Biotech Values

[DewDiligence]

How MNTA Executed Against Its 2009 Internal Goals

These are the numbers used by the BoD’s compensation committee
to determine the 2009 bonuses for MNTA’s executive officers. Based
on the a priori goals, the bottom-line weighted performance would
have been 58.5%; however, a 10% post hoc adjustment was added,
bringing the bottom-line figure to 68.5%. I would characterize this
post hoc fudge factor as corporate malfeasance on a minor scale,
but MNTA does deserve some credit for disclosing it.

 
                                      Weighting    Actual Level     Weighted   
 Corporate Goal                        of Goal    of Achievement   Achievement   
  
 FDA approval of Lovenox ANDA . . . .  . 30%            0%            0.0% 
  
 Advancement of Copaxone program—US. . . 15%          100%           15.0% 
  
 Advancement of Copaxone program—EU. . .  5%           70%            3.5% 
  
 Advancement of glycoprotein   
 (FoB) program . . . . . . . . . . . . . 15%          100%           15.0% 
  
 Completion of M118 studies  . . . . . . 10%          100%           10.0% 
  
 Advancement of “corporate strategy” . . 15%          100%           15.0% 
  
 “Financial discipline”  . . . . . . . . 10%            0%            0.0%   
      
 Post hoc adjustment (fudge factor). . . 10%          100%           10.0%   
                                        ====                         =====   
 TOTAL                                  110%                         68.5% 

Source: Proxy statement for 2009 annual meeting on Form DEF14A, page 25 (http://sec.gov/Archives/edgar/data/1235010/000104746910004249/a2198205zdef14a.htm ).