Genzyme Corp., the Cambridge-based biotech and pharmaceuticals giant with significant operations in MetroWest, has adopted a new incentive-based compensation program for senior executives.
The plan awards bonuses based on individual performance and the performance of the company, but where the old system relied solely on operating income to determine the level of bonuses awarded, the new system includes five performance measures.
Company revenue and cash flow return on invested capital make up the corporate benchmarks for the new incentive program. Previously, operating income was the only benchmark used. Business objectives in three areas: organizational renewal, pipeline advancement and the recovery of the company’s personal genetic health business, are also considered.
Divisional operating income will be used as a benchmark for leaders of the company’s business units.
The new system was almost a year in the works and was developed by Genzyme board member and compensation committee chairman Charles Cooney, a member of the Massachusetts Institute of Technology’s faculty.
