August 21, 2008 / 10:02 PM / 11 years ago

Genentech employee retention plan to cost $371 mln

LOS ANGELES, Aug 21 (Reuters) - Genentech Inc DNA.N put a price tag of about $371 million on a previously announced plan to retain employees in the wake of majority-owner Roche Holding AG’s ROG.VX bid to acquire the rest of the biotechnology company.

Genentech said in a filing on Thursday that the cash amount is about equal to the value of stock options that were expected to be issued in Genentech’s 2008 option grant program.

The company said the bonus plan will reduce earnings per share by about 22 cents through 2010 — about 8 cents a share in the remainder of 2008, 12 cents in 2009, and 2 cents in 2010, assuming full payment occurs on June 30, 2009.

Genentech said the impact of its 2008 stock option grant program would have been about 23 cents a share.

The company said the special committee of its independent directors adopted two retention plans and two severance plans that together cover substantially all employees.

The retention bonus for Chief Executive Arthur Levinson is set at $8.7 million, according to the filing. (Reporting by Deena Beasley; Editing by Gary Hill)

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