Celgene Corporation
CELGENE CORP /DE/ (Form: DEF 14A, Received: 04/27/2017 16:15:43)
TABLE OF CONTENTS
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934 (Amendment No.   )
Filed by the Registrant    ☒
Filed by a Party other than the Registrant    ☐
Check the appropriate box:

Preliminary Proxy Statement

Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

Definitive Proxy Statement

Definitive Additional Materials

Soliciting Material Pursuant to Section 240.14a-12
CELGENE CORPORATION
(Name of Registrant as Specified In Its Charter)
   
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):

No fee required.

Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
(1)
Title of each class of securities to which transaction applies:
   
(2)
Aggregate number of securities to which transaction applies:
   
(3)
Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
   
(4)
Proposed maximum aggregate value of transaction:
   
(5)
Total fee paid:
   

Fee paid previously with preliminary materials.

Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
(1)
Amount Previously Paid:
   
(2)
Form, Schedule or Registration Statement No.:
   
(3)
Filing Party:
   
(4)
Date Filed:
   

TABLE OF CONTENTS
[MISSING IMAGE: LG_CELGENE.JPG]
CELGENE CORPORATION
86 Morris Avenue
Summit, New Jersey 07901
April 27, 2017​
Dear Stockholders:
On behalf of the Board of Directors, you are cordially invited to attend the 2017 Annual Meeting of Stockholders of Celgene Corporation. The Annual Meeting will be held on Wednesday, June 14, 2017, at 1:00 p.m. Eastern Time at the offices of Celgene Corporation, 86 Morris Avenue, Summit, New Jersey 07901. The formal Notice of Annual Meeting is set forth in the enclosed material.
The matters expected to be acted upon at the Annual Meeting are described in the attached Proxy Statement. During the Annual Meeting, stockholders will have the opportunity to ask questions and comment on our business operations.
We are pleased to once again offer our proxy materials over the Internet. We are mailing to our stockholders a Notice of Internet Availability of Proxy Materials instead of a paper copy of the Notice of Annual Meeting, proxy statement and proxy card. The Notice of Internet Availability contains instructions on how to access those documents over the Internet and how each of our stockholders can receive a paper copy of our proxy materials, if desired. By furnishing proxy materials over the Internet, we are lowering the costs and reducing the environmental impact of the Annual Meeting.
It is important that your views be represented. If you request a proxy card, please mark, sign and date the proxy card when received and return it promptly in the self-addressed, stamped envelope we will provide. No postage is required if this envelope is mailed in the United States. You also have the option of voting your proxy via the Internet at www.proxyvote.com or by calling toll free via a touch-tone phone at 1-800-690-6903. Proxies submitted by telephone or over the Internet must be received by 11:59 p.m. Eastern Time on June 13, 2017. Although we encourage you to complete and return a proxy prior to the Annual Meeting to ensure that your vote is counted, you can attend the Annual Meeting and cast your vote in person. If you vote by proxy and also attend the Annual Meeting, there is no need to vote again at the Annual Meeting unless you wish to change your vote.
We appreciate your investment in Celgene and urge you to cast your vote as soon as possible.
Sincerely,
[MISSING IMAGE: SG_ROBERT-HUGIN.JPG]
Robert J. Hugin
Executive Chairman of the Board of Directors
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
[MISSING IMAGE: LG_CELGENE.JPG]
CELGENE CORPORATION
86 Morris Avenue
Summit, New Jersey 07901
NOTICE OF 2017 ANNUAL MEETING OF STOCKHOLDERS
DATE AND TIME:​
Wednesday, June 14, 2017 at 1:00 p.m. Eastern Time
LOCATION:​
Celgene Corporation
86 Morris Avenue
Summit, New Jersey 07901
PURPOSES:​
1.
to elect eleven directors;
2.
to ratify the appointment of KPMG LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2017;
3.
to approve an amendment and restatement of our 2008 Stock Incentive Plan;
4.
to hold an advisory vote on our 2016 named executive officer compensation;
5.
to hold an advisory vote on the frequency of the advisory vote on executive compensation;
6.
to consider a stockholder proposal, if properly presented, described in more detail in the proxy statement; and
7.
to transact such other business as may properly come before the Annual Meeting and at any adjournment or postponement thereof.
RECORD DATE:​
April 20, 2017
HOW TO VOTE :
YOUR VOTE IS IMPORTANT!
Please vote via one of the methods below as soon as possible to ensure that your vote is counted
[MISSING IMAGE: ICON-INTERNET.JPG]
BY INTERNET
Visit www.proxyvote.com until June 13, 2017
[MISSING IMAGE: ICON-PHONE.JPG]
BY PHONE
Please call 1-800-690-6903 by June 13, 2017
[MISSING IMAGE: ICON-MAIL.JPG]
BY MAIL
Sign, date and return your proxy card in the stamped envelope provided
[MISSING IMAGE: ICON-PERSON.JPG]
IN PERSON
You can vote in person at the meeting
[MISSING IMAGE: ICON-QRCODE.JPG]
BY SMART DEVICE
Scan the barcode to the left with any smart device and follow the instructions
   
DATE OF NOTICE: April 27, 2017
By order of the Board of Directors,
[MISSING IMAGE: SG_MARK-ALLES.JPG]
Mark J. Alles
Chief Executive Officer
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
TABLE OF CONTENTS
Page
1
9
15
17
17
17
19
19
20
21
21
22
22
23
24
24
24
26
27
30
31
31
38
39
41
42
45
47
53
53
55
61
61
61
61
62
63
64
65
66
74
75
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Page
76
78
78
78
A- 1
B- 1
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
[MISSING IMAGE: LG_CELGENE.JPG]
CELGENE CORPORATION
86 Morris Avenue
Summit, New Jersey 07901
PROXY STATEMENT
General Information
This Proxy Statement is furnished in connection with the solicitation by the Board of Directors of Celgene Corporation, a Delaware corporation (the “Company,” “Celgene,” “we,” “our” or “us”), of proxies to be voted at our 2017 Annual Meeting of Stockholders (the “Annual Meeting” or the “Meeting”) and at any adjournment or postponement of the Meeting. The Annual Meeting will take place on June 14, 2017, beginning at 1:00 p.m., Eastern Time, at our offices, 86 Morris Avenue, Summit, New Jersey 07901. For directions, please contact Investor Relations at (908) 673-9000.
This Proxy Statement, the Notice of Annual Meeting, our Annual Report on Form 10-K for fiscal 2016 and accompanying proxy card, are being mailed to holders of our common stock, par value $0.01 per share (“Common Stock”), on or about April 27, 2017. When we refer to our fiscal year, we mean the 12-month period ended December 31 of the stated year. Web links and addresses contained in this Proxy Statement are provided for convenience only, and the content on the referenced websites does not constitute a part of this Proxy Statement.
Frequently Asked Questions About the Annual Meeting and Voting
1.
I want to attend the Annual Meeting. What procedures must I follow?
Admission to the Annual Meeting is limited to persons who are stockholders as of the close of business on April 20, 2017 and one immediate family member; one individual designated as a stockholder’s authorized proxy holder; or one representative designated in writing to present a stockholder proposal properly brought before the Annual Meeting. In each case, the individual must have proof of ownership of Celgene Common Stock, as well as a valid government-issued photo identification, to be admitted to the Annual Meeting.
Proof of Ownership
If you hold your shares in your name as a stockholder of record, you will need proof of ownership of Celgene Common Stock.
If your shares are held in the name of a broker, bank or other holder of record and you plan to attend the Annual Meeting, you must present proof of your ownership of Celgene Common Stock, such as a bank or brokerage account statement, to be admitted to the Annual Meeting.
A stockholder may appoint a representative to attend the Annual Meeting and/or vote on his/her behalf. Valid proof of appointment of a representative, such as a power of attorney or notarized letter, must be presented along with proof of ownership of Celgene Common Stock from the holder, in order for your representative to be admitted to the Annual Meeting. If you have questions, contact Investor Relations at (908) 673-9000.
Proponent of Stockholder Proposal
The proponent of the stockholder proposal included in this Proxy Statement should notify the Company in writing of the individual authorized to present the proposal at the Annual Meeting; this notice should be received at least two weeks before the Annual Meeting.
2.
Who is entitled to vote at the Annual Meeting?
Holders of Celgene Common Stock at the close of business on April 20, 2017 are entitled to receive the Notice of Annual Meeting and to vote their shares at the Meeting. Each share of Common Stock is entitled to one vote on each matter properly brought before the Annual Meeting.
3.
How many shares of Celgene Common Stock are “outstanding”?
As of April 20, 2017, there were 780,824,335 shares of Celgene Common Stock outstanding and entitled to be voted at the Annual Meeting.
1
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
4.
What is the difference between holding shares as a stockholder of record and as a beneficial owner?
If your shares are registered in your name with Celgene’s transfer agent, American Stock Transfer & Trust Company, LLC, you are the “stockholder of record” of those shares. This Notice of Annual Meeting and Proxy Statement and any accompanying materials have been provided directly to you by Celgene.
If your shares are held through a broker, bank or other holder of record, you hold your shares in “street name” and you are considered the “beneficial owner” of those shares. This Notice of Annual Meeting and Proxy Statement and any accompanying documents have been provided to you by your broker, bank or other holder of record. As the beneficial owner, you have the right to direct your broker, bank or other holder of record how to vote your shares by using the voting instruction card they have provided you or by following their instructions for voting by telephone or on the Internet. Absent instructions from you, under applicable regulatory requirements, your broker may vote your shares on the ratification of the appointment of our independent registered public accounting firm for fiscal 2017, but may not vote your shares on the election of directors or any of the other proposals to be voted on at the Annual Meeting.
5.
How do I vote?
You may vote using any of the following methods:
By mail
Complete, sign and date the accompanying proxy or voting instruction card and return it in the prepaid envelope. If you are a stockholder of record and return your signed proxy card but do not indicate your voting preferences, the persons named in the proxy card will vote the shares represented by your proxy card as recommended by the Board of Directors.
By telephone or on the Internet
Celgene has established telephone and Internet voting procedures for stockholders of record. These procedures are designed to authenticate your identity, to allow you to give your voting instructions and to confirm that those instructions have been properly recorded. Telephone and Internet voting facilities for stockholders of record will be available 24 hours a day until 11:59 p.m., Eastern Time, on June 13, 2017.
The availability of telephone and Internet voting for beneficial owners will depend on the voting processes of your broker, bank or other holder of record. We therefore recommend that you follow their voting instructions.
If you vote by telephone or on the Internet, you do not have to return your proxy or voting instruction card.
Telephone.    You can vote by calling the toll-free telephone number on your proxy card. Please have your proxy card handy when you call. Easy-to-follow voice prompts will allow you to vote your shares and confirm that your instructions have been properly recorded.
Internet.    The website for Internet voting is www.proxyvote.com. Please have your proxy card handy when you go to the website. As with telephone voting, you can confirm that your voting instructions have been properly recorded. If you vote on the Internet, you also can request electronic delivery of future proxy materials.
You can also scan the QR Barcode below (or on your proxy card) with your smart device to access the website for Internet voting.
[MISSING IMAGE: T1700904_SCAN.JPG]
In person at the Annual Meeting
Stockholders who attend the Annual Meeting may vote in person at the Meeting. You may also be represented by another person at the Meeting by executing a proper proxy designating that person. If you are a beneficial owner of shares, you must obtain a legal proxy from your broker, bank or other holder of record and present it to the inspector of election with your ballot to be able to vote at the Annual Meeting.
2
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Your vote is important. Please complete your proxy card promptly to ensure that your vote is received timely.
6.
What can I do if I change my mind after I vote?
If you are a stockholder of record, you can revoke your proxy before it is exercised by:

giving written notice to the Corporate Secretary of the Company;

delivering a valid, later-dated proxy, or a later-dated vote by telephone or on the Internet, in a timely manner; or

voting by ballot at the Annual Meeting.
If you are a beneficial owner of shares, you may submit new voting instructions by contacting your broker, bank or other holder of record. All shares for which proxies have been properly submitted and not revoked will be voted at the Annual Meeting.
7.
Why did I receive a “Notice of Internet Availability of Proxy Materials” but no proxy materials?
We distribute our proxy materials to certain stockholders via the Internet under the “Notice and Access” approach permitted by rules of the Securities and Exchange Commission (SEC). This approach conserves natural resources and reduces our cost of printing and distributing the proxy materials, while providing a convenient method of accessing the materials and voting. On or about April 27, 2017, we mailed a “Notice of Internet Availability of Proxy Materials” to our stockholders, containing instructions on how to access the proxy materials on the Internet.
You may also request paper or e-mail delivery of the proxy materials on or before the date provided in the Notice of Internet Availability by calling 1-800-579-1639. We will fill your request within three business days. You will also have the option to establish delivery preferences that will be applicable for all future mailings of proxy materials. We encourage stockholders to take advantage of the availability of the proxy materials on the Internet to help reduce the environmental impact and costs of our annual meetings. If you choose to receive future proxy materials by e-mail, you will receive an e-mail message next year with instructions containing a link to those materials and a link to the proxy voting website. Your election to receive proxy materials by e-mail will remain in effect until you terminate it.
8.
Can I access the proxy materials and the fiscal 2016 Annual Report on the Internet?
This Notice of Annual Meeting and Proxy Statement and the fiscal 2016 Annual Report are available on our website at www.celgene.com. Instead of receiving future proxy statements and accompanying materials by mail, most stockholders can elect to receive an e-mail that will provide electronic links to them. Opting to access your proxy materials online will conserve natural resources, will save us the cost of reproducing documents and mailing them to you, and will give you an electronic link directly to the proxy voting site.
Stockholders of Record:    If you vote on the Internet at www.proxyvote.com, simply follow the prompts to enroll in the electronic proxy delivery service.
Beneficial Owners:    You also may be able to receive copies of these documents electronically. Please check the information provided in the proxy materials sent to you by your broker, bank or other holder of record regarding the availability of this service.
9.
What is a broker non-vote?
If you are a beneficial owner whose shares are held of record by a broker, you must instruct the broker how to vote your shares. If you do not provide voting instructions, your shares will not be voted on any proposal on which the broker does not have discretionary authority to vote. This is called a “broker non-vote.” In these cases, the broker can register your shares as being present at the Annual Meeting for purposes of determining the presence of a quorum but will not be able to vote on those matters for which the beneficial owner’s authorization is required under the rules of the New York Stock Exchange (NYSE) or the Nasdaq Stock Market (Nasdaq).
If you are a beneficial owner whose shares are held of record by a broker, your broker has discretionary voting authority under NYSE or Nasdaq rules to vote your shares on the ratification of KPMG, even if the broker does not receive voting instructions from you. However, without specific instructions from you, your broker does not have discretionary authority to vote on the election of directors, approval of an amendment and restatement of our 2008 Stock Incentive Plan (to be renamed the “2017 Stock Incentive Plan”), the advisory vote on 2016 executive compensation, the advisory vote on the frequency of the vote on executive compensation or on the stockholder proposal, in which case a broker non-vote will occur and your shares will not be voted on these matters.
3
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
10.
What is a quorum for the Annual Meeting?
The presence of the holders of Common Stock representing a majority of the voting power of all shares of Common Stock issued and outstanding and entitled to vote at the Annual Meeting, in person or represented by proxy, is necessary to constitute a quorum. Abstentions and broker non-votes are counted as present and entitled to vote for purposes of determining a quorum.
11.
What are the voting requirements to elect the directors and to approve each of the proposals discussed in this Proxy Statement?
Proposals
Required
Approval
Broker
Discretionary
Voting
Board
Recommendation
Election of Directors
Majority of
Votes Cast
No
FOR EACH NOMINEE
Ratification of KPMG
Majority of
Votes Cast
Yes
FOR
Amendment and Restatement of our Stock Incentive Plan
Majority of
Votes Cast
No
FOR
Advisory Approval of Executive Compensation (non-binding)
Majority of
Votes Cast
No
FOR
Advisory Vote on Frequency of Advisory Vote on Approval of Executive Compensation (non-binding)
Majority of
Votes Cast
No
ONE YEAR
Stockholder Proposal (non-binding)
Majority of
Votes Cast
No
AGAINST
If you abstain from voting or there is a broker non-vote on a matter requiring a majority of the votes cast, your abstention or the broker non-vote will not affect the outcome of such vote, because abstentions and broker non-votes are not considered to be votes cast.
Election of Directors
Directors must be elected by a majority of the votes cast in uncontested elections, such as the election of directors at the Annual Meeting. This means that the number of votes cast “for” a director nominee must exceed the number of votes cast “against” that nominee. Abstentions and broker non-votes are not counted as votes “for” or “against” a director nominee. In a contested election, the required vote would be a plurality of votes cast.
Ratification of KPMG
The votes cast “for” must exceed the votes cast “against” to approve the ratification of KPMG as our independent registered public accounting firm. Abstentions are not counted as votes “for” or “against” this proposal.
Amendment and Restatement of our Stock Incentive Plan
The votes cast “for” must exceed the votes cast “against” to approve an amendment and restatement of our Stock Incentive Plan. Abstentions and broker non-votes are not counted as votes “for” or “against” this proposal.
Advisory Vote on our 2016 Named Executive Officer Compensation (non-binding)
The votes cast “for” must exceed the votes cast “against” to approve, on an advisory basis, the compensation of our Named Executive Officers. Abstentions and broker non-votes are not counted as votes “for” or “against” this proposal.
Advisory Vote on Frequency of Advisory Vote on Approval of Executive Compensation (non-binding)
You are being asked to select one year, two years or three years based on your preference as to the frequency with which an advisory vote on executive compensation should be held. Abstentions and broker non-votes are not counted as votes for any particular frequency choice.
Stockholder Proposal (non-binding)
The votes cast “for” must exceed the votes cast “against” to approve, on an advisory basis, the stockholder proposal. Abstentions and broker non-votes are not counted as votes “for” or “against” the stockholder proposal.
4
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
12.
How will my shares be voted at the Annual Meeting?
At the Meeting, the Board of Directors (through the persons named in the proxy card or, if applicable, their substitutes) will vote your shares as you instruct. If you sign your proxy card and return it without indicating how you want your shares to be voted, your shares will be voted as the Board of Directors recommends, which is:

FOR the election of each of the director nominees named in this Proxy Statement;

FOR the ratification of the appointment of KPMG LLP as our independent registered public accounting firm for fiscal 2017;

FOR the amendment and restatement of our Stock Incentive Plan;

FOR the approval, on an advisory basis, of the 2016 compensation of our Named Executive Officers;

FOR a frequency period of every year for future advisory (non-binding) stockholder votes on executive compensation; and

AGAINST the stockholder proposal.
13.
Could other matters be decided at the Annual Meeting?
As of the date of this Proxy Statement, we did not know of any matters to be raised at the Annual Meeting other than those referred to in this Proxy Statement.
If you return your signed and completed proxy card or vote by telephone or on the Internet and other matters are properly presented at the Annual Meeting for consideration, the individuals named as proxies on the enclosed proxy card will have the discretion to vote on your behalf on those matters.
14.
Who will pay for the cost of the Annual Meeting and this proxy solicitation?
The Company will pay the costs associated with the Annual Meeting and solicitation of proxies, including the costs of mailing the proxy materials. In addition to solicitation by mail, our directors, officers and regular employees (who will not be specifically compensated for such services) may solicit proxies by telephone or otherwise. Arrangements will be made with brokerage houses and other custodians, nominees and fiduciaries to forward proxies and proxy materials to their principals, and we will reimburse them for their expenses. We have retained Broadridge Financial Solutions to assist in the mailing, collection and administration of proxies.
5
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
EXECUTIVE SUMMARY
Performance Highlights
[MISSING IMAGE: T1701249_BAR-PERFO.JPG]
2016 Highlights:

Net product sales: $11,185 million, an increase of 22%

Total revenue: $11,229 million, an increase of 21%

Net income: $1,999 million, an increase of 25%

Diluted EPS: $2.49, an increase of 28%

Adjusted net income*: $4,770 million, an increase of 23%

Adjusted diluted EPS*: $5.94, an increase of 26%

Share repurchases: $2,160 million

>500,000 patients treated with Celgene therapies

8 INDs/CTAs filed with first- or best-in-class potential

Invested $1,709 million in acquisitions and new collaborations

Advanced 29 unique programs through clinical development

Presented ~400 scientific abstracts to global academic meetings

Conducting >180 clinical trials
*
Adjusted net income and adjusted diluted EPS are non-GAAP financial measures. The Adjusted EPS chart above is adjusted to reflect the two-for-one common stock split effected in June 2014. For the reconciliation of these measures to the most comparable GAAP financial measures, see Appendix A to this proxy statement.
(1)
Growth Rate = Growth vs. Prior Year Period.
6
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
G OVERNANCE H IGHLIGHTS
What We Do
Pay for Performance
On average 87% of our NEOs’ compensation is tied to performance with clearly articulated financial, strategic and Relative Total Shareholder Return (R-TSR) objectives.
Equitable Pay and Inclusive Workforce
We pay all of our employees equitably based on the work they do, the capabilities and experience they possess and the performance and behaviors they demonstrate. We promote a non-discriminatory and inclusive work environment that enables us to benefit from the diversity of thought that comes from a diverse and inclusive workforce.
Compensation Recovery
In the event of an executive’s fraud or misconduct that results in a material negative restatement of our financial statements, we may recoup any or all of the incentive compensation paid to that executive in excess of the amounts that would have been paid based on the restated results.
Risk Mitigation
Our executive compensation programs include controls that promote a responsible and balanced risk profile, such as diversification of annual and long-term objectives, multiple performance metrics, caps on payouts, stock ownership and holding requirements, and a pre-established grant schedule for equity awards.
Minimum Vesting
Our annual equity awards provide for a minimum vesting period of one year.
Proactive Shareholder Engagement
We maintain a robust investor outreach program that enables us to obtain ongoing feedback concerning our compensation programs and other governance matters.
Share Ownership Requirements
We maintain rigorous stock ownership requirements for our Board members and NEOs.
Holding Period
All shares issued to NEOs under the LTIP and on all vested, earned PSUs have a holding period of at least one year and one day.
Securities Trading Policy
We maintain a comprehensive securities trading policy which prohibits trading while in possession of material non-public information.
Change in Control Double Trigger
In 2011, we amended our 2008 Stock Incentive Plan to eliminate the “single trigger” change in control vesting provision for equity awards granted on or after July 1, 2011 and to provide that, unless otherwise determined at grant, such equity awards vest upon an involuntary termination of employment without cause that occurs within two years following a change in control (i.e. “double trigger”).
NEO Compensation Cost Analysis
The Compensation Committee ensures that our compensation programs remain aligned with the interests of our stockholders and reinforces a team-based approach to management. The Committee measures our NEOs’ collective compensation in relation to the collective compensation paid to officers of companies within our peer group.
Independent Compensation Consultant
The independent compensation consultant, Radford, is retained directly by the Compensation Committee.
What We Don’t Do
x
No Hedging or Pledging
Board members, executives, employees and their immediate family members are prohibited from hedging, pledging, or engaging in any derivatives trading with respect to Company securities, except with the prior approval of the Executive Chairman or CEO.
x No Backdating or Repricing
Stock options are never backdated or issued with below-market exercise prices. Re-pricing of stock options without stockholder approval is expressly prohibited.
x No Share Recycling or Evergreen Provisions
Our stock incentive plan prohibits share recycling and does not contain evergreen renewal provisions.
x No Golden Parachute Gross-up Payments
None of our NEOs currently has an agreement with the Company whereby we would be obligated to pay a gross-up for excise taxes in excess of parachute payments.
x No Dividends Payable on Options, SARs or Unvested Equity
Our Restated Plan submitted for stockholder approval under Proposal Three of this proxy statement provides that the holder of any stock option, stock appreciation right, or unvested equity award may not receive or retain dividends with respect to the underlying shares.
7
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
S tockholder E ngagement H ighlights
During 2016, we had conversations with a number of our major stockholders representing over 25% of our outstanding shares. Stockholder feedback has influenced certain corporate governance actions, including our adoption in 2016 of proxy access for director nominations and enabling stockholders to request a special meeting of stockholders.
Proxy Access for Director Nominations
Our By-laws permit a stockholder, or a group of up to 20 stockholders, owning three percent or more of our outstanding common stock continuously for at least three years to include in our proxy materials director nominees constituting up to two individuals or 20% of the board, whichever is greater, subject to the requirements specified in our By-laws.
Special Meeting of Stockholders
Our By-laws provide that a special meeting of stockholders shall be called if requested by a person (or group of persons) beneficially owning at least a 25% “net long position” (as defined in our By-laws) of the Company’s Common Stock, subject to the requirements specified in our By-laws.
8
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
MATTERS TO COME BEFORE THE ANNUAL MEETING
PROPOSAL ONE:    Election of Directors
Our Director Nominees
Name
Age (1)
Director Since
Nominee Committee Memberships
Audit
Nominating
Compensation
Executive
Robert J. Hugin
62
2001
[MISSING IMAGE: ICO_SBX-MEMBER.JPG]
Mark J. Alles
58
2016
   
Richard W. Barker, D.Phil., OBE
68
2012
   
Michael W. Bonney
58
2015
   
Michael D. Casey
71
2002
[MISSING IMAGE: ICO_SBX-MEMBER.JPG]
Carrie S. Cox
59
2009
   
Michael A. Friedman, M.D.
73
2011
   
Julia A. Haller, M.D.
62
2015
   
Gilla Kaplan, Ph.D.
70
1998
   
James J. Loughlin
74
2007
[MISSING IMAGE: ICO_SBX-MEMBER.JPG]
Ernest Mario, Ph.D.
79
2007
[MISSING IMAGE: ICO_SBX-MEMBER.JPG]
(1)
As of June 14, 2017
[MISSING IMAGE: ICO_SBX-MEMBER.JPG]
= Denotes Chair
Directors and Nominees
At the Annual Meeting, eleven directors, who have been nominated by our Board of Directors, based on the recommendation of the Nominating, Governance and Compliance Committee of the Board of Directors (referred to as the Nominating Committee), are to be elected, each to hold office (subject to our By-laws) until the next annual meeting and until his or her successor has been elected and qualified. All of the nominees for director currently serve as directors and were elected by the stockholders at the 2016 Annual Meeting.
Each nominee has consented to being named as a nominee in this proxy statement and to serve if elected. If any nominee listed in the table above should become unavailable for any reason, which the Board of Directors does not anticipate, the proxy will be voted for any substitute nominee or nominees who may be selected by the Board of Directors prior to or at the Annual Meeting. Directors will be elected by an affirmative vote of a majority of the votes cast at the Annual Meeting in person or by proxy. There are no family relationships between any of our directors and executive officers. The information concerning the nominees and their security holdings has been furnished by them to us.
As discussed elsewhere in this proxy statement, in evaluating director nominees, the Nominating Committee considers characteristics that include, among others, integrity, business experience, financial acumen, leadership abilities, familiarity with our businesses and businesses similar or analogous to ours, and the extent to which a candidate’s knowledge, skills, background and experience are already represented by other members of our Board of Directors. Listed below are our directors and director nominees with their biographies. In addition, we have summarized for each director the reasons why such director has been chosen to serve on our Board of Directors.
9
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Name
Age (1)
Position
Robert J. Hugin
62
Executive Chairman of the Board
Mark J. Alles
58
Director and Chief Executive Officer
Richard W. Barker, D.Phil., OBE
68
Director
Michael W. Bonney
58
Director
Michael D. Casey
71
Director
Carrie S. Cox
59
Director
Jacqualyn A. Fouse, Ph.D. (2)
56
Director
Michael A. Friedman, M.D.
73
Director
Julia A. Haller, M.D.
62
Director
Gilla Kaplan, Ph.D.
70
Director
James J. Loughlin
74
Director
Ernest Mario, Ph.D.
79
Director
(1)
As of June 14, 2017
(2)
Ms. Fouse will retire from the Company effective June 30, 2017 and will not stand for re-election to the Board.
Robert J. Hugin — Executive Chairman, Celgene Corporation
Robert J. Hugin was appointed Executive Chairman of the Board effective as of March 1, 2016. Prior thereto he was Chairman of our Board of Directors since June 2011, Chief Executive Officer since June 16, 2010, President from May 1, 2006 to July 31, 2014, Chief Operating Officer from May 1, 2006 to June 16, 2010, and Senior Vice President and Chief Financial Officer from June 1999 to May 1, 2006. Mr. Hugin has served as one of our Directors since December 2001. Previously, Mr. Hugin had been a Managing Director at J.P. Morgan & Co. Inc., which he joined in 1985. Mr. Hugin received an AB degree from Princeton University in 1976 and an MBA from the University of Virginia in 1985 and served as a United States Marine Corps infantry officer during the intervening period. Mr. Hugin is also a Director of The Medicines Company, Danaher Corporation (and a member of each company’s Compensation Committee), Atlantic Health System, Inc., a non-profit health care system, and Family Promise, a national non-profit network assisting homeless families.Mr. Hugin brings to his role as a director his extensive executive and leadership experience at Celgene and his previous business experience, as well as his leadership roles on the boards of a public company and a non-profit health care company. In particular, his experience as our Chief Executive Officer, President, Chief Operating Officer and Chief Financial Officer and his current role as our Executive Chairman enable him to provide leadership and unique insight on complex business and financial matters and guidance with respect to the strategic goals and operating framework of a high growth company such as ours. Additionally, Mr. Hugin served as Chairman of the Board of Directors of the Pharmaceutical Research and Manufacturers of America (PhRMA) from April 2013 until April 2014, is a past Chairman of the HealthCare Institute of New Jersey and is a member of the Board of Trustees of Princeton University. In these roles, he has gained valuable knowledge of regulatory, legal and legislative issues affecting our industry.
Mark J. Alles — Chief Executive Officer, Celgene Corporation
Mark J. Alles was appointed Chief Executive Officer as of March 1, 2016 and was elected to our Board of Directors effective in February 2016. Mr. Alles was our President and Chief Operating Officer from August 2014 through February 2016. Prior to that, Mr. Alles served as Executive Vice President and Global Head of Hematology and Oncology from December 2012 until July 2014, following his promotion to Executive Vice President and Chief Commercial Officer on February 15, 2012. Mr. Alles joined us in April 2004 and served as Vice President, Global Marketing until March 2009 when he became President of the Americas Region. Responsibility for commercial operations in Japan and the Asia Pacific Region was added in July 2011. Mr. Alles previously served as Vice President for the U.S. Oncology Business Unit of Aventis Pharmaceuticals and in other commercial sales and marketing management roles over an 11-year period with Aventis. After earning his B.S. degree from Lock Haven University of Pennsylvania and serving as a Captain in the United States Marine Corps, Mr. Alles began his 30-year career in the pharmaceutical industry at Bayer and worked at Centocor before its acquisition by Johnson & Johnson. Mr. Alles is a Trustee of The Healthcare Institute of New Jersey, a member of the Board of the Biotechnology Innovation Organization and a member of the Board of Gilda’s Club NYC, a not-for-profit organization helping the families of people living with cancer.
10
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Mr. Alles brings to his service as a director his extensive knowledge of Celgene’s business gained from his operational, commercial, and senior management positions and his substantial prior business experiences at other leading biopharmaceutical companies. Mr. Alles has been intimately involved in setting our long-term growth strategy and has contributed significantly to our superior operating performance.
Richard W. Barker, D.Phil., OBE — Director of the Centre for Accelerating Medical Innovations
Richard W. Barker has served as one of our Directors and a member of the Audit Committee of our Board of Directors since January 2012. Dr. Barker was formerly Director General of the Association of the British Pharmaceutical Industry (ABPI), a pharmaceutical industry trade association in the United Kingdom, from 2004 to 2011, and served on the Board and Executive Committee of the European Federation of Pharmaceutical Industries and Associations (EFPIA) and as a Council Member of the International Federation of Pharmaceutical Manufacturers & Associations (IFPMA). Dr. Barker is currently Director of the Centre for the Advancement of Medical Innovations (CASMI), Chairman of the Health Innovation Network of South London, UK, Chairman of International Health Partners, a UK charity providing donated medicines to crisis situations, and Chairman of Image Analysis Group, a company applying advanced algorithmic analysis to medical images.
As an experienced healthcare leader and strategist with a distinguished career in the healthcare sector, Dr. Barker brings to his service as a director more than 20 years’ experience in the healthcare industry in which he held a range of senior leadership roles in the United States, the United Kingdom and elsewhere internationally. His career has spanned the pharmaceutical, biotechnology and medical informatics sectors, thus giving him a broad perspective on the issues facing both healthcare systems and the pharmaceutical industry.
Michael W. Bonney — Chairman of the Board of Alynylam Pharmaceuticals, Inc.
Michael W. Bonney was elected to our Board of Directors and Audit Committee in April 2015. From January to July 2016, Mr. Bonney was a Partner of Third Rock Ventures, LLC, a leading healthcare venture firm. Prior thereto, Mr. Bonney served as Chief Executive Officer and a member of the Board of Directors of Cubist Pharmaceuticals Inc. (Cubist) (a subsidiary of Merck & Co., Inc. as of January 2015) from June 2003 until his retirement on December 31, 2014. From January 2002 to June 2003, Mr. Bonney served as Cubist’s President and Chief Operating Officer, and from 1995 to 2001, he held various positions of increasing responsibility at Biogen, Inc., a biopharmaceutical company, including Vice President, Sales and Marketing from 1999 to 2001. Prior to joining Biogen, Mr. Bonney held various positions of increasing responsibility in sales, marketing and strategic planning at Zeneca Pharmaceuticals, ending his eleven-year career there serving as National Business Director. Since 2014, Mr. Bonney has been a director of Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, where he serves on the Audit Committee, and was elected Chairman of the Board in December 2015. In February 2016, he was elected to the Board of Directors of Global Blood Therapeutics, Inc., a clinical-stage biopharmaceutical company, and serves on the Compensation Committee and the Nominating and Corporate Governance Committee. He is also a Trustee of the Tekla complex of life sciences and healthcare dedicated funds, where he serves on the Valuation Committee and Chairs the Governance Committee and the Nominating Committee; and Chairs the Board of Trustees of Bates College. Mr. Bonney was a Director of NPS Pharmaceuticals, Inc., a biopharmaceutical company from 2005 until its sale to Shire plc in February 2015, where he was a member of the Audit and Compensation Committees and Chaired the Governance Committee. Mr. Bonney received a B.A. in Economics from Bates College.
Mr. Bonney brings to his service as a director his extensive operational, commercial, and senior management experience in the biopharmaceutical industry, as well as his experience serving on the Board of Directors (and certain of their key standing committees) of other companies and trade organizations within our industry, qualifying him as an audit committee financial expert (as that term is defined in the regulations of the SEC).
Michael D. Casey — Independent Lead Director of Celgene; Director of Abaxis, Inc.
Michael D. Casey has served as one of our Directors since August 2002, and has been our independent Lead Director since June 2007, the Chairman of the Nominating Committee and a member of the Executive Committee since December 2006, and a member of the Management Compensation and Development Committee (referred to as the Compensation Committee) since April 2006. Mr. Casey was a member of the Audit Committee from August 2002 through December 2006. From September 1997 to February 2002, Mr. Casey served as the Chairman, President, Chief Executive Officer and a director of Matrix Pharmaceutical, Inc. From November 1995 to September 1997, Mr. Casey was Executive Vice President at Schein Pharmaceutical, Inc. In December 1996, he was appointed President of the retail and specialty products division of Schein Pharmaceutical, Inc. From June 1993 to
11
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
November 1995, he served as President and Chief Operating Officer of Genetic Therapy, Inc. Mr. Casey was President of McNeil Pharmaceutical (a unit of Johnson & Johnson) from 1989 to June 1993 and Vice President, Sales and Marketing for Ortho Pharmaceutical Corp. (a subsidiary of Johnson & Johnson) from 1985 to 1989. Mr. Casey is also a Director of Abaxis Inc. (and a member of the Compensation Committee). Mr. Casey served as a Director of Allos Therapeutics, Inc. through January 2010, AVI BioPharma (now Sarepta Therapeutics, Inc.) through June 2010 and Durect Corporation through December 2013.Mr. Casey brings to his service as a director his significant experience and leadership as President, Chief Executive Officer and senior officer of several national pharmaceutical companies. In addition to those listed above, he has previously served as a director of several other pharmaceutical/biotech companies.
Carrie S. Cox — Chairman of the Board and Chief Executive Officer of Humacyte, Inc.
Carrie S. Cox has served as one of our Directors since December 2009 and a member of the Audit Committee since March 2010. Ms. Cox currently serves as the Chairman of the Board of Directors and Chief Executive Officer of Humacyte, Inc., a privately-held regenerative medicine company primarily focused on developing novel human tissue-based investigational products for applications in regenerative medicine and vascular surgery. Ms. Cox served as Executive Vice President of Schering-Plough and President of Schering-Plough’s Global Pharmaceutical Business until November 3, 2009 when Schering-Plough merged with Merck & Co., Inc. Prior to joining Schering-Plough, Ms. Cox served as President of Pharmacia Corporation’s pharmaceutical business until its merger with Pfizer Inc. in 2003. Ms. Cox is a member of the Board of Directors of Texas Instruments and has served on their Audit and Compensation Committees, and is a member of the Board of Directors of Cardinal Health, Inc. and sits on its Compensation Committee. Ms. Cox is a graduate of the Massachusetts College of Pharmacy.
Ms. Cox brings to her service as a director her distinguished career in global healthcare and her significant experience and leadership serving in executive positions of some of the largest and most successful multi-national healthcare companies in the world, including with responsibility for those companies’ financial performance and significant capital and research and development investments.
Jacqualyn A. Fouse, Ph.D. — Strategic Advisor to the Executive Committee, Celgene Corporation
Jacqualyn A. Fouse, Ph.D. was elected to our Board of Directors effective in February 2016 and is currently Strategic Advisor to the Management Executive Committee. Ms. Fouse was our President and Chief Operating Officer from March 1, 2016 through March 31, 2017. Ms. Fouse was our President, Hematology and Oncology from August 2014 through February 2016. Ms. Fouse joined the Company in September 2010 as Senior Vice President and Chief Financial Officer. Ms. Fouse assumed the role of Chief Accounting Officer on November 15, 2011 and became Executive Vice President and Chief Financial Officer on February 15, 2012 and held each position until July 31, 2014. Prior to joining our Company, Ms. Fouse had served as Chief Financial Officer of Bunge Limited, a leading global agribusiness and food company (Bunge), since July 2007. Prior to joining Bunge, Ms. Fouse served as Senior Vice President, Chief Financial Officer and Corporate Strategy at Alcon Laboratories, Inc. since 2006, and as its Senior Vice President and Chief Financial Officer since 2002. Ms. Fouse served as Chief Financial Officer from 2001 to 2002 at Swissair Group. Previously, Ms. Fouse held a variety of senior finance positions at Alcon and its then majority owner Nestlé S.A. Ms. Fouse worked at Nestlé from 1993 to 2001, including serving as Group Treasurer of Nestlé from 1999 to 2001. Ms. Fouse worked at Alcon from 1986 to 1993 and held several positions, including Manager Corporate Investments and Domestic Finance. Earlier in her career, she worked at Celanese Chemical and LTV Aerospace and Defense. Ms. Fouse earned a B.A. and an M.A. in Economics and a Ph.D. in Finance from the University of Texas at Arlington. Ms. Fouse also serves as a member of the Board of Directors of Dick’s Sporting Goods (Chairperson of the Audit Committee) and, from November 2012 through the expiration of her term at the Annual General Meeting on April 26, 2016, served as a member of the Board of Directors of Perrigo Company (member of the Audit Committee), both NYSE-listed companies. Ms. Fouse will retire from the Company effective June 30, 2017 and she will not stand for re-election to the Board.
Ms. Fouse has served the Company in key management capacities and brings to her service as a director her in-depth financial and business knowledge of Celgene and her operational, commercial, and senior management experience in a variety of industries. Ms. Fouse has been a key contributor in setting and implementing our long-term growth strategy and building our operational excellence across multiple areas of our business.
Michael A. Friedman, M.D. — Emeritus Chief Executive Officer of City of Hope
Michael A. Friedman, M.D. has served as one of our directors since February 2011 and a member of the Nominating Committee since April 2011. Dr. Friedman is the emeritus Chief Executive Officer of City of Hope, a leading cancer research, treatment and education institution, as well as Director of the organization’s Comprehensive Cancer Center and holder of the Irell & Manella Cancer
12
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Center Director’s Distinguished Chair. Before leading City of Hope, Dr. Friedman was Senior Vice President of Research and Development, Medical and Public Policy for Pharmacia Corporation and Chief Medical Officer for biomedical preparedness at PhRMA. Additionally, Dr. Friedman has served as Deputy Commissioner for the U.S. Food and Drug Administration (FDA), later serving as Acting Commissioner, and as Associate Director of the National Cancer Institute, National Institutes of Health. Since 2004, Dr. Friedman has served on the Independent Citizens’ Oversight Committee which governs the California Institute for Regenerative Medicine and oversees the implementation of California’s stem cell research effort. Dr. Friedman is a member of the Board of Directors of MannKind Corporation, Smith & Nephew plc. and Intuitive Surgical, Inc. He also serves on the Board of Trustees for Tulane University.
Dr. Friedman brings to his service as a director valuable scientific and operational expertise and leadership skills from his extensive background in cancer research and public health as a senior officer of a leading research institution, deputy and acting commissioner of the FDA, and as an executive officer of a major pharmaceutical company.
Julia A. Haller, M.D. — Ophthalmologist-in-Chief of the Wills Eye Hospital
Julia A. Haller, M.D. was elected to our Board of Directors in October 2015 and is a member of the Audit Committee. Dr. Haller is Ophthalmologist-in-Chief of the Wills Eye Hospital in Philadelphia, PA where she holds the William Tasman, M.D. Endowed Chair. She serves as Professor and Chair of the Department of Ophthalmology at Jefferson Medical College of Thomas Jefferson University and Thomas Jefferson University Hospitals, and is Co-Director of the Wills Vision Research Center at Jefferson. In 1986, Dr. Haller served as the first female Chief Resident at the Wilmer Eye Institute at Johns Hopkins and later joined the Johns Hopkins faculty. She was named the inaugural Katharine Graham Professor of Ophthalmology in 2002, and the inaugural Robert Bond Welch, M.D. Professor of Ophthalmology in 2006. In 2007, Dr. Haller assumed leadership of Wills Eye Hospital. Dr. Haller, one of the world’s most renowned retina surgeons and clinician-scientists, has received numerous academic and professional honors and awards and has published over 300 scientific articles and book chapters. Dr. Haller, who has been closely involved in the early stage development of many new vision therapies and surgical procedures, received her A.B. from Princeton University magna cum laude and her M.D. from Harvard Medical School. She is a member of numerous international scientific advisory boards and data and safety monitoring committees, is a past member of the Board of Trustees of Princeton University and has served as a consultant to Walter Reed Army Medical Center and The Children’s Hospital of Philadelphia.
Dr. Haller brings to her service as a director valuable scientific, clinical research, managerial and operational expertise and leadership skills from her extensive background in research, development of innovative therapies and public health. Dr. Haller will provide significant insight and guidance with regard to our long-term strategy and vision.
Gilla Kaplan, Ph.D. — Director of the Global Health Program, Tuberculosis, at the Bill and Melinda Gates Foundation
Gilla Kaplan, Ph.D. has served as one of our directors since April 1998 and is a member of the Nominating Committee and, before April 2015, was a member of the Audit Committee. Dr. Kaplan was appointed Director of the Global Health Program, Tuberculosis, at the Bill and Melinda Gates Foundation in January 2014. She previously served as Senior Advisor to the Global Health Program, Tuberculosis and member of the International Scientific Advisory Committee for the Global Health Program of the Bill and Melinda Gates Foundation. Dr. Kaplan was head of the Laboratory of Mycobacterial Immunity and Pathogenesis at The Public Health Research Institute Center at the New Jersey Medical School, Newark, New Jersey, where she was appointed full Member in 2002 and Assistant Director in 2006. Dr. Kaplan also was previously appointed, in 2005, Professor of Medicine at the University of Medicine and Dentistry of New Jersey. Prior to that, Dr. Kaplan was an immunologist in the Laboratory at Cellular Physiology and Immunology at The Rockefeller University in New York where she was an Associate Professor.
Dr. Kaplan brings to her service as a director valuable scientific expertise and leadership skills from her distinguished career in medical research, including her current role as Director of the Global Health Program, Tuberculosis at the Bill and Melinda Gates Foundation and her past roles and experiences in the field of immunology.
James J. Loughlin — Former National Director of the Pharmaceuticals Practice at KPMG LLP
James J. Loughlin has served as one of our Directors since January 2007, as Chairman of the Audit Committee since June 2008 and a member of the Compensation Committee since June 2008. Mr. Loughlin served as the National Director of the Pharmaceuticals Practice at KPMG LLP (KPMG), and a five-year term as member of the Board of Directors of KPMG. Additionally, Mr. Loughlin served as Chairman of the Pension and Investment Committee of the KPMG Board from 1995 through 2001. He also served as Partner
13
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
in charge of Human Resources, Chairman of the Personnel and Professional Development Committee, Secretary and Trustee of the Peat Marwick Foundation and a member of the Pension, Operating and Strategic Planning Committees. Mr. Loughlin serves as a member of the Board of Directors and Chairman of the Audit Committee of Edge Therapeutics, Inc., a publicly-traded biopharmaceutical company.
Mr. Loughlin brings to his service as a director his valuable experiences as National Director of the Pharmaceuticals Practice at KPMG, his service as Chairman of the Pension and Investment Committee of the KPMG Board and his service on various other committees and foundations. In particular, through his professional association with KPMG, including a five-year term as member of the Board of Directors of KPMG, Mr. Loughlin brings to our Board of Directors an extensive background in accounting and financial reporting, qualifying him as an audit committee financial expert (as that term is defined in the regulations of the SEC).
Ernest Mario, Ph.D. — Chairman of the Board of Capnia, Inc. and Chimerix, Inc.
Ernest Mario, Ph.D. has served as one of our Directors since August 2007, as a member of the Nominating Committee since August 2007, as a member of the Executive Committee since June 2008, and as Chairman of the Compensation Committee since August 2014. Dr. Mario is a former Deputy Chairman and Chief Executive of Glaxo Holdings plc and a former Chairman and Chief Executive Officer of ALZA Corporation. He also serves as Chairman of Capnia, Inc. and Chimerix, Inc., and as a Director of Tonix Pharmaceuticals Holding Corp. (member of the Compensation Committee). Dr. Mario previously served as a Director of Boston Scientific Corporation, Kindred Biosciences Inc., Maxygen Inc., VIVUS Inc. and XenoPort Inc. In 2007, Dr. Mario was awarded the Remington Medal by the American Pharmacists Association, pharmacy’s highest honor. Dr. Mario earned a B.S. in Pharmacy from Rutgers University and a M.S. and a Ph.D. in Physical Sciences from the University of Rhode Island.
Dr. Mario brings to his service as a director his significant executive leadership experience, including his experience leading several pharmaceutical companies, as well as his membership on public company boards and foundations. He also has extensive experience in financial and operations management, risk oversight, and quality and business strategy.
RECOMMENDATION OF THE BOARD OF DIRECTORS
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS
A VOTE FOR THE ELECTION OF EACH NOMINEE UNDER PROPOSAL ONE
14
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Security Ownership of Certain Beneficial Owners and Management
The table below sets forth the beneficial ownership of Common Stock as of April 20, 2017 (except as otherwise noted) by (i) each director, (ii) each Named Executive Officer for fiscal 2016 (as defined below), (iii) all of our current directors and executive officers as a group and (iv) all persons known by the Board of Directors to be beneficial owners of more than five percent of the outstanding shares of Common Stock. Shares of Common Stock subject to options that are exercisable or that will become exercisable within 60 days after April 20, 2017 and restricted stock units (RSUs) that will vest within 60 days of April 20, 2017 are deemed outstanding and reflected in the amount of beneficial ownership column and for computing the ownership percentage of the stockholder holding such securities, but are not deemed outstanding for computing the ownership percentage of any other stockholder. Vested RSUs are included as Common Stock. Shares underlying Performance Stock Units (PSUs) are not deemed outstanding until earned and are not included in the table. As of April 20, 2017, there were 780,824,335 shares of Common Stock outstanding. Unless otherwise noted, the address of each stockholder listed in the table is c/o Celgene Corporation, 86 Morris Avenue, Summit, New Jersey 07901.
Name and Address of Beneficial Ownership
Amount and Nature of
Beneficial Ownership
Percent
of Class
Robert J. Hugin 3,805,227 (1) *
Mark J. Alles 542,990 (2) *
Peter N. Kellogg 248,836 (3) *
Jacqualyn A. Fouse, Ph.D. 862,380 (4) *
Scott A. Smith 360,807 (5) *
Rupert J. Vessey, MA, BM BCh, FRCP, D.Phil. 102,633 (6) *
Richard W. Barker, D.Phil., OBE 91,632 (7) *
Michael Bonney 33,375 (8) *
Michael D. Casey 303,652 (9) *
Carrie S. Cox 133,146 (10) *
Michael A. Friedman, M.D. 75,207 (11) *
Julia A. Haller, M.D. 21,575 (12) *
Gilla Kaplan, Ph.D. 285,399 (13) *
James J. Loughlin 237,009 (14) *
Ernest Mario, Ph.D. 167,240 (15) *
All directors and executive officers as a group (17 persons) 7,451,033 (1)-(15) *
BlackRock, Inc.
40 East 52nd Street
New York, New York 10022
51,841,792 (16) 6.6 %
Vanguard Group, Inc.
100 Vanguard Blvd.
Malvern, PA 19355
49,849,549 (17) 6.4 %
*
Less than one percent (1%)
(1)
Consists of 973,909 shares of Common Stock, 2,700,088 shares of Common Stock underlying stock options, 641 shares of Common Stock held in our 401(k) Plan for the benefit of Mr. Hugin, 120,989 shares of Common Stock held by a family foundation of which Mr. Hugin is a trustee, and 9,600 shares of Common Stock owned by Mr. Hugin’s children.
(2)
Consists of 170,920 shares of Common Stock, 366,146 shares of Common Stock underlying stock options, and 5,924 shares of Common Stock held in our 401(k) Plan for the benefit of Mr. Alles.
(3)
Consists of 10,833 shares of Common Stock, 237,655 shares of Common Stock underlying stock options, and 348 shares of Common Stock held in our 401(k) Plan for the benefit of Mr. Kellogg.
(4)
Consists of 82,040 shares of Common Stock, 778,742 shares of Common Stock underlying stock options, and 1,598 shares of Common Stock held in our 401(k) Plan for the benefit of Ms. Fouse.
(5)
Consists of 36,557 shares of Common Stock, 321,462 shares of Common Stock underlying stock options, and 2,788 shares of Common Stock held in our 401(k) Plan for the benefit of Mr. Smith.
(6)
Consists of 778 shares of Common Stock, 101,570 shares of Common Stock underlying stock options, and 285 shares of Common Stock held in our 401(k) Plan for the benefit of Dr. Vessey.
(7)
Consists of 11,332 shares of Common Stock and 80,300 shares of Common Stock underlying stock options.
15
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
(8)
Consists of 31,000 shares of Common Stock underlying stock options and 2,375 shares of Common Stock held by a family trust of which Mr. Bonney is trustee.
(9)
Consists of 92,070 shares of Common Stock held by a family trust of which Mr. Casey is a trustee and 211,582 shares of Common Stock underlying stock options. Mr. Casey disclaims beneficial ownership over the shares of Common Stock held by the family trust.
(10)
Consists of 23,146 shares of Common Stock and 110,000 shares of Common Stock underlying stock options.
(11)
Consists of 14,907 shares of Common Stock held by a family trust of which Dr. Friedman is a trustee and 60,300 shares of Common Stock underlying stock options.
(12)
Consists of 575 shares of Common Stock and 21,000 shares of Common Stock underlying stock options.
(13)
Consists of 73,817 shares of Common Stock and 211,582 shares of Common Stock underlying stock options.
(14)
Consists of 23,627 shares of Common Stock, 211,582 shares of Common Stock underlying stock options and 1,800 shares of Common Stock owned by family trusts of which Mr. Loughlin’s spouse is a trustee.
(15)
Consists of 90,766 shares of Common Stock, 73,900 shares of Common Stock underlying stock options and 2,574 shares of Common Stock owned by Dr. Mario’s spouse.
(16)
Information regarding BlackRock, Inc., as of December 31, 2016, was obtained from an amendment to Schedule 13G filed by BlackRock, Inc. with the SEC on January 23, 2017.
(17)
Information regarding The Vanguard Group, as of December 31, 2016, was obtained from a Schedule 13G filed by The Vanguard Group with the SEC on February 10, 2017.
16
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
CORPORATE GOVERNANCE
Board Independence
No director will be deemed to be independent unless the Board of Directors affirmatively determines that the director has no other material relationship with us, directly or as an officer, stockholder or partner of an organization that has such a relationship with us. The Board of Directors observes all criteria for independence established by Nasdaq under its applicable Listing Rules. The Board of Directors has determined that all of our Non-Employee Directors, constituting all but three of our directors, may be classified as “independent” within the meaning of Rule 5605(a)(2) of the Nasdaq Listing Rules. Executive sessions of our independent directors are convened in conjunction with each regularly scheduled Board of Directors meeting.
Board Meetings; Committees and Membership
General
The Board of Directors held nine meetings during fiscal 2016, five of which meetings were held over a period of two consecutive days. During fiscal 2016, each of the directors then in office attended more than 75% of the aggregate of  (i) the total number of meetings of the Board of Directors and (ii) the total number of meetings of all committees of the Board on which such director served. Our policy is to encourage our Board members to attend all annual meetings and any special meetings of stockholders. All of our then directors attended the 2016 Annual Meeting.
We maintain the following standing committees of the Board of Directors: the Executive Committee, the Compensation Committee, the Nominating Committee and the Audit Committee. Except for the Executive Committee, each committee is comprised entirely of directors who are “independent” within the meaning of Rule 5605(a)(2) of the Nasdaq Listing Rules. Other than the Executive Committee, each committee acts pursuant to a separate written charter, and each such charter has been adopted and approved by the Board of Directors. A copy of the Charters of the Audit Committee, the Compensation Committee and the Nominating Committee, as well as our Corporate Governance Guidelines, are available on our website at www.celgene.com by choosing the “Investor Relations” link and clicking on the “Corporate Governance” section.
The Executive Committee
The Executive Committee held one formal meeting and a number of informal meetings during fiscal 2016. The Executive Committee has and may exercise all of the powers and authority of our full Board of Directors, subject to certain exceptions.
The Management Compensation and Development Committee (the “Compensation Committee”)
The Compensation Committee held six formal meetings and a number of informal meetings during fiscal 2016. The Compensation Committee annually reviews and approves the total compensation packages for all executive officers, including the Executive Chairman and the Chief Executive Officer, considers modification of existing compensation and benefit programs and the adoption of new compensation and benefit plans, administers the plans and reviews and makes recommendations to the Board of Directors regarding the compensation of non-employee members of the Board of Directors. Additionally, the Compensation Committee periodically reviews our leadership development plans and succession planning. The Compensation Committee has (i) the full power and authority to interpret the provisions and supervise the administration of our 1992 Long-Term Incentive Plan and our 2008 Stock Incentive Plan, (ii) the full power and authority to administer and interpret the Celgene Corporation 2005 Deferred Compensation Plan (the “Nonqualified Plan”) and (iii) the authority to review all matters relating to our personnel.
Compensation Committee Consultant
The Compensation Committee has retained Radford, an Aon Hewitt Company, which we refer to as “Radford,” as its independent compensation consultant since 2004. Based on the six factors for assessing independence and identifying potential conflicts of interest that are set forth in SEC Rule 10C-1(b)(4) under the Securities Exchange Act of 1934, as amended (referred to herein as the Exchange Act), the Nasdaq Listing Rules and such other factors as were deemed relevant under the circumstances, our Compensation Committee has determined that Radford is independent and the work Radford performed on behalf of the Compensation Committee did not raise any conflict of interest. Radford regularly meets with the Compensation Committee and provides advice regarding the design and implementation of our executive compensation programs, as well as our director compensation programs. In particular, Radford:

reviews and makes recommendations regarding executive and non-employee director compensation (including amounts and forms of compensation);
17
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS

provides market data and performs competitive market analyses; and

assists in the preparation of certain of our compensation-related disclosures included in this proxy statement.
In providing its services to the Compensation Committee, with the Compensation Committee’s knowledge, Radford may contact our management from time to time to obtain data and other information from us and to work together in the development of proposals and alternatives for the Compensation Committee to review and consider. In fiscal 2016, the cost of Radford’s executive compensation and director compensation consulting services was $171,157.
In addition, in fiscal 2016, with the knowledge and consent of the Compensation Committee, (i) Aon Consulting, an affiliate of Radford, was retained by us to provide global employee benefits and compensation consulting services, (ii) Aon Risk Services, an affiliate of Radford, was retained by us for various insurance-related consulting services, and (iii) Radford Surveys, an affiliate of Radford, was retained by us for various compensation surveys. In fiscal 2016, the aggregate cost of such other consulting services was $67,980.
The Compensation Committee regularly evaluates the nature and scope of the services provided by Radford. The Compensation Committee approved the fiscal 2016 executive and non-employee director compensation consulting services of Radford described above. Although the Compensation Committee was aware of the nature of the services performed by Aon Consulting, Aon Risk Services and Radford Surveys, the Compensation Committee did not review and approve such services as those services were reviewed and approved by management in the ordinary course of business.
In order to ensure that Radford is independent, Radford is engaged by, takes direction from, and reports to, only the Compensation Committee and, accordingly, only the Compensation Committee has the right to terminate or replace Radford at any time. Further, Radford maintains certain internal controls within Aon which include, among other things:

Radford is managed separately from Aon and performance is measured solely on the Radford business;

no commissions or cross revenue is provided to Aon in the event that Aon introduces Radford to an account, and no Aon staff member is paid commissions or incentives for Radford services;

Radford is not rewarded for selling Aon services nor is Radford required to cross-sell services;

Radford maintains its own account management structure, contact database and IT network and its survey data is on a separate IT platform from Aon; and

no member of Radford’s team is involved in, or sits on, any Aon committee for purposes of selling Aon services.
The Nominating, Governance and Compliance Committee
The Nominating Committee held five meetings in fiscal 2016. The Nominating Committee determines the criteria for nominating new directors, recommends to the Board of Directors candidates for nomination to the Board of Directors, oversees the evaluation of the Board of Directors, develops and recommends to the Board of Directors appropriate corporate governance guidelines, reviews on a periodic basis the Company’s leadership development plans and succession planning with respect to the position of Chief Executive Officer, and oversees certain of the Company’s corporate compliance efforts (excluding financial compliance and reporting and overseeing compliance with the requirements of the U.S. Foreign Corrupt Practices Act, which are the responsibilities of the Audit Committee). The Nominating Committee’s process to identify and evaluate candidates for nomination to the Board of Directors includes consideration of candidates for nomination to the Board of Directors recommended by stockholders. Such stockholder recommendations must be delivered to our Corporate Secretary, together with the information required to be filed in a proxy statement with the SEC regarding director nominees, and each such nominee must consent to serve as a director if elected, no later than the deadline for submission of stockholder nominations as set forth in our By-laws and under the section of this proxy statement entitled “Stockholder Nominations — Advance Notice.” In considering and evaluating such stockholder recommendations that have been properly submitted, the Nominating Committee will apply substantially the same criteria that the Nominating Committee believes must be met by a Nominating Committee-recommended nominee as described below. To date, we have not received any recommendation from stockholders requesting that the Nominating Committee consider a candidate for inclusion among the Nominating Committee’s slate of nominees in our proxy statement.
In evaluating director nominees, the Nominating Committee currently considers the following factors:

our needs with respect to the particular competencies and experience of our directors;

familiarity with our business and businesses similar to ours;

financial acumen and corporate governance experience; and
18
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS

our desire that our Board reflect diversity with respect to, among other matters, professional and operational experience, scientific and academic expertise, international background, gender, race and ethnicity.
The Nominating Committee identifies nominees first by evaluating the current members of the Board of Directors willing to continue in service. If any member of the Board does not wish to continue in service or if the Nominating Committee or the Board of Directors decides not to re-nominate a member for re-election, the Nominating Committee will identify the required skills, background and experience of a new nominee, in tandem with prevailing business conditions, and will source relevant candidates and present to the Board of Directors suggestions as to individuals who meet the required criteria. The Nominating Committee utilizes the services of an outside search firm to assist it in finding appropriate nominees for the Board of Directors.
The Audit Committee
The Audit Committee held nine meetings in fiscal 2016. Messrs. Loughlin and Bonney are “audit committee financial experts” within the meaning of the rules of the SEC and, as such, under Rule 5605(c)(2)(A) of the Nasdaq Listing Rules, they each are presumed to satisfy that rule’s requirement regarding financially sophisticated audit committee members. The Audit Committee oversees our financial reporting process on behalf of the Board of Directors. In fulfilling its responsibility, the Audit Committee appoints, subject to stockholder ratification, our independent registered public accounting firm. The Audit Committee also reviews our consolidated financial statements and the adequacy of our internal controls. The Audit Committee meets at least quarterly with our management and our independent registered public accounting firm to review and discuss the results of audits or reviews of our consolidated financial statements, the evaluation of the effectiveness of our internal control over financial reporting and disclosure controls and procedures, the overall quality of our financial reporting and appropriate application of our critical accounting policies and to approve any related person transactions (as defined below). The Audit Committee’s responsibility is to monitor and oversee these processes, including the activities of our internal audit function. The Audit Committee meets separately, at least quarterly, with the independent registered public accounting firm. In addition, the Audit Committee oversees our existing procedures for the receipt, retention and handling of complaints related to auditing, accounting and internal control issues, including the confidential, anonymous submission by employees, vendors, customers or others with concerns on accounting and auditing matters, as well as, other matters relating to the Company.
Related Person Transaction Policies and Procedures
At the beginning of each calendar year, each member of our Board of Directors and each executive officer is required to complete an extensive questionnaire that we utilize when preparing our annual proxy statement, as well as our Annual Report on Form 10-K. The purpose of the questionnaire is to obtain information from directors and executive officers to verify disclosures about them that are required to be made in these documents. Regarding related person transactions, it serves two purposes: first, to remind each executive officer and director of their obligation to disclose any related person transactions entered into between themselves (or family members or entities in which they hold an interest) and us that in the aggregate exceed $120,000 (“related person transaction”) that might arise in the upcoming year; and second, to ensure disclosure of any related person transaction that is currently proposed or that occurred since the beginning of the preceding year. When completing the questionnaire, each director and executive officer is required to report any such transaction, as well as any payments (including any non-cash payment) by anyone other than the Company or its subsidiaries for services performed for the Company or its subsidiaries. If a reported or proposed related person transaction is identified, the Audit Committee will review the relevant facts and circumstances, including if the transaction is on terms comparable to those that could be obtained in arm’s length dealings with an unrelated third party and the extent of the related person’s interest in the transaction, take into account our Code of Business Conduct, and either approve, ratify or disapprove the related person transaction. The Audit Committee will also review the material terms of any agreements or arrangements between a director and any third party relating to compensation for services performed for the Company or its subsidiaries and direct that such arrangements be disclosed in the Company’s annual proxy materials or other public reports as appropriate. There were no reportable transactions for fiscal 2016.
Compensation Committee Interlocks and Insider Participation
Each member of the Compensation Committee is an independent director within the meaning of the Nasdaq Listing Rules. There were no interlocks among any of the members of the Compensation Committee and any of our executive officers.
Financial Officer Code of Ethics
We have adopted a Financial Officer Code of Ethics that applies to our Chief Executive Officer, Chief Financial Officer and other financial professionals. This Financial Officer Code of Ethics is posted on our website at www.celgene.com and may be accessed by choosing the “Investor Relations” link and clicking on the “Corporate Governance” section. We intend to satisfy the disclosure requirements regarding any amendment to, or a waiver of, a provision of the Financial Officer Code of Ethics by posting such
19
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
information on our website. We undertake to provide to any person a copy of this Financial Officer Code of Ethics upon request to our Corporate Secretary at our principal executive offices.
Stockholder Nominations — Advance Notice
Our By-laws provide that nominations for the election of directors may be made at an annual meeting: (a) by or at the direction of the Board of Directors (or any duly authorized committee thereof); or (b) by any stockholder who (i) is a stockholder of record on the date of the giving of the notice and on the record date for the determination of stockholders entitled to vote at such annual meeting and (ii) complies with the notice procedures set forth below.
In addition to any other applicable requirement for a nomination to be made by a stockholder, such stockholder must have given timely notice thereof in proper written form to our Corporate Secretary. To be timely, a stockholder’s notice to the Corporate Secretary must be delivered to or mailed and received at our principal executive offices not less than 60 days nor more than 90 days prior to the date of the annual meeting; provided that in the event that less than 70 days’ notice or prior public disclosure of the date of the annual meeting is given or made to stockholders, notice by the stockholder (in order to be timely) must be so received not later than the close of business on the 10th day following the day on which such notice of the date of the annual meeting was mailed or such public disclosure of the date of the annual meeting was made, whichever first occurs.
To be in proper written form, a stockholder’s notice to the Corporate Secretary must set forth (a) as to each person whom the stockholder proposes to nominate for election as a director: (i) the name, age, business address and residence address of the person; (ii) the principal occupation or employment of the person; (iii) the class or series and number of shares of our capital stock which are owned beneficially or of record by the person; and (iv) any other information relating to the person that would be required to be disclosed in a proxy statement or other filing required to be made in connection with solicitations of proxies for election of directors pursuant to Section 14 of the Exchange Act, and the rules and regulations promulgated thereunder; and (b) as to the stockholder giving the notice: (i) the name and record address of such stockholder; (ii) the class or series and number of shares of our capital stock which are owned beneficially or of record by such stockholder; (iii) a description of all arrangements or understandings between such stockholder and each proposed nominee and any other person or persons (including their names) pursuant to which the nomination(s) are to be made by such stockholder; (iv) a representation that such stockholder intends to appear in person or by proxy at the annual meeting to nominate the persons named in his or her notice and; (v) any other information relating to such stockholder that would be required to be disclosed in a proxy statement or other filing required to be made in connection with solicitations of proxies for election of directors pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder. Such notice must be accompanied by a written consent of each proposed nominee to being named as a nominee and serving as a director if elected.
Stockholder Engagement
We believe that good corporate governance should include year-round engagement with our stockholders as illustrated below. We believe that we have a robust stockholder outreach program led by a cross-functional team including partners from our Investor Relations, Legal, Global Corporate Communications and Finance departments.
Through this outreach, we solicit feedback on our executive compensation program, corporate governance and disclosure practices and respond to questions regarding our policies and strategic goals. We share feedback we receive with our Compensation Committee, Nominating Committee and Board of Directors.
As part of our normal outreach, during 2016 we had conversations with a number of our major stockholders representing over 25% of our outstanding shares. Additionally, our senior management team regularly engaged in meaningful dialogue with our stockholders through our quarterly earnings calls, presentations and discussions at various investor conferences and other channels of communication.
In recent years, stockholder feedback has also influenced certain of our compensation design and philosophy enhancements. Additionally, our engagement efforts and feedback received have also influenced certain corporate governance actions, such as the following:
Proxy Access for Director Nominations
At our 2016 Annual Meeting, a stockholder proposal to adopt a proxy access by-law was supported by a majority of the shares that voted on the proposal. In December 2016, our Board carefully considered viewpoints of investors, governance experts and other advisors on proxy access rights and the developing proxy access trends among other U.S. public companies and adopted a proxy access by-law. Stockholder views on specific terms under which proxy access should be adopted varied, but most stockholders we spoke with supported the core terms that we adopted.
20
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
As amended, our By-laws permit a stockholder, or a group of up to 20 stockholders, owning three percent or more of our outstanding common stock continuously for at least three years to nominate and include in our proxy materials director nominees constituting up to two individuals or 20% of the board, whichever is greater, provided that the stockholder(s) and the nominee(s) satisfy the requirements specified in our By-laws.
So that the Company has adequate time to assess stockholder-nominated candidates, requests to include nominated candidates in the Company’s proxy materials must be received no later than the close of business on the 120 th day, and no earlier than the close of business on the 150 th day, prior to the first anniversary of the date that the Company first mailed its proxy statement for the annual meeting of the previous year. Each stockholder seeking to nominate a proxy access candidate would be required to provide certain information and make certain representations and undertakings at the time of nomination, including:

Proof that the stockholder has held the required number of shares for the requisite period;

The information required for stockholder nominations at annual meetings under the Company’s Advance Notice By-law provisions, together with the written consent of the stockholder nominee to being named in the proxy statement as a nominee and to serving as a director if elected;

A copy of the stockholder’s Schedule 14N required to be filed with the SEC; and

Representations and undertakings regarding the stockholder’s intent and compliance with applicable laws, including the lack of an intent to change or influence control at the Company and an undertaking to assume liability stemming from the information that the stockholder provides to the Company.
In addition, at the request of the Company, each stockholder nominee would be required to submit completed and signed questionnaires required of the Company’s directors and officers and provide such additional information as necessary to permit the Board to determine if the stockholder nominee is independent under the listing standards of the principal U.S. exchange upon which the Company’s common stock is listed, any applicable rules of the SEC and any publicly disclosed standards used by the Board in determining and disclosing the independence of the Company’s directors.
Further, all director nominees submitted through these provisions must be independent and meet specified additional criteria, and stockholders will not be entitled to utilize this proxy access right at an annual meeting if we receive notice through our Advanced Notice By-law provisions that a stockholder intends to nominate a director at such meeting.
Special Meeting of Stockholders
Also at our 2016 Annual Meeting, a stockholder proposal to adopt a by-law to allow stockholders to request a special meeting was supported by a majority of the shares that voted on the proposal. In December 2016, our Board carefully considered viewpoints of investors, governance experts and other advisors, as well as trends among other U.S. public companies. Based, in part, on feedback from investors, our Board adopted a by-law to provide that a special meeting of stockholders may be called by the Chairman of the Board, the Chief Executive Officer, the President, the Secretary, or the Board, if appropriately requested by a person (or group of persons) beneficially owning at least a 25% “net long position” (as defined in our By-laws) of the Company’s Common Stock. A special meeting request must contain specified information about the stockholders requesting the meeting, as well as other information about the stockholders and the matters to be considered at the meeting.
Communication with our Board
Our Board of Directors remains committed to establishing a continuous dialogue with stockholders and has determined that, to facilitate communications with the Board of Directors, or any individual member or any Committee of the Board of Directors, stockholders should direct all communication in writing to our Corporate Secretary at our principal executive offices. Our Corporate Secretary will forward all such correspondence to the Board of Directors, individual members of the Board of Directors or applicable chairpersons of any Committee of the Board of Directors, as appropriate.
Board Leadership Structure
Our Corporate Governance Guidelines provide that the Board will determine “whether, at any given point in time, the roles of the Chief Executive Officer and Chair of the Board will be separate or combined.” The Board has been flexible in exercising its judgment on behalf of stockholders’ interests to choose the leadership structure that the Board believes will address the evolving needs and circumstances of the Company, taking into account the dynamic demands of our business, our senior executive succession planning and other factors.
21
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Early in 2016, the Board approved organizational changes that it believes have positioned the Company for continued long-term growth. Among these changes were Robert Hugin’s elevation to the role of Executive Chairman and Mark Alles’ appointment as Chief Executive Officer and his election as a member of our Board. Mr. Hugin, who has been our Chairman and Chief Executive Officer since 2011, Chief Executive Officer since 2010, and has served Celgene in other senior executive positions for nearly two decades, continues to focus on Board leadership, strategic planning and initiatives, advocacy and public policy matters, business development, personnel development and other key business matters. Mr. Alles, a three-decade industry veteran who has been with Celgene since 2004, primarily focuses on strategically managing our growing global business, business development and driving operational performance. The Board believes this separation of responsibilities is optimal for Celgene at this time, as it will enhance our Board’s oversight by leveraging the clearly defined responsibilities of our Executive Chairman and our Chief Executive Officer. Mr. Alles is accountable to the full Board of Directors with his performance overseen by the Executive Chairman at the direction of the Board.
Additionally, Michael Casey continues to serve as our independent Lead Director, a Board leadership position he has held since 2007. In accordance with our Corporate Governance Guidelines, the independent Lead Director provides guidance concerning the agenda for each Board meeting, presides over executive sessions of the independent directors that are held on a regular basis, communicates with the Chair and the CEO after each executive session of the independent directors to provide feedback and to effectuate the decisions and recommendations of the independent directors, and acts as liaison between the independent directors and management on a regular basis and when communication out of the ordinary course is appropriate.
Mr. Casey is actively involved with the Company and devotes a significant amount of time and energy to fulfilling his responsibilities as Lead Director. He reviews and provides guidance with respect to establishing the agenda and the materials for each meeting of our Board of Directors and certain of committees of our Board. He meets regularly, and works closely with, our Executive Chairman, our CEO, and other senior members of management, as well as with other management and non-management employees. He also facilitates communication among the directors on our Board and speaks regularly with the independent chairs of our other Board committees and with each of our Non-Employee Directors, promoting the candid exchange of ideas among the Board members. Moreover, in his capacity as Lead Director and Chair of our Nominating, Governance and Compliance Committee, Mr. Casey provides leadership in the areas of corporate governance, Board composition, succession planning and other governance-related matters.
The Board believes that our current leadership structure, together with our independent Lead Director, meets the Company’s current needs by, among other things:

enabling efficient communication between management and the Board;

delineating the independent Lead Director’s and other independent directors’ oversight roles from the Executive Chairman and other management’s strategic and operational roles;

facilitating discussions by the Board of key and appropriate issues in a timely and constructive manner;

providing clarity for our key stakeholders on corporate leadership and accountability; and

augmenting the knowledge of both the Executive Chairman and the CEO with respect to our strategy, operations and financial condition and, in turn, communicating that to external stakeholders.
Board of Directors Role in Risk Oversight
In connection with its oversight responsibilities, the Board of Directors, including through the Audit Committee, Nominating Committee and Compensation Committee, periodically assesses the significant risks that we face. These risks include financial, legal, technological, competitive, operational and compensation-related risks. The Board, together with the Executive Chairman, the Chief Executive Officer, the Chief Financial Officer, management representatives of the relevant functional areas ( e.g. internal audit, legal, regulatory and compliance groups, operational management, human resources, etc. ) and representatives of each of our primary operating subsidiaries, reviews and monitors the identification, assessment and mitigation of the material risks affecting our operations.
Litigation Proceedings Involving Directors or Officers
As previously reported in the Company’s Annual Report on Form 10-K, in November 2015 a stockholder filed a complaint in Delaware Chancery Court asserting derivative claims on behalf of the Company against eight current and four former members of the Board of Directors. The complaint alleged that the defendant directors breached their fiduciary duties by allowing the Company to engage in unlawful activity in its marketing of THALOMID ® and REVLIMID ® . On November 23, 2016, the court entered an order dismissing the amended complaint as a result of plaintiff’s withdrawal of the lawsuit.
22
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Section 16(a) Beneficial Ownership Reporting Compliance
Pursuant to Section 16(a) of the Exchange Act, each of our directors, executive officers and any person beneficially owning more than 10 percent of the outstanding shares of Common Stock is required to report his, her or its ownership of Common Stock and any change in that ownership, on a timely basis, to the SEC. Based solely upon a review of SEC Forms 3, 4 and 5 and amendments thereto furnished to us during or with respect to fiscal 2016, we believe that all applicable acquisitions and dispositions of Common Stock, including grants of options and awards under our 2008 Stock Incentive Plan (amended and restated as of April 15, 2015), were filed on a timely basis for fiscal 2016, except for the inadvertent late filing of a Form 4 report of Rupert Vessey with respect to the sale of stock on November 22, 2016.
23
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
EXECUTIVE COMPENSATION
Compensation Discussion and Analysis
This Compensation Discussion and Analysis (CD&A) provides an overview of our overall compensation philosophy and practices for the following individuals whom we refer to as our Named Executive Officers (NEOs).
Name
Title
Robert J. Hugin (1) Executive Chairman
Mark J. Alles (2) Chief Executive Officer
Peter N. Kellogg Executive Vice President and Chief Financial Officer
Jacqualyn A. Fouse, Ph.D. (3) Strategic Advisor to the Executive Committee
(formerly President and Chief Operating Officer)
Scott A. Smith (4) President and Chief Operating Officer
(formerly President, Inflammation & Immunology)
Rupert J. Vessey, MA, BM BCh, FRCP, D.Phil. President, Research & Early Development
(1)
Effective March 1, 2016, Mr. Hugin transitioned into the role of Executive Chairman after serving as our Chief Executive Officer since 2010.
(2)
Effective March 1, 2016, Mr. Alles was promoted to Chief Executive Officer after serving as President and Chief Operating Officer since 2014.
(3)
Ms. Fouse assumed her current role as of April 1, 2017. She was President and Chief Operating Officer from March 1, 2016 through March 31, 2017. Ms. Fouse will retire from the Company effective June 30, 2017. She will not stand for re-election to the Board.
(4)
Mr. Smith was promoted to President and Chief Operating Officer effective April 1, 2017.
Celgene is building a global preeminent biopharmaceutical company focused on the discovery, development and commercialization of innovative therapies for patients with cancer, immune-inflammatory, and other unmet medical needs. Each of our NEOs is fully engaged in company-wide strategic planning and decision-making aimed at ensuring our long-term success through delivering on annual and long-term financial goals and through continuing to innovate, develop and commercialize life-changing drugs for our patients. The full biographies for Mr. Hugin, Ms. Fouse, Dr. Vessey and Messrs. Alles, Kellogg and Smith are provided elsewhere in this proxy statement under “Additional Information Regarding Executive Officers — Executive Officers.”
2016 Key Performance Highlights
Led by our executive team, 2016 was another year of exceptional results for our Company and the patients we serve, as reflected in our outstanding financial performance, the significant progress of pivotal early-, mid- and late-stage programs and investments in our long-term growth through acquisitions and strategic collaborations. We are driven by science and continue to be committed to patients, making significant investment in research and development and treating more than 500,000 patients in 2016.
[MISSING IMAGE: T1701249_PERFORMANCE.JPG]
24
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Five-Year Cumulative Total Shareholder Return
The following chart shows how a $100 investment in the Company’s Common Stock on December 31, 2011 would have grown 242% to $342 on December 31, 2016. The chart also compares the total shareholder return on the Company’s Common Stock to the same investment, over the same period, in the S&P 500, the NASDAQ Composite and the NASDAQ Biotechnology comparator groups.
[MISSING IMAGE: T1701249_LINE-COMPARISON.JPG]
Cumulative Total Return*
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Celgene Corporation $ 100.00 $ 116.08 $ 249.95 $ 330.95 $ 354.32 $ 342.46
S&P 500 $ 100.00 $ 115.88 $ 153.01 $ 173.69 $ 176.07 $ 196.78
NASDAQ Composite $ 100.00 $ 117.70 $ 164.65 $ 188.87 $ 202.25 $ 220.13
NASDAQ Biotechnology $ 100.00 $ 132.72 $ 220.22 $ 295.88 $ 330.71 $ 260.12
*
Value of  $100 invested on December 31, 2011 in stock or index, including reinvestment of dividends (if applicable), for each subsequent fiscal year ended December 31.
25
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Compensation Philosophy
Our executive compensation programs are designed to reward progress in advancing our drug development pipeline and achievement of financial and operational results while aligning the annual and long-term interests of our executives with those of our stockholders. Our approach enables us to structure a program that drives the creation of long-term value to patients and our stockholders while maintaining a balanced and appropriate risk profile. Our executive compensation philosophy focuses on four core principles as a framework for which the Compensation Committee approves objectives, measures performance and determines compensation actions for our NEOs:
Value Creation:

In setting target pay and making compensation decisions, the Compensation Committee balances the historical and sustained performance of each NEO with expected future contributions to his/her functional areas and to the broader management of the Company.
Pay for Performance:

Our practice of directly linking compensation to achievement of both annual and long-term financial and strategic goals drives strong performance, aligns the interest of our executives with the interests of our stockholders and results in increased stockholder value. Our Compensation Committee believes in an appropriate mix of long-term versus annual objectives and has designed our annual and long-term programs to overlap financial metrics to highlight the importance of achieving both annual and long-term goals. We believe this approach reduces the risks that actions might be taken to sacrifice long-term growth to meet annual targets.
Team-Based:

The Compensation Committee reviews and approves objectives and makes compensation decisions based on the NEOs’ performance not only against the specific strategy and objectives of the function(s) for which he/she is responsible, but also against each NEOs’ engagement in our broader, long-term management as a whole. Aligning each NEOs’ variable pay to overall Company strategic objectives reinforces our team-based management approach and encourages holistic results. As part of this team-based approach, we also strive to create and maintain internal fairness in our compensation arrangements.
Market Competitiveness:

We operate in a highly complex and competitive business environment that requires that we attract, retain and engage executives capable of leading our business. For compensation purposes, the Compensation Committee does not target a specific percentile within our peer group; rather, benchmark data is used as a reference point when making compensation determinations. The Compensation Committee, with the input of Radford, periodically reviews and selects our peer group. The companies in our peer group have comparable revenue, market capitalization and reflect our primary competitors for executive talent. We also consider various surveys, including the Radford Global Life Sciences Survey, SIRS Executive Compensation Survey and Towers Watson U.S. CDB Pharmaceutical Executive Database. Our peer group used for compensation decisions consists of:
2016 Peer Group*
Abbvie Inc. Biogen Inc.
Allergan Inc.. Bristol-Meyers Squibb Company
Allergan plc. Eli Lilly and Company
Amgen Inc. Gilead Sciences Inc.
Baxter International Inc Regeneron Pharmaceuticals
Current Peer Group*
Abbvie Inc. Bristol-Meyers Squibb Company
Alexion Pharmaceuticals Eli Lilly and Company
Allergan plc. Gilead Sciences Inc.
Amgen Inc. Merck & Company
Biogen Inc. Regeneron Pharmaceuticals

*
Regeneron Pharmaceuticals was added to our peer group in August 2015. In October 2016, Alexion Pharmaceuticals and Merck & Company were added and Allergan Inc. and Baxter International Inc. were removed.
26
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Highlights of Our Compensation Practices
We maintain high governance standards pertaining to the oversight of our executive compensation programs. As in prior years, the following policies and practices were in effect during 2016:
What We Do
Pay for Performance
On average 87% of our NEOs’ compensation is tied to performance with clearly articulated financial, strategic and Relative Total Shareholder Return (R-TSR) objectives.
Equitable Pay and Inclusive Workforce
We pay all of our employees equitably based on the work they do, the capabilities and experience they possess and the performance and behaviors they demonstrate. We promote a non-discriminatory and inclusive work environment that enables us to benefit from the diversity of thought that comes from a diverse and inclusive workforce.
Compensation Recovery
In the event of an executive’s fraud or misconduct that results in a material negative restatement of our financial statements, we may recoup any or all of the incentive compensation paid to that executive in excess of the amounts that would have been paid based on the restated results. We may also cancel unvested equity compensation or require the executive to repay any gains realized in excess of the amount that would have been paid to that executive based on the restated results.
Risk Mitigation
Our executive compensation programs include controls that promote a responsible and balanced risk profile:

Diversification of annual and long-term objectives for incentive plans;
Multiple metrics within each incentive plan that are balanced and weighted so as not to encourage focus on a single metric to the exclusion of others;

Caps on payouts under our annual and long-term incentive award programs;

Stock ownership and holding requirements; and
Pre-established grant schedule for NEOs’ equity awards as set by our Compensation Committee
Minimum Vesting
Our annual equity awards provide for a minimum vesting period of one year.
Proactive Shareholder Engagement
We maintain a robust investor outreach program that enables us to obtain ongoing feedback concerning our compensation programs and other governance matters.
Share Ownership Requirements
We maintain rigorous stock ownership requirements for our Board Members and NEOs as described below:
Both our Executive Chairman and CEO have share ownership requirements equal to a value of six times his respective annual base salary. Both our Executive Chairman and our CEO exceed this requirement.
Each of our other NEO’s share ownership requirement is equal to a value of three times annual base salary. With the exception of Mr. Kellogg who was hired in 2014 and Dr. Vessey who was hired in 2015, all of our other NEOs meet or exceed this requirement.
Each Board member’s share ownership requirement is five times the current annual retainer. See “Director Compensation — Stock Ownership Requirements for Non-Employee Directors” for more information.
Holding Period
In addition to share ownership requirements, there is a holding period on all shares granted to NEOs under the LTIP and on all shares issued on vested PSUs of at least one year and one day. These holding periods further align compensation and value delivered to stock performance and long-term value to our stockholders.
Securities Trading Policy
We maintain a comprehensive securities trading policy which provides, among other things, that our employees who possess material non-public information regarding Celgene may not disclose or trade while in possession of such information or buy or sell our securities during any designated blackout period. Individuals classified as “insiders” (which include our NEOs) and related persons (as defined in the policy) generally may not buy or sell our securities at any time without prior approval, except under approved Rule 10b5-1 trading plans.
Change in Control Double Trigger
In 2011, we amended our 2008 Stock Incentive Plan to eliminate the “single trigger” change in control vesting provision for equity awards granted on or after July 1, 2011 and to provide that, unless otherwise determined at grant, such equity awards vest upon an involuntary termination of employment without cause that occurs within two years following a change in control (i.e. “double trigger”).
27
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
What We Do
NEO Compensation Cost Analysis
To ensure that our compensation programs remain aligned with the interests of our stockholders and to further reinforce a team-based approach to management, the Compensation Committee considers the stockholder advisory vote on executive compensation and measures our NEOs’ collective compensation in relation to the collective compensation paid to named executive officers of companies within our peer group.
Independent Compensation Consultant
The independent compensation consultant, Radford, is retained directly by the Compensation Committee.
What We Don’t Do
x No Hedging or Pledging
Board members, executives, employees and their related persons (as defined in our Securities Trading Policy) are prohibited from hedging, pledging, or engaging in any derivatives trading with respect to Company stock, without the prior approval of the Executive Chairman or CEO.
x No Backdating or Repricing
Stock options are never backdated or issued with below-market exercise prices. Re-pricing of stock options without stockholder approval is expressly prohibited.
x No Share Recycling or Evergreen Provisions
Our stock incentive plan prohibits share recycling and does not contain an evergreen renewal provision.
x No Golden Parachute Gross-up Payments
None of our NEOs currently have an agreement with the Company whereby we would be obligated to pay a gross-up for excise taxes in excess of parachute payments as defined in Internal Revenue Code (IRC) Section 280G.
x No Dividends Payable on Options, SARs or Unvested Equity
Our Restated Plan submitted for stockholder approval under Proposal Three of this proxy statement provides that the holder of any stock option, stock appreciation right, or unvested equity award may not receive dividends with respect to the underlying shares.
Say on Pay – Advisory Vote on Executive Compensation – 96%
At the 2016 Annual Meeting of Stockholders, we conducted our sixth annual non-binding advisory vote on executive compensation paid to our NEOs. Approximately 96% of the votes cast were in favor of our NEO compensation as described in the 2016 proxy statement. The Compensation Committee reviewed these final vote results, which reinforced our pay for performance philosophy, and the Compensation Committee also determined that the structure of our executive compensation policies continues to be appropriately aligned to the achievement of Company goals and objectives and stockholder best interests.
2016 Pay for Performance Alignment
A significant percentage of compensation awards to our NEOs is variable, performance-based compensation that are “at risk.” Each NEO’s compensation is designed to reward the achievement of financial objectives, progress in advancing our drug development pipeline and achievement of other operational goals, while aligning the annual and long-term interests of our executives with those of our stockholders.
Our NEOs’ total target compensation consists of three elements: base salary, annual incentives and long-term incentives. The Compensation Committee also believes in minimal use of perquisites as they do not reinforce our pay-for-performance philosophy. For our NEOs, the mix of compensation is weighted toward long-term, performance-based pay, as reflected in the 2016 charts below:
28
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
[MISSING IMAGE: T1701249_PIE-EXECUTIVE.JPG]
Approximately 88% of our Executive Chairman’s target compensation is performance-based.
[MISSING IMAGE: T1701249_PIE-CEO.JPG]
Approximately 89% of our CEO’s target compensation is performance-based.
   
[MISSING IMAGE: T1701249_PIE-NEO.JPG]
Approximately 87% of our Other NEOs’ target compensation is performance-based.
   
Compensation Element
Description
Performance Measurements/Considerations
Base Salary

Fixed cash-based compensation that is reflective of each NEO’s contributions, experience, responsibilities and potential to contribute to our future success

Reviewed annually and adjusted as appropriate
Per­for­mance-Based
Annual Incentives:
Management Incentive Plan (MIP)

Variable cash-based compensation
Focuses executives on achieving annual financial and strategic results and builds the foundation for long-term value creation

56% Financial objectives

28% Total Revenue

28% Adjusted EPS (1)

44% Strategic corporate objectives
Long-Term
Incentives
(LTI) - Equity

Designed to motivate and reward for sustained, evidenced, high-value contributions that drive our on-going success and provide direct alignment to stockholders
LTI granted in the form of equity via:

50% Stock Options

30% Performance Stock Units (PSUs)

20% Restricted Stock Units (RSUs)
PSUs reward three-year financial and R-TSR results
Opportunity for additional grants based on achievement of performance objectives and value creation. Employee Board members are not eligible for grants for director service.

Stock Options

Performance-based and should remain a significant portion of each NEO’s long term incentives, providing value only if there is future stock price appreciation
PSUs

37.5% - Three year Total Revenue

37.5% - Three year Adjusted EPS (1)

25% - Three year R-TSR
RSUs

Promotes retention and stock ownership, and focuses NEOs on enhancing stockholder value
Long-Term
Incentives
(LTI) - LTIP

Changed to PSUs in fiscal 2015, except for Dr. Vessey who received an award under our 2016–2018 LTIP
Payable in cash or restricted shares, at discretion of Compensation Committee

37.5% - Three year Total Revenue
37.5% - Three year Adjusted EPS (1)

25% - Three year R-TSR
Other

Health and Welfare Benefits

401(k) Match
Reimbursement for tax and financial services up to $15,000 annually
(1)
In addition to financial information prepared in accordance with U.S. GAAP, this document also contains adjusted financial measures based on management’s view of performance. Further information relevant to the interpretation of adjusted financial measures may be found on Appendix A to this proxy statement and our website at www.Celgene.com in the “Investor Relations” section.
29
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Roles and Responsibilities
Role of the Compensation Committee
The Compensation Committee oversees and administers our executive compensation and benefit programs, establishing base salary, incentive compensation, including equity awards, and any other compensation for our NEOs, including reviewing and approving the CEO’s recommendations for the compensation of NEOs and other officers of the Company (other than the CEO and the Executive Chairman) who are determined to be subject to the reporting requirements of Section 16 of the Exchange Act. In addition, the Compensation Committee, in conjunction with the Board of Directors, reviews and approves the CEO’s and the Executive Chairman’s performance and compensation levels. The detailed roles and responsibilities of the Compensation Committee are set forth in its written charter adopted by our Board of Directors, which can be found on our website, www.celgene.com , under the “Corporate Governance” section of the site. The Compensation Committee also ensures that the total compensation paid to our NEOs is reasonable, competitive and achieves the goal of delivering results and enhancing the long-term value to our stockholders.
Role of the Executive Chairman
The Executive Chairman leads the Company’s Board of Directors, and oversees strategic business matters and important company-wide initiatives. The Executive Chairman works closely with the Celgene leadership team on all key issues that are fundamental to Celgene’s success. At the direction of the Board of Directors, the Executive Chairman oversees the performance of the CEO, and also provides support and advice to the CEO regarding performance objectives and compensation recommendations for our NEOs. At the request of the Compensation Committee, the Executive Chairman participates in Compensation Committee meetings.
Role of the CEO
The CEO, with the advice and support of the Executive Chairman, makes recommendations to the Compensation Committee regarding the setting of performance objectives for the Company. After the Company’s objectives are established, the CEO works with each NEO to determine how his/her respective function(s) will contribute to the overall annual and long-term goals of the Company. To this end, at the beginning of each fiscal year, the CEO establishes goals and objectives with each NEO that are designed to advance his/her functional areas, while promoting achievement of overall corporate performance goals. At the conclusion of each fiscal year, the CEO evaluates the actual performance of each NEO via our performance management process and recommends appropriate salary adjustments and incentive awards to the Compensation Committee via our compensation review process.
At the request of the Compensation Committee, the CEO participates in Compensation Committee meetings and provides relevant assessment and explanation supporting his recommendations. Other members of our management, as well as certain advisors, including Radford, also attend Compensation Committee meetings by request.
Role of the Compensation Consultant
The Compensation Committee has retained Radford as its independent compensation consultant to assist in the continual development and evaluation of compensation plans and programs and the Compensation Committee’s determinations of compensation awards. The Compensation Committee’s consultant attends Compensation Committee meetings, at the request of the Compensation Committee, and provides third-party and benchmarking data, independent analyses, advice and industry expertise on plan design, best practices and compensation regulations. The Compensation Committee’s consultant also proposes executive compensation levels within our plans.
At the request of the Compensation Committee, Radford reviews briefing materials prepared by management and outside advisors to management and advises the Compensation Committee on matters covered in the materials, ensuring the consistency of proposals with the Compensation Committee’s compensation philosophy and comparisons to programs at peer companies. Also at the request of the Compensation Committee, Radford prepares its own analyses and reports, including positioning of plans and programs within the context of competitive market analyses designed to ensure that our plans and programs reinforce the principles within our compensation philosophy.
The Compensation Committee has assessed the independence of Radford pursuant to SEC rules and concluded that no conflict of interest exists that would prevent it from serving as an independent consultant to the Compensation Committee. For more information about the Compensation Committee’s engagement of Radford, please see “Board Meetings; Committees and Membership — Compensation Committee Consultant.”
30
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Elements of Our Compensation Programs for NEOs & 2016 Compensation Actions
Base Salary
Base salaries provide fixed cash compensation to each of our NEOs. As a reflection of our performance culture, base salary adjustments are reviewed annually by the Compensation Committee. In its capacity as consultant, each year, at the request of the Compensation Committee, Radford provides an analysis of the competitive landscape within our industry and our peer group as additional context in which the Compensation Committee makes base salary decisions. The Compensation Committee considers the following factors when determining base salaries:

scope of responsibilities and experience

annual and sustained performance

expected future contribution and ability to deliver value to stockholders

analysis of internal pay alignment, external market conditions and competitive positioning
Base Salary for Fiscal 2016
The 2016 base salary increases for each of our NEOs are as follows:
NEO
2015 Salary
2016 Salary
Effective
Date of
Salary
Adjustment
%
Increase
Reason
Robert J. Hugin $ 1,500,000 $ 1,500,000
n/a
0 % No increase, current salary at the time of
transition from CEO to Executive Chairman
was determined by our Compensation
Committee to be appropriate for the new role.
Mark J. Alles $ 875,500 $ 1,100,000
3/1/2016
26 % Increase related to promotion to CEO
Peter N. Kellogg $ 824,000 $ 850,000
3/1/2016
3 % Merit and performance increase
Jacqualyn A. Fouse, Ph.D. $ 849,800 $ 960,000
3/1/2016
13 % Increase related to promotion to COO
Scott A. Smith (1) $ 650,000 $ 700,000
3/1/2016
8 % Increase related to promotion to President, Inflammation & Immunology
Rupert J. Vessey, MA, BM
BCh, FRCP, D.Phil.
$ 575,000 $ 675,000
1/8/2016
17 % Increase related to promotion to President, Research & Early Development
(1)
Effective April 1, 2017, Mr. Smith was promoted to President and Chief Operating Officer with an annual base salary of  $875,000 and target incentive of 90%.
Annual Bonus
Annual incentives are determined under our MIP. The MIP is a variable pay plan designed to focus NEOs on annual goals and objectives that are established to drive the annual and long-term success of our business. The Compensation Committee reviews and approves each plan year’s targets and performance metrics under the MIP to ensure that they are challenging and commensurate with our annual and long-term business plan. The target annual incentive award opportunity for each of our NEOs represents a percentage of base salary earned in the fiscal year. Each year, Radford, in its capacity as consultant, at the request of the Compensation Committee provides an analysis of the competitive landscape within our industry and our peer group as additional context in which the Compensation Committee makes individual bonus target decisions. For all of our NEOs, actual payments made under the MIP are calculated based 100% on our corporate performance objectives as approved by the Compensation Committee. For all of our NEOs the maximum potential bonus payout was 200% of their annual bonus target, not to exceed 200% of annual base salary. The minimum payout for all NEOs was zero. Awards generally are payable at the end of February following the year to which the performance goals relate.
Setting Fiscal 2016 Corporate MIP Targets
In December 2015, the Compensation Committee determined that Adjusted EPS (1) , total revenue and certain non-financial measures continued to be appropriate measures for use in connection with the fiscal 2016 MIP. In January 2016, the Compensation Committee finalized and approved these targets for the fiscal 2016 MIP. The Compensation Committee believes that these measures, balanced with our long-term objective of maintaining a significant research and development reinvestment rate, fuel our long-term growth, best serve our patients and reflect true operating performance. The corporate performance measures for fiscal 2016 were based on the following components and associated weights with a max of 200% of achievement:
31
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
56% Financial Objectives

28% on total revenue — Target range of  $10.55 – $10.95 billion

28% on Adjusted EPS (1)  — Target range of  $5.50 – $5.70 per share
44% Non-Financial Objectives (Selected Strategic Corporate Objectives)

advancement of our hematology clinical and regulatory pipeline: REVLIMID ® in newly diagnosed multiple myeloma transplant eligible maintenance and non-Hodgkin’s lymphoma; POMALYST ® /IMNOVID ® in relapsed refractory multiple myeloma; and our late-stage pipeline assets in myeloid diseases;

advancement of our oncology clinical and regulatory pipeline: ABRAXANE ® in breast cancer, as adjuvant therapy in surgically resected pancreatic cancer, and in immuno-oncology combination therapies;

advancement of our inflammation and immunology clinical and regulatory pipeline: OTEZLA ® in ulcerative colitis, Behçet’s disease and pediatric psoriasis; GED-0301 in Crohn’s disease and ulcerative colitis and Ozanimod in relapsing multiple sclerosis and ulcerative colitis;

achieve reimbursement for our commercial products in key geographies and markets; and

clinical advancement of early stage product candidates, both internally and through external collaborations.
(1)
In addition to financial information prepared in accordance with U.S. GAAP, this document also contains adjusted financial measures based on management’s view of performance. Further information relevant to the interpretation of adjusted financial measures may be found on Appendix A to this proxy statement and our website at www.Celgene.com in the “Investor Relations” section.
Under the MIP, the Compensation Committee may provide for the adjustment, modification or amendment of the performance measures and targets in the plan to reflect certain events that affect such performance measures and targets, including (i) restructurings, discontinued operations, items or events, corporate transactions (including dispositions or acquisitions) and other unusual or non-recurring items, and (ii) changes in tax law or accounting standards required.
Fiscal 2016 MIP Payouts
Based on our full year financial results, the Compensation Committee determined that the MIP score for fiscal 2016 was 157.75% of target, which includes both financial and non-financial performance. These fiscal 2016 financial achievements include Adjusted EPS (1) of  $5.94 and total revenue of  $11.2 billion. Among the achievements in the clinical area were the progression of multiple key strategic studies both domestically and internationally, and the deepening of our pipeline through strategic external collaborations and acquisitions. We have not disclosed the specific non-financial performance targets under the MIP because these targets represent confidential business information that could place us at a competitive disadvantage by providing insight into our long-term performance and financial goals.
NEO
Bonus
Target from
1/1/2016 to
2/28/2016
as % of
Earned Salary
Bonus
Target from
3/1/2016 to
12/31/2016
as % of
Earned Salary
Corporate
Weighting
X
Corporate Score
Bonus Paid (2)
2/28/2017
Robert J. Hugin 125 % 125 %
100% x 157.75%
$ 2,957,813
Mark J. Alles 90 % 125 %
100% x 157.75%
$ 1,999,066
Peter N. Kellogg 70 % 75 %
100% x 157.75%
$ 989,590
Jacqualyn A. Fouse, Ph.D. 80 % 90 %
100% x 157.75%
$ 1,312,523
Scott A. Smith 75 % 80 %
100% x 157.75%
$ 863,936
Rupert J. Vessey, MA, BM BCh, FRCP, D.Phil. 70 % 70 %
100% x 157.75%
$ 739,281
(1)
For the reconciliation of the adjusted (non-GAAP) financial measures to the most comparable GAAP financial measures, see Appendix A to this proxy statement.
(2)
Bonus paid is based on salary earned multiplied by each bonus target over the relevant time period in fiscal 2016. Dr. Vessey’s bonus was calculated based on a bonus target of 50% from January 1, 2016 through January 7, 2016 and 70% for the remainder of fiscal 2016.
32
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Long-Term Incentives – Equity Grants
Our equity awards align the interests of our NEOs with those of our stockholders through rewarding exceptional corporate performance and stockholder returns and by ensuring that decisions made in the short-term solidify a strong future for our Company. Awards granted pursuant to the 2008 Stock Incentive Plan are an essential component of our total compensation strategy. The equity pool of awards available to grant to all employees (including our NEOs) in any given year is approved at the end of the prior year by the Compensation Committee, subject to the overall maximum number of shares of our stock available under the 2008 Stock Incentive Plan.
As part of the ongoing review of our compensation strategy and practices, the Compensation Committee approves equity awards based in part on recommendations from Radford. The Compensation Committee approves targets and actual award amounts based upon relative contribution to our Company performance, individual performance, demonstrated leadership, and expected future contributions to the achievement of Company goals and objectives.
The Compensation Committee determined that, beginning in fiscal 2015, PSUs would be added to the annual equity program for our NEOs, as they are a common equity type among our peers and reflect the Compensation Committee’s intent to provide significant at-risk pay via long-term incentives. This philosophy further aligns our compensation programs to financial performance and the long-term performance of our Company. Awards granted to NEOs in fiscal 2016 were a mix of 50% stock options, 30% PSUs and 20% RSUs, with the exception of Dr. Vessey who was not a NEO at the commencement of the PSU cycle and he therefore participated in our 2016–2018 LTIP plan, described in more detail below.
The Compensation Committee has weighted 80% of NEO equity awards to be based on performance with an emphasis on stock options, as these awards realize value only when the market price of our Common Stock is above the exercise price, and PSUs, thereby aligning executive compensation with future stockholder value and focusing our NEOs on the overall long-term financial success of the Company. The current mix of equity maintains a balance between each NEO’s ability to drive attainment of key financial metrics (e.g., Total Revenue and Adjusted EPS (1) ) and delivery of value to our stockholders (as measured primarily through R-TSR). Shares issued on vested PSUs are subject to a holding period of one year and one day from the day after the conclusion of the applicable performance cycle.
The Compensation Committee chose to benchmark R-TSR relative to the combined constituents of the S&P 500 Biotechnology Index and the S&P 500 Pharmaceutical Index due to the strong correlation over time with Celgene stock price performance and represents the indices many of our institutional investors use for comparison. The R-TSR achievement under the 2015–2017 and 2016–2018 performance cycles will be measured relative to the top 36 public U.S. biotechnology and pharmaceutical companies with a sustained market cap above $700M for the last 3 years as measured in August prior to the commencement of each plan cycle.
Active PSU Performance Cycle
Measurements
Weight
Threshold, Target &
Maximum of
Financial Measures
2015–2017 Total Revenue 37.5 %
90%–100%–110%
2016–2018
Adjusted EPS (1)
37.5 %
90%–100%–110%
R-TSR 25 %
35 th –50 th –80 th
(percentiles)
(1)
In addition to financial information prepared in accordance with U.S. GAAP, this document also contains adjusted financial measures based on management’s view of performance. Further information relevant to the interpretation of adjusted financial measures may be found on Appendix A to this proxy statement and our website at www.Celgene.com in the “Investor Relations” section.
The Compensation Committee may adjust the mix of award types or approve different award types as part of the overall long-term incentive award strategy. Awards made in connection with a new, extended or expanded employment relationship may involve a different mix of equity awards, depending on the Compensation Committee’s assessment of the total compensation package being offered.
33
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
The table below provides an overview of our equity award types and selected terms granted to our NEOs:
Type
General Terms
Stock Options

Granted upon hire, then annually on a quarterly pre-set schedule determined by the Compensation Committee

Service-based vesting over four years (25% per year)

Ten-year term
Subject to recovery
PSUs

Granted annually on a pre-set schedule determined by the Compensation Committee
Three-year vesting and measurement period, subject to attainment of defined, weighted metrics approved by the Compensation Committee prior to the grant as follows:

37.5% Total Revenue

37.5% Adjusted EPS (1)

25% R-TSR
Shares issued on vested PSUs must be held for one year and one day from the day after conclusion of the applicable performance cycle
Subject to recovery
RSUs

Granted upon hire, then annually on pre-set schedule determined by the Compensation Committee

Service-based cliff vesting (generally, 100% vested on third anniversary of grant date)
Subject to recovery
General Provisions for Death, Disability, Termination as a result of Change in Control and Retirement for Stock Options, RSUs and PSUs

In the event of death, permanent disability or termination within two years as a result of a change in control (i.e. a double-trigger), the vesting of stock options, RSUs and PSUs will accelerate (but shares issued on vested PSUs will be based on actual plan performance as of the last day of the calendar quarter preceding the date of death, disability or termination)
If the NEO (other than our Executive Chairman) attains retirement as defined in the 2008 Stock Incentive Plan and has given at least six months’ notice of the intent to retire, as of the date of retirement:

RSUs will vest on retirement, but will be payable on the earliest of death, disability or the originally scheduled vesting date

PSUs will continue to vest and a pro rata portion (based on number of completed months of employment during the performance period) will be payable at the end of the performance period based on actual results

Stock options will continue to vest and will remain exercisable until the earlier of three years after retirement or the original expiration date
If our Executive Chairman attains retirement as defined in the 2008 Stock Incentive Plan, any vesting and payment of his stock options, RSUs and PSUs will occur in accordance with the terms of his employment agreement and the applicable award agreement
(1)
In addition to financial information prepared in accordance with U.S. GAAP, this document also contains adjusted financial measures based on management’s view of performance. Further information relevant to the interpretation of adjusted financial measures may be found on Appendix A to this proxy statement and our website at www.Celgene.com in the “Investor Relations” section.
Equity Grants for Fiscal 2016
During fiscal 2016, Radford recommended, and the Compensation Committee approved, the following equity awards for our NEOs:
Name
Stock
Options
RSUs
PSUs for the 2016–2018 Performance Cycle
   
Threshold
Target
Max
Robert J. Hugin 129,707 15,608 11,706 23,412 46,824
Mark J. Alles 97,632 15,608 11,706 23,412 46,824
Peter N. Kellogg 66,689 12,438 5,122 10,243 20,486
Jacqualyn A. Fouse, Ph.D. 64,254 9,755 7,317 14,633 29,266
Scott A. Smith 65,050 11,957 5,122 10,243 20,486
Rupert J. Vessey, MA, BM BCh, FRCP, Dphil (1)
60,147 12,100
(1)
For the 2016–2018 performance cycle, Dr. Vessey participated in the LTIP as described under “LTIP Awards for 2016;” he did not receive PSUs in fiscal 2016.
34
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Long-Term Incentives – LTIP
The Compensation Committee determined that, beginning with the 2015–2017 performance cycle, selected executives, including all of our NEOs, will no longer participate in the LTIP and that long-term equity awards for our NEOs will be granted solely via a combination of stock option, RSU and PSU awards. However, Dr. Vessey is a participant in the 2015–2017 and 2016–2018 LTIP plan cycles as he was not a NEO at the commencement of each plan cycle. The targets under the LTIP are expressed as a percentage of the NEO’s annual base salary at the time his or her participation was approved by the Compensation Committee.
The LTIP is a three-year plan designed to focus executives on achievement of longer-term objectives that are intended to ensure our long-term success financially, commercially and in our research and development programs. Prior to the commencement of each three-year plan (a “performance cycle”), the Compensation Committee establishes three key corporate-wide metrics against which performance will be measured. These objectives are weighted and awards earned under the LTIP are calculated based on actual performance in relation to these weighted objectives. The threshold, target and maximum cash payout levels under the current LTIP performance cycle ending in December of each plan cycle are calculated as a percentage of each NEO’s base salary at the time the LTIP was approved by the Compensation Committee.
Payments under the LTIP may be made in cash or restricted shares of our common stock, or a combination thereof, as determined by the Compensation Committee in its sole discretion at the end of each performance cycle. Share-based payout levels remain constant throughout the performance cycle and are calculated using the cash-based threshold, target and maximum levels, divided by the average closing price of Celgene stock for the 30 trading days prior to the commencement of the performance cycle. Final award values are reflective of the stock price at the end of the measurement period.
The Compensation Committee believes that the LTIP performance measures described below properly align executive pay with the interests of our stockholders and achieves a balanced approach to performance-based long-term incentives through focusing executive pay on internal financial measures and the external measurement of stock performance in relation to industry comparators.
Active LTIP Performance Cycle
Measurements
Weight
Threshold, Target &
Maximum of
Financial Measures
2014–2016 Total Revenue 37.5 %
90%–100%–110%
2015–2017
Adjusted EPS (1)
37.5 %
90%–100%–110%
2016–2018 R-TSR 25 %
35 th –50 th –80 th
(percentiles)
(1)
In addition to financial information prepared in accordance with U.S. GAAP, this document also contains adjusted financial measures based on management’s view of performance. Further information relevant to the interpretation of adjusted financial measures may be found on Appendix A of this proxy statement and our website at www.Celgene.com in the “Investor Relations” section.
LTIP Awards for Fiscal 2016
For the 2014–2016 LTIP cycle, the Compensation Committee approved the performance achievement of 176.7% of target in relation to the pre-established measures, consisting of three financial performance objectives: (1) Total Revenue (1) (weighting of 37.5%), (2) Adjusted EPS (1) (weighting of 37.5%), and (3) R-TSR (weighting of 25%). We have not disclosed the specific performance targets under the LTIP because these targets represent confidential business information that could place us at a competitive disadvantage by providing insight into our long-term performance and financial goals. For the 2014–2016 LTIP plan cycle, awards were settled in shares of our Common Stock, with the exception of Mr. Smith and Dr. Vessey who were paid in cash. Shares under the 2014–2016 LTIP are subject to a holding period of one year and one day from the day after the conclusion of the applicable performance cycle.
Our R-TSR achievement for the 2014–2016 (three year) performance period was positioned at the 84 th percentile of the S&P 500 Pharmaceutical and S&P 500 Biotech peer indices, resulting in a 200% payout for the R-TSR measure.
35
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
The actual payouts under the LTIP for the 2014–2016 performance period, reflecting the June 2014 two-for-one stock split, were as follows:
Name
2014–2016
Payout (1)(2)
Robert J. Hugin 28,510 shares
Mark J. Alles 14,447 shares
Peter N. Kellogg 14,684 shares
Jacqualyn A. Fouse, Ph.D. 16,322 shares
Scott A. Smith $ 432,891      
Rupert J Vessey, MA, BM BCh, FRCP, D.Phil. $ 324,545      
(1)
The shares actually received were based on a percentage of achievement of performance (176.7%) as approved by the Compensation Committee multiplied by the target payouts as determined by the Compensation Committee based on a percentage of each NEO’s December 2013 base salary rate, except for Mr. Kellogg and Dr. Vessey, whose target payouts were based on a percentage of their base salary as of each of their hire dates and were prorated for the number of full months of participation in the performance cycle.
(2)
Share-based payouts for our NEOs (except Mr. Kellogg) were determined using the average closing price of our Common Stock for the 30 trading days immediately prior to the commencement of the performance cycle which began on January 1, 2014. For Mr. Kellogg, the share-based payout was determined using the average closing price of our Common Stock for the 30 trading days preceding his hire date of July 1, 2014. Dr. Vessey and Mr. Smith did not have a share-based target and were paid in cash.
During fiscal 2016, our eligible NEOs received a payment for the 2013–2015 performance cycle, based on overall achievement under the plan of 156.9% of target, the details of which have been previously disclosed. Awards were settled in shares of our Common Stock, with the exception of Dr. Vessey and Mr. Smith who were paid in cash. Shares under the 2013–2015 LTIP are subject to a holding period of one year and one day from the day after the conclusion of the applicable performance cycle.
As previously discussed, our NEOs do not participate in the 2015–2017 and 2016–2018 LTIP cycles, except for Dr. Vessey who was not a NEO at the commencement of either cycle. As a result, Dr. Vessey is eligible to receive an award for the remaining three-year 2015–2017 and 2016–2018 performance cycles and it is the intention of the Compensation Committee to settle his awards in cash. The potential payout for each plan cycle, intended to be paid in cash (as determined by the Compensation Committee), is expressed as Dr. Vessey’s applicable base salary, multiplied by the applicable percentage (threshold, target or maximum), under the LTIP for the 2015–2017 and 2016–2018 performance periods. The threshold, target and maximum cash payout for the 2015–2017 performance cycle is 50%, 100% and 200% respectively of his base salary as of his hire date, January 28, 2015, and is prorated for the number of full months of participation in the performance cycle. Actual threshold, target and maximum values are $139,757, $279,514 and $559,028 respectively. The threshold, target and maximum cash payout for the 2016–2018 performance cycle is 50%, 100% and 200% respectively of his December 2015 base salary. Actual threshold, target and maximum values are $287,500, $575,000 and $1,150,000 respectively.
Other Elements of Compensation
Retirement Benefits
We do not offer pension benefits to our U.S.-based employees, including our NEOs. Instead, we provide the opportunity to accumulate retirement income through:

Nonqualified Deferred Compensation Plan (Nonqualified Plan):    An unfunded plan to which certain U.S.-based management-level employees and each of our NEOs may elect to defer up to 90% of their base salary and up to 100% of their MIP and LTIP payments. For further discussion of the Nonqualified Plan, see “Employer Contributions to the Nonqualified Deferred Compensation Plan” and “Additional Information Regarding Executive Officers — Nonqualified Deferred Compensation Table” elsewhere in this proxy statement. For fiscal 2016, we made semi-monthly cash matching contributions to the Nonqualified Plan on behalf of Mr. Hugin in the amount of 15% of gross base salary earnings for an aggregate annual contribution of $225,000. Our other NEOs were not eligible to receive matching contributions under the Nonqualified Plan. For further discussion of the Nonqualified Plan, see “Additional Information Regarding Executive Officers — Nonqualified Deferred Compensation Table” elsewhere in this proxy statement.

401(k) Plan:    Our 401(k) Plan is a tax-qualified retirement savings plan available to all of our eligible employees, including our NEOs. We make matching contributions under our 401(k) Plan in the form of shares of our Common Stock to the Plan accounts of all eligible employees (up to 6% of their eligible earnings or the maximum permitted by law) who participate in the 401(k) Plan and are active employees on the final day of the Plan calendar year or terminated under our qualified
36
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
retirement requirements during the plan year, including our NEOs. Matching contributions for all employees, including our NEOs, vest 20% per year for the first five years of employment, after which all current and future contributions are 100% vested. For fiscal 2016, we made matching contributions to our NEOs (deposited in the first quarter of 2017) under the 401(k) Plan as follows:
Name
Matching Contributions under the 401(k) Plan (1)
Robert J. Hugin 150.17 shares of Common Stock (fair value of  $17,382)
Mark J. Alles 150.17 shares of Common Stock (fair value of  $17,382)
Peter N. Kellogg 150.17 shares of Common Stock (fair value of  $17,382)
Jacqualyn A. Fouse, Ph.D. 150.17 shares of Common Stock (fair value of  $17,382)
Scott A. Smith 150.17 shares of Common Stock (fair value of  $17,382)
Rupert J. Vessey, MA, BM BCh, FRCP, D.Phil. 150.17 shares of Common Stock (fair value of  $17,382)
   
(1)
The matching 401(k) Plan amounts reflect the fair value of the shares issued as of December 31, 2016 and are included in the Summary Compensation Table, column (i), which is included elsewhere in this proxy statement.
Other Benefits

Health & Welfare Benefits:    We provide our NEOs health and welfare benefits that are consistent with the plans, programs and eligibility provided to other employees. In addition, we provide an excess liability insurance policy to certain senior-level eligible employees. The premiums for such policies are reported as income for our employees, including our NEOs. For fiscal 2016, we made premium payments of  $2,704 on behalf of Messrs. Hugin and Kellogg, and Ms. Fouse, $2,159 on behalf of Mr. Smith, $952 on behalf of Mr. Alles and $530 on behalf of Dr. Vessey. Mr. Hugin also received Company contributions to a health savings account in fiscal 2016 equal to $2,313, the same rate as other employees who enroll in this plan. Attributed amounts of the perquisites and other personal benefits described above for our NEOs for fiscal 2014, fiscal 2015 and fiscal 2016 are included in column (i) of the Summary Compensation Table included elsewhere in this proxy statement.

Professional Tax and Financial counseling:    Each of our NEOs is eligible for reimbursement of reasonable expenses incurred in obtaining professional tax and financial counseling, up to a maximum of $15,000 annually. Attributed amounts of the perquisites and other personal benefits described above for our NEOs for fiscal 2014, fiscal 2015 and fiscal 2016 are included in column (i) of the Summary Compensation Table included elsewhere in this proxy statement.
Policy with respect to Compensation Deductibility
Our policy with respect to the deductibility limit of Section 162(m) of the Code generally is to preserve the federal income tax deductibility of compensation paid when it is appropriate and is in our best interest. We reserve the right to authorize the payment of non-deductible compensation if we deem that it is appropriate to do so under the circumstances. We believe that cash and equity incentive compensation must be maintained at the requisite level to attract and retain talented executive officers, even if all or part of that compensation may not be deductible by reason of Section 162(m) of the Code. In addition, because there are uncertainties as to application of regulations under Section 162(m) of the Code, as with most tax matters it is possible that our deductions may be challenged or disallowed.
37
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
COMPENSATION COMMITTEE REPORT TO STOCKHOLDERS
The Compensation Committee of our Board of Directors has reviewed and discussed the Compensation Discussion and Analysis required by Item 402(b) of Regulation S-K with management and, based on such review and discussions, the Compensation Committee recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this proxy statement.
Respectfully submitted,
THE COMPENSATION COMMITTEE
Ernest Mario, Ph.D., Chairman
Michael D. Casey
James J. Loughlin
38
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
ADDITIONAL INFORMATION REGARDING EXECUTIVE OFFICERS
Executive Officers
Our current executive officers are listed in the table below along with their ages and positions. Each executive officer holds the offices set forth opposite his or her name until his or her successor is chosen and qualified at the regular meeting of the Board of Directors to be held on the date of the Annual Meeting.
Name
Age (1)
Position
Robert J. Hugin 62 Executive Chairman
Mark J. Alles 58 Chief Executive Officer
Peter N. Kellogg 61 Executive Vice President and Chief Financial Officer
Jacqualyn A. Fouse, Ph.D. 56 Strategic Advisor to the Executive Committee
(formerly President and Chief Operating Officer) (2)
Gerald F. Masoudi 49 Executive Vice President, General Counsel and Corporate Secretary
Michael F. Pehl 52 President, Hematology & Oncology
Scott A. Smith 55 President and Chief Operating Officer
(formerly President, Global Inflammation & Immunology) (2)
Rupert J. Vessey, MA, BM BCh, FRCP, D.Phil.
52 President, Research and Early Development
(1)
As of June 14, 2017
(2)
As of April 1, 2017
Robert J. Hugin is our Executive Chairman. See “Proposal One: Election of Directors — Nominees” for a discussion of Mr. Hugin’s business experience.
Mark J. Alles is our Chief Executive Officer. See “Proposal One: Election of Directors — Nominees” for a discussion of Mr. Alles’ business experience.
Peter N. Kellogg was named Executive Vice President, Chief Financial Officer and Chief Accounting Officer in August 2014 overseeing Financial Planning, Accounting, Tax/Treasury and Investor Relations. Mr. Kellogg joined Celgene as Executive Vice President in July 2014. Before joining the Company, he was Chief Financial Officer and Executive Vice President of Merck & Co. Inc. from 2007 to 2014. From 2000 to 2007, Mr. Kellogg served as Chief Financial Officer and Executive Vice President of Finance (since 2003) at Biogen, Inc. Earlier in his career, Mr. Kellogg was a member of PepsiCo’s management for 13 years. He was the Senior Vice President, PepsiCo E-Commerce in 2000 and Senior Vice President and Chief Financial Officer, Frito-Lay International, from 1998 to 2000. Before that, Mr. Kellogg held various General Manager and Chief Financial Officer roles at Frito-Lay and Pepsi Cola in the US, Europe, Asia, and Latin America. Prior to joining PepsiCo, Mr. Kellogg was a senior consultant with Booz Allen & Hamilton and Arthur Andersen & Co. Since 2007, Mr. Kellogg has served on the Board of Directors of Yield10 (formerly Metabolix, Inc.), a public bioscience company focused on developing step change improvements to crop yields to enhance global food security. Mr. Kellogg received his BSE from Princeton University in 1978 and MBA from The Wharton School in 1982.
Jacqualyn A. Fouse, Ph.D . assumed her current role as of April 1, 2017. She was President and Chief Operating Officer from March 1, 2016 through March 31, 2017. Ms. Fouse will retire from the Company effective June 30, 2017. She will not stand for re-election to the Board. See “Proposal One: Election of Directors — Nominees” for a discussion of Ms. Fouse’s business experience.
Gerald F. Masoudi joined Celgene in May 2015 and was named Executive Vice President, General Counsel and Corporate Secretary on June 1, 2015. He joined Celgene from Covington & Burling LLP, a leading international law firm, where he was a partner and served as co-chair of the Food and Drug practice group. At Covington, he advised multinational companies and trade associations on significant litigation, enforcement, regulatory and public policy matters. Before joining Covington, Mr. Masoudi served as Principal Deputy/Acting Chief Counsel (2004–2005) and as Chief Counsel (2007–2009) of the U.S. Food and Drug Administration (FDA), where he advised the FDA Commissioner and HHS leadership on regulatory, litigation and enforcement matters under the Food Drug and Cosmetic Act and related statutes. Before joining the FDA as Chief Counsel, Mr. Masoudi served as Deputy Assistant Attorney General for international, policy and appellate matters in the Antitrust Division of the U.S. Department of Justice (2005–2007). Before his government service, Mr. Masoudi was a trial and litigation partner with the law firm Kirkland & Ellis LLP. Mr. Masoudi received his J.D. from The University of Chicago Law School, graduating in 1993 with high honors. He received his B.A. in economics in 1990 from Amherst College.
39
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Michael F. Pehl was named President, Global Hematology & Oncology in March 2016 after serving as Senior Vice President of Global Marketing since July 2014. Mr. Pehl joined Celgene in 2006 as General Manager of Celgene Germany. He subsequently served as Regional Vice President of Central Europe, Vice President, Head of Marketing Europe, Vice President, Head of Hematology Europe and Corporate Vice President, Head of Global Marketing. Before coming to Celgene, he spent 14 years at Amgen, Inc., holding various positions in oncology, rheumatology and nephrology in Germany and Switzerland. Mr. Pehl received his Diploma in Molecular Biology and Biochemistry from Ludwig Maximilian University of Munich.
Scott A. Smith was named President and Chief Operating Officer on April 1, 2017. Prior thereto he was President, Global Inflammation & Immunology (I & I) since August 2014. Previously he was Senior Vice President, Global Head of I & I. He joined Celgene in 2008 as Vice President, Global Marketing Inflammation and Immunology. From 2003 to 2008, Mr. Smith was with Biovail, holding positions of General Manager Biovail U.S., General Manager Biovail Canada and Global Commercial Head. As Global Commercial Head for Biovail, he was responsible for global revenue generation, global commercial strategies, business development strategy, and input into global regulatory and clinical development strategies. Prior to Biovail, Mr. Smith was with Pharmacia/Upjohn for 16 years where he held various positions including Vice President U.S. Sales, Vice President Marketing Europe based in Paris, Vice President and Commercial Lead for Canada based in Toronto, and Commercial and Regulatory Head for South East Asia based in Hong Kong. Mr. Smith holds a BSc in Chemistry and an HBSc in Pharmacology and Toxicology from the University of Western Ontario and a Masters of International Business Management from the American Graduate School of International Management (Thunderbird). Mr. Smith became a member of the Board of Directors of Titan Pharmaceuticals on January 1, 2017.
Dr. Rupert J. Vessey, MA, BM BCh, FRCP, D.Phil. was named President, Research and Early Development in January 2016. He joined Celgene in January 2015 as Senior Vice President, Translational Development. Before joining Celgene, Dr. Vessey was Senior Vice President of Early Development and Discovery Sciences at Merck. During his ten years with Merck, Dr. Vessey was responsible for numerous drug development programs and also served as Senior Vice President, Respiratory and Immunology Franchise and Vice President, Drug Discovery and Informatics. Prior to Merck, he spent five years at GlaxoSmithKline in drug discovery, experimental medicine and early clinical development of therapeutics for respiratory and immune diseases. Dr. Vessey graduated from Oxford University with degrees in Physiological Sciences (MA), Clinical Medicine (BM, BCH) and a D.Phil. (PhD) in Molecular Immunology. He is an elected Fellow of the Royal College of Physicians. Dr. Vessey serves on the Board of Directors of Juno Therapeutics, Inc., a public biotechnology company.
40
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
SUMMARY COMPENSATION TABLE
The following table sets forth information regarding compensation earned by our NEOs for the fiscal years ended December 31, 2016, 2015, and 2014.
Name and Principal Position
(as of 12/31/2016)
Year
Salary
Bonus (1)
Stock
Awards (2)
Option
Awards (2)
Non-Equity
Incentive Plan
Compensation (3)
Change
in Pension
Value and
Nonqualified
Deferred
Compensation
Earnings (4)
All Other
Compensation (5)
Total
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
Robert J. Hugin (6)
Executive Chairman
2016 $ 1,500,000 $ 4,257,765 $ 4,227,020 $ 6,294,053 $ 247,399 $ 16,526,237
2015 $ 1,483,333 $ 5,431,237 $ 7,944,888 $ 7,370,103 $ 243,351 $ 22,472,912
2014 $ 1,380,000 $ 3,899,980 $ 9,614,448 $ 9,110,269 $ 231,416 $ 24,236,113
Mark J. Alles (6)
Chief Operating Officer
2016 $ 1,062,583 $ 4,257,765 $ 3,164,081 $ 3,689,654 $ 18,334 $ 12,192,417
2015 $ 871,250 $ 2,176,127 $ 1,405,470 $ 3,442,215 $ 17,109 $ 7,912,171
2014 $ 767,917 $ 901,257 $ 2,077,620 $ 4,278,167 $ 21,272 $ 8,046,233
Peter N. Kellogg
Executive Vice President
and CFO
2016 $ 845,667 $ 2,435,987 $ 2,118,031 $ 2,707,912 $ 29,677 $ 8,137,274
2015 $ 820,000 $ 2,072,789 $ 1,405,470 $ 1,383,257 $ 24,120 $ 5,705,636
2014 $ 400,000 $ 5,815,094 $ 3,313,252 $ 560,000 $ 9,098 $ 10,097,444
Jacqualyn A. Fouse, Ph.D. (6)
Strategic Advisor to the
Executive Committee
(formerly President and
Chief Operating Officer)
2016 $ 941,633 $ 2,661,152 $ 2,084,723 $ 3,222,523 $ 109,784 $ 9,019,815
2015 $ 845,667 $ 2,124,401 $ 1,405,470 $ 3,679,323 $ 18,641 $ 8,073,502
2014 $ 803,250 $ 901,257 $ 2,077,620 $ 4,867,123 $ 22,238 $ 8,671,488
Scott A. Smith
President and Chief Operating Officer
(formerly President, Immunology & Inflammation)
2016 $ 691,667 $ 2,386,838 $ 2,068,924 $ 1,296,827 $ 19,541 $ 6,463,797
2015 $ 641,667 $ 2,072,789 $ 1,189,715 $ 860,433 $ 18,641 $ 4,783,245
2014 $ 546,246 $ 837,784 $ 1,141,664 $ 719,941 $ 22,238 $ 3,267,873
Rupert J. Vessey, MA, BM BCh, FRCP, D.Phil.
Executive Vice President, Research & Early Development
2016 $ 673,141 $ 1,255,157 $ 1,904,017 $ 1,063,826 $ 23,850 $ 4,919,991
(1)
No bonuses are reportable under column (d) but rather are included as non-equity incentive plan compensation under column (g).
(2)
The value of RSU awards in column (e) and stock options in column (f) equals the fair value at date of grant, disregarding for this purpose the estimate of forfeitures related to service-based vesting conditions. The value of PSUs in column (e) equals the fair value at date of grant determined based on the probable outcome of the award, excluding the effect of estimated forfeitures. These values are calculated in accordance with FASB ASC 718. The assumptions used in determining the grant date fair values of these RSU, PSU and option awards for their respective years are set forth in Note 14 to our Consolidated Financial Statements included in our Annual Report on Form 10-K for fiscal 2016 filed with the SEC. The value of the PSUs on the grant date assuming the maximum award are shown below. Dr. Vessey did not receive PSU awards in 2016 because he was not a NEO at the time of grant.
NEO
2015 PSU
2016 PSU
Robert J. Hugin $ 6,839,616 $ 4,916,520
Mark J. Alles $ 1,442,368 $ 4,916,520
Peter N. Kellogg $ 1,442,368 $ 2,151,030
Jacqualyn A. Fouse, Ph.D. $ 1,442,368 $ 3,072,930
Scott A. Smith $ 1,442,368 $ 2,151,030
(3)
The amounts in column (g) reflect the aggregate cash awards to the NEOs under the fiscal 2016, fiscal 2015 and fiscal 2014 MIP and the 2012–2014, 2013–2015, and 2014–2016 performance cycles under the LTIP. At the election of the Compensation Committee, after the conclusion of the performance period, the 2014–2016 LTIP was paid in shares of our Common Stock to our NEOs (except for Mr. Smith and Dr. Vessey who were paid in cash) with a one year and one-day hold and the dollar value of that stock award on the share delivery date is reflected in this amount and in the table below. The payouts under the fiscal 2016 MIP and the 2014–2016 LTIP performance cycle were approved by the Compensation Committee on January 24, 2017 and paid shortly thereafter. The MIP and the LTIP are discussed in further detail under the heading “Key 2016 Compensation Actions and Program Highlights” and which, for purposes of this Summary Compensation Table, have been characterized as “Non-Equity Incentive Plan Compensation” under this column (g) rather than “Bonus” under column (d). The amounts of the MIP bonus and the value of the LTIP share payouts as of the share delivery date are shown below.
41
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
NEO
2016 MIP
2014–2016 LTIP
Robert J. Hugin $ 2,957,813 $ 3,336,240
Mark J. Alles $ 1,999,066 $ 1,690,588
Peter N. Kellogg $ 989,590 $ 1,718,322
Jacqualyn A. Fouse, Ph.D. $ 1,312,523 $ 1,910,000
Scott A. Smith $ 863,936 $ 432,891
Rupert J. Vessey, MA, BM BCh, FRCP, D.Phil. $ 739,281 $ 324,545
(4)
We do not have a pension plan for our NEOs. Under our Nonqualified Plan, there are no above-market or preferential earnings.
(5)
The amounts in column (i) reflect the following:
Name
Year
Value of Employer
Contributions to
the Nonqualified
Plan*
Value of Matching
Contributions To
the 401(k) Plan in
Shares of
Common Stock**
Professional
Tax and
Financial
Counseling***
Excess
Liability
Insurance
Premiums
Contributions
to Health
Savings
Account
Other
Total
Robert J. Hugin 2016 $ 225,000 $ 17,382 $ 2,704 $ 2,313 $ 247,399
2015 $ 222,500 $ 16,186 $ 2,455 $ 2,210 $ 243,351
2014 $ 207,000 $ 19,908 $ 2,330 $ 2,178 $ 231,416
Mark J. Alles 2016 $ 17,382 $ 952 $ 18,334
2015 $ 16,186 $ 923 $ 17,109
2014 $ 19,908 $ 1,364 $ 21,272
Peter N. Kellogg 2016 $ 17,382 $ 9,591 $ 2,704 $ 29,677
2015 $ 16,186 $ 5,479 $ 2,455 $ 24,120
2014 $ 7,019 $ 2,079 $ 9,098
Jacqualyn A. Fouse, Ph.D
2016 $ 17,382 $ 89,698 $ 2,704 $ 109,784
2015 $ 16,186 $ 2,455 $ 18,641
2014 $ 19,908 $ 2,330 $ 22,238
Scott A. Smith 2016 $ 17,382 $ 2,159 $ 19,541
2015 $ 16,186 $ 2,455 $ 18,641
2014 $ 19,908 $ 2,330 $ 22,238
Rupert J. Vessey, MA,
BM BCh, FRCP, D.Phil.
2016 $ 17,382 $ 5,938 $ 530 $ 23,850
*
Reflects company matching contributions for Mr. Hugin.
**
The value of the matching contributions to the 401(k) Plan is based on the number of shares of Common Stock multiplied by the closing price of our Common Stock on December 31 of the respective year.
***
For Ms. Fouse, the payment amount shown in the table above represents payments made for tax years 2010 through 2014 in the amount of  $15,000 each and for 2015 a payment of  $14,698.
(6)
Each of Messrs. Hugin and Alles and Ms. Fouse serves as a member of the Board of Directors, but does not receive any compensation in such capacity.
Agreements with our Named Executive Officers
Employment Agreement with Mr. Hugin
Effective as of May 1, 2006, we entered into an employment contract with Mr. Hugin, which was most recently amended to reflect Mr. Hugin’s appointment as Executive Chairman effective March 1, 2016. The employment agreement had an initial term of three years and will automatically extend for successive one-year terms unless either we or Mr. Hugin provide written notice to the other, at least six months prior to the expiration of the then term, of such party’s intention to terminate his employment at the end of such term, unless terminated sooner as provided in Mr. Hugin’s employment agreement.
The following is a summary of other provisions of Mr. Hugin’s employment agreement, which is qualified in its entirety by reference to the full employment agreement (as amended):

If Mr. Hugin’s employment is terminated due to his disability or incapacitation or for any reason other than by us for “cause,” or due to his death, Mr. Hugin is entitled to receive a lump sum payment equal to Mr. Hugin’s then annual base salary, a pro rata share of Mr. Hugin’s annual target bonus (based on the assumption that all performance or other criteria had been met) and certain accrued benefits. Further, if Mr. Hugin’s employment is terminated by us without “cause” or because of disability or incapacitation or by Mr. Hugin for “good reason” at any time during the two-year period following or during the 90-day period prior to a “change in control,” Mr. Hugin is entitled to receive a lump sum payment equal to three times Mr. Hugin’s then annual base salary plus three times Mr. Hugin’s highest annual bonus paid within the three years prior to the change in
42
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
control, certain accrued benefits, payment of health and welfare premiums for Mr. Hugin and his dependents for three years or, in certain instances, substitute arrangements on a similar tax basis and, upon the occurrence of a “change in control,” full and immediate vesting of all stock options and equity awards; provided that such payment will be reduced by any payment made to Mr. Hugin prior to the “change in control” on account of Mr. Hugin’s termination.

Mr. Hugin is subject to a non-competition provision which applies during the period he is employed by us and until the first anniversary after the date his employment terminates (or, if change in control payments and benefits are paid, generally the second anniversary of the later of the date his employment terminates or the change in control date). In addition, the employment agreement contains a patent/inventions assignment provision and a perpetual confidentiality provision.
For purposes of Mr. Hugin’s employment agreement, “cause” generally means:

the conviction of a crime involving moral turpitude or a felony;

acts or omissions taken in bad faith and to the detriment of the Company; or

a breach of any material term of such agreement.
For purposes of Mr. Hugin’s employment agreement, “good reason” generally means, without Mr. Hugin’s consent:

the failure to elect or appoint Mr. Hugin to, or re-elect or reappoint Mr. Hugin to, or removal of Mr. Hugin from, his position with the Company;

a significant change in the nature or scope of the authorities, powers, functions, duties or responsibilities normally attached to Mr. Hugin’s position;

a determination by Mr. Hugin made in good faith that, as a result of a change in control, he is unable effectively to carry out the authorities, powers, functions, duties or responsibilities attached to his position;

a breach by the Company of any material provision of the employment agreement;

a reduction in annual base salary;

a 50-mile or greater relocation of the Company’s principal office;

the failure of the Company to continue any health or employee benefit plan, in which Mr. Hugin is participating immediately prior to a change in control, unless Mr. Hugin is provided substantially comparable benefits at no greater after-tax cost, or the Company’s taking any action which adversely affects Mr. Hugin’s participation in or which reduces Mr. Hugin’s benefits under any such plan; or

the failure of a successor to assume the employment agreement.
For purposes of Mr. Hugin’s employment agreement, “change in control” generally means:

any person becomes the beneficial owner of Company securities which represent 30% of the total combined voting power of the Company’s then outstanding securities;

a merger, consolidation or other business combination of the Company;

the persons who are members of the Board of Directors during any consecutive two-year period cease to constitute at least a majority of the Board of Directors; or

the approval by the stockholders of the Company of any plan of complete liquidation of the Company or an agreement for the sale of all or substantially all of the Company’s assets.
Letter Agreement with Mr. Alles
Under the terms of our amended employment letter agreement with Mr. Alles, if his employment is terminated by us for any reason other than for cause, he would be entitled to receive a lump sum payment equal to 12 months’ base salary, less applicable taxes, and per the terms of the MIP, if his employment is terminated by us for reasons other than cause, he would be entitled to a prorated MIP bonus at target. We do not have any separate change in control agreements or arrangements with Mr. Alles. Mr. Alles was promoted to Chief Executive Officer effective March 1, 2016 with an annual base salary of  $1.1 million and a target incentive under the MIP equal to 125%. In addition, Mr. Alles was elected to serve as a member of our Board of Directors effective February 11, 2016.
43
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
Letter Agreement with Mr. Kellogg
Mr. Kellogg’s employment letter agreement, effective July 1, 2014, provides for an initial base salary of  $800,000 and a target incentive under the MIP equal to 70% of eligible base salary earnings (as defined in the MIP) up to a maximum of 200% based on achievement of corporate performance objectives. Mr. Kellogg received a one-time grant of stock options to purchase 100,000 shares of Common Stock and 60,000 RSUs (in each case, adjusted to reflect the two-for-one stock split in June 2014). The stock options are subject to service-based vesting over four years and the RSUs are subject to a three-year service-based cliff vesting schedule. Mr. Kellogg is entitled to participate in our Nonqualified Plan and is eligible for reimbursement for reasonable expenses incurred in obtaining professional tax and financial counseling up to a maximum of $15,000 annually. Mr. Kellogg is entitled to participate in our U.S. health and welfare benefit programs. If Mr. Kellogg’s employment is terminated by us for any reason other than for cause, he would be entitled to receive a lump sum payment equal to 12 months’ base salary and bonus at target, plus continuation of health benefits, less applicable taxes. Further, in the event of a change in control, Mr. Kellogg would be entitled to receive a lump sum payment equal to 18 months’ base salary and bonus plus continuation of benefits, less applicable taxes, and his unvested stock options and RSUs would become fully vested if his employment is terminated within two years of a change in control. If Mr. Kellogg becomes entitled to any amounts subject to the excise tax under Code Section 280G relating to golden parachute payments, such amounts will be reduced to the extent necessary to avoid such excise tax if such reduction would result in a greater payment amount to Mr. Kellogg. Effective March 1, 2016, Mr. Kellogg’s annual base salary is $850,000 and his target incentive under the MIP is equal to 75%.
Letter Agreement with Ms. Fouse
Under the terms of Ms. Fouse’s employment letter agreement with us, effective September 27, 2010, if her employment is terminated by us for any reason other than for cause, she would be entitled to receive a lump sum payment equal to 12 months’ base salary and bonus plus continuation of health benefits, less applicable taxes. In the event of a change in control, Ms. Fouse would be entitled to receive a lump sum payment equal to 18 months’ base salary and bonus plus continuation of benefits, less applicable taxes, and that her unvested stock options and RSUs would become fully vested if her employment is terminated in connection with a change in control. If Ms. Fouse becomes entitled to any amounts subject to the excise tax under Code Section 280G relating to golden parachute payments, such amounts will be reduced to the extent necessary to avoid such excise tax if such reduction would result in a greater payment amount to Ms. Fouse. Ms. Fouse was promoted to President and Chief Operating Officer effective March 1, 2016 with an annual base salary of $960,000 and target incentive under the MIP equal to 90%. Ms. Fouse will retire from the Company effective June 30, 2017 and she will not stand for re-election to our Board of Directors.
Letter Agreement with Mr. Smith
Under the terms of Mr. Smith’s employment letter agreement with us, effective April 2015, if his employment is terminated as a result of a change of control or by us for any reason other than for cause, he would be entitled to receive a lump sum payment equal to 12 months’ base salary and 12 months’ bonus at target plus continuation of benefits, less applicable taxes. Additionally, in the event of a change of control, if Mr. Smith becomes entitled to any amounts subject to the excise tax under Code Section 280G relating to golden parachute payments, such amounts will be reduced to the extent necessary to avoid such excise tax if such reduction would result in a greater payment amount to Mr. Smith. We do not have any separate change in control agreements or arrangements with Mr. Smith. Effective March 1, 2016, Mr. Smith had an annual base salary of  $700,000 and target incentive under the MIP equal to 80%. Mr. Smith was promoted to President and Chief Operating Officer effective April 1, 2017 with an annual base salary of  $875,000 and target incentive under the MIP equal to 90%.
Letter Agreement with Dr. Vessey
Effective January 1, 2016, Dr. Vessey was elevated to the role of President, Research and Early Development. Commensurate with that promotion, we amended the terms of an earlier employment letter agreement with Dr. Vessey. Under the amended terms, Dr. Vessey was entitled to a base salary of  $675,000 and a target incentive under the MIP equal to 70% of eligible base salary earnings (as defined in the MIP) up to a maximum of 200% of target. In the event Dr. Vessey’s employment is terminated as a result of a change of control or by us for any reason other than for cause, he would be entitled to receive a lump sum payment equal to 12 months’ base salary and 12 months’ bonus at target plus continuation of benefits, less applicable taxes. Additionally, in the event of a change of control, if Dr. Vessey becomes entitled to any amounts subject to the excise tax under Code Section 280G relating to golden parachute payments, such amounts will be reduced to the extent necessary to avoid such excise tax if such reduction would result in a greater payment amount to Dr. Vessey. We do not have any separate change in control agreements or arrangements with Dr. Vessey.
44
CELGENE CORPORATION |  2017 Proxy Statement

TABLE OF CONTENTS
GRANTS OF PLAN-BASED AWARDS TABLE
The following table provides information about equity and non-equity awards granted to NEOs eligible to participate in fiscal 2016: (a) the name; (b) the grant date; (c), (d) and (e) the estimated future potential payouts for: (1) our 2016-2018 LTIP for Dr. Vessey; and (2) the target and maximum potential MIP payouts that could have been earned in fiscal 2016; (f), (g) and (h) the estimated future potential share payouts for PSU awards granted during 2016; (i) all stock awards, which consist of RSUs awarded to NEOs in 2016; (j) all stock option awards, which consist of the number of shares underlying stock options awarded to NEOs in 2016; (k) the exercise price of the stock option awards, which reflects the closing price of the shares of our Common Stock on the date of grant; and (l) the grant date fair value of each equity award, computed in accordance with FASB ASC 718.
Name
Grant
Date
Comm
Action (1)
Estimated Potential/Future
Payouts Under Non-Equity
Incentive Plan Awards (2)(3)
Estimated Potential/Future
Payouts Under Equity
Incentive Plan Awards (#) (4)
Stock
Awards
Number of
Shares of
Stock or
Units (#) (5)
Awards
Number of
Securities
Underlying
Options
(#) (5)
Exercise
or
Base Price
of Stock
and Options
($/Sh) (6)
Grant
Date Fair
Value of
PSUs
Stock and
Options (7)
Threshold
Target
Maximum
Threshold
Target
Maximum
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
Robert J. Hugin
2/1/2016 2/17/2015 40,700 $ 100.80 $ 1,348,765
3/1/2016 2/9/2016 $ 1,875,000 $ 3,750,000 11,706 23,412 46,824 $ $ 2,619,393
5/2/2016 2/9/2016 29,669 $ 104.97 $ 964,355
5/2/2016 2/9/2016 15,608 $ $ 1,638,372
8/1/2016 2/9/2016 29,669 $ 114.69 $ 1,024,966
10/31/2016 2/9/2016 29,669 $ 102.18 $ 888,934
Mark J. Alles
2/1/2016 2/17/2015 8,625 $ 100.80 $ 285,826
3/1/2016 2/9/2016 $ 1,375,000 $ 2,750,000 11,706 23,412 46,824 $ $ 2,619,393
5/2/2016 2/9/2016 29,669 $ 104.97 $ 964,355
5/2/2016 2/9/2016 15,608 $ $ 1,638,372
8/1/2016 2/9/2016 29,669 $ 114.69 $ 1,024,966
10/31/2016 2/9/2016 29,669 $ 102.18 $ 888,934
Peter N. Kellogg
2/1/2016 2/17/2015 8,625 $ 100.80 $ 285,826
3/1/2016 2/9/2016 $ 637,500 $ 1,275,000 5,122 10,243 20,486 $ $ 1,146,019
5/2/2016 2/9/2016 12,980 $ 104.97 $ 421,899
5/2/2016 2/9/2016 6,829 $ $ 716,840
8/1/2016 2/9/2016 12,980 $ 114.69 $ 448,416
10/31/2016 2/9/2016 32,104 $ 102.18 $ 961,890
10/31/2016 2/9/2016 5,609 $ $ 573,128
Jacqualyn A. Fouse, Ph.D.
2/1/2016 2/17/2015 8,625 $ 100.80 $ 285,826
3/1/2016 2/9/2016 $ 864,000 $ 1,728,000 7,317 14,633 29,266 $ $ 1,637,170
5/2/2016 2/9/2016 18,543 $ 104.97 $ 602,718
5/2/2016 2/9/2016 9,755 $ $ 1,023,982
8/1/2016 2/9/2016