased by 2,526,341 shares pursuant to this automatic share increase provision. |
(4) |
The 2007 Plan expired in April 2017. Only stock options remain outstanding under the 2007 Plan. |
(5) |
As of December 31, 2019, an aggregate of 4,421,024 ordinary shares were authorized for issuance under the ESPP, of which 1,882,745 shares remained available for future issuance, and up to a maximum of 175,000 ordinary shares may be purchased in the current purchase period. The number of shares reserved for issuance under the ESPP automatically increases on January 1 of each year for a period of ten years, starting on January 1, 2013 and continuing through January 1, 2022, by the least of (a) 1.5% of the total number of our ordinary shares outstanding on December 31 of the preceding calendar year, (b) 1,000,000 ordinary shares, or (c) such lesser amount as may be approved by our board of directors. On January 1, 2020, the number of shares authorized for issuance under the 2011 Plan increased by 842,113 shares pursuant to this automatic share increase provision. |
(6) |
As of December 31, 2019, an aggregate of 903,938 ordinary shares were authorized for issuance under the 2007 Directors Plan, of which 123,897 shares remained available for future issuance. The number of shares remaining available for issuance under the 2007 Directors Plan as shown in the table above has been reduced by the number of shares credited to our non-employee directors’ stock accounts under the Directors Deferred Plan prior to August 15, 2010. The number of shares reserved for issuance under the 2007 Directors Plan automatically increased on January 1 of each year starting on January 1, 2008 and continuing through January 1, 2016, by the sum of (a) the excess of (i) the number of shares subject to options granted during the preceding calendar year under the 2007 Directors Plan, over (ii) the number of shares added back to the share reserve under the 2007 Directors Plan during the preceding calendar year and (b) for the automatic annual increases that occurred on or prior to January 1, 2010 only, the aggregate number of shares credited to our non-employee directors’ stock accounts under the Directors Deferred Plan during the preceding calendar year. |
(7) |
Represents shares credited to individual non-employee director stock accounts in lieu of director fees as of December 31, 2019 under the Directors Deferred Plan. There is no exercise price for these shares. Distributions under the Directors Deferred Plan are funded (i) with shares reserved under the 2007 Directors Plan for amounts credited to our non-employee directors’ stock accounts prior to August 15, 2010 and (ii) with shares reserved under the Directors Deferred Plan for amounts credited to our non-employee directors’ stock accounts on or after August 15, 2010. |
(8) |
Amounts credited to our non-employee directors’ stock accounts prior to August 15, 2010 pursuant to the Directors Deferred Plan are funded with shares reserved under the 2007 Directors Plan. In August 2010, a separate reserve of 200,000 shares was created under the Directors Deferred Plan which funds all distributions of amounts credited to our non-employee directors’ stock accounts on or after August 15, 2010 pursuant to the Directors Deferred Plan. Since the Azur Merger, non-employee directors have not been permitted to defer director fees pursuant to the Directors Deferred Plan. On October 31, 2019, our board of directors approved the termination of the Directors Deferred Plan, and all outstanding phantom stock will be distributed to each applicable non-employee director in November 2020. A description of the Directors Deferred Plan is provided under “Executive Compensation—Director Compensation—Directors Deferred Compensation Plan.” |
Beneficial Ownership (2) |
||||||||
Name and Address of Beneficial Owner (1) |
Number of Shares |
Percentage of Total |
||||||
5% Shareholders: |
||||||||
The Vanguard Group (3) |
5,041,218 |
9.1% |
||||||
100 Vanguard Blvd. |
||||||||
Malvern, PA 19355 |
||||||||
BlackRock, Inc. (4) |
4,163,547 |
7.5% |
||||||
55 East 52 nd Street |
||||||||
New York, NY 10055 |
||||||||
Renaissance Technologies LLC (5) |
3,549,371 |
6.4% |
||||||
800 Third Avenue |
||||||||
New York, NY 10022 |
||||||||
Named Executive Officers and Directors: |
||||||||
Bruce C. Cozadd (6) |
760,453 |
1.4% |
||||||
Daniel N. Swisher, Jr. (7) |
44,349 |
* |
||||||
Matthew P. Young (8) |
9,957 |
* |
||||||
Robert Iannone, M.D., M.S.C.E (9) |
0 |
* |
||||||
Neena M. Patil (10) |
0 |
* |
||||||
Paul L. Berns (11) |
40,620 |
* |
||||||
Patrick G. Enright (12) |
33,010 |
* |
||||||
Peter Gray (13) |
36,278 |
* |
||||||
Heather Ann McSharry (14) |
35,600 |
* |
||||||
Seamus Mulligan (15) |
1,130,751 |
2.0% |
||||||
Kenneth W. O’Keefe (16) |
55,801 |
* |
||||||
Anne O‘Riordan (17) |
7,508 |
* |
||||||
Norbert G. Riedel, Ph.D. (18) |
34,648 |
* |
||||||
Elmar Schnee (19) |
27,860 |
* |
||||||
Catherine A. Sohn, Pharm.D. (20) |
40,311 |
* |
||||||
Rick E Winningham (21) |
23,387 |
* |
||||||
All directors and executive officers as a group (20 persons) (22) |
2,406,243 |
4.3% |
* | Less than 1%. |
(1) |
Unless otherwise provided in the table above or in the notes below, the address for each of the beneficial owners listed is c/o Fifth Floor, Waterloo Exchange, Waterloo Road, Dublin 4, Ireland. |
(2) |
This table is based upon information supplied by officers and directors as well as Schedules 13G or 13G/A filed with the SEC by beneficial owners of more than five percent of our ordinary shares. Unless otherwise indicated in the footnotes to this table and subject to community property laws where applicable, we believe that each of the shareholders named in this table has sole voting and investment power with respect to the ordinary shares indicated as beneficially owned. Applicable percentages are based on 55,366,256 ordinary shares outstanding on March 31, 2020, adjusted as required by rules promulgated by the SEC. The number of shares beneficially owned includes ordinary shares issuable pursuant to the exercise of stock options that are exercisable and RSUs that will vest within 60 days of March 31, 2020, and shares credited to individual non-employee director phantom stock accounts under our Directors Deferred Plan as of March 31, 2020. Amounts credited to individual non-employee director phantom stock accounts under our Directors Deferred Plan are payable solely in our ordinary shares, but such shares do not have current voting or investment power. Shares issuable pursuant to the exercise of stock options that are exercisable and RSUs that will vest within 60 days of March 31, 2020 and shares issuable pursuant to our Directors Deferred Plan are deemed to be outstanding and beneficially owned by the person to whom such shares are issuable for the purpose of computing the percentage ownership of that person, but they are not treated as outstanding for the purpose of computing the percentage ownership of any other person. |
(3) |
This information is based on a Schedule 13G/A filed with the SEC on February 12, 2020 by The Vanguard Group, or Vanguard. According to the Schedule 13G/A, as of December 31, 2019, Vanguard has sole power to vote or direct the vote of 45,126 ordinary shares, shared power to vote or direct the vote of 15,840 ordinary shares, sole power to dispose or direct the disposition of 4,984,379 ordinary shares, and shared power to dispose or direct the disposition of 56,839 shares. The Schedule 13G/A also indicates that Vanguard is acting as a parent holding company for two entities that beneficially owned the ordinary shares being reported. The Schedule 13G/A provides information only as of December 31, 2019 and, consequently, the beneficial ownership of the above-mentioned entities may have changed between December 31, 2019 and March 31, 2020. |
(4) |
This information is based on a Schedule 13G/A filed with the SEC on February 10, 2020 by BlackRock, Inc., or BlackRock. According to the Schedule 13G/A, as of December 31, 2019, BlackRock has sole power to vote or direct the vote of 3,694,938 ordinary shares and sole power to dispose or direct the disposition of 4,163,547 ordinary shares. The Schedule 13G/A also indicates that BlackRock is acting as a parent holding company for a number of entities that beneficially owned the ordinary shares being reported. The Schedule 13G/A provides information only as of December 31, 2019 and, consequently, the beneficial ownership of the above-mentioned entities may have changed between December 31, 2019 and March 31, 2020. |
(5) |
This information is based on a Schedule 13G filed with the SEC on February 12, 2020 by Renaissance Technologies, LLC, or Renaissance, on behalf of itself and Renaissance Technologies Holdings Corporation, or RTHC. According to the Schedule 13G, as of December 31, 2019, Renaissance has sole power to vote or direct the vote of 3,461,524 ordinary shares, sole power to dispose or the direct the disposition of 3,520,790 ordinary shares, and shared power to dispose or direct the disposition of 28,581 ordinary shares. Of these shares, RTHC, as a result of its majority ownership of Renaissance, is the beneficial owner of 3,549,371 ordinary shares, with sole power to vote or direct the vote of 3,461,524 ordinary shares, sole power to dispose or direct the disposition of 3,520,790 ordinary shares, and shared power to dispose or direct the disposition of 28,581 ordinary shares. The Schedule 13G provides information only as of December 31, 2019 and, consequently, the beneficial ownership of the above-mentioned entities may have changed between December 31, 2019 and March 31, 2020. |
(6) |
Includes 537,070 ordinary shares Mr. Cozadd has the right to acquire pursuant to options exercisable within 60 days of March 31, 2020. |
(7) |
Includes 36,458 ordinary shares Mr. Swisher has the right to acquire pursuant to options exercisable within 60 days of March 31, 2020. |
(8) |
Mr. Young resigned from his position as Executive Vice President and Chief Financial Officer effective as of October 25, 2019, and accordingly, he has no options exercisable within 60 days of March 31, 2020. |
(9) |
Dr. Iannone was appointed our Executive Vice President, Research and Development effective May 29, 2019. |
(10) |
Ms. Patil was appointed our Senior Vice President and GC effective July 29, 2019. |
(11) |
Includes 4,691 ordinary shares issuable to Mr. Berns pursuant to our Directors Deferred Plan as of March 31, 2020 and 29,883 ordinary shares Mr. Berns has the right to acquire pursuant to options exercisable within 60 days of March 31, 2020. |
(12) |
Includes 9,929 ordinary shares issuable to Mr. Enright pursuant to our Directors Deferred Plan as of March 31, 2020 and 7,338 ordinary shares Mr. Enright has the right to acquire pursuant to options exercisable within 60 days of March 31, 2020. |
(13) |
Includes 28,883 ordinary shares Mr. Gray has the right to acquire pursuant to options exercisable within 60 days of March 31, 2020. |
(14) |
Includes 28,883 ordinary shares Ms. McSharry has the right to acquire pursuant to options exercisable within 60 days of March 31, 2020. |
(15) |
Includes 29,883 ordinary shares Mr. Mulligan has the right to acquire pursuant to options exercisable within 60 days of March 31, 2020. |
(16) |
Includes 22,249 ordinary shares issuable to Mr. O’Keefe pursuant to our Directors Deferred Plan as of March 31, 2020 and 25,383 ordinary shares Mr. O’Keefe has the right to acquire pursuant to options exercisable within 60 days of March 31, 2020. |
(17) |
Includes 6,561 ordinary shares Ms. O’Riordan has the right to acquire pursuant to options exercisable within 60 days of March 31, 2020. |
(18) |
Includes 28,883 ordinary shares Dr. Riedel has the right to acquire pursuant to options exercisable within 60 days of March 31, 2020. |
(19) |
Includes 22,583 ordinary shares Mr. Schnee has the right to acquire pursuant to options exercisable within 60 days of March 31, 2020. |
(20) |
Includes 33,383 ordinary shares Dr. Sohn has the right to acquire pursuant to options exercisable within 60 days of March 31, 2020. |
(21) |
Includes 20,883 ordinary shares Mr. Winningham has the right to acquire pursuant to options exercisable within 60 days of March 31, 2020. |
(22) |
Includes 958,200 ordinary shares that our executive officers and non-employee directors have the right to acquire pursuant to options exercisable within 60 days of March 31, 2020 and 36,869 ordinary shares issuable to non-employee directors pursuant to our Directors Deferred Plan as of March 31, 2020. See footnotes (6), (7) and (9) through (21) above. Because Mr. Young is not currently serving as an executive officer of Jazz Pharmaceuticals, the number of ordinary shares and percentage ownership indicated in the table above with respect to the beneficial ownership of all directors and executive officers as a group do not include any ordinary shares beneficially owned by Mr. Young. |
Item 13. |
Certain Relationships and Related Transactions, and Director Independence |
Item 14. |
Principal Accounting Fees and Services |
Year Ended December 31, |
||||||||
2019 |
2018 |
|||||||
Audit Fees |
$ | 2,483 |
$ | 1,831 |
||||
Audit-Related Fees |
92 |
24 |
||||||
Tax Fees |
1,169 |
946 |
||||||
Tax compliance services |
1,098 |
930 |
||||||
Tax advisory services |
71 |
16 |
||||||
All Other Fees |
3 |
3 |
||||||
Total Fees |
$ | 3,746 |
$ | 2,804 |
Item 15. |
Exhibits and Financial Statement Schedules |
1. | Index to Financial Statements: |
2. | Index to Financial Statement Schedules: |
Exhibit Number |
Description of Document | |
2.1 |
||
2.2 |
||
2.3 |
2.4 |
||
2.5 |
||
2.6† |
||
2.7† |
||
2.8 |
||
2.9 |
||
3.1 |
||
4.1 |
||
4.3A |
||
4.3B |
||
4.4A |
||
4.4B |
||
4.5A |
4.5B |
||
4.6 |
||
10.1 |
||
10.2 |
||
10.3 |
||
10.4† |
||
10.5† |
||
10.6 |
||
10.7 |
||
10.8† |
||
10.9A† |
||
10.9B† |
10.10‡ |
||
10.11A† |
||
10.11B |
||
10.12‡ |
||
10.13A |
||
10.13B |
||
10.13C |
||
10.14A |
||
10.14B |
||
10.14C |
||
10.15 |
10.16A |
||
10.16B |
||
10.16C |
||
10.17A |
||
10.17B |
||
10.18+ |
||
10.19+ |
||
10.20+ |
||
10.21+ |
||
10.22+ |
||
10.23+ |
||
10.24+ |
10.25A+ |
||
10.25B+ |
||
10.25C+ |
||
10.26+ |
||
10.27+ |
||
10.28A+ |
||
10.28B+ |
||
10.29A+ |
||
10.29B+ |
||
10.29C+ |
||
10.29D+ |
||
10.29E+ |
||
10.29F+ |
10.29G+ |
||
10.29H+ |
||
10.30A+ |
||
10.30B+ |
||
10.30C+ |
||
10.30D+ |
||
10.30E+ |
||
10.30F+ |
||
10.30G+ |
||
10.30H+ |
||
10.30I+ |
||
10.30J+ |
10.30K+ |
||
10.30L+ |
||
10.30M+ |
||
10.30N+ |
||
10.30O+ |
||
10.30P+ |
||
10.30Q+ |
||
10.30R+ |
||
10.30S+ |
||
10.30T+ |
||
10.30U+ |
10.30V+ |
||
10.30W+ |
||
10.31+ |
||
10.32A+ |
||
10.32B+ |
||
10.32C+ |
||
10.32D+ |
||
10.32E+ |
||
10.32F+ |
||
10.32G+ |
||
10.32H+ |
||
10.32I+ |
10.32J+ |
||
10.32K+ |
||
10.33A+ |
||
10.33B+ |
||
10.34A+ |
||
10.34B+ |
||
10.34C+ |
||
10.34D+ |
||
10.35+ |
||
10.36A+ |
||
10.36B+ |
||
21.1 |
||
23.1 |
||
24.1 |
31.1 |
||
31.3 |
||
31.4 |
||
32.1* |
||
101.INS |
XBRL Instance Document—The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH |
Inline XBRL Taxonomy Extension Schema Document (incorporated herein by reference to Exhibit 101.SCH in Jazz Pharmaceutical plc’s Annual Report on Form 10-K (File No. 001-33500) for the period ended December 31, 2019, as filed with the SEC on February 25, 2020). | |
101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase Document (incorporated herein by reference to Exhibit 101.CAL in Jazz Pharmaceutical plc’s Annual Report on Form 10-K (File No. 001-33500) for the period ended December 31, 2019, as filed with the SEC on February 25, 2020). | |
101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document (incorporated herein by reference to Exhibit 101.DEF in Jazz Pharmaceutical plc’s Annual Report on Form 10-K (File No. 001-33500) for the period ended December 31, 2019, as filed with the SEC on February 25, 2020). | |
101.LAB |
Inline XBRL Taxonomy Extension Labels Linkbase Document (incorporated herein by reference to Exhibit 101.LAB in Jazz Pharmaceutical plc’s Annual Report on Form 10-K (File No. 001-33500) for the period ended December 31, 2019, as filed with the SEC on February 25, 2020). | |
101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase Document (incorporated herein by reference to Exhibit 101.PRE in Jazz Pharmaceutical plc’s Annual Report on Form 10-K (File No. 001-33500) for the period ended December 31, 2019, as filed with the SEC on February 25, 2020). | |
104 |
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) (incorporated herein by reference to Exhibit 104 in Jazz Pharmaceutical plc’s Annual Report on Form 10-K (File No. 001-33500) for the period ended December 31, 2019, as filed with the SEC on February 25, 2020). |
+ | Indicates management contract or compensatory plan. |
† | Confidential treatment has been granted for portions of this exhibit. Omitted portions have been filed separately with the Securities and Exchange Commission. |
‡ | Pursuant to Item 601(b)(2) of Regulation S-K, certain portions of this agreement have been omitted because the omitted portions are both not material and would likely cause competitive harm to Jazz Pharmaceuticals if publicly disclosed. |
* | The certifications attached as Exhibit 32.1 accompany the Annual Report on Form 10-K pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. |
Date: April 24, 2020 |
Jazz Pharmaceuticals public limited company | |||
(Registrant) | ||||
/s/ Bruce C. Cozadd | ||||
Bruce C. Cozadd Chairman, Chief Executive Officer and Director (Principal Executive Officer and Duly Authorized Representative) |
EXHIBIT 31.3
CERTIFICATION
I, Bruce C. Cozadd, certify that:
1. | I have reviewed this Amendment No. 1 to the annual report on Form 10-K/A of Jazz Pharmaceuticals public limited company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report. |
Date: April 24, 2020 | By: | /s/ Bruce C. Cozadd | ||
Bruce C. Cozadd Chairman, Chief Executive Officer and Director (Principal Executive Officer) |
EXHIBIT 31.4
CERTIFICATION
I, Renée Galá, certify that:
1. | I have reviewed this Amendment No. 1 to the annual report on Form 10-K/A of Jazz Pharmaceuticals public limited company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; and |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report. |
Date: April 24, 2020 | By: | /s/ Renée Galá | ||
Renée Galá Executive Vice President and Chief Financial Officer (Principal Financial Officer) |