Company: LGNZZ
Filing Date: 2025-04-22
Form Type: DEF 14A
Source: 0000886163-25-000025
Chunk: 55

Company: LIGAND PHARMACEUTICALS INC
Filing Date: 2025-04-22
Form: DEF 14A
Chunk 55
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, 2022 in the amount of $79,607 and $251,449, respectively. With respect to the PSU awards included in the Summary Compensation Table, these amounts include the grant date fair value of such PSUs granted to each of the named executive officers based on the estimated probable outcome of the performance-based objectives applicable to such awards on the grant date. Additionally, the amounts in the Stock Awards and Option Awards columns for Mr. Korenberg include the aggregate incremental fair value of the outstanding RSU, PSU and option awards, the vesting of which was accelerated in connection with Mr. Korenberg’s separation from the Company.

With respect to the PSUs granted in 2024, the number of PSUs that are eligible to vest will be determined based on the measurement of two equally weighted metrics, the level of projected 2028 revenue derived from acquired assets over a two year period ending December 31, 2025 and the compound annual growth rate of adjusted EPS achieved over the two year period ending December 31, 2026. The grant date fair value of the PSUs granted during 2024 included in this column was calculated based on the probable achievement of the performance goals as determined at the date of grant, which was determined to be the target level of performance. The full grant date fair value of the PSUs awarded to our named executive officers during fiscal year 2024, assuming maximum achievement of the applicable performance objectives, was $7,072,490 for Mr. Davis, $3,143,230 for Mr. Korenberg, $1,571,704 for Mr. Espinoza and $1,571,704 for Mr. Reardon.

For the 2024 equity grant, the primary reason for the significant increase in the grant date value of equity awards relative to the approved target values was that our stock price spiked on the date of grant due to a misunderstanding of royalties from Viking Therapeutics, which reported earnings on the same day as Ligand. Over the next several trading days, Ligand’s stock price returned to the low to mid $70s as the royalty arrangement was clarified. As a result of the stock price spike, 2024 equity grant date values were inflated and executives were granted stock options with an exercise price that was approximately 20% higher than the share price several days later, resulting in the stock options being underwater shortly after grant.

(2) Represents performance bonus awards under the management bonus plan earned in 2022, 2023 and 2024