Murdo Gordon
About Murdo Gordon
Murdo Gordon is Executive Vice President, Global Commercial Operations at Amgen, appointed effective September 3, 2018, following a senior commercial career at Bristol‑Myers Squibb (BMS) . He holds a B.Sc. in Cell & Molecular Biology from Concordia University and completed the General Management Program (CEDEP) at INSEAD; at appointment he was 52 years old . Key performance metrics tied to his compensation include Amgen’s GMIP goals (2024 composite score 138.4% driving cash incentive payouts) and three‑year performance units measuring annual non‑GAAP EPS and ROIC with a relative TSR modifier; the 2022‑2024 PSU payout was 73.3% with TSR at the 46.3rd percentile .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Bristol‑Myers Squibb | Chief Commercial Officer | 2016–2018 | Led global commercial strategy across sales, marketing, access and pricing; responsibility for worldwide markets . |
| Bristol‑Myers Squibb | Head of Worldwide Markets | pre‑2016 | Oversaw promotion of all brands globally . |
| Bristol‑Myers Squibb (U.S.) | Senior commercial leadership (CV, neuroscience, oncology, immunology; access & government affairs) | 2003–2016 | U.S. market leadership across key therapeutic areas and market access . |
| Bristol‑Myers Squibb (Canada) | Commercial roles | 1989–2003 | Early commercial foundation; progressed to global roles . |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 1,103,277 | 1,144,623 | 1,197,268 |
| Target Annual Cash Incentive (% of Base) | 100% | 100% | 100% |
| Target Annual Cash Incentive ($) | — | — | 1,186,396 |
| Total Target Annual Cash Compensation ($) vs Market Median ($, %) | 2,389,600 vs 2,300,000 (+3.9%) | — | — |
Notes: Base salaries were increased 3.8% in March 2024 in line with staff increases .
Performance Compensation
Annual Cash Incentive – GMIP/EIP
| Metric | Weighting | Target | Actual | Composite Result |
|---|---|---|---|---|
| Deliver Results: Revenues | 30% | Pre‑set company goal | Included in composite | 138.4% composite score |
| Deliver Results: Non‑GAAP Net Income | 30% | Pre‑set company goal | Included in composite | 138.4% composite score |
| Progress Innovative Pipeline | 30% | Pre‑set operating goals | Included in composite | 138.4% composite score |
| Deliver Annual Priorities | 10% | Pre‑set priorities | Included in composite | 138.4% composite score |
| Cash Incentive Paid ($) | — | — | 1,642,000 | 138.4% score drove payout |
Estimated possible payouts under GMIP/EIP for 2024: Target $1,186,396; Maximum $2,669,391; Actual $1,642,000 .
Long‑Term Incentives (LTI) – Grants in 2024
| Grant Type | Grant Date | Units / Options | Exercise Price | Grant Date Fair Value ($) | Vesting |
|---|---|---|---|---|---|
| Performance Units (2024–2026) | 5/7/2024 | Target 8,239; Max 16,478 | — | 2,649,745 | Earnout 0–200%; operating metrics + TSR modifier |
| RSUs | 5/7/2024 | 3,529 | — | 1,059,759 | 33%/33%/34% on 2nd, 3rd, 4th anniversaries |
| Stock Options | 5/7/2024 | 22,930 | $300.30 | 1,589,966 | 4‑year vesting, no vest in year 1; 10‑year term |
Performance Units – maximum fair value scenarios (illustrative ASC 718): $4,504,470 (max operating metrics, TSR at target) and $5,299,490 (max operating + max TSR), for Murdo Gordon .
Performance Units – Payouts for 2022–2024 Cycle
| Cycle | Operating Measures Result | TSR Percentile | Final Payout | Shares Earned (Murdo) |
|---|---|---|---|---|
| 2022–2024 | 77.7% average (non‑GAAP EPS/ROIC across 2022–2024) | 46.3rd percentile (S&P 500) | 73.3% | 8,144 (incl. dividend equivalents; paid 3/17/2025) |
2024 Vesting / Settlement Activity
| Activity (2024) | Options Exercised (#) | RSUs/PSUs Vested (#) | Value Realized ($) |
|---|---|---|---|
| Murdo Gordon | 0 | 17,408 | 4,762,368 |
Equity Ownership & Alignment
| Holding Snapshot (as of 3/24/2025) | Amount |
|---|---|
| Total Common Stock Beneficially Owned | 179,922 shares |
| Shares Acquirable Within 60 Days | 144,491 shares |
| Percent of Shares Outstanding | <1% |
| RSUs and Dividend Equivalents Included (ownership calc) | 4,672 |
| Stock Options Included (ownership calc) | 139,819 |
Stock ownership guidelines require EVPs to hold 3× base salary; all executives expected to meet guidelines by 12/31/2024 were in compliance. Amgen updated the policy effective 1/1/2025 to count unvested RSUs toward the requirement . Hedging and pledging of Amgen stock are prohibited under the Insider Trading Policy (limited exception for cashless exercises) .
Outstanding Equity Awards (12/31/2024)
| Type | Exercisable (#) | Unexercisable (#) | Exercise Price | Expiration |
|---|---|---|---|---|
| Options | — | 22,930 | $300.30 | 5/7/2034 |
| Options | — | 35,833 | $235.97 | 5/2/2033 |
| Options | 11,666 | 23,686 | $230.92 | 5/2/2032 |
| Options | 23,912 | 12,319 | $239.64 | 4/30/2031 |
| Options | 29,050 | — | $236.36 | 5/5/2030 |
| Options | 39,382 | — | $177.31 | 5/3/2029 |
| RSUs Outstanding by Grant | Units | Vesting Cadence |
|---|---|---|
| May 7, 2024 | 3,608 | 33%/33%/34% on 2nd/3rd/4th anniversaries |
| May 2, 2023 | 4,482 | 33%/33%/34% on 2nd/3rd/4th anniversaries |
| May 2, 2022 | 3,169 | Equal amounts on 3rd and 4th anniversaries |
| April 30, 2021 | 1,600 | Scheduled vest on 4th anniversary |
| Performance Units Outstanding | Units | Market/Payout Value ($) |
|---|---|---|
| 2024–2026 (target basis) | 8,425 | 2,195,892 |
| 2023–2025 (max basis disclosed per SEC rules) | 20,948 | 5,459,887 |
| 2022–2024 (actual 73.3% payout) | 8,085 | 2,107,274 |
Notes: Market/payout values use $260.64 closing price on 12/31/2024 per proxy methodology . Dividend equivalents are included as described in footnotes .
Employment Terms
- Change‑in‑Control Severance Plan: Double‑trigger only; no tax gross‑ups. Cash severance multiple for NEOs is 2× annual cash compensation (base salary + target annual cash incentive), plus 18 months of company‑paid COBRA healthcare and SRP credits; indemnification/D&O insurance for four years is provided .
- Equity Treatment on Separation:
- RSUs/Options: Full acceleration only upon double‑trigger CIC; death/disability full or pro‑rata acceleration; retirement continues original vesting (and pro‑rata for grants in year of retirement). Options generally 10‑year term; pre‑2025 grants vest 0/≈33/≈33/≈34 over years 1–4 .
- Performance Units: Generally forfeited unless employed through performance period; exceptions for CIC, death, disability, retirement. CIC payout percentages are formulaic mid‑period as disclosed in proxy footnotes .
- Estimated Payments (as of 12/31/2024):
Scenario Cash Severance ($) Accelerated Options Intrinsic ($) Accelerated RSUs ($) 2024–2026 PSUs ($) 2023–2025 PSUs ($) Health (18 mo) ($) SRP Credits (2 yrs) ($) Total ($) Change in Control (no termination) 0 0 0 2,184,945 3,925,499 0 0 6,110,444 CIC + Qualifying Termination 4,779,200 1,846,647 3,351,570 2,184,945 3,925,499 52,097 482,920 16,622,878 Death or Disability 0 1,846,647 3,351,570 1,576,611 2,814,391 0 0 9,589,219 - Deferred Compensation:
Plan 2024 Executive Contributions ($) 2024 Company Contributions ($) 2024 Earnings/Losses ($) Balance 12/31/2024 ($) NDCP 444,469 0 417,182 3,212,546 SRP 0 266,240 192,719 1,662,006 Footnote: 2023 annual cash incentive deferred $273,150; 2024 salary deferred $171,319 into NDCP . - Perquisites/Other Benefits (included in “All Other Compensation”):
Benefit 2024 Company Amount ($) 401(k)/Savings Plan contributions 34,500 SRP credit 266,240
Governance safeguards include a no‑fault clawback policy covering incentive‑based compensation upon financial restatement, equity/cash recoupment provisions for misconduct, and strict insider trading prohibitions (no hedging/pledging) .
Investment Implications
- Pay‑for‑performance alignment: Gordon’s cash incentive and LTI structures are tightly linked to revenue and non‑GAAP net income, pipeline milestones, and multi‑year EPS/ROIC with a TSR modifier, with 2024 cash payout driven by a 138.4% composite score and 2022–2024 PSU payout at 73.3%—indicative of balanced upside/downside sensitivity .
- Retention and selling pressure: The 33/33/34 RSU cadence and stacked option grants expiring 2029–2034, alongside double‑trigger CIC provisions, suggest ongoing vesting supply but no single‑trigger acceleration; prohibited hedging/pledging mitigates misalignment risk .
- Ownership alignment: Beneficial ownership of 179,922 shares with 144,491 acquirable within 60 days, compliance with 3× salary ownership guidelines, and majority performance‑based LTI (50% PSUs; options/RSUs balance) support alignment with shareholders .
- Downside protections and change‑of‑control economics: 2× cash severance and equity acceleration only on double‑trigger events (no gross‑ups) are shareholder‑friendly; estimated CIC+termination value of ~$16.6M reflects sizable unvested equity, highlighting retention value and potential event‑driven optionality .