Ariad Pharmaceuticals Inc fka ARIA

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The most important piece of the proxy. Color separation for reading ease.

No cash bonuses to executives under the 2013 annual performance award program. Although we had achieved most of our strategic
objectives during the first three quarters of 2013, the Compensation Committee determined that no cash bonus should be delivered given the
adverse FDA action on Iclusig during the fourth quarter of 2013. As a result, each of our named executive officers was positioned below the
market 25th percentile in terms of his total cash compensation for 2013.
• No base salary merit or market-based adjustment increases for 2014. Notwithstanding the progress we have made in resuming commercial
distribution of Iclusig in the United States, the Compensation Committee determined that base salaries for our named executive officers should be
maintained at 2013 levels for 2014.
• 2014 executive equity grants are even more heavily focused on performance. Although we have historically utilized performance-based
equity grants tied to key milestones as an important part of executives’ annual equity awards, the Compensation Committee approved increasing
the proportion of executives’ equity awards tied to key performance milestones from 33% of the total award in 2013 to 50% of the total award in
2014. This very heavy focus on performance-based equity places us at the forefront of the market and ensures that half of each executive’s award
will be earned only if ARIAD is able to successfully execute on its strategy. The remaining half of each executive’s 2014 equity award is being
delivered in time-based restricted stock units vesting in equal installments over the next three years.