Axsome Therapeutics announced the adoption of a new Executive Severance and Change in Control Plan, effective June 5, 2026. The plan standardizes severance benefits for key employees, including named executive officers, upon qualifying termination events and supersedes all prior severance agreements.
Key Details
- Structure & Participants: The plan establishes three tiers of participants: Tier 1 (CEO), Tier 2 (other Section 16 executive officers), and Tier 3 (Vice Presidents and above).
- Change in Control Benefits: Upon an involuntary termination during a change in control period (3 months prior to and 12 months after), executives are eligible for enhanced severance. This includes a lump sum payment of 2.0x salary and target bonus for the CEO (Tier 1), 1.5x for other executives (Tier 2), and 0.75x for VPs (Tier 3), plus 100% accelerated vesting of all outstanding equity awards.
- Standard Severance Benefits: For involuntary terminations outside of a change in control, participants are eligible for a cash severance payment equal to 18 months of base salary for the CEO, 12 months for other executives, and 6 months for VPs, along with continued COBRA premium payments for the same duration.