WILMINGTON, DE — Incyte Corporation (INCY) is using a sizable equity-based compensation package to secure its new top legal executive, underscoring the company’s emphasis on long-term performance and shareholder alignment as it expands its leadership team.
The Wilmington-based biopharmaceutical company said it granted inducement equity awards to Richard Hoffman, its newly appointed executive vice president and general counsel, under Incyte’s 2024 Inducement Stock Incentive Plan. The awards were approved by the compensation committee of the board and structured to comply with Nasdaq rules governing inducement grants for new hires.
Hoffman’s compensation package includes stock options to purchase 43,301 shares of Incyte common stock, restricted stock units covering 9,466 shares, and performance-based shares with a target of 23,665 shares. All awards carry a grant and vesting commencement date of December 1, 2025.
The stock options are priced at $102.04 per share, matching the company’s closing stock price on the grant date. They have a 10-year term and vest 25 percent after one year, with the remaining shares vesting in equal monthly installments over the following three years, contingent on Hoffman’s continued employment.
The restricted stock units are scheduled to vest in four equal annual installments over four years, also subject to continued service. The performance shares are tied to Incyte’s relative total shareholder return over a three-year performance period beginning January 1, 2025, compared with a fixed peer group used for the company’s most recent executive performance awards. Depending on results, the performance shares may pay out at 0 percent to 200 percent of target and, if earned, will vest on the third anniversary of the grant date.
Incyte said the awards were a material inducement to Hoffman’s decision to join the company, a common practice among publicly traded life sciences firms competing for senior executive talent in a tight market.
Headquartered in Wilmington, Incyte is a global biopharmaceutical company focused on oncology and inflammation and autoimmunity. The company develops and commercializes proprietary medicines and maintains operations across North America, Europe, and Asia.
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