Form 4: Alnylam Pharmaceuticals EVP, CFO Jeffrey V. Poulton Reports Stock and Option Awards

Jeffrey V. Poulton, EVP and CFO of Alnylam Pharmaceuticals, reports the acquisition of restricted stock units and stock options.

Summary

• On March 1, 2024, Jeffrey V. Poulton, the EVP and Chief Financial Officer of Alnylam Pharmaceuticals, reported transactions involving the company's stock.
• Poulton acquired 7,741 restricted stock units (RSUs) and 15,118 stock options.
• The RSUs vest over a three-year period, with one-third vesting annually, contingent upon continuous service.
• The stock options vest as to 25% of the shares on the first anniversary of the grant date and the remaining shares vesting in equal installments at the end of each successive three-month period thereafter until the fourth anniversary of the grant date, subject to continuous service.
• Following the reported transactions, Poulton beneficially owns 27,219 shares of common stock directly and 57 shares indirectly through a managed account.
• Poulton also holds 15,118 stock options and 3,816 unvested RSUs that were previously reported.
• The filing also indicates shares of ALNY common stock acquired by the Reporting Person under the issuer 401(k) plan as a result of the issuer 401(k) matching contribution program.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices, which are generally viewed neutrally to positively as they align management interests with shareholders. The sentiment is slightly positive due to the incentive structure created by the vesting schedules.

Positives

• The grant of RSUs and stock options to the CFO aligns his interests with those of the shareholders.
• The vesting schedules for the RSUs and stock options incentivize long-term service and commitment to the company.

Future Outlook

The document does not contain specific forward-looking statements regarding the company's future performance.

Industry Context

Stock and option awards are a common practice in the pharmaceutical industry to incentivize executives and align their interests with those of shareholders. These awards are typically tied to performance metrics and vesting schedules to encourage long-term value creation.

Comparison to Industry Standards

• Stock option and RSU grants are standard compensation practices for executives in publicly traded pharmaceutical companies.
• Companies like Amgen, Gilead Sciences, and Biogen also utilize similar equity-based compensation plans to incentivize their leadership teams.
• The vesting schedules described are typical, with vesting occurring over a period of several years to promote long-term commitment.

Stakeholder Impact

• Shareholders may view the equity grants as a positive sign, aligning management's interests with the company's long-term success.
• Employees may see the grants as a reflection of the company's commitment to its leadership team.

Key Dates