Peter H. Griffith
Executive Vice President and Chief Financial Officer at AMGN
Executive
About Peter H. Griffith
Executive Vice President & Chief Financial Officer of Amgen since January 1, 2020; joined Amgen as EVP, Finance on October 23, 2019 . Amgen’s annual incentive plan for NEOs is tied to corporate performance under the GMIP with weights: Revenues 30%, Non-GAAP Net Income 30%, Pipeline 30%, and Annual Priorities 10% . Company performance in 2024 produced a composite 138.4% score, driving Mr. Griffith’s cash incentive payout . Over 2020–2024, Amgen’s revenue and EBITDA increased; see performance table below for trend context.* Values retrieved from S&P Global.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Amgen Inc. | EVP, Finance | Oct 23, 2019 – Dec 31, 2019 | Hired into top finance role; promoted to CFO effective Jan 1, 2020 |
| Amgen Inc. | EVP & Chief Financial Officer | Jan 1, 2020 – Present | Corporate finance leadership, compensation determinations and disclosures as NEO |
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | 1,044,492 | 1,083,762 | 1,133,633 |
| Non-Equity Incentive Plan Compensation ($) | 1,262,000 | 1,724,000 | 1,555,000 |
| All Other Compensation ($) | 267,512 | 261,623 | 318,581 |
| Total ($) | 7,073,735 | 7,569,298 | 7,806,811 |
| 2024 Target Cash | Value ($) | Market Median ($) | Over/(Under) (%) |
|---|---|---|---|
| Total Target Annual Cash Compensation | 2,262,600 | 2,155,000 | 5.0 |
Performance Compensation
Annual Incentive (GMIP) Structure and Outcome
| Metric | Weighting | Target Opportunity | Maximum Opportunity | 2024 Actual Payout |
|---|---|---|---|---|
| Deliver Results: Revenues | 30% | Part of 100% of base salary target | Composite max 225% of target | Included in composite 138.4% outcome |
| Deliver Results: Non-GAAP Net Income | 30% | Part of 100% of base salary target | Composite max 225% of target | Included in composite 138.4% outcome |
| Progress Innovative Pipeline | 30% | Part of 100% of base salary target | Composite max 225% of target | Included in composite 138.4% outcome |
| Deliver Annual Priorities | 10% | Part of 100% of base salary target | Composite max 225% of target | Included in composite 138.4% outcome |
| Executive Total (Cash) | — | $1,123,339 target for 2024 | $2,527,513 max for 2024 | $1,555,000 actual for 2024 |
2024 Long-Term Incentive Grants (Grant date May 7, 2024; approved March 6, 2024)
| Instrument | Units / Options | Terms | Grant-Date FV ($) |
|---|---|---|---|
| Performance Units (2024–2026) | 7,462 target; max 14,924 | Earnout 0–200%; TSR modifier applies per plan | 2,399,854 |
| Restricted Stock Units | 3,196 | RSUs under 2009 Equity Incentive Plan | 959,759 |
| Stock Options | 20,767 @ $300.30 | 10-year term; vest over 4 years with no first-year vesting, then in 3 equal annual installments (for grants prior to Jan 1, 2025) | 1,439,984 |
Recently Vested Equity and Payouts (settled in 2024)
| Type | Shares/Units | Value Realized ($) | Notes |
|---|---|---|---|
| RSUs and 2021–2023 Performance Units vested/paid (Mar 2024) | 14,314 | 3,925,241 | Paid in stock; option exercises were zero in 2024 |
Equity Ownership & Alignment
| Ownership Metric (as of Mar 24, 2025) | Amount |
|---|---|
| Total Common Stock Beneficially Owned | 123,797 |
| Shares Acquirable Within 60 Days | 94,981 |
| RSUs and Dividend Equivalents Included | 4,043 |
| Stock Options Included | 90,938 |
| Shares Outstanding (Company) | 537,650,624 |
| Ownership as % of Shares Outstanding | ~0.023% (123,797 / 537,650,624) |
- Stock ownership guidelines: Executive Vice President requirement = 3x base salary; all executives in compliance as of Oct 16, 2024 .
- Hedging/pledging: Prohibited for all staff and Board; includes bans on short sales, margin purchases, and derivatives .
- Recent exercise activity: No option exercises in 2024 for NEOs, including Mr. Griffith .
Outstanding Equity Awards at Fiscal Year-End 2024 (Selected for Mr. Griffith)
| Award | Exercisable (#) | Unexercisable (#) | Exercise Price | Expiration | Notes |
|---|---|---|---|---|---|
| Stock Options (granted 2024) | — | 20,767 | $300.30 | 5/7/2034 | Standard 4-year vest schedule (see note) |
| Stock Options | 10,499 | 21,318 | $230.92 | 5/2/2032 | |
| Stock Options | 19,130 | 9,855 | $239.64 | 4/30/2031 | |
| Stock Options | 28,341 | — | $236.36 | 5/5/2030 | |
| RSUs (unvested) | 11,433 | — | — | — | Market value $2,979,897 |
| Performance Units (unearned) 2023–2025 | 18,853 target | — | — | — | Payout value at reference date $4,913,846 |
| Performance Units (unearned) 2024–2026 | 7,631 target | — | — | — | Payout value at reference date $1,988,944 |
Note: For options granted prior to Jan 1, 2025, vesting continues post-retirement per plan terms; options expire on 10th anniversary; vesting occurs in three equal tranches on the 2nd, 3rd, and 4th anniversaries of grant .
Employment Terms
| Term | Detail |
|---|---|
| Hire / Role Transition | Hired as EVP, Finance on Oct 23, 2019; became EVP & CFO on Jan 1, 2020 |
| Offer Letter (2019) | Base salary $970,000; target annual cash incentive 100% of base; $500,000 sign-on bonus subject to 24-month clawback; $4,000,000 RSUs vest 33%/33%/34% on 2nd/3rd/4th anniversaries; severance protection for 3 years equal to 2x salary + target bonus and up to 18 months of COBRA |
| Ownership Guidelines | EVP = 3x base salary; compliance confirmed |
| Insider Policy | Prohibits hedging, pledging, short sales, derivatives |
Estimated Potential Payments and Benefits (as of Dec 31, 2024)
| Component | Change in Control | Change in Control + Termination | Retirement | Death/Disability |
|---|---|---|---|---|
| Lump-sum cash severance | $0 | $4,525,200 | $0 | $0 |
| Accelerated unvested stock options (intrinsic value) | $0 | $1,636,133 | $1,636,133 | $1,636,133 |
| Accelerated unvested RSUs (intrinsic value) | $0 | $2,979,897 | $2,979,897 | $2,979,897 |
| 2024–2026 Performance Units | $1,978,779 (payout factor 99.5%) | $1,978,779 (99.5%) | $1,428,047 | $1,428,047 |
| 2023–2025 Performance Units | $3,532,975 (payout factor 143.8%) | $3,532,975 (143.8%) | $2,532,900 | $2,532,900 |
| Health care benefits (18 months) | $0 | $35,350 | $0 | $0 |
| Retirement plan contributions (2 years) | $0 | $457,520 | $0 | $0 |
| Total | $5,511,754 | $15,145,854 | $8,576,977 | $8,576,977 |
Structure note: Cash severance appears double-trigger (requires termination in connection with change in control), while equity acceleration applies under specified CIC, retirement, death/disability scenarios per plan .
Deferred Compensation and Retirement Programs
| Program | 2024 Executive Contributions ($) | 2024 Company Contributions ($) | 2024 Earnings/(Losses) ($) | Balance 12/31/2024 ($) |
|---|---|---|---|---|
| NDCP | 1,390,014 (includes 2023 EIP deferral and 2024 salary deferral $10,814) | 0 | 0 | 6,504,030 |
| SRP | — | 250,234 (credits subject to cliff vesting) | 253,433 | 1,437,689 |
Historical NDCP snapshot (2022): Executive contributions $1,115,641; SRP company credits $212,012; balance $3,660,018 .
Performance & Track Record
| Metric | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|---|
| Revenues ($USD Millions) | 24,240 * | 24,297 * | 24,801 * | 26,910 * | 32,026 * |
| EBITDA ($USD Millions) | 12,929* | 12,549* | 13,358* | 13,590* | 15,157* |
*Values retrieved from S&P Global.
Context:
- 2024 cash incentive payout reflected composite company performance at 138.4% of target under GMIP .
- CFO and other EVPs received 2024 LTI grant values modestly above market median (Mr. Griffith: $4.8m vs market $4.353m, +10.3%) .
- Committee cited execution on strategic priorities (including Horizon acquisition) when adjusting LTI values across NEOs .
Investment Implications
- Alignment: Strong pay-for-performance design. Annual cash tied 60% to financials and 40% to pipeline/priorities; PSUs earn 0–200% with TSR modifier, improving alignment to shareholder outcomes .
- Retention: Double-trigger cash severance plus broad equity acceleration under specified events; retirement eligibility noted for Mr. Griffith which can reduce “forced sale” pressure if retiring, but also stabilizes retention in near term .
- Selling pressure: 2024 showed equity vesting and PSU payments; no option exercises in 2024; insider pledging and hedging prohibited, mitigating forced-sale or leverage risks .
- Ownership: Beneficial ownership is small vs float (~0.023%), but EVP-level 3x salary ownership guidelines and compliance suggest adequate “skin in the game” relative to policy .
- Compensation trend: Cash and LTI positioned slightly above market median; continued increases reflect strategic execution and role scope, but investors should monitor whether performance (revenue/EBITDA trajectory) sustains above-median pay envelopes .