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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.           )

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Incyte Corporation
1801 Augustine Cut-Off
Wilmington, Delaware 19803

Tuesday,Wednesday, May 26, 20202021

1:00 PM Eastern Daylight Time

1815 Augustine Cut-Off, Wilmington, Delaware 19803*

To the Stockholders of Incyte Corporation:

The Annual Meeting of Stockholders of Incyte Corporation, a Delaware corporation (the "Company"), will be held at the Company's offices located at 1815 Augustine Cut-Off, Wilmington, Delaware 19803, on Tuesday,Wednesday, May 26, 2020,2021, at 1:00 PM Eastern Daylight Time, for the following purposes:purposes specified below:

Purposes:

1.

To elect nineElect eight directors to serve until the 20212022 Annual Meeting of Stockholders and thereafter until their successors are duly elected and qualified;

2.

To approve,Approve, on a non-binding, advisory basis, the compensation of the Company's named executive officers;

3.

To approve an amendmentApprove amendments to the Company's 1997 EmployeeAmended and Restated 2010 Stock PurchaseIncentive Plan;

4.

To ratifyRatify the appointment of Ernst & Young LLP as the Company's independent registered public accounting firm for 2020;2021; and

5.

To vote on a stockholder proposal, if properly presented, described in more detail in the proxy statement; and

6.

To transactTransact such other business as may properly come before the Annual Meeting of Stockholders and any postponement or adjournment of the Annual Meeting.

It is important that your shares be represented at this meeting. Even if you plan to attend the meeting, we hope that you will vote as soon as possible. Voting now will ensure your representation at the Annual Meeting regardless of whether you attend in person. You may vote over the internet, by telephone or by mailing the enclosed proxy card or voting instruction form. Please review the instructions on pages 1 and 8099 of the attached Proxy Statement and your proxy card or voting instruction form regarding each of these voting options.

		By Order of the Board of Directors
		Maria E. Pasquale
		Secretary
April 20, 202016, 2021

*

We intend to hold our Annual Meeting in person. However, we are actively monitoring the coronavirus (COVID-19) situation and are sensitive to the public health and travel concerns our stockholders may have and the protocols that federal, state, and local governments may impose. If stockholder attendance is not permitted or we determine that it is not in the best interest of our employees, stockholders and community to permit stockholder attendance, we will announce alternative arrangements for the meeting as promptly as practicable, which may include holding the meeting solely by means of remote communication. If we take this step, we will announce the decision to do so via a press release, and will post details on how to participate on our website and file additional proxy materials with the SEC.

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Time and Date: Place: Record Date: Admission: Mail Date:		1:00 PM EDT, May 26, 20202021 1815 Augustine Cut-Off* Wilmington, DE 19803 April 1, 2020March 29, 2021 Please follow the instructions contained in this Proxy Statement ThisThe Proxy Statement and the accompanying form of proxy are beingAvailability Notice will be mailed to stockholders on or about April 23, 202016, 2021

PROPOSAL				BOARD'S VOTING RECOMMENDATION
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1		Election of Directors		FOR each Nominee
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2		Advisory Vote to Approve Executive Compensation		FOR
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3		Amend the 1997 EmployeeAmended and Restated 2010 Stock PurchaseIncentive Plan		FOR
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4		Ratification of Independent Registered Public Accounting Firm		FOR
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5		Stockholder Proposal		AGAINST
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You may vote using any of the following methods:

INTERNET		TELEPHONE		MAIL		IN PERSON
Stockholders of record may vote online at www.envisionreports.com/INCY		Stockholders of record may call toll-free 1-800-652—VOTE (8683)		Follow the instructions in your proxy materials.		You may obtain directions to the Annual Meeting by contacting our Company's Investor Relations Department at (302) 498-6700.

*

We intend to hold our Annual Meeting in person. However, we are actively monitoring the coronavirus (COVID-19) situation and are sensitive to the public health and travel concerns our stockholders may have and the protocols that federal, state, and local governments may impose. If stockholder attendance is not permitted or we determine that it is not in the best interest of our employees, stockholders and community to permit stockholder attendance, we will announce alternative arrangements for the meeting as promptly as practicable, which may include holding the meeting solely by means of remote communication. If we take this step, we will announce the decision to do so via a press release, and will post details on how to participate on our website and file additional proxy materials with the SEC.

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20192020 was a year of strong execution by both our commercial and development teams,outstanding achievements at Incyte. We announced FDA approvals for three new medicines, and we expect 2020 to be a transformational year for Incyte.navigated the COVID-19 pandemic with agility and resilience.

(1)

Jakafi is now approved by the U.S. FDA for treatment of steroid-refractory acute GVHD in adult and pediatric patients 12 years and older; Pemazyre is a kinase inhibitor indicated for the treatment of adults with previously treated, unresectable locally advanced or metastatic cholangiocarcinoma with a fibroblast growth factor receptor 2 (FGFR2) fusion or other rearrangement as detected by an FDA-approved test.

(2)

Cash and cash equivalents as of December 31, 2019

ProductWe reported total product and royalty revenues exceeded $2of $2.5 billion for the first time,full year 2020, representing a 22%an 18% increase over 2018. 2019, and we now have six approved products and a strong balance sheet, illustrating the benefits of our strategy targeting diversification and growth.

Net sales of our largest product, Jakafi® (ruxolitinib), grew at an annual growth rate of over 20%15%, reaching $1.7$1.94 billion for the year.year, with growth seen across all three approved indications.

New product launches and an increasing contribution from royalties from our licensed products added to momentum in 2020. The U.S. launch of Pemazyre® (pemigatinib) has been successful, and the physician reception of Monjuvi® (tafasitamab-cxix), launched in collaboration with MorphoSys in August last year, has been very encouraging as we build the brand for the future. In the U.S., Monjuvi revenues are recognized by MorphoSys and are included in collaboration profit or loss sharing on our consolidated statement of operations.

We receive royalties on Jakavi® (ruxolitinib) and Tabrecta® (capmatinib), commercialized by Novartis, and on Olumiant® (baricitinib), commercialized by Lilly, and total royalties grew 28% in 2020 to reach almost $400 million.

(1)

Monjuvi revenues are recognized by MorphoSys and included in our collaboration loss sharing line item on our consolidated statement of operations in our Annual Report on Form 10-K for the year ended December 31, 2020.

(2)

Totals may not add due to rounding.

We operate in two therapeutic areas that are defined by the indications of our approved medicines and the diseases for which our clinical candidates are being developed. The first therapeutic area is Hematology/

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At the beginningOncology, which is comprised of 2019, we shared with investors a list of 15 key R&D goals⁽¹⁾ for the year,Myeloproliferative Neoplasms (MPNs) and Graft-Versus-Host Disease (GVHD), as well as solid tumors and hematologic malignancies. Our second therapeutic area is Inflammation and Autoimmunity (IAI), which includes our newly established Dermatology commercial franchise.

We are also eligible to receive milestones and royalties on molecules discovered by us and licensed to third parties.

We achieved numerous important milestones in 2020 and during the year we achieved 13 of2021 to date, and these goals.

Starting with our GVHD programs, based on the positive results of the REACH1 trial of Jakafi in steroid-refractory acute GVHD, we received FDA approval and successfully launched Jakafi in this indication. We also announced positive results from the Phase 3 REACH2 trial of Jakafiare summarized in the same indication. Results fromgraphic below and described in more detail thereafter.

GVHD = graft-versus-host disease; MF = myelofibrosis; DLBCL = diffuse large B-cell lymphoma; CCA = cholangiocarcinoma; BTC = biliary tract cancer; SCAC = squamous cell anal carcinoma; NHL = non-Hodgkin lymphoma; NSCLC = non-small cell lung cancer; AD = atopic dermatitis; IAI = inflammation and autoimmunity.

Jakafi® (ruxolitinib) is approved in the U.S. for the treatment of adults with intermediate or high-risk myelofibrosis, the treatment of adults with polycythemia vera who have had an inadequate response to or are intolerant of hydroxyurea and for the treatment of steroid-refractory acute GVHD in adult and pediatric patients 12 years and older. Net sales of Jakafi grew at an annual rate of 15%, reaching $1.94 billion for the year, with growth seen across all three indications.

The REACH3 trial of Jakafi in steroid-refractory chronic GVHD are expected in 2020. Results from the GRAVITAS-301 Phase 3 trial of itacitinibruxolitinib in patients with treatment-naïve acutesteroid-refractory chronic GVHD were disappointing, as it showed that treatment with itacitinib did not statistically improvemet its primary endpoint of superior overall response rate or non-relapse mortality compared to placebo.at month 6 and achieved statistically significant and clinically meaningful improvements in both key secondary endpoints, the modified Lee chronic GVHD symptom scale and failure free survival. The safety profile of ruxolitinib was consistent with previously reported studies of ruxolitinib in GVHD.

Moving to our solid tumor programs, we presented updated Phase 2 data from ourThe success of the REACH3 trial represents the largest randomized pivotal trial with positive results in this patient population, as was the success of pemigatinibthe randomized REACH2 trial in patients with previously-treated cholangiocarcinoma, which supported our NDA submission to theacute GVHD, as described last year. The sNDA seeking FDA and which led to the very recent approval of Pemazyre. In addition, the Phase 3 trial of pemigatinib in first-line cholangiocarcinoma has been initiated as have trials of pemigatinib in first-line bladder cancer andruxolitinib in patients with solid tumors with driver activations of FGF/FGFR.

Turning to our inflammation and autoimmunity activities, we presented Phase 2 results of ruxolitinib cream in patients with vitiligo, and we launched a global Phase 3 program in this indication.

Our partners also advanced two Incyte discovered programs. Novartis submitted the NDA for capmatinib in locally advanced or metastatic MET exon 14 skipping mutated non-small cell lung cancer (NSCLC), and Eli Lilly announced Phase 3 results of baricitinib in moderate to severe atopic dermatitis.

(1)

R&D goals shown are Investor Goals, which are separate from the 2019 Annual Incentive Compensation Plan Corporate Performance Objectives as described in the Compensation Discussion and Analysis

(2)

Development of ruxolitinib insteroid-refractory chronic GVHD in collaboration with Novartis.

(3)

Worldwide rights to capmatinib licensed to Novartis; Worldwide rights to baricitinib licensed to Lilly

(4)

FIGHT-201 and FIGHT-202 have the potential to enable product registration

So far in 2020, in addition to the recent approval of Pemazyre described above, we presented positive data from two Phase 3 trials, TrueAD1 and TrueAD2, of ruxolitinib cream in mild to moderate atopic dermatitis. We also announced a global collaboration with MorphoSys to gain rights to tafasitamab, which represents a strong strategic fit. The BLA for tafasitamab in r/r DLBCL is now under priority review byPriority Review at the FDA with a PDUFA date of August 30, 2020.decision expected in June 2021.

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We are also developing multiple programs beyond ruxolitinib monotherapy to improve and expand therapeutic options for patients with myeloproliferative neoplasms (MPNs) as part of our Leadership In MPNs BEyond Ruxolitinib (LIMBER) initiative. We are evaluating combinations of ruxolitinib with other therapeutic modalities, as well as developing a once-a-day formulation of ruxolitinib for potential use as monotherapy and combination therapy. This new formulation of ruxolitinib is currently in stability testing and is expected to be submitted to the FDA early next year, with an FDA decision expected late in 2022.

Based on positive Phase 2 data presented in 2020, we have opened two pivotal trials of ruxolitinib in combination with parsaclisib (PI3Kd) in first-line myelofibrosis (MF; LIMBER-313) and in MF patients with a suboptimal response to ruxolitinib monotherapy (LIMBER-304).

Additional Phase 2 trials combining ruxolitinib with investigational agents from our portfolio such as INCB57643 (BET) and INCB00928 (ALK2) in patients with MF are in preparation, and additional discovery and development initiatives are also ongoing within the LIMBER program, which are evaluating both internally-discovered compounds, including itacitinib (JAK1), and candidates from collaboration partners.

The FDA approved Monjuvi® (tafasitamab-cxix) for the treatment of patients with relapsed or refractory diffuse large B-cell lymphoma (r/r DLBCL) in August last year, based on data from the L-MIND trial.

Momentum is strong behind the U.S. launch of Monjuvi, with good uptake in both academic and community settings and illustrated by the market share gained in the first several months since launch.

Updated data from L-MIND form part of the data dossier submitted to the European Medicines Agency (EMA) seeking approval of Monjuvi in Europe for the treatment of patients with r/r DLBCL.

We are also investigating tafasitamab in B-cell malignancies in a number of ongoing and planned combination trials. The Phase 3 inMIND trial evaluating tafasitamab plus lenalidomide and rituximab (R-squared) versus R-squared in patients with relapsed or refractory follicular or marginal zone lymphoma is recruiting patients, and the Phase 3 frontMIND trial of tafasitamab plus lenalidomide and R-CHOP versus R-CHOP as a first-line treatment for in patients with DLBCL is expected to open for recruitment in the coming months.

The FDA approved Pemazyre® (pemigatinib) a selective fibroblast growth factor receptor (FGFR) inhibitor, for the treatment of adults with previously treated, unresectable locally advanced or metastatic cholangiocarcinoma with an FGFR2 fusion or other rearrangement as detected by an FDA-approved test. Pemazyre is the first and only FDA-approved treatment for this indication.

The U.S. launch of Pemazyre has been successful and, in March, we announced that Pemazyre was approved in both Europe and Japan. The European Commission approved Pemazyre for the treatment of adults with unresectable locally advanced or metastatic cholangiocarcinoma with an FGFR2 fusion or rearrangement that is relapsed or refractory, after at least one line of systemic therapy and was approved in Japan for the treatment of patients with unresectable biliary tract cancer (BTC) with a fibroblast growth factor receptor 2 (FGFR2) fusion gene, worsening after cancer chemotherapy.

Iclusig® (ponatinib) is approved in Europe for the treatment of certain of adult patients with chronic phase, accelerated phase or blast phase CML or the treatment of certain adult patients with Ph+ ALL. Iclusig sales grew 17% to $105 million in 2020.

In addition to our commercialized product portfolio, we also have late-stage assets under development.

In December 2020, data from three ongoing Phase 2 studies evaluating parsaclisib (PI3Kd) for the treatment of patients with relapsed or refractory follicular (CITADEL-203), marginal zone (CITADEL-204) and mantle cell

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(CITADEL-205) lymphomas were presented at ASH 2020. Data from the CITADEL program are expected to form the basis of an NDA seeking FDA approval of parsaclisib, which is expected to be submitted in the second half of 2021.

In January 2021, we announced that the FDA had accepted for Priority Review our Biologics License Application (BLA) for retifanlimab (PD-1) as a treatment for previously treated patients with advanced squamous cell carcinoma of the anal canal (SCAC) who have progressed following standard platinum-based chemotherapy. The FDA decision is expected in July 2021. The BLA submission was based on data from the Phase 2 POD1UM-202 trial evaluating retifanlimab in previously treated patients with advanced SCAC who have progressed following standard platinum-based chemotherapy; the Phase 3 POD1UM-303 trial in patients with SCAC is underway.

We recently established Incyte Dermatology as a new commercial franchise in the U.S., in anticipation of the potential FDA approval of rux-olitinib cream for use in patients with mild-to-moderate atopic dermatitis.

Ruxolitinib cream is a potent, selective inhibitor of JAK1 and JAK2 that provides the opportunity to directly target diverse pathogenic pathways that underlie certain dermatologic conditions, including atopic dermatitis, which is a form of eczema, and vitiligo.

The Phase 3 TRuE-AD program of ruxolitinib cream in patients with atopic dermatitis was successful and the NDA seeking FDA approval in this indication was submitted in December 2020. The submission was granted Priority Review and the FDA decision is expected in June 2021.

If approved, we expect the initial uptake of ruxolitinib cream to be driven by specialists in medical dermatology and allergy. We have recruited an exceptional team with significant experience in successfully launching dermatology products within the United States, and this team has identified a target group of approximately 11,000 potential high-prescribers.

The Phase 3 TRuE-V trials of ruxolitinib cream in patients with vitiligo are fully recruited and results are expected to be available in the coming months. If this pivotal trial program is successful, we expect to submit the sNDA to the FDA seeking approval of ruxolitinib cream in vitiligo as soon as we are able after FDA action in atopic dermatitis.

We participate in multiple collaborative partnerships in which we are eligible for milestone payments and royalties on certain Incyte-discovered products that we licensed to third parties. These include Jakavi® (ruxolitinib) and Tabrecta® (capmatinib), which are licensed to Novartis, and Olumiant® (baricitinib), which is licensed to Eli Lilly and Company.

With the success of the REACH clinical trial program evaluating ruxolitinib in patients with steroid-refactory acute (REACH2) and steroid-refractory chronic (REACH3) GVHD, Novartis intends to seek approval for Jakavi in Europe and Japan in these indications.

During 2020, Novartis also announced U.S. and Japanese approvals of Tabrecta for certain patients with non-small cell lung cancer, and intends to submit for approval in Europe during 2021. Tabrecta was discovered by Incyte and global rights were licensed to Novartis in 2009.

During 2020, Lilly announced that Olumiant has been approved in both Europe and Japan as a treatment for certain patients with atopic dermatitis, and expects to announce the FDA decision on its sNDA seeking approval of Olumiant for atopic dermatitis during 2021.

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At least annually, the Board considers the following when assessing its composition: the knowledge, experience, and diverse perspectives of its directors; each individual director's performance and contributions to the Board and its committees; the personal circumstances and other time commitments of directors; and other factors the Board deems appropriate such as independence, absence of conflicts, and any reputational risks. The Board weighs these factors with the needs of our Board and its committees based on Incyte's current strategy and risk profile. Our directors serve one-year terms and all continuing directors are subject to our stockholders' votes every year.

As our Board has done three times in the last three years, including twice in the last five months,past, when it sees a current or future need it undertakes a thorough search for new directors. Dr. Harrigan, a neurologist, joined our Board in December 2019 and brings extensive executive leadership experience and expertise in clinical development, pharmaceutical regulatory process and business development. He will be instrumental as Incyte continues to develop and commercialize innovative medicines for serious unmet medical conditions. Dr. High, a hematologist, joined our Board in March 2020 and has significant executive, scientific and medical leadership experience, including extensive academic and industry experience in drug discovery and development. Her medical background, together

Three of our eight Board nominees are women, representing 38% of our Board of Directors. This compares well with her experience leading drug discoverythe average among S&P 500 constituents, wherein 28% of all Board seats are currently taken by women. Two (25%) of our directors were also born outside of the United States and development efforts at Spark Therapeutics, are expected to assistone self-identifies as LGBTQ+, further reflecting the diversity of our Board. Currently, 100% of our Board in its oversight role overnominees self-identify as white.

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We believe our drug discovery and development efforts.

Our Board as a whole represents a diverse group of individuals that bring various skills and experience. Our Board's continuous efforts to refresh itself have led to a complementary mix of new, mid-term and seasoned directors. We believe this group of directors collectively has the skills to support Incyte in the achievement of our long-term goals.

Matrix of Board Nominees Skills Matrix

Expertise		Hoppenot		Baker		Bienaimé		Clancy		Dixon		Fouse		Harrigan		High
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Each year, we proactively reach out to our stockholders to determine how our corporate governance, compensation practices and stockholder communications might improve. In 2018, 2019 and 2020, we contacted stockholders representing approximately 80% of our shares outstanding.

SHARES OUTSTANDING INVOLVED IN OUTREACH CAMPAIGN

As a result of this stockholder engagement over the last five years, we have implemented several significant enhancements in our corporate governance and compensation policies and in our stockholder communication practices. For example, our Board and management team made the following changes in response to feedback received:

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Restructuring director pay to be based on a set target value instead of fixed share grants

Enhancing Environmental, Social and Governance ("ESG") disclosure, including human capital management (see page 12 for more details)

Adjusting the executive compensation pay mix to include higher percentages of performance shares and a three-year performance period for our CEO and other U.S. executive officers

Eliminating special option grants to the CEO

Adopting a director overboarding policy

Adding enhanced disclosure on certain items such as goal achievement

Enhancing and restructuring the proxy to provide investors with more easily accessible information

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In our outreach in the fall of 2020, we reached out to top stockholders representing approximately 80% of our shares outstanding. We held conversations with stockholders representing 45% of our shares outstanding, not including the shares owned by Baker Bros. Advisors LP. All engagements included our Chief Financial Officer with additional participation from our Head of Human Resources, our Assistant General Counsel and our Head of Investor Relations. Julian Baker, our Lead Independent Director, was involved in engagements with investors that specifically asked to speak with a member of the Board of Directors.

Following our stockholder outreach, we compiled the feedback we received and presented it to the Nominating and Corporate Governance and Compensation Committees for consideration and to help inform our governance and compensation practices. Mr. Baker, who participated in a number of our off-season proxy engagements, is a member of both of these committees.

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Our CompanyFeedback in 2020 was positive, with investors pleased with the progress Incyte has made great progress in ensuringrecent years in response to these investor engagements. The graphic below highlights significant improvements in our Board gender diversity, tenure and level of total Board commitments.

1.

Average number of total board commitments, including Incyte.

Changes to our executive compensation reflects Company performance, most notably bystructure have also been well received. We believe that our current compensation structure, as described in more details in subsequent pages of the additionProxy Statement, strikes the right balance of performance share awards ("PSUs") intomotivation and retention for our executives. The graphic below shows the mixevolution of equity compensation. The charts below illustrate how our CEO'sexecutive compensation tracks in-line with our achievement of Board-approved corporate goals.structure over the last three years.

*

PSUs were introduced as a component of Executive Compensation in 2018.

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Our Company has made great progress in ensuring executive compensation reflects our performance, and stockholder feedback has been a significant driver of the evolution of our compensation structure.

Executive compensation at Incyte comprises both salary and an annual cash bonus opportunity, as well as a long-term equity compensation program that is allocated between restricted stock units (RSUs), performance share awards (PSUs) and stock options. The allocation of the long-term equity compensation program, all of which are at-risk and based on company performance, is 30% RSUs, 30% PSUs and 40% stock options.

In 2021, the Compensation Committee considered the result of the stockholder advisory vote and direct feedback from investors as supportive of its overall compensation policies, practices and philosophy for our executive officers and has decided to maintain the same overall compensation structure for 2021, with the exception of:

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Adding a total shareholder return (TSR) component to the PSU goals.



•

After reviewing CEO compensation within our peer group, lowering Mr. Hoppenot's 2021 total target equity award value from $12,900,000 to $12,400,000.

The compensation of our CEO is in-line with our peer group's compensation as disclosed in 2020 proxy reports, with Mr. Hoppenot's at-risk compensation percentage higher than that of the peer group average.

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Average peer CEO compensation reflects 2019 compensation from the 2020 proxies of the peer group.

Our executive compensation program is designed so that a substantial portion of the pay of our Chairman and Chief Executive Officer is delivered in the form of long-term incentives—which means that most of Mr. Hoppenot's Realizable Compensation (meaning, cash actually received during any year and the actual value of that year's equity grants as measured on December 31 of that year) is tied directly to our stock price performance and achievement of our long-term goals. Mr. Hoppenot's compensation, as reported in the Summary Compensation Table on page 52,68, reflects the accounting value of long-term incentives at grant and not the value actually received from these grants or their potential future value that may actually be realized. As a result, we

We believe that it is useful to compare Mr. Hoppenot's Realizable Compensation between 20172018 and 20192020 with his Summary Compensation Table compensation for the same period as illustrated in the chart below.

Target Compensation reflects base salary, target bonus under the annual incentive compensation plan, and the value of stock and optionequity awards as shown in the Summary Compensation Table, with the value of PSUs in 2018 and 20192018-2020 based on their target number of shares, not the amount of PSUs actually earned;earned. Realizable Compensation includes the same elements as Target Compensation but reflects the actual bonus paid under the annual incentive compensation plan and the number of PSUs earned each year at an $88.05 price.

Realizable Compensation reflects realizable values for equity granted during the applicable calendar year, calculated as of December 31 of such year, andwhich includes:

•

equity granted within applicable calendar year, which includes for each year one-halfone half of the prior year's stock option award granted in January and one-halfone half of the current year's stock option award granted in July



•

special stock option grantsgrant awarded in 2017 and 2018, each with no realizable value at the year-endyear end stock pricesprice



•

the number of PSUs actually earned in 2018 and 2019.2019 (1 year performance period) and the target number of PSUs for 2020 (3 year performance period) at the 2020 year and stock price of $86.98.

The lower Realizable Compensation for each of the three years is the result of a combination of lower stock price, underwater stock options, and short term incentive awards that were, in some cases, earned below target. The Compensation Committee has designed Mr. Hoppenot's compensation to ensure that his Realizable Compensation is closely tied to our stock price performance. Our Compensation Committee believes that its pay-forpay for performance compensation strategy is working as intended and is best evaluated by examining Realizable Compensation, rather than solely the accounting compensation set forth in the Summary Compensation Table.

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Compensation versus Peers

The compensation of our CEO is in-line with our 2020 peer group's compensation as disclosed in their 2019 proxy reports, with Mr. Hoppenot's at-risk compensation percentage higher than that of the peer group average.



Average peer CEO compensation reflects 2018 compensation from the 2019 proxies of the peer group.

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Stockholder Engagement

Each year, we proactively reach out to our stockholders to determine how our corporate governance, compensation practices and stockholder communications might improve. In 2017, 2018 and 2019, we contacted stockholders representing over 60%, 80% and 80% of our shares outstanding, respectively.

Shares Outstanding Involved in Outreach Campaign



As a result of this ongoing stockholder engagement over the last four years, we have implemented several significant enhancements in our corporate governance and compensation policies and in our stockholder communication practices, including most recently in 2019.

Our Board and management team made the following changes in response to feedback received:

✓

Eliminating special option grants to the CEO



✓

Restructuring director pay to be based on a set target value instead of fixed share grants



✓

Enhancing Environmental, Social and Governance ("ESG") disclosure, including human capital management (see page 28 for more details)



✓

Adding a board skills matrix to illustrate the individual experiences and skills our directors bring to our Board



✓

Adjusting the executive compensation pay mix to include higher percentages of performance shares and a three-year performance period for our CEO and other U.S. executive officers



✓

Adding enhanced disclosure on certain items such as retrospective goal achievement



✓

Adopting a director overboarding policy

In our latest round of outreach in the fall of 2019—which often included our Lead Independent Director, Julian Baker, who represents our largest stockholder—we reached out to top stockholders representing over 80% of our shares outstanding. We secured conversations with stockholders representing 45% of our shares outstanding, not including the shares owned by Baker Bros. Advisors LP. Mr. Baker was involved in conversations with investors collectively representing nearly 30% of our common stock.

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Following outreach, feedback was compiled and presented to the Nominating and Governance Committee for consideration and also discussed with the Compensation Committee, which then helped inform governance and compensation practices. Our Lead Independent Director, Mr. Baker, who participated on a number of our outreach calls, is a member of both of these committees. This feedback encouraged and supported the Board's decision to make the following changes:

2020 Executive Compensation Changes

Performance Share Changes		What we heard: Most stockholders prefer at least a three year performance period for PSUs. Many stockholders prefer to see a gradual increase in PSUs as a percentage of long-term equity compensation. What we did: The PSU percentage moved from 25% of long-term equity compensation to 30%. The PSU performance period increased from one year to three years.

Governance Changes

What we heard:		New Overboarding Policy
Stockholders want to be sure our directors are not taking on too many board commitments that may prevent them from being engaged should a situation arise. What we did: Our Board adopted the policy that:
• No newly appointed outside director who is a chief executive officer of another public company shall serve on more thantwo public company boards in total. • No newly appointed outside director who is not a chief executive officer of another public company shall serve on more thanfour public company boards in total. • No current director below these totals may exceed them.

We continually seek to engage with stockholders throughout the year, and we invite you to reach out with any comments or questions at any time. Please see the Investor section of our website for the appropriate contact information.

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Global Responsibility

At Incyte, we believe that our commitment to innovation creates long-term value. Our rigorousinvestments in strong science and the pursuit of R&D excellence drivesdrive our efforts to create new therapies with the potential to improve the lives of patients, make a difference in healthcare, and build sustainable value for all our stakeholders.

We are committedIn addition to not onlyour commitment to improving the treatment and experiencequality of life of patients, butwe are also supportingdetermined to enhance the communities in which we live and work and to support our colleagues, all while operating our business in a way that protects the environment, enhancing the communities in which we live and work. environment.

We value integrity, as well as ethical and responsible behavior in all aspects of our business, which helps to enable rapid responses to internalbusiness.



1.

For 2019, we measured Scope 1 and external challenges and opportunities. In2 for the properties wholly owned by Incyte that were fully functional for all of these ways,2019. This includes U.S. Headquarters, which consists of Building 1801 and Building 1815. This represents 66% of our total office space in the U.S.

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Putting Patients First

Creating and developing medicines is our core objective, and we are committed to putting patients first at all times. Our exceptional team of drug discovery and development scientists—led by experienced executives with proven records of success—are working to find solutions for some of the most critical unmet medical needs. We also strive to ensure that all eligible patients are able to access our medicines.

Clinical Development

For almost 20 years, our science-first approach and heritage in immunology have been the foundation of our company. We are committed to discovering and developing best-in-class medicines to bring innovative solutions to patients in need, including those with cancer and immune-dermatologic conditions.

Within cancer R&D, our discovery and development strategy is twofold. In our targeted-therapy strategy, we focus on key molecules/pathways that drive the development, growth and spread of cancer cells, and our immuno-oncology strategy is based on the diversity of cells required to maintain an immune-suppressive tumor microenvironment.

Our research and development efforts in IAI encompass multiple strategies, including leveraging our cross-program knowledge of the JAK-STAT pathway and exploring the potential of JAK inhibition for a number of immune-mediated dermatologic conditions with a high unmet medical need, including atopic dermatitis and vitiligo.



During 2020, our clinical development team managed over 120 different clinical trials, 31 of which were new studies that were opened during the year, and 47 of which were completed. Our global clinical trials took place at over 2,000 different sites in 29 different countries, further illustrating our commitment to bringing medicines to patients that need them.

Patient Advocacy

Patient advocacy serves an important role in carrying out our commitment to patients while supporting the rigorous pursuit of science. We engage the advocacy community to obtain important feedback, including for clinical trial design and protocols, as well as to incorporate readily-understandable language in all relevant materials.

During 2020, our U.S. patient advocacy team held a number of patient advocacy advisory board meetings, engaging 25 different patient support organizations across oncology (focused on MPNs, DLBCL and GVHD) and dermatology (covering atopic dermatitis).

Access to Medicines for Eligible Patients

We strive to ensure that eligible patients have access to our medicines. This can take the form of access to applicable clinical trials by providing patients with information and resources to support their treatment journey, or by providing individual patients with access to unapproved or investigational products through our compassionate use programs.

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For our approved medicines, programs such as IncyteCARES, CML Life and My MISSION Support are designed to help eligible patients before and during applicable treatments. Such help and assistance may include reimbursement support, opportunities for financial assistance, delivery coordination of medicines and temporary coverage for access delays, as well as connections to other support services and to other education and helpful resources.

At Incyte, we seek to ensureprice our medicines responsibly in a way that reflects their value to patients and society. We strongly believe that patients should have access to the medicines they are prescribed, and are committed to working with policy makers and leading insurers in the U.S. to increase patient access to needed medications and lower out-of-pocket cost burdens for patients. Specifically, we are fulfillingsupport legislation that would redesign the needsMedicare Part D program by reducing out of pocket costs as well as legislation that would provide patient protections and guardrails around the use of step therapy protocols.

Patient Safety

Patient safety is at the forefront of all our stakeholders, includingactivities. We are determined to adhere to the regulations in all territories in which we operate clinical trials, and to conducting those clinical trials in an ethical manner. We are also committed to the supervision of all ongoing trials through an institutional review board, an ethics committee and/or a research ethics board in an effort to protect the safety of trial participants before, during and after patients employees, stockholders and our communities.

OurGlobal Responsibility strategy supports Incyte's sustainable, long-term growth in the following areas:are treated.



Contributing to our Communities

At Incyte it's always been important to make a difference in our communities where we live and work. It's part of who we are as a company.

Incyte Involved includes multiple initiatives focused on philanthropy as well as fostering engagement between our employees and the communities in which we live and work.

During 2020, the Incyte Charitable Giving Foundation expanded its ongoing donations to include two new organizations—FAME Inc. and One Village Alliance—both of which are located close to our global headquarters in Delaware and which aim to increase educational opportunities for underserved communities.

We continue to support the Incyte Cancer Care Assistance Fund for Delaware which provides emergency financial assistance for cancer patients, their caregivers and family members living in Delaware. This emergency fund was established for the sole purpose of providing emergency financial assistance to people with cancer who reside in Delaware, and the fund covers medical expenses and/or basic living expenses to help participants and caregivers cope with the emotional and life changing aspects of cancer.

We are also very pleased to have increased our support for the Food Bank of Delaware, including to cover the costs of increased food distribution and pre-made weekend meal kits. The Food Bank works to close the food insecurity gap, which has grown significantly during the COVID-19 pandemic.

Restrictions, including stay-at-home orders, related to COVID-19 made volunteering more difficult to measure in 2020, but we continue to encourage our teammates to give back to their communities as appropriate while keeping safety in mind. Incyte's measured volunteerism was 206 hours in 2020 compared to 780 hours in 2019.

Incyte's Matching Gifts program was as robust as ever, with more than $170,000 in employee donations to charitable causes matched by Incyte during 2020.

Human Capital Management

Incyte is committed to promoting an environment where our colleagues are fulfilled and valued. We promote a company culture based on scientific excellence as we seek to create new treatments and we seek positive

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collaboration with each other. Working collaboratively is of the utmost importance as we aim to change the treatment landscape for patients with cancer and inflammatory and autoimmune diseases.

Professional Development

We strive to support our colleagues in their professional development. Opportunities for growth are provided through challenging job assignments, performance management and training opportunities. Globally, all full-time employees are eligible for tuition reimbursement. Managers may also be eligible for leadership development training, which vary by region.

Many professional development opportunities are organized by department. For example, the E.D.G.E. (Empowerment, Development, Growth, Engagement) Program seeks to connect and empower Incyte employees in the U.S. Business Team to foster professional growth and leadership. This is accomplished through speaker programs and networking opportunities, featuring internal and external leaders, mentorship opportunities, and increased awareness of professional development opportunities.

In the U.S., leadership development training is provided to managers that are new to Incyte, employees who were recently promoted to managers and those individuals that have been identified as potential leaders. Additionally, classes in presentation skills and emotional intelligence are offered throughout the organization as well as the Insights Discovery Workshop.

In Europe, managers are eligible for selection to participate in a training program, which includes multiple modules with unique focus areas. A team effectiveness workshop is in place for teams to help improve communication, accountability, decision-making and overall performance. The Insights Discovery workshop seeks to improve internal and external communication. In addition, the Challenge Academy is a program aimed at challenging employees through specific projects.

We believe these professional opportunities enhance our colleagues' skills, career aspirations,and job satisfaction as well as provide personal enrichment.

Safety and Wellness

It is our goal to conduct business in a manner that does not compromise the health of people nor the state of the environment. It is our policy to comply with all applicable environmental health and safety (EHS) regulatory requirements and seek to continually improve our EHS management systems.

A strong safety culture is a fundamental part of how we work, and our philosophy is that everyone at Incyte has a responsibility to create and maintain a safe and healthy workplace with a goal to reduce risk and prevent injuries. Our management team recognizes this responsibility and is committed to providing the resources necessary to achieve this goal.

When the COVID-19 pandemic began in March, we facilitated a seamless transition to remote working and were able to offer a gradual and voluntary return to offices beginning in June. Multiple protocols remain in place for our office and laboratory teams, as described elsewhere in this Proxy Statement.

During 2020, Incyte teams once again participated in the Annual Activity Challenge. This year, the challenge began earlier than usual with the idea to keep people active, especially during periods of enforced confinement. 31 Incyte teams made up of over 270 participants from across the globe logged 157,325,101 steps equal to 78,663 miles—enough steps to take three trips around the world.

Compensation and Benefits

Incyte offers a competitive compensation package, which allows 100% of global Incyte employees to participate in the annual incentive compensation plan. Annual equity-based grants are also afforded to 100% of global Incyte employees to further incentivize performance as well as retention.

We seek to ensure our compensation package remains competitive by benchmarking against our peers several times annually as well as reviewing compensation twice per year to confirm that our employees are being

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compensated fairly, equitably (including gender pay equity), and in accordance with our pay structures and job levels.

Our benefits package also includes an option to participate in our Employee Stock Purchase Plan for both full-time and part-time employees working at least 20 hours per week.

Over the years, we have added numerous benefits to support our colleagues in their professional as well as personal endeavors.



Our industry-leading U.S. health insurance coverage is 100% covered for full-time employees and is 95% subsidized for part-time employees working at least 20 hours per week in the U.S. A healthcare resource program is another one of many complimentary benefits provided by Incyte in the U.S., which offers broad assistance with a variety of healthcare and insurance-related issues to help colleagues make more informed healthcare decisions.

The benefits package also includes many complimentary tools for health, including the Employee Assistance Program (EAP), which is provided at no cost to employees to help with a variety of personal and work-related concerns, difficulties and problems 24 hours a day and 365 days per year.

Other ad hoc benefits may include on-site COVID antibody testing, flu shots and learning opportunities that are often offered on-site and/or virtually, including nutrition, wellness and financial planning seminars.

Employee Engagement and Fostering an Innovative Culture

Our management team makes themselves available to all employees, and members of our executive management attempt to meet with new employees within the first six months of employment.

Our quarterly Town Hall events include presentations by executive management and allow for Q&A at the end of each. Our open-door culture allows for continuous ad-hoc feedback and helps drive innovation in all departments, not just within discovery and development.

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Our Innovation at Incyte program (I2)promotes innovation by allowing employees in any department to submit any innovative approach, tool, or proposal that may be meaningful for Incyte and our patients. There is a competitive review process every 6 months. Winners are then chosen and provided the resources and necessary funding to implement their plans.




We were proud to be named the #2 Top Employer by Science in 2020, making it three consecutive years that Incyte has been ranked in the top three of this global survey. Incyte was recognized specifically for: being socially responsible having loyal employees treating employees with respect

Diversity

We believe that creative solutions are best achieved by diverse teams working together, and inclusion is therefore vital to the biopharmaceutical industry and is essential to Incyte. Diversity of thoughts, backgrounds, perceptions and ideas help us create the medical solutions that patients require, and represent the lifeblood of organizations such as ours.

As of December 31, 2020, 50% of our global workforce are women, and 38% of our global leadership positions are filled by women. In addition, three of our eight Board members are women, resulting in 38% female representation on our Board of Directors. This compares well with the average among S&P 500 constituents, wherein 28% of all Board seats are currently taken by women.



1.

Includes positions of Director and above.

Incyte was founded on the premise that the pursuit of R&D excellence creates value for society and for all of our internal and external stakeholders, and we know that our continued and future success depends on the creativity that only a diverse team can generate. We are committed to ensuring that we are recruiting from the widest possible talent pool from where we then select candidates based on merit.

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Amongst our U.S. workforce, 35% self-report as non-white, which is comparable to the 2010 United States Census data from the State of Delaware, the location of our global headquarters (31% non-white). We do not request racial diversity data from our ex-U.S. colleagues, where tracking these metrics is largely prohibited by law.






Results are based on self-identification.



*

"Other" includes Hispanic / Latinx; American Indian / Alaska Native; Native Hawaiian / Other Pacific Islander and those who self-identify as two or more races

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Our Executive Management team is made up of a diverse group of very experienced individuals who are representative of our global outlook and the multicultural nature of the pharmaceutical industry. As an illustration of the dievrsity of thought and backgrounds of our Executive Management team, nine of the twelve members were born outside the U.S.



Increasing Opportunities for Ethnic Minorities in the U.S.

We support all initiatives that remove barriers and provide increased opportunities to the Black community. We are also aware that Black colleagues are under-represented in our U.S. workforce, and we have several ongoing initiatives to seek to address this.

•

We have formed an Inclusion Committee, which is co-chaired by our Chief Executive Officer and our Head of Human Resources, to bring forth actionable plans across multiple focus areas. Initially at least, the Inclusion Committee is focused exclusively on finding solutions for Black inequalities.



•

In terms of talent recruitment, we have expanded our searches to include organizations and websites dedicated to Black candidates. We have also partnered with Jopwell, to aid connections with Black candidates for non-science jobs and we are participating in the reputable Scientific Mentoring & Diversity Program (SMDP) mentoring program that primarily pairs Black post baccalaureate and graduate students with mentors who work at biopharmaceutical companies.



•

We are also working to ensure the retention of Black colleagues through increasing representation at and opportunities for advancement into leadership and other roles across the organization. We are also working to improve employee awareness and understanding, and to support dialogue.

We also recognize our role in supporting diversity beyond our workforce. Incyte uses multiple external suppliers, consultants and other agency partners to fulfill our mission, and we intend to establish an Inclusion Commitment for all appropriate counterparties to help us pursue our diversity and inclusion goals. We are also looking to increase the number of minority owned vendors and consultants that we use.

As a drug development company, we know how essential it is that the U.S. drug development industry works to increase the inclusion of Black patients into clinical trials. We intend to explore opportunities to increase this

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through our Clinical Trial Diversity Working Group. The COVID-19 pandemic, and its disproportionate impact on Black communities in the U.S., has brought the need to ensure appropriate participation in clinical trials into ever-sharper relief. We intend to work towards meaningful solutions across our clinical studies to support and encourage appropriate representation of all racial and ethnic groups.

In addition to the initiatives above, in June 2020, and in support of the Black Lives Matter movement, we donated an undisclosed amount to two local organizations—FAME Inc. and One Village Alliance—both of which are located close to our global headquarters in Delaware and which aim to increase educational opportunities for underserved minorities in the State.

Minimizing our Environment Impact

Incyte is committed to operating in a way that minimizes our environmental impact. In the spring of 2020, we published our inaugural SASB Summary, which included initial environmental metrics.

In the coming years, we plan to expand upon these metrics and initial disclosures as well as to seek ways to reduce our carbon footprint. We recognize that as we grow, our impact may become more significant. Accordingly, we have made reducing our carbon footprint a key priority in our Global Responsibility initiative. As described below, we will seek to offset the emissions we are unable to reduce further through different projects.



We are determined to become a carbon neutral organization. While we acknowledge that finding solutions to further reduce our absolute carbon emissions may take time, the climate imperative means that we will not wait

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to act, and we have already begun by offsetting 100% of our measured carbon emissions in the U.S. in 2019* through verified reforestation carbon credit projects.

In 2020, we offset 100% of our 2019* measured carbon emissions in the U.S. through verified reforestation carbon credits in partnership with the Arbor Day Foundation.

*For 2019, we measured Scope 1 and Scope 2 for the properties wholly owned by Incyte that were fully functional for all of 2019. This includes U.S. Headquarters, which consists of Building 1801 and Building 1815. This represents 66% of our total office space in the U.S.

Over time, we expect to continue to work to reduce our absolute emissions by using additional renewable energy sources, moving our U.S. and European fleets to hybrid or electric vehicles and making appropriate infrastructure investments to enable increased uses of renewable energy sources as we continue to expand.

Our key environmental target, through combinations of absolute CO₂ reductions and offsets of our remaining emissions, is to be a carbon neutral organization by 2025, and three specific tactical goals to help us achieve this ambitious target are laid out below.



(1)

The TCFD (Task Force on Climate-related Financial Disclosures) has developed recommendations for voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders.

Cybersecurity and Related Activities

Cybersecurity and the awareness of and preparedness for related risks are a high priority at Incyte. The Audit and Finance Committee of the Board is updated by our cybersecurity team at least twice per year, and Incyte has not had a cyber breach in the past three years. We carry cybersecurity risk insurance, and conduct an annual cybersecurity audit with a different third party on each occasion.

All employees and contractors are required to attend mandatory cybersecurity awareness training, and refresher modules are also provided. In 2020, we conducted 26 online training sessions for the global user population, and recordings were also shared thereafter. We also conducted multiple "Cybersecurity at Home" training sessions covering the protection of, for example, home routers and smart home / smart car technologies, as well as recommendations for identity and home internet access protection.

We conduct phishing simulation email campaigns twice a year. As a result of these increased awareness activities, the percentage of phish-prone users declined in 2020, and the percentage of users who forwarded the phishing simulation campaign emails to the Incyte cybersecurity mailbox increased.

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Improvements in ESG Scores

The new disclosures made as part of our Global Responsibility initiative in 2020 have led to significant improvements in Incyte's scores and ratings by key ESG stakeholders, such as S&P Global, MSCI and Sustainalytics.



We expect our Global Responsibility initiative will continue to evolve, and we look forward to updating and adding to our disclosures in the coming years. For the most up to date Environmental, Social and Governance information, as well as our latest SASB Summary, please visit www.incyte.com/responsibility. Please note that the information provided on our website is not part of this Proxy Statement.

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Readiness and Response to COVID-19

The COVID-19 pandemic remains an evolving situation and it is important to keep in mind that our statements in this Proxy Statement speak only as of the filing date, as we may be unable to assess the full effects of governmental, business and social actions and policies and overall economic conditions on our business.

Incyte is very grateful to the millions of people around the world fighting the COVID-19 pandemic and its effects on society—from doctors, nurses and to all other essential workers who are continuing to provide their much-needed services. We have also sought to contribute to this fight in several ways, as described below.

When we enacted our global business continuity plans in the spring of 2020, our key priorities were to ensure that patients continue to receive their life-saving medicines, that we continue to provide our patients, customers and employees the support they need, and importantly, to do this in a manner that minimizes the health risks to all.



ARDS = Acute Respiratory Distress Syndrome; EAP = Expanded Access Program.

We also created, and continue to maintain, dedicated COVID-19 resource pages on the Incyte corporate website www.incyte.com/covid-19 and on our company intranet site, enabling easy access to updated information on the disease, Incyte's responsiveness, potential treatments, and vaccine availability, as well as links to published guidelines, including from the CDC, WHO, NIOSH and OSHA.

Prioritizing Patients' Access to Medicine

We were well prepared going into this crisis as we had ample drug supply, thereby ensuring availability of commercial medicines to patients. Our manufacturing processes have also proceeded without interruption, and despite the challenges of the pandemic, our team has continued to provide the level of service and responsiveness that our customers have been accustomed to over the years. We have expanded our multi-channel engagements and our field representatives are conducting multiple virtual and digital programs with our customers, and we prioritized patient needs by delivering commercial and clinical trial medicines to home addresses, where necessary and possible.

Our clinical team made the decision to allow patients, care-givers and physicians to decide on patients' participation in clinical programs, and we did not make any unilateral decisions to close or suspend enrollment in any of our clinical trials. Regional shutdowns and similar policies have affected certain studies, but the impact has been largely transient to date, and we have been able to remain on track with timelines for most key development programs.

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On the regulatory front, there was no impact on key timelines—as evidenced by the early FDA approvals that we announced for Pemazyre® (pemigatinib), Tabrecta® (capmatinib) and Monjuvi® (tafasitamab-cxix).

Rapid Initiation of Clinical Programs to Address COVID-19

At the outset of the pandemic, we rapidly mobilized our clinical and alliance management teams as we sought to uncover if our molecules might be of benefit to patients with COVID-19. We launched two Phase 3 trials (one of which was in collaboration with Novartis), evaluating ruxolitinib and we removed all contractual obstacles to enable Lilly to open trials evaluating baricitinib.

In November 2020, with Lilly we announced that that the FDA issued an Emergency Use Authorization (EUA) for the distribution and emergency use of baricitinib to be used in combination with remdesivir in hospitalized adult and pediatric patients two years of age or older with suspected or laboratory confirmed COVID-19 who require supplemental oxygen, invasive mechanical ventilation, or extracorporeal membrane oxygenation.

The EUA was supported by data from the Adaptive COVID-19 Treatment Trial (ACTT-2), which was sponsored by the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH). In December 2020, the New England Journal of Medicine published peer-reviewed results from the Phase 3 ACTT-2 trial, which included 1,033 patients from 67 trial sites in eight countries.

In December 2020, with Novartis we announced that the Phase 3 RUXCOVID study evaluating the safety and efficacy of ruxolitinib plus standard-of-care (SOC) as a treatment for non-ventilated patients 12 years and older with COVID-19 associated cytokine storm did not meet its primary endpoint. In addition, there was no clinically relevant benefit observed among secondary and exploratory endpoints.

In March 2021, we announced results from the Phase 3 369-DEVENT study evaluating the efficacy and safety of ruxolitinib (5mg and 15mg) plus standard of care (SOC) versus SOC in patients 12 years and older on mechanical ventilation with COVID-19 associated Acute Respiratory Distress Syndrome (ARDS). While improvement in mortality trended positively, statistical significance was not reached for the overall study population. However, a significant improvement in mortality was seen in U.S. patients at both doses and in the overall study population when both doses were pooled. We plan to make ruxolitinib available to eligible patients in the U.S. at no cost via an Expanded Access Program pending agreement with the U.S. Food and Drug Administration.

Ensuring Safety and Wellbeing

At the onset of the pandemic, we donated supplies, including personal protective equipment (PPE), from our laboratories in Wilmington, Delaware, to one of our local hospital systems that, like others, was facing a critical shortage. We also made a donation to fund the purchase of hospital equipment and goods to support patients, hospitals, healthcare facilities and providers in the critically affected Lombardy region of Italy.

At all Incyte locations, we initiated a seamless transition to remote working in March 2020 and from June 2020 were able to offer a gradual and voluntary return to offices where regional regulations permitted. Multiple protocols remain in place in all our global offices, including temperature checks, physical distancing and mask requirements, as well as the opportunity for rapid, finger-stick serological tests, to ensure safe workplaces for those who opt to return.

For our laboratory teams, rigorous safety precautions were put in place to allow essential operations to continue, even during the the spring of 2020, and our laboraties returned to full operations in May 2020. Ongoing precautions include temperature checks on entry and the mandatory use of PPE including surgical or N95 masks and gloves for all while on our laboratory campuses. Rapid, finger-stick serological tests are also available.

There have not been any staff reductions as a result of COVID-19, and we also took the decision to maintain all on-site and allied support staff at all of our facilities on full pay and benefits, including during the initial periods of enforced confinement because of stay-at-home orders.

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Readiness and Response to COVID-19

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We also understand that periods of solitude and other effects of the pandemic have the potential to take a significant toll on the health and wellbeing of our team, and therefore numerous additional actions were taken and support provided, often in response to feedback and other requests from within the organization.

•

Regular video bulletins providing updates from the CEO and other members of the executive team are recorded and circulated; these are in addition to the regularly-scheduled global Town Hall meetings, which have continued every three months.



•

We offered live virtual and on demand sessions for employees in all locations, including yoga, meditation, cooking and exercise classes, as well as sessions with many of our benefits partners.

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2021 Proposals

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PROPOSAL 1 Election of Directors

The Board proposes the election of nineeight directors of our Company to serve until the next annual meeting of stockholders, or thereafter until their successors are duly elected and qualified. If any nominee is unable or declines to serve as director at the time of the Annual Meeting, an event that we do not currently anticipate, proxies will be voted for any nominee designated by the Board to fill the vacancy.

Mr.Dr. Paul A. BrookeFriedman is retiring from our Board as of the Annual Meeting. We are very grateful for his years of service to Incyte and to our stockholders.

Director Nominees

Names of the nominees and certain biographical information about them are set forth below:

Hervé Hoppenot		CHAIRMAN OF THE BOARD Age: 6061		COMMITTEES: • None		DIRECTOR SINCE: 2014
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BACKGROUND:
Mr. Hoppenot joined Incyte as President and Chief Executive Officer and a Director in January 2014, and was appointed Chairman of the Board in May 2015. Mr. Hoppenot served as the President of Novartis Oncology, Novartis Pharmaceuticals Corporation, the U.S. subsidiary of Novartis AG, a pharmaceutical company, from January 2010 to January 2014. Prior to that, Mr. Hoppenot served in other executive positions at Novartis Pharmaceuticals Corporation, serving from September 2006 to January 2010 as Executive Vice President, Chief Commercial Officer of Novartis Oncology and Head of Global Product Strategy & Scientific Development of Novartis Pharmaceuticals Corporation and from 2003 to September 2006 as Senior Vice President, Head of Global Marketing of Novartis Oncology. Prior to joining Novartis, Mr. Hoppenot served in various increasingly senior roles at Aventis S.A. (formerly Rhône Poulenc S.A.), a pharmaceutical company, including as Vice President Oncology US of Aventis Pharmaceuticals, Inc. from 2000 to 2003 and Vice President US Oncology Operations of Rhone Poulenc Rorer Pharmaceuticals, Inc. from 1998 to 2000.
QUALIFICATIONS:
The Board has concluded that Hervé Hoppenot should serve on the Board because he has significant leadership and senior management experience from his various executive positions in the healthcare industry, including as the President of Novartis Oncology, Novartis Pharmaceuticals Corporation. His past experiences and his current role as our CEO give him strong knowledge of our strategy, markets, competitors, financials and operations.
OTHER PUBLIC COMPANY BOARDS:
Current Cellectis S.A.		Past 5 Years None
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Julian C. Baker		LEAD INDEPENDENT DIRECTOR Age: 5354		COMMITTEES: • Compensation		• Nominating and Corporate Governance (Chair)		DIRECTOR SINCE: 2001
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BACKGROUND:
Mr. Baker is a Managing PartnerMember of Baker Brothers Investments,Bros. Advisors LP, which he and his brother, Felix Baker, Ph.D., founded in 2000. Baker Brothers InvestmentsBros. Advisors LP is ana biotechnology-focused investment advisor focused on long-term investments in life sciences companies.to fund partnerships whose investors are primarily endowments and foundations. Mr. Baker's career as a fund manager began in 1994 when he co-founded a biotechnology investing partnership with the Tisch family. Previously, Mr. Baker was employed from 1988 to 1993 by the private equity investment arm of Credit Suisse First Boston Corporation.
QUALIFICATIONS:
The Board has concluded that Julian C. Baker should serve on the Board because he is an experienced investor in many life sciences companies. He brings to the Board significant strategic and financial expertise and extensive knowledge of the life sciences and biopharmaceuticals industries as a result of his investments in and service as a director of other publicly and privately held life sciences companies.
OTHER PUBLIC COMPANY BOARDS:
Current Acadia Pharmaceuticals, Inc. Prelude Therapeutics Incorporated		Past 5 Years Genomic Health, Inc. (2001 - 2019) Idera Pharmaceuticals, Inc. (2014-2018)
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Jean-Jacques Bienaimé		INDEPENDENT DIRECTOR Age: 6667		COMMITTEES: • Compensation (Chair) • Nominating and Corporate Governance		DIRECTOR SINCE: 2015
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BACKGROUND:
Mr. Bienaimé has served as Chief Executive Officer and a member of the board of directors of BioMarin Pharmaceutical Inc., a biopharmaceutical company, since May 2005. Mr. Bienaimé has also served as Chairman of BioMarin since June 2015. From November 2002 to April 2005, Mr. Bienaimé served as Chairman, Chief Executive Officer and President of Genencor, a biotechnology company focused on industrial bioproducts and targeted cancer biotherapeutics. Prior to joining Genencor, Mr. Bienaimé was Chairman, President and Chief Executive Officer of SangStat Medical Corporation, an immunology focused biotechnology company that was later acquired by Genzyme Corporation. He became President of SangStat in 1998 and Chief Executive Officer in 1999. Prior to joining SangStat, Mr. Bienaimé held various management positions from 1992 to 1998 with Rhône Poulenc Rorer Pharmaceuticals (now known as Sanofi Aventis), including Senior Vice President of Corporate Marketing and Business Development, and Vice President and General Manager of the advanced therapeutic and oncology division. Mr. Bienaimé is a director of the Biotechnology Innovation Organization and the Pharmaceutical Research and Manufacturers of America® (PhRMA).
QUALIFICATIONS:
The Board has concluded that Jean-Jacques Bienaimé should serve on the Board because he has significant leadership experience in the management of biotechnology organizations, business development, and sales and marketing of both biotechnology and pharmaceutical products. He also brings significant experience as a director of other publicly held life sciences companies.
OTHER PUBLIC COMPANY BOARDS:
Current BioMarin Pharmaceutical Inc.		Past 5 Years Vital Therapies, Inc. (2013-2018)
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Paul J. Clancy		INDEPENDENT DIRECTOR Age: 5859		COMMITTEES: • Audit and Finance (Chair) • Compensation		DIRECTOR SINCE: 2015
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BACKGROUND:
Mr. Clancy has more than 30 years of experience in financial management and strategic business planning, and has served as a senior advisor sincefrom October 2019 until July 2020 to, and formerly served as the Executive Vice President and Chief Financial Officer from July 2017 through October 2019 of, Alexion Pharmaceuticals, Inc., a biopharmaceutical company. Prior to joining Alexion, Mr. Clancy served as Executive Vice President, Finance and Chief Financial Officer of Biogen Inc. (formerly known as Biogen Idec Inc.), a biopharmaceutical company, from August 2007 until June 2017. He also served as Senior Vice President of Finance of Biogen, with responsibilities for leading the treasury, tax, investor relations and business planning groups. Prior to the 2003 merger of Biogen, Inc. and IDEC Pharmaceuticals Corporation to form Biogen, Mr. Clancy was the Vice President of Portfolio Management of Biogen. He joined Biogen in 2001 as Vice President of U.S. Marketing. Before Biogen, Mr. Clancy spent 13 years at PepsiCo Inc., a food and beverage company, serving in a variety of financial, strategy and general management positions.
QUALIFICATIONS:
The Board has concluded that Paul J. Clancy should serve on the Board because he has significant financial and executive leadership experience at large multi-national biopharmaceutical companies. Mr. Clancy also has experience as a director of a publicly held biotechnology company, and his breadth and depth of financial experience position him well to serve as Chair of the Audit and Finance Committee of the Board.
OTHER PUBLIC COMPANY BOARDS:
Current Agios Pharmaceuticals, Inc. Exact Sciences Corporation		Past 5 Years None
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Wendy L. Dixon, Ph.D.		INDEPENDENT DIRECTOR Age: 6465		COMMITTEES: • Audit and Finance		DIRECTOR SINCE: 2010
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BACKGROUND:
Dr. Dixon served as Chief Marketing Officer and President, Global Marketing for Bristol Myers Squibb Company from December 2001 until May 2009 and served on the Chief Executive Officer's Executive Committee. From 1996 to 2001, she was Senior Vice President, Marketing—USHH at Merck & Co., Inc., and prior to that she held executive management positions at West Pharmaceuticals, Osteotech, Inc. and Centocor, Inc. and various positions at SmithKline & French Pharmaceuticals in marketing, regulatory affairs, project management and as a biochemist.
QUALIFICATIONS:
The Board has concluded that Wendy L. Dixon should serve on the Board because she has significant leadership experience in the pharmaceutical and biotechnology industry, including experience in drug development and regulatory affairs. Dr. Dixon has extensive experience in building successful marketing and sales teams and launching multiple pharmaceutical products across a broad range of therapeutic areas. Dr. Dixon also has significant experience serving as a director of other publicly held life sciences companies, including as a member of certain audit committees.
OTHER PUBLIC COMPANY BOARDS:
Current Alkermes plc Arvinas, Inc. bluebird bio, Inc. Voyager Therapeutics, Inc.		Past 5 Years Orexigen Therapeutics, Inc. (2010-2016) Sesen Bio, Inc. (2014-2020) Voyager Therapeutics, Inc. (2017-2021)
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Jacqualyn A. Fouse, Ph.D.		INDEPENDENT DIRECTOR Age: 5859		COMMITTEES: • Audit and Finance • Nominating and Corporate Governance		DIRECTOR SINCE: 2017
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BACKGROUND:
Dr. Fouse has served as Chief Executive Officer of Agios Pharmaceuticals, Inc., a biopharmaceutical company, since February 2019. Prior to Agios, she served as Executive Chair of Dermavant Sciences, a biopharmaceutical company from July 2017 to September 2018. From September 2010 until June 2017, Dr. Fouse served in various capacities at Celgene Corporation, a biopharmaceutical company, serving as Strategic Advisor to the Management Executive Committee from April 2017 to June 2017, President and Chief Operating Officer from March 2016 to March 2017, President, Hematology and Oncology from August 2014 to February 2016, Executive Vice President and Chief Financial Officer from February 2012 to July 2014, and Senior Vice President and Chief Financial Officer from September 2010 to February 2012. Prior to joining Celgene, Dr. Fouse served as Chief Financial Officer of Bunge Limited, a global agribusiness and food company, from July 2007 to September 2010. Prior to joining Bunge, Dr. 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. Prior to her time with Alcon she held a variety of senior leadership roles with international companies.
QUALIFICATIONS:
The Board has concluded that Jacqualyn A. Fouse should serve on the Board because she has significant corporate finance, financial reporting and accounting expertise as a result of her executive roles at Agios and previously at Dermavant Sciences and Celgene, as well as her prior positions with other companies. Additionally, Dr. Fouse is able to provide diverse and valuable corporate governance, management, operational and strategic expertise to the Board through her experience as an executive officer and a public company board member.
OTHER PUBLIC COMPANY BOARDS:
Current Agios Pharmaceuticals, Inc. Dick's Sporting Goods, Inc.		Past 5 Years Celgene Corporation (2016-2017) Dick's Sporting Goods, Inc. (2010-2020) Perrigo Company (2012-2016) Celgene Corporation (2016-2017)
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Paul A. Friedman, M.D.		INDEPENDENT DIRECTOR Age: 77		COMMITTEES: • Nominating and Corporate Governance		DIRECTOR SINCE: 2001
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BACKGROUND:
Dr. Friedman has served as Chief Executive Officer and Chairman of the Board of Directors of Madrigal Pharmaceuticals, Inc., a biopharmaceutical company, since July 2016. Dr. Friedman served as our Chief Executive Officer from November 2001 to January 2014 and was our President from May 2004 to January 2014. From 1998 until October 2001, Dr. Friedman served as President of DuPont Pharmaceuticals Research Laboratories, a wholly owned subsidiary of DuPont Pharmaceuticals Company (formerly The DuPont Merck Pharmaceutical Company), from 1994 to 1998 he served as President of Research and Development of The DuPont Merck Pharmaceutical Company, and from 1991 to 1994 he served as Senior Vice President at Merck Research Laboratories. Prior to his work at Merck and DuPont, Dr. Friedman was an Associate Professor of Medicine and Pharmacology at Harvard Medical School. Dr. Friedman is a Diplomate of the American Board of Internal Medicine and a Member of the American Society of Clinical Investigation.
QUALIFICATIONS:
The Board has concluded that Paul A. Friedman should serve on the Board because he has extensive expertise in our business and in the drug development and discovery industry. His past experiences, including as our former CEO, give him strong knowledge of our strategy, markets, competitors, financials and operations. He also has experience as a director of publicly held life sciences and healthcare companies.
OTHER PUBLIC COMPANY BOARDS:
Current Alexion Pharmaceuticals, Inc. Madrigal Pharmaceuticals, Inc.		Past 5 Years Cerulean Pharma Inc. (2014-2017) Verastem, Inc. (2014-2017)
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Proposal 1 Election of Directors

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Edmund P. Harrigan, M.D.		INDEPENDENT DIRECTOR Age: 6768		COMMITTEES: • NoneScience and Technology		DIRECTOR SINCE: 2019
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BACKGROUND:
Edmund P. Harrigan, M.D. joined the Board in December 2019. Dr. Harrigan served as Senior Vice President of Worldwide Safety and Regulatory for Pfizer Inc. from 2012 until his retirement in 2015. Dr. Harrigan's previous executive leadership roles at Pfizer included serving as Senior Vice President, Head of Worldwide Business Development, Senior Vice President, Head of Worldwide Regulatory Affairs and Quality Assurance, and Vice President, Head of Neuroscience and Ophthalmology. Previously, Dr. Harrigan served in senior leadership positions at Karuna Pharmaceuticals, Inc., Sepracor Inc., and Neurogen Corporation. Prior to entering the pharmaceutical industry in 1990, Dr. Harrigan was a practicing neurologist for seven years.
QUALIFICATIONS:
The Board has concluded that Edmund P. Harrigan should serve on the Board because he has significant executive leadership experience in the pharmaceutical and biotechnology industry, including experience in drug discovery and development, regulatory affairs and business development. Dr. Harrigan also brings substantial medical and scientific experience to the Board. In addition, Dr. Harrigan has significant experience serving as a director of other publicly held life sciences companies.
OTHER PUBLIC COMPANY BOARDS:
Current ACADIA Pharmaceuticals, Inc. Karuna Therapeutics, Inc. PhaseBio Pharmaceuticals, Inc.		Past 5 Years Bellicum Pharmaceuticals, Inc. (2018-2019) Karuna Therapeutics, Inc. (2011-2020)
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Proposal 1 Election of Directors

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Katherine A. High, M.D.		INDEPENDENT DIRECTOR Age: 6869		COMMITTEES: • NoneScience and Technology		DIRECTOR SINCE: 2020
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BACKGROUND:
Katherine A. High, M.D., joined the Board in March 2020. Dr. High has served as President, Therapeutics of Asklepios Biopharmaceutical, Inc., a biotechnology and gene therapy company that is a wholly-owned subsidiary of Bayer AG, since January 2021. Dr. High served as President of Spark Therapeutics, Inc., a gene therapy company, from September 2014 until February 2020 and served as Head of Research and Development of Spark from September 2017 until February 2020. From September 2014 through September 2017, Dr. High served as Chief Scientific Officer of Spark. Prior to serving as President of Spark, Dr. High provided advice to Spark and subsequently served as an independent consultant to Spark from December 2013 to September 2014. From July 1999 through September 2014, Dr. High was a Professor at the Perelman School of Medicine at the University of Pennsylvania. From March 2003 through September 2014, Dr. High was an Investigator of the Howard Hughes Medical Institute. Dr. High served as the Director of the Center for Cellular and Molecular Therapeutics at Children's Hospital of Philadelphia from September 2004 to April 2014.
QUALIFICATIONS:
The Board has concluded that Katherine A. High should serve on the Board because she has significant executive, scientific and medical leadership experience, including extensive academic and industry experience in drug discovery and development. Her medical background, together with her experience leading drug discovery and development efforts at Spark Therapeutics, are expected to assist the Board in its oversight role over our drug discovery and development efforts. In addition, Dr. High has experience serving as an executive officer and director of publicly traded life sciences companies.
OTHER PUBLIC COMPANY BOARDS:
Current CRISPR Therapeutics AG		Past 5 Years Spark Therapeutics, Inc. (2014-2019)
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Board Committees

The Board has appointed an Audit and Finance Committee, a Compensation Committee, and a Nominating and Corporate Governance Committee, and a Science and Technology Committee. The Board has determined that each director who serves on these committees is "independent," as that term is defined by applicable listing standards of The Nasdaq Stock Market and Securities and Exchange Commission rules. The Board has approved a charter for each of these committees, a current copy of each committee's charter can be found on our website athttp://www.incyte.com under the "Corporate Governance" heading in the "For Investors" portion of our website. The Board has also appointed a Non-Management Stock Option Committee.

The Board will update committee composition as appropriate after the Annual Meeting.

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Audit and Finance Committee The Audit and Finance Committee's responsibilities include: ➤ assisting the Board in fulfilling its oversight responsibilities relating to the Company's financial statements, systems of internal control over financial reporting, auditing, accounting and financial reporting processes, compliance with legal and regulatory requirements, financing strategies, capital allocation, capital structure, and enterprise risk assessment; ➤ appointing, compensating, evaluating and, when appropriate, replacing our independent registered public accounting firm; ➤ reviewing and pre-approving audit and permissible non-audit services; ➤ reviewing the scope of the annual audit; ➤ monitoring the independent registered public accounting firm's relationship with the Company; ➤ meeting with the independent registered public accounting firm and management to discuss and review our financial statements, internal control over financial reporting, and auditing, accounting and financial reporting processes; ➤ reviewing the results of management's efforts to monitor compliance with the Company's programs and policies designed to promote adherence to applicable laws and regulations; ➤ overseeing the management of risks associated with financial and accounting systems, accounting policies, public reporting, investment strategies and cybersecurity, including the periodic review of management's efforts to identify and mitigate such risks; ➤ overseeing our internal audit function; and ➤ reviewing matters related to the Company's capital allocation strategies, capital structure and tax structure. The Board has determined that Mr. Clancy Mr. Brooke and Dr. Fouse are each qualified as an Audit Committee Financial Expert under the definition outlined by the Securities and Exchange Commission. No member of our Audit and Finance Committee sits on more than three public company audit committees, including ours.		COMMITTEE MEMBERS Paul J. Clancy (Chair) Paul A. Brooke Wendy L. Dixon Jacqualyn A. Fouse Met 8 times in 2019

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Board Committees

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Compensation Committee The Compensation Committee's responsibilities include: ➤ assisting the Board in meeting its responsibilities with regard to oversight and determination of executive compensation; ➤ reviewing and making recommendations with respect to major compensation plans, policies and programs of the Company; ➤ developing and monitoring compensation arrangements for our executive officers; ➤ determining compensation for our CEO and other executive officers; ➤ determining stock-based compensation awards for our executive officers; ➤ administering performance-based compensation plans such as our Amended and Restated 2010 Stock Incentive Plan (the "2010 Stock Incentive Plan"); ➤ reviewing and recommending directors' compensation to the full Board; and ➤ possessing sole authority to select, retain, terminate and approve the fees and other retention terms of consultants as it deems appropriate to perform its duties.		COMMITTEE MEMBERS Paul A. Brooke (Chair) Julian C. Baker Jean-Jacques Bienaimé Met 9 times in 2019
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Nominating and Corporate Governance Committee The Nominating and Corporate Governance Committee's responsibilities include: ➤ identifying qualified individuals to become members of the Board; ➤ determining the composition of the Board and its committees; ➤ monitoring a process to assess Board effectiveness; ➤ recommending nominees to fill vacancies on the Board; ➤ reviewing and making recommendations to the Board with respect to candidates for director proposed by stockholders; ➤ reviewing the composition, functioning and effectiveness of the Board and its committees; ➤ developing and recommending to the Board codes of conduct applicable to officers, directors and employees and charters for the various committees of the Board; and ➤ reviewing and making recommendations to the Board regarding the succession plan relating to our CEO and other executive officers.		COMMITTEE MEMBERS Julian C. Baker (Chair) Jacqualyn A. Fouse Paul A. Friedman Met 2 times in 2019

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Committee Membership

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Name and Primary Occupation

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Independent

Compensation

Audit and Finance

Nominating and Corporate Governance

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Hervé Hoppenot—Chairman of the Board President and Chief Executive Officer Incyte Corporation

2014

60

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Julian C. Baker—Lead Independent Director Managing Partner Baker Brothers Investments

2001

53

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Jean-Jacques Bienaimé Chief Executive Officer BioMarin Pharmaceutical Inc.

2015

66

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Paul A. Brooke Former Founder and Managing Partner venBio, LLC

2001

74

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Paul J. Clancy Former Executive Vice President and Chief Financial Officer Alexion Pharmaceuticals, Inc.

2015

58

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Wendy L. Dixon, Ph.D. Former Chief Marketing Officer and President, Global Marketing Bristol-Myers Squibb Company

2010

64

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Jacqualyn A. Fouse, Ph.D. Chief Executive Officer Agios Pharmaceuticals, Inc.

2017

58

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Paul A. Friedman, M.D. Chief Executive Officer Madrigal Pharmaceuticals, Inc.

2001

77

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Edmund P. Harrigan, M.D. Former Senior Vice President of Worldwide Safety and Regulatory Pfizer Inc.

2019

67

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Katherine A. High, M.D. Former President and Head of Research and Development Spark Therapeutics, Inc.

2020

68

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  Committee Chair         Financial Expert         Member

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Compensation Committee The Compensation Committee's responsibilities include: ➤ assisting the Board in meeting its responsibilities with regard to oversight and determination of executive compensation; ➤ reviewing and making recommendations with respect to major compensation plans, policies and programs of the Company; ➤ developing and monitoring compensation arrangements for our executive officers; ➤ determining compensation for our CEO and other executive officers; ➤ determining stock-based compensation awards for our executive officers; ➤ administering performance-based compensation plans such as our Amended and Restated 2010 Stock Incentive Plan (the "2010 Stock Incentive Plan"); ➤ reviewing and recommending directors' compensation to the full Board; and ➤ possessing sole authority to select, retain, terminate and approve the fees and other retention terms of consultants as it deems appropriate to perform its duties.		COMMITTEE MEMBERS Jean Jacques Bienaimé (Chair) Julian C. Baker Paul J. Clancy Met 5 times in 2020
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Nominating and Corporate Governance Committee The Nominating and Corporate Governance Committee's responsibilities include: ➤ identifying qualified individuals to become members of the Board; ➤ determining the composition of the Board and its committees; ➤ monitoring a process to assess Board effectiveness; ➤ recommending nominees to fill vacancies on the Board; ➤ reviewing and making recommendations to the Board with respect to candidates for director proposed by stockholders; ➤ reviewing the composition, functioning and effectiveness of the Board and its committees; ➤ developing and recommending to the Board codes of conduct applicable to officers, directors and employees and charters for the various committees of the Board; and ➤ reviewing and making recommendations to the Board regarding the succession plan relating to our CEO and other executive officers.		COMMITTEE MEMBERS Julian C. Baker (Chair) Jean Jacques Bienaimé Jacqualyn A. Fouse
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Science and Technology Committee The Science and Technology Committee's responsibilities include: ➤ assisting the Board in its general oversight of the Company's research and development programs and progress in achieving research and development goals and objectives; ➤ providing strategic advice to the Board and management regarding emerging science and technology issues and trends; ➤ reviewing and assessing the Company's approaches to acquiring and maintaining technology positions or otherwise investing in research and development programs; and ➤ assisting the Board with its oversight responsibility for enterprise risk management in areas affecting the Company's research and development activities.		COMMITTEE MEMBERS Paul A. Friedman (Chair) Edmund P. Harrigan, MD Katherine A. High, MD Met 2 times in 2020

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Name and Primary Occupation

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Compensation

Audit and Finance

Nominating and Corporate Governance

Science and Technology(1)

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Hervé Hoppenot—Chairman of the Board President and Chief Executive Officer Incyte Corporation

2014

61

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Julian C. Baker—Lead Independent Director Managing Partner Baker Brothers Investments

2001

54

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Jean-Jacques Bienaimé Chief Executive Officer BioMarin Pharmaceutical Inc.

2015

67

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Paul J. Clancy Former Executive Vice President and Chief Financial Officer Alexion Pharmaceuticals, Inc.

2015

59

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Wendy L. Dixon, Ph.D. Former Chief Marketing Officer and President, Global Marketing Bristol-Myers Squibb Company

2010

65

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Jacqualyn A. Fouse, Ph.D. Chief Executive Officer Agios Pharmaceuticals, Inc.

2017

59

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Edmund P. Harrigan, M.D. Former Senior Vice President of Worldwide Safety and Regulatory Pfizer Inc.

2019

68

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Katherine A. High, M.D. President, Therapeutics Asklepios Biopharmaceutical, Inc.

2020

69

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  Committee Chair          Financial Expert          Member

(1)

Dr. Friedman will continue as the Chair of the Science and Technology Committee until his retirement from the Board as of the date of the 2021 Annual Meeting.

​
​	​	​
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​	​	​ Proxy Statement 2021|33

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Table of Contents

​

Compensation of Directors

Our director compensation program is designed to enable attraction and retention of highly qualified directors by ensuring that our director compensation is in line with compensation offered by our peer companies that compete with us for director talent. The program is designed to address the time, effort, expertise, and accountability required of active board membership. Directors who are employees of the Company, namely Mr. Hoppenot, do not receive any fees for their service on the Board or any committee. The Compensation Committee, with the assistance of its independent compensation consultant, periodically reviews the compensation for our non-employee directors in relation to the peer group used for compensation purposes (as described below under "Compensation Discussion and Analysis"). For 2021, the Board, upon the recommendation of the Compensation Committee, reduced the grant date target value of total equity awards from $500,000 to $400,000.

Following stockholder feedback, ourBased on the Compensation Committee's most recent review in February 2021, the Compensation Committee recommended, and in March 2021, the Board approved, changes in 2019 to our non-employee director compensation program that decreasedenable the Board to set the grant date target value of equity awards decreased the overall level of compensationunder our Amended and movedRestated 2010 Stock Incentive Plan (the "2010 Stock Incentive Plan") up to a fixed-valuemaximum of $500,000, which was the grant date target value for equity target rather thanawards made to non-employee directors in 2020.

In addition, the prior fixed numbermix of equity awards was changed from 75% stock options that resulted in fluctuating values every year.and 25% restricted stock unit (RSU) awards to 60% stock options and 40% RSU awards. These changes will take effect upon the approval of amendments to the 2010 Stock Incentive Plan as described below under "Proposal 3," and are more fully described under "Proposal 3."

Role

Cash Retainer ($)(1)

Total Equity Awards ($)(2)

Cash Retainer ($)(1)

Total Equity Awards ($)(2)

​

​

​

​

​

​

​

​

​

​

​

​

​

Lead Independent Director

90,000

500,000

90,000

400,000

​

​

​

​

​

​

​

​

​

​

​

��

​

​

​

Non-Employee Director

60,000

500,000

60,000

400,000

​

​

​

​

​

​

​

​

​

​

​

​

​



​
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​ 34|Proxy Statement 2021	​ ​	​

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Table of Contents

​

Compensation of Directors

​

Role			Cash Retainer ($)(1)
​	​	​	​	​
Chair of Audit and Finance Committee			25,000
​	​	​	​	​
Members of Audit and Finance Committee			12,000
​	​	​	​	​
Chair of Compensation Committee			25,000
​	​	​	​	​
Members of Compensation Committee			10,000
​	​	​	​	​
Chair of Nominating and Corporate Governance Committee			16,000
​	​	​	​	​
Members of Nominating and Corporate Governance Committee			8,000
​	​	​	​	​
Chair of Science and Technology Committee			25,000
​	​	​	​	​
Members of Science and Technology Committee			10,000
​	​	​	​	​

(1)

Annual cash retainers are payable quarterly. Non-employee directors may elect to receive their retainers and committee fees in the form of restricted stock that vests immediately when the associated quarterly retainer amount is paid.



(2)

Equity awards are 75% stock options and 25% restricted stock unit (RSU)RSU awards, determined in the same manner as with awards to our executive officers, as described in "Compensation Discussion and Analysis." If Proposal 3 is approved, target total equity award value will be $400,000 for all non-employee directors and equity awards will be 60% stock options and 40% RSU awards. The exercise price of the options will be equal to the fair market value on the date of grant and have a term of 10 years. Each award will vest in full on the first anniversary of the date of the grant or, if earlier, the date of the next annual meeting of stockholders or upon a change in control.

Cash and equity awards are prorated for such portion of the year that the director serves on the Board. All directors are reimbursed for their travel and out-of-pocket expenses in accordance with our travel policy for each in-person Board or committee meeting that they attend.

​
​	​	​
​ ​	​ ​	​ ​
​	​	​ Proxy Statement 2020|19

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Table of Contents

​

Compensation of Directors

​

20192020 Director Compensation Table

Name

​

Fees Earned or Paid in Cash ($)

​

Stock Awards ($)(1)(3)

​

Option Awards ($)(2)(3)

​

Total ($)

​

​

Fees Earned or Paid in Cash ($)

​

Stock Awards ($)(1)(3)

​

Option Awards ($)(2)(3)

​

Total ($)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Julian C. Baker

​

​

—

​

​

217,431

​

​

342,264

​

​

559,695

​

​

​

—

​

​

242,508

​

​

379,645

​

​

622,153

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Jean-Jacques Bienaimé

​

​

—

​

​

180,189

​

​

342,264

​

​

522,453

​

​

​

—

​

​

211,104

​

​

379,645

​

​

590,749

​

​

​

​

​

​

​

​

​

​

​

Paul A. Brooke

​

​

—

​

​

211,098

​

​

342,264

​

​

553,362

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Paul J. Clancy

​

​

—

​

​

194,225

​

​

342,264

​

​

536,489

​

​

​

—

​

​

217,854

​

​

379,645

​

​

597,499

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Wendy L. Dixon

​

​

—

​

​

184,038

​

​

342,264

​

​

526,302

​

​

​

—

​

​

198,508

​

​

379,645

​

​

578,153

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Jacqualyn A. Fouse

​

​

—

​

​

183,799

​

​

342,264

​

​

526,063

​

​

​

—

​

​

206,508

​

​

379,645

​

​

586,153

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Paul A. Friedman

​

​

61,973

​

​

114,046

​

​

342,264

​

​

518,283

​

​

​

74,540

​

​

126,508

​

​

379,645

​

​

580,693

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Edmund P. Harrigan

​

​

2,446

​

​

42,185

​

​

126,674

​

​

171,305

​

​

​

—

​

​

191,155

​

​

379,645

​

​

570,800

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Katherine A. High

​

​

50,801

​

​

136,662

​

​

410,258

​

​

597,721

​

​

​

​

​

​

​

​

​

​

​

(1)

Amounts listed in this column represents the sum of the aggregate grant date value of restricted stock awards issued quarterly at the election of the director in lieu of his or her annual retainer and committee fees and the aggregate grant date fair value of RSU awards granted upon re-election at the 20192020 Annual Meeting or, in the case of Dr. Harrigan,High, upon hisher election to the Board, determined in accordance with the Financial Accounting Standards Board Accounting Standards Codification Topic 718 (ASC 718) for financial reporting purposes. See Note 1312 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 20192020 for a discussion of our assumptions in determining the ASC 718 values of our stock awards.



​
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​

Compensation of Directors

​




The following table provides the grant date value of restricted stock awards and the grant date fair value of RSUs shown in the above table:

Name

​

Value of Restricted Stock Awards ($)

​

Grant Date Fair Value of RSU Awards ($)

​

​

Value of Restricted Stock Awards ($)

​

Grant Date Fair Value of RSU Awards ($)

​

​

​

​

​

​

​

​

​

​

​

​

Julian C. Baker

​

​

103,385

​

​

114,046

​

​

​

​

116,000

​

​

126,508

​

​

​

​

​

​

​

​

​

​

​

​

​

Jean-Jacques Bienaimé

​

​

66,143

​

​

114,046

​

​

​

​

84,596

​

​

126,508

​

​

​

​

​

​

​

​

Paul A. Brooke

​

​

97,052

​

​

114,046

​

​

​

​

​

​

​

​

​

​

​

​

​

Paul J. Clancy

​

​

80,179

​

​

114,046

​

​

​

​

91,346

​

​

126,508

​

​

​

​

​

​

​

​

​

​

​

​

​

Wendy L. Dixon

​

​

69,992

​

​

114,046

​

​

​

​

72,000

​

​

126,508

​

​

​

​

​

​

​

​

​

​

​

​

​

Jacqualyn A. Fouse

​

​

69,753

​

​

114,046

​

​

​

​

80,000

​

​

126,508

​

​

​

​

​

​

​

​

​

​

​

​

​

Paul A. Friedman

​

​

—

​

​

114,046

​

​

​

​

—

​

​

126,508

​

​

​

​

​

​

​

​

​

​

​

​

​

Edmund P. Harrigan

​

​

—

​

​

42,185

​

​

​

​

64,647

​

​

126,508

​

​

​

​

​

​

​

​

​

​

​

​

​

Katherine A. High

​

​

—

​

​

136,662

​

​

​

​

​

​

​

​

(2)

Amounts listed in this column represents the aggregate grant date fair value of option awards granted upon re-election at the 20192020 Annual Meeting or, in the case of Dr. Harrigan,High, upon hisher election to the Board, determined in accordance with the ASC 718 for financial reporting purposes. See Note 1312 of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 20192020 for a discussion of our assumptions in determining the ASC 718 values of our option awards.



(3)

The following table provides the number of shares of common stock subject to outstanding unvested RSU awards and options held at December 31, 20192020 for each director who was then serving on the Board. The number of shares underlying unexercised options shown for Dr. Friedman includes 7,500 shares underlying options received while he served as our CEO until January 2014.

Name

​

Number of Unvested RSU Awards

​

Number of Shares Underlying Unexercised Option

​

​

Number of Unvested RSU Awards

​

Number of Shares Underlying Unexercised Option

​

​

​

​

​

​

​

​

​

​

​

​

Julian C. Baker

​

​

1,520

​

​

167,472

​

​

​

​

1,282

​

​

157,986

​

​

​

​

​

​

​

​

​

​

​

​

​

Jean-Jacques Bienaimé

​

​

1,520

​

​

102,472

​

​

​

​

1,282

​

​

112,986

​

​

​

​

​

​

​

​

Paul A. Brooke

​

​

1,520

​

​

167,472

​

​

​

​

​

​

​

​

​

​

​

​

​

Paul J. Clancy

​

​

1,520

​

​

102,472

​

​

​

​

1,282

​

​

112,986

​

​

​

​

​

​

​

​

​

​

​

​

​

Wendy L. Dixon

​

​

1,520

​

​

147,472

​

​

​

​

1,282

​

​

137,986

​

​

​

​

​

​

​

​

​

​

​

​

​

Jacqualyn A. Fouse

​

​

1,520

​

​

61,222

​

​

​

​

1,282

​

​

71,736

​

​

​

​

​

​

​

​

​

​

​

​

​

Paul A. Friedman

​

​

1,520

​

​

94,972

​

​

​

​

1,282

​

​

105,486

​

​

​

​

​

​

​

​

​

​

​

​

​

Edmund P. Harrigan

​

​

462

​

​

4,360

​

​

​

​

1,282

​

​

14,874

​

​

​

​

​

​

​

​

​

​

​

​

​

Katherine A. High

​

​

1,282

​

​

11,799

​

​

​

​

​

​

​

​

​
​	​	​
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​ 2036  |  Proxy Statement 20202021	​ ​	​

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Table of Contents

​

Corporate Governance

What We Do
​	​	​
✓ Majority voting for directors in uncontested elections		✓ Audit and Finance Committee receives semiannual updates by our Chief Compliance Officer
​	​	​
✓ Strong and active Lead Independent Director, representing one of our largest stockholderstockholders		✓ Board and the committees may seek advice from outside advisors
​	​	​
✓ Audit and Finance Committee, Nominating and Corporate Governance Committee and Compensation Committee comprised solely of independent directors		✓ Pre-clearance by our General Counsel required for trading in our stock by any director, and all executive trading must be through a pre-cleared trading plan
​	​	​
✓ Audit and Finance Committee regularly meets with Ernst & Young LLP, our independent registered public accounting firm, as well as our internal controlscorporate audit services team—without members of executive management present		✓ Maintain robust Code of Business Conduct and Ethics, Senior Financial Officers' Code of Ethics and Board of Directors Code of Conduct and Ethics
​	​	​
✓ An independent compensation consultant is engaged by and reports directly to our Compensation Committee		✓ Board members have complete access to management and employees in their discretion
​	​	​
✓ Annual election of directors		✓ High Board and committee attendance
​	​	​
✓ Review and approve corporate strategic plan, including the budget, at least annually		✓ Robust commitment to corporate, environmental and social responsibility
​	​	​
✓ Limits on outside board and audit committee service		✓ Extensive ongoing stockholder outreach, often involving Lead Independent Director
​	​	​
✓ Proxy access bylaw (3% ownership, 3 years, nominees up to 20% of the Board)		✓ Audit and Finance Committee is updated by our cybersecurity team at least twice per year
​	​	​

 


What We Don't Do
​	​	​
✗ No staggered or classified Board		✗ No hedging or speculative trading in our stock by directors, executives or other employees
​	​	​
✗ No plurality voting in uncontested Board elections		✗ Board members may not be "overboarded"
​	​	​

Majority Voting Policy

Our Bylaws include a majority voting standard for the election of directors. In order to receive a majority of the votes cast, the number of shares voted "FOR" must exceed the number of votes "AGAINST"; abstentions and broker non-votes do not count as votes cast. Our Bylaws provide that, in an uncontested election, director nominees must receive a majority of the votes cast to be elected to the Board. Our Corporate Governance Guidelines state that if a nominee for director in an uncontested election does not receive a majority of the votes cast, the director should submit a resignation for consideration by the Board. The Nominating and Corporate Governance Committee will evaluate and make a recommendation to the Board with respect to the proffered resignation. The Board must take action on the recommendation within 90 days following certification of the stockholder vote. The director whose resignation is under consideration cannot participate in any decision regarding his or her resignation. The Nominating and Corporate Governance Committee and the Board may consider any factors they deem relevant in deciding whether to accept a director's resignation.

​
​	​	​
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​	​	​ Proxy Statement 20202021  |  2137

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Table of Contents

​

Corporate Governance

​

Board Leadership Structure and Role in Risk Oversight

Our current leadership structure and governing documents permit the roles of Chairman and CEO to be filled by the same or different individuals. Where the Chairman and CEO roles are filled by the same individual, our Corporate Governance Guidelines require the independent directors on our Board to appoint a Lead Independent Director.

The Board values the flexibility to select, from time to time, a leadership structure that it believes is most able to serve our Company's and stockholders' best interests based on the qualifications of individuals available and circumstances existing at the time. As such, the Board periodically evaluates whether combining or separating the roles of Chairman and CEO is in the best interests of our Company and our stockholders.

Currently the Board believes it is in the best interests of our stockholders to have Hervé Hoppenot, our President and CEO, serve as Chairman, coupled with Julian C. Baker—a managing member of the general partner of one of our largest stockholderstockholders (Baker Bros. Advisors LP and affiliated entities (the "Baker Funds") who collectively hold 16.1%14.6% of our common stock as of April 1, 2020)March 29, 2021)—serving as our Lead Independent Director. The Board reviews its leadership structure on an ongoing basis and retains the authority to modify this structure as it deems appropriate.

Focus on Independence.    The Board maintains a strong commitment to ensuring Board independence so that it is able to maintain effective oversight of management. The Board's commitment to independence includes:

✓

Annual appointment of a strong Lead Independent Director, who also represents one of our largest stockholder,stockholders, the Baker Funds, thereby ensuring strong representation of stockholder interests



✓

Robust duties of the Lead Independent Director, which include:



•

presiding at all meetings of the Board at which the Chairman is not present, including executive sessions of the independent directors



•

serving as liaison between the Chairman/CEO and the other independent directors



•

approving information sent to the Board



•

approving meeting agendas for the Board



•

approving meeting schedules to assure that there is sufficient time for discussion of all agenda items



•

authority to call meetings and executive sessions of the independent directors



•

being available for consultation with stockholders, when appropriate.



✓

Review, at least annually, of the Company's strategic plan and the following year's capital and operating budgets



✓

Annual election of all directors, ensuring accountability to stockholders



✓

Regular executive sessions of the independent, non-management directors—without Mr. Hoppenot—to review Company performance, CEO performance, management effectiveness, proposed programs and transactions and the Board meeting agenda items



✓

Requirement that only independent directors serve on the Audit and Finance Committee, the Compensation Committee and the Nominating and Corporate Governance Committee



✓

Requirement that a majority of the Board be comprised of independent directors, with 90%89% of the current Board being independent



✓

Corporate Governance Guidelines providing that the Board may have access to Company management and employees and its own advisors, at the Board's discretion.

​
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​ 22|Proxy Statement 2020	​ ​	​

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Table of Contents

​

Corporate Governance

​

Benefits of Combined Leadership Structure

The Board believes that the Company and our stockholders have been best served by having Mr. Hoppenot in the role of Chairman and CEO for the following reasons:

​	​	​
Mr. Hoppenot is most familiar with our business and the unique challenges we face. As such Mr. Hoppenot is the director best suited to identify strategic opportunities and focus the activities of the Board.		Mr. Hoppenot's day to day insight into our challenges facilitates a timely deliberation by the Board of important matters.
​	​	​
Mr. Hoppenot has and will continue to identify agenda items and lead effective discussions on the important matters affecting us. Mr. Hoppenot's knowledge and extensive experience regarding our operations and the highly-regulated industries and markets in which we compete position him to identify and prioritize matters for Board review and deliberation.		As Chairman and CEO, Mr. Hoppenot serves as an important bridge between the Board and management and provides critical leadership for carrying out our strategic initiatives and confronting our challenges. The Board believes that Mr. Hoppenot brings a unique, stockholder-focused insight to assist the Company to most effectively execute its strategy and business plans to maximize stockholder value.
​	​	​
The strength and effectiveness of the communications between Mr. Hoppenot as our Chairman and Mr. Baker as our Lead Independent Director result in effective Board oversight of the issues, plans and prospects of our Company.		This leadership structure provides the Board with more complete and timely information about the Company, a unified structure and consistent leadership direction internally and externally and provides a collaborative and collegial environment for Board decision-making.
​	​	​

Flexibility of the Leadership Structure.    The Board is committed to high standards of corporate governance. The Board values the flexibility to select, from time to time, a leadership structure that is most able to serve the Company's and stockholders' best interests based on the qualifications of individuals available and

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​ 38|Proxy Statement 2021	​ ​	​

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Table of Contents

​

Corporate Governance

​

circumstances existing at the time. As such, the Board periodically evaluates whether combining or separating the roles of Chairman and CEO is in the best interests of the Company and our stockholders.The Board believes that a policy limiting its flexibility to choose, consistent with its fiduciary duties, a leadership structure that will enable the Company to most effectively execute its strategy and business plans to maximize stockholder value would be detrimental to the Company and our stockholders.

Board's Role in Risk Oversight.    Our Board is responsible for overseeing the overall risk management process at the Company directly and through its committees. The responsibility for managing risk rests with executive management while the committees of the Board and the Board as a whole participate in the oversight process. The Board's risk oversight process builds upon management's risk assessment and mitigation processes, which include reviews of long term strategic and operational planning, executive evaluation, development and succession planning, regulatory and legal compliance, and financial reporting and internal controls. The Board considers strategic and operational risks and opportunities and regularly receives reports from executive management regarding specific aspects of risk management. The Audit and Finance Committee receives periodic reports from executive management with respect to, and reviews such risks associated with, our financial and accounting systems, accounting policies, investment strategies, regulatory compliance and our information systems and technology, including cybersecurity risks and readiness. In addition, the Audit and Finance Committee oversees our internal audit team. The Audit and Finance Committee also meets regularly with our Chief Compliance Officer, our internal controls team and our independent registered public accounting firm in executive session without the presence of other members of management. The Compensation Committee evaluates our compensation policies and practices to help ensure that these policies and practices do not incentivize employees to take unnecessary or excessive risks that are reasonably likely to have a material adverse effect on our Company and provide appropriate incentives for meeting both short-term and long-term objectives and increasing stockholder value over time. The Nominating and Corporate Governance Committee reviews our risks associated with governance matters and non-compensation related human resources matters.

​
​	​	​
​ ​	​ ​	​ ​
​	​	​ Proxy Statement 2020|23

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Table of Contents

​

Corporate Governance

Director Independence

In 2019,2020, our Board determined that each individual who served as a member of the Board in 2019,2020, except for Mr. Hoppenot, was an "independent director" within the meaning of Rule 5605 of The Nasdaq Stock Market.

Mr. Hoppenot is not considered independent as he is currently employed as our CEO. For all other directors, the Board considered their relationship and transactions with our Company as directors and security holders of our Company.

All of the nominees are current members of the Board.

Board Evaluation Process and Board Refreshment

Our Board—in conjunction with our Nominating and Corporate Governance Committee, which is chaired by our Lead Independent Director—regularly reviews its competencies and areas of expertise in light of the current and future goals, strategies and challenges of our Company. As our Board has done three times in the last threefour years, including twice in the last five months, when it sees a current or potential need our Board undertakes a thorough search for new directors. As part of this self-assessment, the Board also considers the tenure of its current members and plans for continuity of skills and expertise in the future by adding new directors.

The Board considers at least annually the knowledge, experience, and diverse perspectives of directors, each individual director's performance and contributions to the work of the Board and its committees, the personal circumstances and other time commitments of directors, along with other factors the Board deems appropriate such as independence, absence of conflicts, and any reputational risks. The Board weighs these factors with the needs of our Board and its committees based on Incyte's current strategy and risk profile. Our directors serve one-year terms and all continuing directors are subject to our stockholders' votes every year.

Our Board represents a diverse group of individuals that bring various skills and experience. Our Board's continuous efforts to refresh itself have led to a complementary mix of new, mid-term and seasoned directors. We believe this group of directors collectively has the skills to support Incyte in the achievement of our long-term goals.

In the last year,18 months, we have added two new independent directors whose skills, we believe, will add key expertise to our Board. Dr. Harrigan, a neurologist, joined our Board in December 2019 and brings extensive executive leadership experience and expertise in clinical development, pharmaceutical regulatory process and business development. He will be instrumental as Incyte continues to develop and commercialize innovative medicines for serious unmet medical conditions. Dr. High, a hematologist, joined our Board in March 2020 and

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has significant executive, scientific and medical leadership experience, including extensive academic and industry experience in drug discovery and development. Her medical background, together with her experience leading drug discovery and development efforts, at Spark Therapeutics, are expected to assist the Board in its oversight role over our drug discovery and development efforts.

We believe our Board represents a diverse group of individuals that bring various skills and experience. Our Board's continuous efforts to refresh itself have led to a complementary mix of new, mid-term and seasoned directors. We believe this group of directors collectively has the skills to support Incyte in the achievement of our long-term goals.

Matrix of Board Nominees

Expertise

Hoppenot

Baker

Bienaimé

Clancy

Dixon

Fouse

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Operational Leadership

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International

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Drug Discovery, Development & Regulatory

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Financial

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Additional Information

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PhD/MD

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Attendance

100%

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Independence

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Three of our eight Board nominees are women, representing 38% of our Board of Directors. This compares well with the average among S&P 500 constituents, wherein 28% of all Board seats are currently taken by women. Two (25%) of our directors were also born outside of the United States and one self identifies as LGBTQ+, further reflecting the diversity of our Board. Currently, 100% of our Board nominees self-identify as white.



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Overboarding Policy

The Board of Directors recognizes that in order to be effective, each director must be fully engaged. TheLast year, the Board has recently adopted the policy that no new outside director shall be appointed if he or she is deemed to be overboarded by Incyte. This means that no new director who is a sitting CEO of another public company shall sit on more than one public company board in addition to his or her own board and no new outside director who is not a sitting CEO of another public company may sit on more than four public company boards in total.

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In addition, current directors who sit on less than the maximum number of public company boards may not exceed the maximum amount.



All of our Board nominees are currently compliant with this policy.

Number of Total Public Board Commitments1

Hoppenot2

Baker

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Clancy

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Total board commitments includes Incyte



(2)

Sitting CEO

Our recent stockholder outreach discussions made clear that manyFurther, the level of attendance of our stockholders viewed three of our directors—Drs. Dixon, Fouse and Friedman—as overboarded. In connectiondirectors at Board meetings continues to be high. The average attendance for 2020 is 98% with the adoptionseven of the Board's new policy, Dr. Dixon has resigned from the board of Sesen Bio, Inc. and Dr. Fouse informed useight directors that she will not be standingare proposed for reelection to the board of directors of Dick's Sporting Goods, Inc. at its upcoming annual meetingelection in June 2020.

Dr. Friedman intends to remain on our Board and on the boards of directors of Alexion Pharmaceuticals, Inc. and Madrigal Pharmaceuticals, Inc. as well as to continue as the CEO of Madrigal. We realize some stockholders will continue to view Dr. Friedman as overboarded; however, as our Lead Independent Director has discussed in numerous stockholder outreach calls over the last several months, our Board is comfortable with Dr. Friedman being grandfathered under its new policy for several reasons:

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First, Dr. Friedman brings unique insights to our Board, having previously been our CEO for over 13 years.



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Second, our Board highly values Dr. Friedman's scientific, discovery and development expertise—expertise that our Board does not believe is easily replaced.



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Third, Dr. Friedman only recently joined the Alexion board of directors and, at that time, his total number of boards was not generally seen as overboarded and, accordingly, our Board believes that insisting on an exit from the Alexion board would be unfair and unnecessarily disruptive to Dr. Friedman and the Alexion stockholders.



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Lastly, since Dr. Friedman is CEO of Madrigal and a departure from the Madrigal board is not appropriate, and since a departure from the Alexion board would be unfair and disruptive as stated above, the only other solution would be for Dr. Friedman to exit our Board and our Board strongly believes that Dr. Friedman's departure would be a substantial loss and not in the best interests of our stockholders. Additionally, Dr. Friedman attended2021 attending 100% of Board and his Committee meetings last year, despite the additional demands placed on all corporate directors in 2019, which was further facilitated by2020 due to the fact that he resides in close proximity to Incyte.

Our Board is confident Dr. Friedman will continue to fulfill his duties to our stockholders and believes his continued presence on our Board is in the best interests of our stockholders.COVID-19 pandemic.

Director Nominations

The Board nominates directors for election at each annual meeting of stockholders and elects new directors to fill vacancies when they arise. The Board has as an objective, set forth in our Corporate Governance Guidelines, that its membership be composed of experienced and dedicated individuals with diversity of backgrounds, perspectives and skills. The Nominating and Corporate Governance Committee has the responsibility to identify, evaluate, recruit and recommend qualified candidates to the Board for nomination or election.

The Nominating and Corporate Governance Committee will select candidates for directors who have substantive knowledge of our business and industry, diverse experiences, proven leardership,leadership, sound judgement, integrity and who can act on behalf of all stockholders. In addition, directors need to be able to foster a respectful environment in which they listen to one another and can hold constructive discussions. The Nominating and Corporate Governance Committee believes that nominees for director should have operational and leadership experience as well as drug discovery, drug development, regulatory, commercial or financial experience that may be useful to the Company and the Board; high personal and professional ethics and the willingness and

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ability to devote sufficient time to effectively carry out their duties as directors. The Board and the Nominating and Corporate Governance Committee also consider diversity of backgrounds and experiences and other forms of diversity when selecting nominees—to that end, we are proud to have 33%38% gender diversity among the

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nominees for election to our Board.Board, in addition to the diverse set of skills and experience the Board collectively represents.

The Nominating and Corporate Governance Committee believes it appropriate for at least one, and, preferably, multiple, members of the Board to meet the criteria for an "audit committee financial expert" as defined by Securities and Exchange Commission rules, and our Corporate Governance Guidelines require that a majority of the members of the Board meet the definition of "independent director" under the rules of The Nasdaq Stock Market. The Nominating and Corporate Governance Committee believes it appropriate for certain key members of our management—currently, our CEO—to participate as members of the Board.

Prior to each annual meeting of stockholders, the Nominating and Corporate Governance Committee identifies nominees first by evaluating the current directors whose term will expire at the annual meeting and who are willing to continue in service. These candidates are evaluated based on the criteria described above, including as demonstrated by the candidate's prior service as a director, and the needs of the Board with respect to the particular talents and experience of its directors. In the event that a director does not wish to continue in service, the Nominating and Corporate Governance Committee determines not to re-nominate the director, or if a vacancy is created on the Board as a result of a resignation, an increase in the size of the Board or other event, then the Committee will consider various candidates for Board membership, including those suggested by the Committee members, by other Board members, by any search firm engaged by the Committee and by stockholders. The Committee may only recommend, and the Board may only nominate, candidates for director who agree to tender, promptly following their election or re-election as a director, irrevocable resignations that would be effective if the director fails to receive a sufficient number of votes for re-election at the next annual meeting of stockholders at which he or she faces re-election and if the Board accepts the resignation. The Committee recommended all of the nominees for election included in this Proxy Statement. All of the nominees are current members of the Board.

A stockholder who wishes to suggest a prospective nominee for the Board should notify the Secretary of the Company or any member of the Nominating and Corporate Governance Committee in writing with any supporting material the stockholder considers appropriate. In addition, our Bylaws contain provisions that address the process by which a stockholder may nominate an individual to stand for election to the Board at our annual meeting of stockholders. Our Bylaws permit stockholders to nominate individuals for election to the Board (i) for inclusion in our proxy materials and consideration at an Annual Meeting of Stockholders pursuant to our recently adopted proxy access bylaw and (ii) for consideration at an Annual Meeting of Stockholders without being included in our proxy materials. In order to nominate a candidate for director, a stockholder must give timely notice in writing to the Secretary of the Company and otherwise comply with the provisions of our Bylaws.

Our proxy access bylaw permits an eligible stockholder, or group of up to 20 eligible stockholders, owning continuously for at least three years shares of our common stock representing an aggregate of at least 3% of our outstanding shares, to nominate and include in our proxy materials director nominees constituting up to the greater of two individuals or 20% of the Board, provided that the stockholder(s) and nominee(s) satisfy the requirements specified in the Bylaws ("Proxy Access"). To nominate a director pursuant to Proxy Access, all of the procedures, information requirements, qualifications and conditions set forth in our Bylaws must be complied with. A fully compliant nomination notice must be received by us no earlier than 150 days and no later than 120 days before the anniversary of the date that we issued our proxy statement for the prior year's annual meeting of stockholders. However, in the event that the annual meeting is called for a date that is more than 30 days before or more than 60 days after the first anniversary date of the preceding year's annual meeting of stockholders, the nomination notice to be timely must be so received by the Secretary of the Company not later than the close of business on the later of (1) the 180th day prior to the date of the meeting and (2) the 10th day following the first public announcement or disclosure of the meeting date.

For a nomination of an individual for election to the Board without being included in our proxy materials, our Bylaws provide that, to be timely, our Secretary must have received the stockholder's notice not less than 90 days nor more than 120 days prior to the first anniversary of the preceding year's annual meeting of stockholders. However, in the event that no annual meeting was held in the preceding year or the annual meeting is called for a date that is more than 30 days before or more than 60 days after the first anniversary

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date of the preceding year's annual meeting of stockholders, notice by the stockholder to be timely must be so received by the Secretary of the Company not later than the close of business on the later of (1) the 90th day prior to the date of the meeting and (2) the 10th day following the first public announcement or disclosure of the meeting date. Information required by the Bylaws to be in the notice include the name and contact information for the candidate and the person making the nomination and other information about the nominee that must be disclosed in proxy solicitations under Section 14 of the Securities Exchange Act of 1934 and the related rules and regulations under that Section.

Stockholder nominations must be made in accordance with the procedures outlined in, and include the information required by, our Bylaws and must be addressed to:

Secretary
Incyte Corporation
1801 Augustine Cut-Off
Wilmington, DE 19803

You can obtain a copy of the full text of the Bylaw provisionprovisions by writing to the Company's Secretary at the above address.

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Board Meetings

The Board held six meetings during 2019—2020—four regularly scheduled meetings and two other meetings. All directors attended all four regularly scheduled meetings held by the Board. Overall, each director attended at least 85%88% of the meetings held by the Board and the committees on which he or she served during 2019.2020.

The independent directors regularly meet in executive sessions without the participation of our CEO or other members of management.

We do not have a policy that requires the attendance of directors at the Annual Meeting.

Corporate Governance Guidelines

The Board is committed to sound and effective corporate governance practices. Accordingly, the Board has adopted Corporate Governance Guidelines, which are intended to describe the governance principles and procedures by which the Board functions. The guidelines are subject to periodic review and update by the Nominating and Corporate Governance Committee and the Board, and were most recently amended in November 2017. These Guidelines can be found on our website at http://www.incyte.com under the "Corporate Governance" heading in the "For Investors" portion of our website.

The Corporate Governance Guidelines provide, among other things, that:

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a majority of the directors must be independent;



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if the Chairman of the Board is not an independent director, the independent directors will appoint a Lead Independent Director, whose duties are described in detail above under "Corporate Governance—Board Leadership Structure and Role in Risk Oversight" on page 22;38;



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directors should offer to resign from the Board if they experience a change in their principal occupation;



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directors should submit their resignations from the Board if they do not receive the votes of a majority of the votes cast in an uncontested election;



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the Audit and Finance, Compensation, and Nominating and Corporate Governance Committees must consist solely of independent directors;



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the Board and its committees may seek advice from outside advisors as appropriate;



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the independent directors regularly meet in executive sessions without the presence of the non-independent directors or members of our management; and

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the Nominating and Corporate Governance Committee periodically reviews the composition, functioning, skills, diversity, tenure and effectiveness of the Board and its committees, and oversees the self-assessment of the Board and its committees.

Leadership Succession Planning

Our executive management team assesses its needs for succession planning at least annually. Incyte maintains a flat organizational structure, and hence Mr. Hoppenot has full exposure to the leaders of each function as well as key individuals within those functions; others in the executive management team are also in a position to provide additional insight and context. Should a need arise for succession planning in the executive management team, both internal and external candidates are considered on merit and based on Incyte's current and future goals. Regular succession planning updates are provided to the Nominating and Corporate Governance Committee, which is chaired by our Lead Independent Director, and reported to the full Board by the Nominating and Corporate Governance Committee chair.

Communications with the Board

If you wish to communicate with the Board, you may send your communication in writing to:

Secretary
Incyte Corporation
1801 Augustine Cut-Off
Wilmington, DE 19803

You must include your name and address in the written communication and indicate whether you are a stockholder of the Company.

The Secretary will review any communications received from a stockholder and all material communications from stockholders will be forwarded to the appropriate director or directors or Committee of the Board based on the subject matter.

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Certain Relationships and Related Transactions

Our policy is that all employees, officers and directors must avoid any activity that is or has the appearance of conflicting with the interests of the Company. This policy is included in our Code of Business Conduct, Ethics and Board Code of Conduct and Ethics. We conduct a review of all related party transactions for potential conflict of interest situations on an ongoing basis and all such transactions must be approved by the Audit and Finance Committee or another independent body of the Board.

Leadership Succession Planning

Our executive leadership team assesses its needs for succession planning at least annually. Incyte maintains a flat organizational structure, and hence Mr. Hoppenot has full exposure to the leaders of each function as well as key individuals within those functions; others in the executive leadership team are also in a position to provide additional insight and context. Should a need arise for succession planning in the executive leadership team, both internal and external candidates are considered on merit and based on Incyte's current and future goals. Regular succession planning updates are provided to the Nominating and Corporate Governance Committee, which is chaired by our Lead Independent Director, and reported to the full Board by the Nominating and Corporate Governance Committee chair.

Human Capital Management

Incyte is committed to promoting an environment where our colleagues are fulfilled and valued. We promote a company culture based on scientific excellence as we seek to create new treatments; we are creative in our development strategies; and we seek positive collaboration with each other. Working collaboratively is of the utmost importance as we aim to change the treatment landscape for patients with cancer and inflammatory and autoimmune diseases.

Diversity

We are committed to promoting a collaborative, innovative and inclusive work environment at which everyone can contribute to their fullest potential.

We appreciate one another's differences and strengths and are proud to be an Equal Opportunity Employer. Incyte values diversity of backgrounds and perspectives. We do not discriminate based on race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, military and veteran status, sexual orientation or any other protected characteristic as established by federal, state or local laws. Further, we have policies in place that prohibit harassment of all kinds. At Incyte, we prohibit retaliation in all forms and are committed to encouraging a culture where employees can freely ask questions and raise concerns.

Incyte Workforce Demographics

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Professional Development

Incyte is committed to supporting our colleagues in their professional development. Opportunities for growth are provided through challenging job assignments, performance management and training opportunities. Globally, all full-time employees are eligible for tuition reimbursement. Managers may also be eligible for leadership development training, which vary by region.

We believe these professional opportunities enhance our colleagues' skills, career aspirations,and job satisfaction as well as provide personal enrichment.

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Compensation and Benefits

Incyte offers a competitive compensation package, which allows 100% of global Incyte employees to participate in the annual incentive compensation plan as well as annual equity-based grants. We seek to ensure it remains competitive by benchmarking against our peers several times annually as well as review compensation twice per year to confirm that our employees are being compensated fairly, equitably and in accordance with our pay structures and job levels.

Over the years, we have added numerous benefits to support our colleagues in their professional as well as personal endeavors. A competitive benefits package is offered, which includes an option to participate in our Employee Stock Purchase Plan for both full-time and part-time employees working at least 20 hours per week. Our industry-leading health insurance coverage is 100% covered for full-time employees and is 95% subsidized for part-time employees working at least 20 hours per week in the U.S. A healthcare resource program is another one of many complimentary benefits provided by Incyte in the U.S., which offers broad assistance with a variety of healthcare and insurance-related issues to help colleagues make more informed healthcare decisions.

The benefits package also includes many complimentary tools for health. These may include on-site flu shots and learning opportunities that are often offered on-site, including nutrition, wellness and financial planning seminars. Additionally, Incyte offers office-based group fitness classes at U.S. Headquarters as well as competitions that promote healthy living, such as the 6-week Activity Challenge.

In 2018, Lt. Governor Hall-Long launched the "Lt. Governor's Challenge," which recognizes organizations in Delaware who are motivating change and elevating health and well-being. Incyte was proud to receive the Wellness Leadership Award in 2019, which recognized the impact our programs are having on the health and wellness of Incyte as a company, and our larger Delaware community.

Engagement and Fostering an Innovative Culture

Our management team makes themselves available to all employees, and members of our executive management prioritize lunch with new employees within the first six months of employment. Mr. Hoppenot values face-to-face interactions and so he shares lunch with different employees throughout the year. Our quarterly Town Hall events include presentations by executive management and allow for Q&A at the end of each. Our open-door culture allows for continuous ad-hoc feedback and helps drive innovation in all departments, not just within discovery and development.

Our "Innovation at Incyte" program (I2) promotes innovation by allowing employees of any department to submit any innovative approach, tool, or that may be meaningful for Incyte and our patients. There is a competitive review process every 6 months and winners are then chosen and provided the resources and necessary funding to implement their plans.

We were proud to be named the #3 Top Employer byScience in 2019. According to the survey, our employees believe that Incyte:

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treats employees with respect



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has work culture values that are aligned with their own personal values

Safety

At the heart of Incyte's business is the value we place on improving the world's health, and a high level of environmental, health and safety performance is another important expression of this value. It is our goal to conduct business in a manner that does not compromise the health of people nor the state of the environment. It is our policy to comply with all applicable environmental health and safety (EHS) regulatory requirements and seek to continually improve our EHS management systems. A strong safety culture is a fundamental part of how we work, and our philosophy is that everyone at Incyte has a responsibility to create and maintain a safe and healthy workplace with a goal to reduce risk and prevent injuries. Our management team recognizes this responsibility and is committed to providing the resources necessary to achieve this goal.

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PROPOSAL 2 Advisory Vote to Approve Executive Compensation

This Proposal 2, commonly known as a 'say-on-pay' proposal, provides our stockholders with the opportunity to vote to approve, on a non-binding, advisory basis, the compensation of our named executive officers as disclosed in this Proxy Statement in accordance with the compensation disclosure rules of the Securities and Exchange Commission.

As described in detail under the heading 'Executive"Executive Compensation—Compensation Discussion and Analysis,'" our executive compensation programs are designed to attract and retain our named executive officers, who are critical to our success. Under these programs, our named executive officers are rewarded for the achievement of annual and long-term corporate objectives, and the creation of increased stockholder value. Please read the Compensation Discussion and Analysis for additional details about our executive compensation programs, including information about the 20192020 compensation of our named executive officers.

Each year since 2011, we sought, and received, approval for our executive compensation program. In addition, in 2011, and again in 2017, we sought, and received, approval to hold a 'say-on-pay' vote each year. Accordingly, we are again asking our stockholders to indicate their support for our named executive officer compensation as described in this Proxy Statement. This Proposal 2 gives our stockholders the opportunity to express their views on our named executive officers' compensation. This vote is advisory, which means that the vote on executive compensation is not binding on the Company, our Board or the Compensation Committee of the Board. This vote is not intended to address any specific item of compensation, but rather the vote relates to the compensation of our named executive officers, as described in this Proxy Statement in accordance with the compensation disclosure rules of the Securities and Exchange Commission. Accordingly, we again will ask our stockholders to vote for the following resolution at the annual meeting:

'RESOLVED,"RESOLVED, that the Company's stockholders approve, on a non-binding, advisory basis, the compensation of the named executive officers, as disclosed in the Company's Proxy Statement for the 20202021 Annual Meeting of Stockholders pursuant to the compensation disclosure rules of the Securities and Exchange Commission, including the Compensation Discussion and Analysis, the Summary Compensation Table and the other related tables and disclosure.'"



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2020 Performance

2020 was a year of outstanding achievements at Incyte. We announced FDA approvals for three new medicines, and we navigated the COVID-19 pandemic with agility and resilience.



We reported total product and royalty revenues of $2.5 billion for the full year 2020, representing an 18% increase over 2019, and we now have six approved products and a strong balance sheet, illustrating the benefits of our strategy targeting diversification and growth.

Net sales of our largest product, Jakafi® (ruxolitinib), grew at an annual rate of 15%, reaching $1.94 billion for the year, with growth seen across all three approved indications.

New product launches and an increasing contribution from royalties from our licensed products added to momentum in 2020. The U.S. launch of Pemazyre® (pemigatinib) has been successful, and the physician reception of Monjuvi® (tafasitamab-cxix), launched in collaboration with MorphoSys in August last year, has been very encouraging as we build the brand for the future. In the U.S., Monjuvi revenues are recognized by MorphoSys and are included in collaboration profit or loss sharing on our consolidated statement of operations.

We receive royalties on Jakavi® (ruxolitinib) and Tabrecta® (capmatinib), commercialized by Novartis, and on Olumiant® (baricitinib), commercialized by Lilly, and total royalties grew 28% in 2020 to reach almost $400 million.



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Monjuvi revenues are recognized by MorphoSys and included in our collaboration loss sharing line item on our consolidated statement of operations in our Annual Report on Form 10-K for the year ended December 31, 2020.



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Totals may not add due to rounding.

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We operate in two therapeutic areas that are defined by the indications of our approved medicines and the diseases for which our clinical candidates are being developed. The first therapeutic area is Hematology/Oncology, which is comprised of Myeloproliferative Neoplasms (MPNs) and Graft-Versus-Host Disease (GVHD), as well as solid tumors and hematologic malignancies. Our second therapeutic area is Inflammation and Autoimmunity (IAI), which includes our newly established Dermatology commercial franchise. We are also eligible to receive milestones and royalties on molecules discovered by us and licensed to third parties.

We achieved numerous important milestones in 2020 and during 2021 to date, and these are summarized in the graphic below and described in more detail thereafter.



GVHD = graft-versus-host disease; MF = myelofibrosis; DLBCL = diffuse large B-cell lymphoma; CCA = cholangiocarcinoma; BTC = biliary tract cancer; SCAC = squamous cell anal carcinoma; NHL = non-Hodgkin lymphoma; NSCLC = non-small cell lung cancer; AD = atopic dermatitis; IAI = inflammation and autoimmunity.

2019 PerformanceMyeloproliferative Neoplasms (MPNs) and Graft-Versus-Host Disease (GVHD)

Jakafi® (ruxolitinib) is approved in the U.S. for the treatment of adults with intermediate or high-risk myelofibrosis, the treatment of adults with polycythemia vera who have had an inadequate response to or are intolerant of hydroxyurea and for the treatment of steroid-refractory acute GVHD in adult and pediatric patients 12 years or older. Net sales of Jakafi grew at an annual rate of 15%, reaching $1.94 billion for the year with growth seen across all three indications.

2019The REACH3 Phase 3 trial of ruxolitinib in patients with steroid-refractory chronic GVHD met its primary endpoint of superior overall response rate at month 6 and achieved statistically significant and clinically meaningful improvements in both key secondary endpoints, the modified Lee chronic GVHD symptom scale and failure free survival. The safety profile of ruxolitinib was consistent with previously reported studies of ruxolitinib in GVHD.

The success of the REACH3 trial represents the largest randomized pivotal trial with positive results in this patient population, as was the success of the randomized REACH2 trial in patients with acute GVHD, as

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described last year. The sNDA seeking FDA approval of ruxolitinib in patients with steroid-refractory chronic GVHD is now under Priority Review at the FDA with a decision expected in June 2021.

We are also developing multiple programs beyond ruxolitinib monotherapy to improve and expand therapeutic options for patients with myeloproliferative neoplasms (MPNs) as part of our Leadership In MPNs BEyond Ruxolitinib (LIMBER) initiative. We are evaluating combinations of ruxolitinib with other therapeutic modalities, as well as developing a once-a-day formulation of ruxolitinib for potential use as monotherapy and combination therapy. This new formulation of ruxolitinib is currently in stability testing and is expected to be submitted to the FDA early next year, with an FDA decision expected late in 2022.

Based on positive Phase 2 data presented in 2020, we have opened two pivotal trials of strong execution by bothruxolitinib in combination with parsaclisib (PI3Kd) in first-line myelofibrosis (MF; LIMBER-313) and in MF patients with a suboptimal response to ruxolitinib monotherapy (LIMBER-304).

Additional Phase 2 trials combining ruxolitinib with investigational agents from our commercialportfolio such as INCB57643 (BET) and INCB00928 (ALK2) in patients with MF are in preparation, and additional discovery and development teams,initiatives are also ongoing within the LIMBER program, which are evaluating both internally-discovered compounds, including itacitinib (JAK1), and we expect 2020 to be a transformational year for Incyte.candidates from collaboration partners.



(1)

Jakafi

Other Hematology and Oncology

The FDA approved Monjuvi® (tafasitamab-cxix) for the treatment of patients with relapsed or refractory diffuse large B-cell lymphoma (r/r DLBCL) in August last year, based on data from the L-MIND trial.

Momentum is now approvedstrong behind the U.S. launch of Monjuvi, with good uptake in both academic and community settings and illustrated by the U.S. FDAmarket share gained in the first several months since launch.

Updated data from L-MIND form part of the data dossier submitted to the European Medicines Agency (EMA) seeking approval of Monjuvi in Europe for the treatment of steroid-refractory acute GVHDpatients with r/r DLBCL.

We are also investigating tafasitamab in adultB-cell malignancies in a number of ongoing and pediatricplanned combination trials. The Phase 3 inMIND trial evaluating tafasitamab plus lenalidomide and rituximab (R-squared) versus R-squared in patients 12 yearswith relapsed or refractory follicular or marginal zone lymphoma is recruiting patients, and older; Pemazyrethe Phase 3 frontMIND trial of tafasitamab plus lenalidomide and R-CHOP versus R-CHOP as a first-line treatment for in patients with DLBCL is a kinaseexpected to open for recruitment in the coming months.

The FDA approved Pemazyre® (pemigatinib) a selective fibroblast growth factor receptor (FGFR) inhibitor, indicated for the treatment of adults with previously treated, unresectable locally advanced or metastatic cholangiocarcinoma with an FGFR2 fusion or other rearrangement as detected by an FDA-approved test. Pemazyre is the first and only FDA-approved treatment for this indication.

The U.S. launch of Pemazyre has been successful and, in March, we announced that Pemazyre was approved in both Europe and Japan. The European Commission approved Pemazyre for the treatment of adults with unresectable locally advanced or metastatic cholangiocarcinoma with an FGFR2 fusion or rearrangement that is relapsed or refractory, after at least one line of systemic therapy and was approved in Japan for the treatment of patients with unresectable biliary tract cancer (BTC) with a fibroblast growth factor receptor 2 (FGFR2) fusion or other rearrangement as detected by an FDA-approved test.

(2)

Cash and cash equivalents asgene, worsening after cancer chemotherapy.

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Iclusig® (ponatinib) is approved in Europe for the treatment of certain of adult patients with chronic phase, accelerated phase or blast phase CML or the treatment of certain adult patients with Ph+ ALL. Iclusig sales grew 17% to $105 million in 2020.

In addition to our commercialized product portfolio, we also have late-stage assets under development.

In December 31, 2019

Product and royalty revenues exceeded $2 billion2020, data from three ongoing Phase 2 studies evaluating parsaclisib (PI3Kd) for the first time, representingtreatment of patients with relapsed or refractory follicular (CITADEL-203), marginal zone (CITADEL-204) and mantle cell (CITADEL-205) lymphomas were presented at ASH 2020. Data from the CITADEL program are expected to form the basis of an NDA seeking FDA approval of parsaclisib, which is expected to be submitted in the second half of 2021.

In January 2021, we announced that the FDA had accepted for Priority Review our Biologics License Application (BLA) for retifanlimab (PD-1) as a 22% increase over 2018. Net salestreatment for previously treated patients with advanced squamous cell carcinoma of our largest product, Jakafi® (ruxolitinib), grew at an annual growth rate of over 20%, reaching $1.7 billion for the year.anal canal (SCAC) who have progressed following standard platinum-based chemotherapy. The FDA decision is expected in July 2021. The BLA submission was based on data from the Phase 2 POD1UM-202 trial evaluating retifanlimab in previously treated patients with advanced SCAC who have progressed following standard platinum-based chemotherapy; the Phase 3 POD1UM-303 trial in patients with SCAC is underway.



Inflammation and AutoImmunity (IAI) / Dermatology

We recently established Incyte Dermatology as a new commercial franchise in the U.S., in anticipation of the potential FDA approval ruxolitinib cream for use in patients with mild-to-moderate atopic dermatitis.

Ruxolitinib cream is a potent, selective inhibitor of JAK1 and JAK2 that provides the opportunity to directly target diverse pathogenic pathways that underlie certain dermatologic conditions, including atopic dermatitis, which is a form of eczema, and vitiligo.

The Phase 3 TRuE-AD program of ruxolitinib cream in patients with atopic dermatitis was successful and the NDA seeking FDA approval in this indication was submitted in December 2020. The submission was granted Priority Review and the FDA decision is expected in June 2021.

If approved, we expect the initial uptake of ruxolitinib cream to be driven by specialists in medical dermatology and allergy. We have recruited an exceptional team with significant experience in successfully launching dermatology products within the United States, and this team has identified a target group of approximately 11,000 potential high-prescribers.

The Phase 3 TRuE-V trials of ruxolitinib cream in patients with vitiligo are fully recruited and results are expected to be available in the coming months. If this pivotal trial program is successful, we expect to submit the sNDA to the FDA seeking approval of ruxolitinib cream in vitiligo as soon as we are able after FDA action in atopic dermatitis.

Partnered Programs (Incyte eligible for royalties and milestone payments)

We participate in multiple collaborative partnerships in which we are eligible for milestone payments and royalties on certain Incyte-discovered products that we licensed to third parties. These include Jakavi®

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At(ruxolitinib) and Tabrecta® (capmatinib), which are licensed Novartis, and Olumiant® (baricitinib), which is licensed to Eli Lilly and Company.

With the beginning of 2019, we shared with investors a list of 15 key R&D goals⁽¹⁾ for the year, and during the year we achieved 13 of these goals.

Starting with our GVHD programs, based on the positive resultssuccess of the REACH1REACH clinical trial of Jakafi in steroid-refractory acute GVHD, we received FDA approval and successfully launched Jakafi in this indication. We also announced positive results from the Phase 3 REACH2 trial of Jakafi in the same indication. Results from the REACH3 trial of Jakafi in steroid-refractory chronic GVHD are expected in 2020. Results from the GRAVITAS-301 Phase 3 trial of itacitinibprogram evaluating ruxolitinib in patients with treatment-naïvesteroid-refactory acute (REACH2) and steroid-refractory chronic (REACH3) GVHD, were disappointing, as it showed that treatment with itacitinib did not statistically improve overall response rate or non-relapse mortality comparedNovartis intends to placebo.seek approval for Jakavi in Europe and Japan in these indications.

Moving to our solid tumor programs, we presented updated Phase 2 data from our pivotal trialDuring 2020, Novartis also announced U.S. and Japanese approvals of pemigatinib inTabrecta for certain patients with previously-treated cholangiocarcinoma, which supported our NDA submission to the FDA, and which led to the very recent approval of Pemazyre. In addition, the Phase 3 trial of pemigatinib in first-line cholangiocarcinoma has been initiated as have trials of pemigatinib in first-line bladder cancer and in patients with solid tumors with driver activations of FGF/FGFR. Turning to our inflammation and autoimmunity activities, we presented Phase 2 results of ruxolitinib cream in patients with vitiligo, and we launched a global Phase 3 program in this indication.

Our partners also advanced two Incyte discovered programs. Novartis submitted the NDA for capmatinib in locally advanced or metastatic MET exon 14 skipping mutated non-small cell lung cancer, (NSCLC), and Eliintends to submit for approval in Europe during 2021. Tabrecta was discovered by Incyte and global rights were licensed to Novartis in 2009.

During 2020, Lilly announced Phase 3 resultsthat Olumiant has been approved in both Europe and Japan as a treatment for certain patients with atopic dermatitis, and expects to announce the FDA decision on its sNDA seeking approval of baricitinib in moderate to severeOlumiant for atopic dermatitis.dermatitis during 2021.



(1)

R&D goals shown are Investor Goals, which are separate from

Responsiveness to Stockholder Feedback

During 2020, we sought to engage directly, or indirectly through our proxy solicitor, D. F. King & Co., with investors representing approximately 80% of our outstanding shares at that time. Approximately 90% of the 2019 Annual Incentive Compensation Plan Corporate Performance Objectivesvotes cast in the stockholder advisory "say on pay" vote on executive compensation in 2020 were cast to approve our executive compensation as described in last year's proxy statement.

In our outreach in the Compensation Discussionfall of 2020, we reached out to top stockholders representing approximately 80% of our shares outstanding. We held conversations with stockholders representing 45% of our shares outstanding, not including the shares owned by Baker Bros. Advisors LP. All engagements included our Chief Financial Officer with additional participation from our Head of Human Resources, our Assistant General Counsel and Analysis

(2)

Developmentour Head of ruxolitinibInvestor Relations. Julian Baker, our Lead Independent Director, was involved in GVHD in collaborationengagements with Novartis.

(3)

Worldwide rightsinvestors that specifically asked to capmatinib licensed to Novartis; Worldwide rights to baricitinib licensed to Lilly.

(4)

FIGHT-201 and FIGHT-202 have the potential to enable product registration

speak with a member of our Board of Directors.

So farFeedback in 2020 was positive, with investors pleased with the progress Incyte has made in additionrecent years in response to these investor engagements. The graphic below shows the recent approvalevolution of Pemazyre described above, we presented positive dataour executive compensation structure over the last three years.



We believe that our current compensation structure strikes the right balance of motivation and retention for our executives, and feedback from two Phase 3 trials, TrueAD1 and TrueAD2, of ruxolitinib cream in mild to moderate atopic dermatitis. We also announced a global collaborationinvestors was consistent with MorphoSys to gain rights to tafasitamab, which represents a strong strategic fit. The BLAkeeping the structure largely unchanged for tafasitamab in r/r DLBCL is under priority review by the FDA, with a PDUFA date of August 30, 2020.2021.

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Effects of Stockholder Advisory Vote on Executive Compensation, Stockholder Engagement

Approximately 69% of the votes cast in the stockholder advisory "say on pay" vote on executive compensation in 2019 approved our executive compensation described in last year's proxy statement. Throughout the 2019 proxy season, we engaged directly or indirectly through our proxy solicitor, D. F. King & Co., with investors across the vast majority of our stockholder base, representing over 80% of our outstanding shares at that time, including our top ten stockholders such as Baker Bros. Advisors LP.

The Compensation Committee considered the result of the stockholder advisory vote and direct feedback from investors as generally supportive of its overall compensation policies, practices and philosophy for our executive officers while also clearly understandingand has decided to maintain the perspectivesame overall executive compensation structure for 2021, with the exception of:

•

Adding a total shareholder return (TSR) component to the PSU goals.



•

After reviewing CEO compensation within our peer group, lowering Mr. Hoppenot's 2021 total target equity award value from several of our stockholders that some further change was needed.

Accordingly, for 2020 the Committee has increased the percentage of executive equity awards that are represented by performance shares from 25% to 30% of an executive's target equity award value and has moved from a one-year to a three-year performance period for 2020 executive performance share awards. While say-on-pay votes are a key indicator of stockholder feedback, we are committed to keeping an open dialogue with our stockholders, including our institutional investors, throughout the year, not just during proxy season. We regularly and frequently engage with our stockholders to discuss business topics, seek feedback on our performance and address other matters of importance to our stockholders, such as executive compensation and corporate governance.		Performance Share Changes $12,900,000 to $12,400,000.

The Compensation Committee intends to continue to regularly review, assess and, when appropriate, adjust our compensation practices based on feedback from our stockholders or other determinations informed by best practices and trends.

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Compensation Discussion and Analysis

Below is a comprehensive list of our compensation policies. Thelight blue items arepolicies, including policy enhancements that we have made in our continuing effort to be responsive to issues discussed during our stockholder outreach over the last five years as well as advice of "stockholder advisory firms."

What We Do
​	​	​
✓ We pay for performance, including having a TSR component for 2021 performance shares		✓ We have adopted a compensation clawback policy
​	​	​
✓ 25%30% of executives' target equity award value is in the form of performance shares and, beginning with 2020 grants, that percentage will be increased to 30%		✓ Our Compensation Committee uses an independent compensation consultant, Compensia, and considers peer groups in establishing executive compensation
​	​	​
✓ Beginning in 2020, performance shares will have a three-year performance period		✓ Robust anti-hedging and anti-speculation policies in place
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✓ Robust stock ownership guidelines for our CEO, executive officers and our directors		✓ Our Compensation Committee is comprised of all independent directors
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✓ Double-trigger equity vesting in the event of a change-in-control		✓ We conduct an annual say-on-pay vote
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✓ Equity awards have a minimum vesting period of 12 months.		✓ We engage proactively with our stockholders throughout the year
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What We Don't Do
​	​	​
✗ We do not grant special option grants to our CEO		✗ We do not pay for CEO life insurance policies
​	​	​
✗ We do not reprice stock options without stockholder approval		✗ We do not provide golden parachute excise tax gross-ups
​	​	​
✗ We do not provide single-trigger equity vesting in the event of a change-in-control		✗ We do not provide executive perquisites beyond financial and tax planning
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Compensation Program Strategy and Objectives

The performance-based components and time-based components of our equity compensation program are designed to encourage both an appropriate level of risk-taking and a focus on sound long-term decision-making, thus aligning executive interests with the long-term best interests of our Company and our stockholders.

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The Compensation Committee of our Board believes that the compensation of our executive officers should:

•

Pay for performance;



•

Encourage both creation of stockholder value and achievement of strategic corporate objectives;



•

Integrate compensation with our annual and long-term corporate objectives and strategy, and focus executive behavior on the fulfillment of both of those objectives;



•

Provide a competitive total compensation package that enables us to attract and retain, on a long-term basis, qualified personnel; and



•

Provide fair compensation consistent with internal compensation programs.

Our executive officers' compensation currently includes three primary components: base salary, cash bonus, and equity-based incentive awards.

•

Salary is a fixed amount and does not vary with our performance.



•

Cash bonus varies with our performance



•

Equity-based incentive awards can be made up of restricted stock units, performance shares or stock options.

All components of our executives' compensation other than base salary are closely tied to our Company's performance – either through the amounts (if any) of each component actually received or the value of each component over time, or both – and each such component of executive compensation contributes toward our goal of delivering long-term stockholder value. Each of the equity-based components – including the performance shares that only become earned upon achievement of pre-determined goals – are also subject to time-based vesting, which the Compensation Committee believes incentivizes executive retention.



(1)

Restricted Stock Units comprise 30% of target equity value. For a further description of the evolution of the equity compensation program, see "– Our Equity Grant Practices", starting on page 56.



(2)

Performance shares comprise 30% of target equity value. For a further description of the evolution of the equity compensation program, see "– Our Equity Grant Practices", starting on page 56.



(3)

Stock options comprise 40% of target equity value. For a further description of the evolution of the equity compensation program, see "– Our Equity Grant Practices", starting on page 56.

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All components of our executives' compensation other than base salary are closely tied to our Company's performance—either through the amounts (if any) of each component actually received or the value of each component over time, or both—and each such component of executive compensation contributes toward our goal of delivering long-term stockholder value. Each of the equity-based components—including the performance shares that only become earned upon achievement of pre-determined goals—are also subject to time-based vesting, which the Compensation Committee believes incentivizes executive retention.

The performance-based components and time-based components of our equity compensation program are designed to encourage both an appropriate level of risk-taking and a focus on sound long-term decision-making, thus aligning executive interests with the long-term best interests of our Company and our stockholders.



(1)

Restricted Stock Units comprised 25% of target equity value for 2019 and now comprise 30% for 2020. For a further description of the evolution of the equity compensation program from 2019 through 2020, see "– Our Equity Grant Practices", starting on page 40.



(2)

Performance shares comprised 25% of target equity value for 2019 and now comprise 30% for 2020. For a further description of the evolution of the equity compensation program from 2019 through 2020, see "– Our Equity Grant Practices", starting on page 40.



(3)

Stock options comprised 50% of target equity value for 2019, and now comprise 40% for 2020. For a further description of the evolution of the equity compensation program from 2019 through 2020, see "– Our Equity Grant Practices", starting on page 40.

As the design of our executive compensation program shows, the Compensation Committee believes that executive compensation should be designed to pay for performance. Our Company has made great progress in recent years, and executive compensation has reflected that performance. The chart below illustrates this

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ExecutiveCEO Compensation versus Peers

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evolution with respect toThe charts below illustrate how the percentage of our CEO's compensation demonstrating that is tied to performance compares with those of our CEO's totalpeer group of companies. The Compensation Committee believes Mr. Hoppenot's compensation tracksis in-line with our achievementpeer group's compensation as disclosed in their 2020 proxy reports, with Mr. Hoppenot's at-risk compensation percentage higher than that of Board-approved corporate goals:the peer group average.



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PSUs were introduced as a component

Average peer CEO compensation reflects 2019 compensation from the 2020 proxies of Executive Compensation in 2018.

the peer group.

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Our executive compensation program is designed so that a substantial portion of the pay of our Chairman and Chief Executive Officer is delivered in the form of long-term incentives—incentives – which means that most of Mr. Hoppenot's Realizable Compensation (meaning, cash actually received during any year and the actual value of that year's equity grants as measured on December 31 of that year) is tied directly to our stock price performance and achievement of our long-term goals. Mr. Hoppenot's compensation, as reported in the Summary Compensation Table on page 52,68, reflects the accounting value of long-term incentives at grant and not the value actually received from these grants or their potential future value that may actually be realized. As a result, we

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We believe that it is useful to compare Mr. Hoppenot's Realizable Compensation between 20172018 and 20192020 with his Summary Compensation Table compensation for the same period as illustrated in the chart below.



Target Compensation reflects base salary, target bonus under the annual incentive compensation plan, and the value of stock and option awards as shown in the Summary Compensation Table, with the value of PSUs in 2018 and 20192018-2020 based on their target number of shares, not the amount of PSUs actually earned; Realizable Compensation includes the same elements but reflects the actual bonus paid under the annual incentive compensation plan, and the number of PSUs earned eachin 2018 and 2019 (1 year performance period) and the target number of PSUs for 2020 (3 year performance period) at an $88.05$86.98 price.

Realizable Compensation reflects realizable values for equity granted during the applicable calendar year, calculated as of December 31 of such year, and includes:

•

equity granted within applicable calendar year, which includes for each year one-halfone half of the prior year's stock option award granted in January and one-halfone half of the current year's stock option award granted in July



•

special stock option grantsgrant awarded in 2017 and 2018, each with no realizable value at the year-endyear end stock pricesprice



•

the number of PSUs actually earned in 2018 and 2019.2019 (1 year performance period) and the target number of PSUs for 2020 (3 year performance period)

The lower Realizable Compensation for each of the three years is the result of a combination of lower stock price, underwater stock options, and short term incentive awards that were, in some cases, earned below target. The Compensation Committee has designed Mr. Hoppenot's compensation to ensure that his Realizable Compensation is closely tied to our stock price performance. Our Compensation Committee believes that its pay-for-performancepay for performance compensation strategy is working as intended and is best evaluated by examining Realizable Compensation, rather than solely the accounting compensation set forth in the Summary Compensation Table.

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The charts below illustrate how the percentage of our CEO's compensation that is tied to performance compares with those of our peer group of companies. The Compensation Committee believes Mr. Hoppenot's compensation is in-line with our 2020 peer group's CEO's compensation as disclosed in their 2019 proxy reports.



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Average peer CEO compensation reflects 2018 compensation from the 2019 proxies of the peer group.

Implementing Our Objectives – Role of Compensation Committee and Our Chief Executive Officer

The Compensation Committee approves, administers and interprets our executive compensation and benefits policies, including our 2010 Stock Incentive Plan. The Compensation Committee evaluates the performance of our CEO and determines his compensation in light of the goals and objectives of our compensation program. Our CEO and the Compensation Committee together assess the performance of our other executive officers and determine their compensation, based on initial recommendations from our CEO.

Role of the Independent Compensation Consultant

Under its charter, the Compensation Committee has the sole authority to retain any independent compensation consultant or other advisor as the Committee may deem appropriate. Pursuant to this authority, the Compensation Committee has engaged Compensia, a national compensation consulting firm, for support on matters related to the compensation of our executive officers. Compensia does not provide any other services to our Company.

Compensia was retained by the Compensation Committee to prepare compensation analyses for our executive officers and the non-employee members of our Board of Directors. Specifically, for our executive officers, Compensia was directed to provide a competitive market analysis of the base salary, annual cash incentive awards, and long-term incentive equity compensation of our executive officers compared against our compensation peer groups and to review other market practices and trends. This market analysis was reviewed with the Compensation Committee in connection with its early 20192020 compensation decisions, and was used to

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guide decisions regarding base salary adjustments and target annual cash and equity incentive award opportunities.

Market Reference Data

The Compensation Committee utilizes market reference data to evaluate the competitiveness of our executive officers' compensation and to determine whether the total compensation paid to each of our named executive officers is appropriate. When arriving at final compensation decisions, the Compensation Committee considers and assesses factors in addition to market reference data, including individual and company performance, each executive's role and responsibilities, internal equity, retention requirements and the competitive market, unrealized equity gains, and best compensation governance practices. The Committee does not tie compensation to specified target percentiles. In connection with its analysis for purposes of 20192020 compensation decisions, the Compensation Committee reviewed information prepared by Compensia comparing the compensation for our executive officers with data from SEC filings and the Radford Global Life Sciences Survey for a peer group comprised of 1619 publicly traded biopharmaceutical companies. We collectively refer to these data as the competitive compensation data. The peer group for 20192020 compensation decisions, referred to as the 20192020 peer group, was chosen based on the following characteristics: direct competitors for talent; comparable business models and stage; and of broadly similar size in revenue, market capitalization and/or headcount.

In August 2019,September 2020, the peer group was changed because one company, Shire,Celgene, had been acquired and no longer provided compensation detail in public disclosure. Four new companies that met our criteria, Amarin, Gilead Sciences, Sage Therapeutics, and Sarepta Therapeutics, were added to our peer group. The Committee noted that, while Celgene's acquisition was announced in early 2019 (and subsequently became effective in late 2019), disclosures by Celgene would be available for 2020 compensation decisions. This updated peer group of 1918 companies was used for 20202021 compensation decisions and is referred to as the 20202021 peer group.

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The following table shows Incyte versus the 20202021 peer group on 20192020 total revenue, total employees, and market capitalizations (market cap). All data is as of December 31, 2019.2020.

Company		Total Revenue ($M)			Company		Total Employees			Company		Market Cap ($M)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Gilead		$	22,449		Gilead			11,800		Gilead			82,209
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Biogen		$	14,378		Regeneron			8,100		Vertex			56,303
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Regeneron		$	7,863		Biogen			7,400		Biogen			53,543
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Alexion		$	4,991		Alexion			3,082		Regeneron			40,532
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Vertex		$	4,163		BioMarin			3,001		Alexion			23,933
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Jazz		$	2,162		Vertex			3,000		Seattle Genetics			19,583
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Incyte		$	2,159		Alkermes			2,235		Incyte			18,808
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
BioMarin		$	1,704		Jazz			1,620		BioMarin			15,205
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Alkermes		$	1,171		Seattle Genetics			1,605		Alnylam			12,840
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Ionis		$	1,123		Incyte			1,456		Neurocrine			9,899
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Exelixis		$	968		Alnylam			1,323		Sarepta			9,658
​	​	​	​	​	​	​	​	��	​	​	​	​	​	​
Seattle Genetics		$	917		bluebird bio			1,090		Ionis			8,497
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Neurocrine		$	788		Amarin			965		Jazz			8,445
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Amarin		$	430		Ionis			737		Amarin			7,695
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Sarepta		$	381		Neurocrine			700		Exelixis			5,354
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Alnylam		$	220		Sage			675		bluebird bio			4,855
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Agios		$	118		Exelixis			617		Sage			3,741
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
bluebird bio		$	45		Agios			536		Alkermes			3,213
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Sage		$	7		Sarepta			499		Agios			3,205
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

(1)

Celgene information is unavailable due to its acquisition by Bristol-Myers Squibb in November 2019.

Company		Total Revenue ($M)			Company		Total Employees			Company		Market Cap ($M)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Gilead			24,689		Gilead			13,600		Gilead			73,031
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Biogen			13,445		Regeneron			9,123		Vertex			61,457
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Regeneron			8,497		Biogen			9,100		Regeneron			51,551
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Vertex			6,206		Alexion			3,837		Biogen			37,679
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Alexion			6,070		Vertex			3,400		Alexion			34,173
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Incyte			2,667		BioMarin			3,059		SeaGen			31,579
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Jazz			2,364		Alkermes			2,245		Incyte			19,048
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
SeaGen			2,176		SeaGen			2,092		BioMarin			15,918
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
BioMarin			1,861		Jazz			1,940		Alnylam			15,100
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Sage			1,114		Incyte			1,773		Sarepta			13,454
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Neurocrine			1,046		Alnylam			1,453		Jazz			9,196
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Alkermes			1,039		bluebird bio			1,213		Neurocrine			8,955
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Exelixis			988		Amarin			1,000		Ionis			7,906
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Ionis			729		Sarepta			866		Exelixis			6,227
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Amarin			614		Neurocrine			845		Sage			4,502
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Sarepta			540		Exelixis			773		Alkermes			3,175
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Alnylam			493		Ionis			757		Agios			3,001
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
bluebird bio			251		Agios			562		bluebird bio			2,872
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Agios			203		Sage			298		Amarin			1,901
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

Our Equity Grant Practices

In July 2016, the Compensation Committee, after consulting with Compensia with respect to peer group practices, revised our equity grant guidelines. In 2016 and 2017, 75% of the value of an executive officer's annual equity-based incentive awards were in the form of stock options while the remaining 25% were in the form of restricted stock units (RSUs).

In response to stockholder feedback, in 2018, the Compensation Committee changed the RSU portion to performance share awards, which combine the time-based vesting aspects of RSUs with a performance-based vesting requirement, resulting in 75% of the value being in the form of stock options and 25% in performance share awards.

In 2019, the Compensation Committee noted Compensia's observation that our mix for executives of 75% stock options and 25% performance shares put our executives' equity-based compensation more at-risk than our peer group and the broader market norm and that, on average, our peers deliver approximately 25% of executive equity compensation value in the form of time-based vesting RSUs, with approximately 50% being delivered in the form of stock options and approximately 25% being delivered in the form of performance-based shares or options. The Committee also noted that, due to our stock price decline and limited use of RSUs, realizable compensation for our executives for 2016 through 2018 fell well below target compensation values. Accordingly, to enhance executive retention and bring our executive equity compensation practices in line with our peers, the Committee determined that, for 2019, our executives would receive 50% of their grant date target value in the form of stock options, 25% in the form of performance shares, and 25% in the form of RSUs.

In 2020, the Compensation Committee noted stockholder feedback regarding our performance-based equity awards and determined that, for 2020, our executives will receive 40% of their grant date target value in the form of stock options, 30% in the form of performance shares, and 30% in the form of RSUs. In addition, as

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form of stock options, 30% in the form of performance shares, and 30% in the form of RSUs. In addition, as discussed below under "Key Elements of Executive Compensation—Compensation – Equity Based Incentive Awards," performance shares granted in 2020 willnow have a three-year performance period.

While the equity awards are actually granted in July of each year, the Compensation Committee determines the overall equity grant target value for our executive officers in the early portion of the year, in conjunction with the determination of base salary adjustments and the establishment of the annual incentive compensation plan described in greater detail below. Based on those target values, the share numbers of our annual stock option grants are determined in the middle of each calendar year, with one-half of the grants made at that time and one-half made at the beginning of the following calendar year, with a view toward countering some of the effects of the volatile trading price of our common stock.

Our annual stock option grants have a ten-year term with four-year service-based vesting with one-quarter vesting after one year and the remainder vesting in 36 equal monthly installments. Our annual executive performance share and RSU awards are made in the middle of each calendar year. The

In 2020, three-year performance periods were introduced for performance share awards, and these performance share awards vest, assuming performance goals are achieved at specified levels, in equal annual installments over four yearsat the conclusion of the performance period, and are described further below. The RSU awards vest in equal installments on each of the first four anniversaries of the grant date.

The Compensation Committee also has the discretion to make outstanding merit awards, which for 2019 were stock options with a ten-year term that vest in a single installment after four years and forstarting in 2020 were RSUs that vest in a single installment after four years. The change from stock options to RSUs was due to the significant volatility of our share price and the share prices of our peers, to provide greater certainty for the retentive value of these awards, if granted. These awards can be made to executives other than our CEO as well as other key employees throughout our Company and are typically made in connection with salary adjustments at the beginning of each year as the awards are intended to relate to prior year performance and to incentivize and retain the recipients. Our CEO championed the creation of the outstanding merit grant program to recognize important contributions—contributions – both within a function and the Company as a whole—whole – by leaders throughout our organization. Previously, our CEO received these grants too, but, starting in 2019, in response to stockholder feedback, the Compensation Committee eliminated awards of outstanding merit grants to our CEO.

In addition, as described below, in April 2019, the Compensation Committee made performance share awards to certain executive officers (not including our CEO) as part of our 2018 R&D retention plan that is described below.

The exercise price of each stock option awarded under our 2010 Stock Incentive Plan is the closing price of our common stock on the date of grant, which for our annual stock option grants are the dates of the regularly scheduled Compensation Committee meetings or actions without meetings, which are taken following decisions at meetings, in the middle of the year at which equity awards for senior executives are formally determined and at the beginning of the year at which salary adjustments and cash bonuses under our incentive compensation plan are determined. These meetings are scheduled in advance, and we do not coordinate the timing of equity award grants with the release of financial results or other material announcements by our Company. Under our 2010 Stock Incentive Plan, we may not reprice or replace options at lower exercise prices without stockholder approval.

Compensation Practices and Policies

Equity Ownership Guidelines.    Effective January 1, 2016, our Board adopted robust equity ownership guidelines for members of senior management, including our executive officers, and members of the Board. Under these guidelines, the covered individuals are expected to meet the following equity ownership requirements:

Equity Ownership Requirements
​	​	​
CEO		6x Annual Base Salary
​	​	​
All Other Executive Officers		3x Annual Base Salary
​	​	​
Non-Employee Members of the Board		6x Annual Cash Retainer
​	​	​

All directors and executive officers have either met their respective equity ownership targets or are within the five-year period for achieving compliance.

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Covered individuals as of January 1, 2016 must satisfyhave satisfied these guidelines by December 31, 2020, and individuals who subsequently become subject to the guidelines will have five years to reach their ownership requirements. Shares held directly, shares held indirectly, such as by a trust or a 401(k) plan, unvested restricted shares and RSUs, and shares underlying vested stock options are included in determining an individual's equity ownership. Unvested stock options and unearned performance shares are not counted toward meeting these guidelines.

Compensation Recovery Policy.    In late 2017, in response to our 2017 stockholder engagement campaign (described more fully under "Stockholder Engagement" starting on page 8), our Compensation Committee adopted a compensation recovery ("clawback") policy which provides that, in the event that, on account of fraud or other intentional misconduct, we are required to prepare an accounting restatement, we may recover from any executive officer any incentive compensation erroneously paid or awarded in excess of what would have been paid under the accounting restatement. This policy applies prospectively to certain incentive compensation paid or awarded after January 1, 2018, its effective date, and covers the three-year period preceding the date on which we are required to prepare the accounting restatement. The incentive compensation to which it applies is cash bonuses or other cash awards to the extent those bonuses or awards are earned based on the attainment of a financial reporting measure presented in our financial statements or derived from our accounting records. In addition, we are subject to the provisions of Section 304 of the Sarbanes-Oxley Act of 2002, which provides that if we are required as a result of misconduct to restate our financial results due to our material noncompliance with any financial reporting requirements under the federal securities laws, our CEO and Chief Financial OfficerCFO may be legally required to reimburse us for any bonus or other incentive-based or equity-based compensation they receive. To the extent our policy is inconsistent with any final regulations adopted by the SEC to implement the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act, we intend to revise our policy to comply with those regulations.

Limitations on Hedging and Pledging.    Under our insider trading policy, our employees, including our executive officers, and Board members are prohibited from trading in our securities on a short-term basis, purchasing our securities on margin, making short sales in our securities, buying or selling put or call options on our stock, pledging our securities as collateral for a loan, and engaging in other hedging or monetization transactions such as prepaid variable forwards, equity swaps, collars and exchange funds, that permit a holder to continue to own our securities but, without the full risks and rewards of ownership.

Tax Deductibility of Compensation

Section 162(m) of the Internal Revenue Code places a limit of $1,000,000 on the amount of compensation that we may deduct in any one year with respect to our CEO and each of the next three most highly compensated executive officers (excluding the chief financial officer for taxable years prior to 2018). Section 162(m) historically permitted deductions in excess of $1,000,000 for "performance-based compensation," which included stock options meeting certain requirements, but the exception for "performance-based compensation" has been repealed effective for taxable years beginning after December 31, 2017.

Stock options that we granted in 2017 and prior years should still qualify for full deductibility under a transition rule for amounts payable pursuant to written binding contracts in effect on November 2, 2017. To maintain flexibility in compensating our executive officers, the Compensation Committee has not adopted a policy requiring all executive compensation to be deductible.

Key Elements of Executive Compensation

Our executive officers' compensation currently includes three primary components: base salary, cash bonus, and long-term equity-based incentive awards. Of these components, only base salary is not tied directly and meaningfully to our Company's performance because base salary is intended to attract and retain key talent by providing a stable source of income. In addition, we provide our executive officers a variety of benefits that are available generally to all salaried employees. Each of these components is described in more detail below.

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Base Salary

Base salaries are designed to attract and retain qualified personnel by providing a consistent cash flow throughout the year as compensation for acceptable levels of performance of day-to-day responsibilities. Base

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salaries for our executive officers are established based on the scope of their responsibilities, their performance, and their prior relevant background, training and experience, taking into account competitive market compensation paid by the companies represented in the compensation data we review for similar positions and the overall market demand for those executive officers at the time of hire. The Compensation Committee reviews salaries on an annual basis. At such time, the Compensation Committee may change each executive officer's salary based on the individual's contributions and responsibilities over the prior twelve months and any change in competitive market pay levels.

In January 2019, the Compensation Committee set the 2019 base salaries for our executive officers. The Committee considered our Company's performance in 2018, including our commercial operations, clinical trial progress of our other drug candidates, job performance, internal pay alignment and equity, marketplace competitiveness and the 2019 peer group data in determining the base salaries for 2019.

In January 2020, the Compensation Committee set the 2020 base salaries for our executive officers. The Committee considered our Company's performance in 2019, including our commercial operations, clinical trial progress of our other drug candidates, job performance, internal pay alignment and equity, marketplace competitiveness and the 2020 peer group data in determining the base salaries for 2020.

In January 2021, the Compensation Committee set the 2021 base salaries for our executive officers. The Committee considered our Company's performance in 2020, including our commercial operations, clinical trial progress of our other drug candidates, job performance, internal pay alignment and equity, marketplace competitiveness and the 2021 peer group data in determining the base salaries for 2021. The following table sets forth the salary history of our named executive officers listed in the Summary Compensation Table.

Name	​	2019 Base Salary		​	2020 Increase				​	2020 Base Salary		​
​	​	​		​	​				​	​		​
Hervé Hoppenot	​	$	1,047,108	​	​	5.0		%	​	$	1,099,465	​
​	​	​		​	​				​	​		​
Christiana Stamoulis (1)	​	$	560,000	​	​	5.0		%	​	$	588,000	​
​	​	​		​	​				​	​		​
Steven H. Stein	​	$	551,250	​	​	5.0		%	​	$	578,813	​
​	​	​		​	​				​	​		​
Wenqing Yao	​	$	486,675	​	​	5.0		%	​	$	511,009	​
​	​	​		​	​				​	​		​
Barry P. Flannelly	​	$	459,638	​	​	5.0		%	​	$	482,620	​
​	​	​		​	​				​	​		​

(1)

Ms. Stamoulis joined us as our Executive Vice President and Chief Financial Officer effective February 2019.

Name	​	2020 Base Salary		​	2021 Increase				​	2021 Base Salary		​
​	​	​		​	​				​	​		​
Hervé Hoppenot	​	$	1,099,465	​	​	4.0		%	​	$	1,143,444	​
​	​	​		​	​				​	​		​
Christiana Stamoulis	​	$	588,000	​	​	3.0		%	​	$	605,640	​
​	​	​		​	​				​	​		​
Barry P. Flannelly	​	$	482,620	​	​	10.0		%	​	$	530,882	​
​	​	​		​	​				​	​		​
Steven H. Stein	​	$	578,813	​	​	10.0		%	​	$	636,695	​
​	​	​		​	​				​	​		​
Vijay Iyengar	​	$	553,499	​	​	3.0		%	​	$	570,104	​
​	​	​		​	​				​	​		​

Annual Incentive Compensation Plan

Each year, we have established an incentive compensation plan that provides for cash incentive awards for all of our eligible employees. The plans have been designed to pay for performance by aligning incentive awards for each participant with an evaluation of our achievement of corporate objectives. These corporate objectives are approved by the independent members of our Board based on the recommendations of the Compensation Committee, as well as, in the case of individuals other than our CEO, the achievement of individual business objectives for a particular year. Eligibility to participate in the plans and actual award amounts are not guaranteed and are determined, in the case of our executive officers, at the discretion of the Compensation Committee. After the completion of each year, the Compensation Committee reviews with our CEO the level of achievement of the corporate objectives under the plan and determines the size of the overall bonus pool to be used for awards. The Compensation Committee, with input from our CEO with respect to our other executive officers, may use discretion in determining for each executive officer his or her bonus amount.

Incentive awards for our executive officers were approved by the Compensation Committee and paid in 20202021 pursuant to our 20192020 incentive compensation plan. Each of our executive officers, other than our CEO, had a funding target under the plan of 50% of his or her annual base salary for 2019,2020, with the potential for actual awards under the plan to either exceed or be less than the funding target depending upon corporate performance, as well as the executive officer's achievement of certain individual goals that are predetermined by our CEO. Our CEO had a funding target under the plan of 100% of his annual base salary for 2019,2020, with the potential for actual awards under the plan to either exceed or be less than such funding target depending upon corporate performance.

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Target incentive award amounts for each participant were based on the participant's potential impact on our operating and financial results and on market competitive pay practices. Individual performance goals were also established for eligible employees other than our CEO, and evaluations were based upon whether the employee

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met, exceeded or did not meet each established goal. The Committee believes that it is appropriate to align a higher percentage of our executive officers' total cash compensation with the achievement of our Board-approved corporate objectives because those objectives are determined with a view toward progressing our Company's business and maximizing stockholder value. Linking a significant percentage of executive officer cash incentive awards to achievement of Committee-approved corporate objectives puts a substantial portion of our CEO's and executive officers' cash compensation at risk, and is another way the Committee has designed executive compensation to pay for performance.

While executive officers other than our CEO have individual performance objectives that are evaluated by our CEO, the outcome of those objectives did not affect awards under our 20192020 incentive compensation plan to those officers, and the award amounts were based solely on achievement of the corporate performance objectives.

Annual Incentive Compensation Plan 20192020 Corporate Performance Objectives

Corporate performance objectives for 20192020 were based on achievement of drug discovery objectives, drug development objectives and commercial objectives.

Threshold, target and outperform achievement levels were defined for each corporate objective and, depending on the achievement of those performance levels, a payout ranging from 0% to 150% may have been made for each objective. Bonus objectives included an extra 5%15% for drug discovery, an extra 20%25% for drug development, an extra 5% for commercial and an extra 5%10% for business development. Collectively, the bonus opportunities enabled the payout of up to an additional 3555 percentage points for extraordinary achievements beyond core objectives.

At the time the corporate performance objectives for 20192020 were set, the Compensation Committee and management believed that achievement of the target levels of performance would be challenging and would require significant effort and skill, positive preclinical study and clinical trial results and continued strong commercial performance.

In January 2020,2021, the Compensation Committee evaluated the achievement of the 20192020 corporate performance objectives and determined that incentive awards under our 20192020 incentive compensation plan should be based upon an achievement score of 132%127.65% of the target level of corporate performance objectives. The various objective categories, target payouts and actual payouts, are listed in the table on the next page.below.

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Objectives			Target %			Payout %
​	​	​	​	​	​	​	​
Drug Discovery(Target: 6 of 10)			20			30
✓ Achieved 9 of 10 pre-specified goals, including 2 IND filings
​	​	​	​	​	​	​	​
Drug Development			50			60
LIMBER (Leadership In MPNs BEyond Ruxolitinib)(Target: 3 of 4)			10			10
✓ Completed once-a-day (QD) ruxolitinib formulation development by a specified time ✓ Completed defined part of QD ruxolitinib clinical pharmacology program by a specified time ✓ Completed design of a protocol for pivotal study of ruxolitinib + parsaclisib in refractory MF
​	​	​	​	​	​	​	​
Targeted Therapies(Target: 12 of 18)			10			10
✓ Achieved 12 of 18 pre-specified goals, including FDA approval of Jakafi in steroid refractory acute GVHD, NDA submission of pemigatinib in cholangiocarcinoma and passing an interim futility analysis for another development program
​	​	​	​	​	​	​	​
Immuno-Oncology—INCB86550 (Oral PD-L1)(Target: 3 of 5)			10			15
✓ Achieved all five pre-specified goals, including determining a recommended Phase II dose
​	​	​	​	​	​	​	​
Other Immuno-Oncology(Target: 5 of 8)			7.5			6.5
✓ Achieved five of eight pre-specified goals, including dosing INCMGA0012 in combination with another clinical candidate and dosing the first patient with MCLA-145
​	​	​	​	​	​	​	​
Inflammation and Autoimmunity—Dermatology(Target: 2 of 4)			10			15
✓ Achieved three of four pre-specified goals, including launching the Phase III pivotal program of ruxolitinib cream in vitiligo by a specified time
​	​	​	​	​	​	​	​
Other Inflammation and Autoimmunity(Target: 2 of 2)			2.5			2.5
✓ Achieved both pre-specified goals, including achievement of enrollment targets by specified time for three trials, two with decision-enabling results by year-end
​	​	​	​	​	​	​	​
Development Bonus Achieved						1
✓ Initiated a first-line bladder cancer study with pemigatinib by a specified time
​	​	​	​	​	​	​	​
Commercial(Target: $1.750M in revenue from Jakafi and Iclusig)			30			37
✓ Based on the achievement of pre-specified revenue levels for Jakafi and Iclusig, as well as number of patients with steroid-refractory acute GVHD treated with Jakafi
​	​	​	​	​	​	​	​
Business Development Bonus Opportunity Achieved						5
✓ Achieved in-licensing deal that advances the LIMBER initiative
​	​	​	​	​	​	​	​
Total			100			132
​	​	​	​	​	​	​	​

Objectives			Target %			Payout %
​	​	​	​	​	​	​	​
Drug Discovery			20			30
✓ Achieved the requisite number of pre-specified goals to outperform, including a successful filing and clearance of an IND for a new molecule, and a subsequent initiation of a first-in-human clinical trial
​	​	​	​	​	​	​	​
Drug Development			50			43.75
MPNs and GVHD			10			10
✓ Once-a-day (QD) ruxolitinib: completed clinical pharmacology studies and developed new formulations by a specified time ✓ Received FDA endorsement of clinical protocol(s) for Phase 3 combination development of ruxolitinib and parsaclisib by a specified time ✓ Developed multiple dose strengths for potential fixed-dose combination therapies by a specified time ✓ Submitted new data for potential inclusion in Jakafi® (ruxolitinib) prescribing information by a specified time
​	​	​	​	​	​	​	​
Hematology and Oncology			27.5			21.25
✓ Pemigatinib: achieved two pre-specified goals, including approval of NDA by the PDUFA date and submission of J-NDA by a specified time ✓ Parsaclisib: achieved two pre-specified goals, including FDA endorsement of clinical protocols for monotherapy Phase 3 development by a specified time ✓ Retifanlimab: achieved two pre-specified goals, including completion of recruitment of a registration-directed clinical trial ✓ INCB86550: achieved three pre-specified goals, including optimization and scale-up of the manufacturing process and submission of an IND for new small molecule against the same target (PD-L1) ✓ Itacitinib: achieved a recruitment target in a trial in patients with cytokine release syndrome and thereby generate decision-enabling results before the end of the year
​	​	​	​	​	​	​	​
Inflammation and AutoImmunity			12.5			12.5
✓ Ruxolitinib cream: submitted NDA in atopic dermatitis by a specified time and completed recruitment into the Phase 3 pivotal program in vitiligo by a specified time ✓ Other IAI: initiated a randomized trial of a novel JAK inhibitor in hidradenitis suppurativa by a specified time, and completed recruitment into, and generated decision-enabling results from, a proof-of-concept cohort of parsaclisib in patients with autoimmune hemolytic anemia by a specified time
​	​	​	​	​	​	​	​
Development Bonus Opportunities Achieved						15
✓ Achieved approval of Monjuvi® (tafasitamab-cxix) by the PDUFA date, and submitted the BLA for retifanlimab and the sNDA for ruxolitinib before the end of 2020
​	​	​	​	​	​	​	​
Commercial			30			28.9
✓ Payout based on total combined net product revenue for Jakafi® (ruxolitinib) and Iclusig® (ponatinib)
​	​	​	​	​	​	​	​
Business Development Bonus Opportunities Achieved						10
✓ Signed licensing and development deal for tafasitamab with MorphoSys, providing near-term revenue which is also expected to add meaningful revenue growth in 2025 and beyond ✓ Executed an in-licensing deal for clinical stage asset that advances the LIMBER initiative
​	​	​	​	​	​	​	​
Total			100			127.65
​	​	​	​	​	​	​	​

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Detailed Discussion of Achievements Related to 2020 Corporate AchievementsPerformance Objectives

Discovery

In 2019,2020, we achieved 9 of 10 prespecifiedalmost all pre-specified discovery goals. While we do not disclose many details about our discovery efforts due to potential competitive harm concerns that are inherent in our industry, we successfully filed 2a new IND applicationsapplication for INCB106385 (a selective dual adenosine receptor inhibitor) with the FDA.FDA, which was subsequently cleared, and a first-in-human clinical program has begun. We did not achieve bonus objectives in discovery.

Clinical Development

Clinical development is one of the main drivers of Incyte's long-term success and, as such, it makes up 50% of our annual goals. Below are some key highlights of development goal achievements from 2020.

MPNs and GVHD

Our Leadership In MPNs BEyond Ruxolitinib (LIMBER) program is a key development priority for Incyte and we made important progress here. During 2020, we successfully completed the necessary formulation development and clinical pharmacology trials for our once-a-day (QD) formulation of ruxolitinib, which is now in stability testing ahead of an expected application seeking FDA approval. We also gained FDA endorsement for the design of two pivotal Phase 3 trials to assess the combination of ruxolitinib and parsaclisib, our selective PI3Kd inhibitor, in patients with myelofibrosis. We have also successfully initiated development of formulations for potential fixed-dose combinations within the LIMBER program. We did not achieve certain objectives within the INCB57643 (BET) or INCB00928 (ALK2) development programs, largely driven by recruitment and other delays related to COVID-19.

We achieved a bonus opportunity by submitting the sNDA seeking approval of Jakafi in patients with steroid refractory chronic GVHD based on the positive results from the Phase 3 REACH3 trial of ruxolitinib. During 2019 we announced the successful outcome of the pivotal REACH2 trial in patients with steroid-refractory acute GVHD, and these data were submitted to the FDA for inclusion into the prescribing information during 2020. We did not achieve certain target objectives related to the pivotal development of itacitinib in GVHD, as the program was returned to dose-ranging studies after the results of the GRAVITAS-301 became available.

Hematology and Oncology

Within our hematology and oncology franchise, we achieved 10 of our pre-specified goals, including the earlier than expected FDA approval of Pemazyre® (pemigatinib) for the treatment of certain patients with cholangiocarcinoma, a type of bile duct cancer. We also submitted the pemigatinib J-NDA to the Japanese regulatory authorities seeking its approval for patients with cholangiocarcinoma. We did not achieve certain other pemigatinib development objectives because of recruitment delays (including related to COVID-19) and because of our previously announced decision to reevaluate our development strategy in bladder cancer.

The approval of Monjuvi® (tafasitamab-cxix) was a bonus opportunity that we achieved in 2020, and we were also able to announce the validation of the MAA application seeking approval of tafasitamab in Europe.

We are developing parsaclisib as monotherapy for the treatment of patients with non-Hodgkin lymphomas, and an important goal achieved in 2020 was FDA endorsement of the pivotal trials designs within this program. We also initiated the Japanese development program for parsaclisib.

Development of retifanlimab continues to progress well, and we achieved a bonus opportunity by submitting the BLA seeking FDA approval of retifanlimab as a treatment for patients with squamous cell anal carcinoma before the end of 2020. We also completed in enrollment in registration-directed trials in both the Merkel cell carcinoma and MSI-high endometrial cancer programs.

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We are also developing a series of oral inhibitors of PD-L1. Within this program, we were able to initiate clinical development of two additional molecules, and to optimize, finalize and scale-up the manufacturing process for INCB86550, our lead PD-L1 inhibitor molecule.

Within the development program for itacitinib, our selective JAK1 inhibitor, we were able to meet our recruitment target in the proof-of-concept trial in patients with cytokine release syndrome (CRS) after CAR-T therapy, and thereby generate decision-enabling results before the end of 2020.

Inflammation and AutoImmunity (IAI)

Our development work in IAI encompasses both dermatology and other inflammatory and autoimmune conditions, and in 2020 we achieved multiple important objectives.

Most importantly, we submitted the NDA seeking approval of ruxolitinib cream as a treatment for patients with atopic dermatitis to the FDA before the end of 2020. We also completed enrollment into the Phase 3 development program from ruxolitinib cream in vitiligo earlier than anticipated, and despite COVID-19.

Elsewhere within dermatology we were able to accelerate development of INCB54707, our oral selective JAK1 inhibitor and initiated a randomized Phase 2b trial earlier than anticipated.

We are also evaluating the role of PI3Kd inhibition in patients with acute hemolytic anemia, and we achieved a goal of being able to complete recruitment into, and generate decision-enabling results from, an initial clinical trial of parsaclisib in this indication.

Commercial

Jakafi® (ruxolitinib) performance continued to be strong in 2020, reporting revenue for the year at $1,938 million, towards the upper end of our guidance range and representing 15% year-over-year growth. Total net product revenues for Jakafi and Iclusig® (ponatinib) in 2020 exceeded threshold and was narrowly below target of $2,056 million. We did not meet the level of commercial performance needed to achieve a bonus opportunity.

Business Development

The 2020 corporate objectives included two opportunities for bonus achievements under business development activities. These were to execute a licensing deal that would add to near-term revenue or to add meaningfully to revenue in 2025 and beyond, and to execute a collaboration or other transaction that would advance the LIMBER program with a clinic-ready asset. Both of these bonus objectives were achieved.

In January 2020, we announced a collaboration and license agreement to further develop and commercialize MorphoSys' proprietary anti-CD19 antibody tafasitamab globally. Tafasitamab is an Fc-engineered antibody against CD19 currently in clinical development for the treatment of B cell malignancies. Tafasitamab was subsequently FDA approved as Monjuvi®, and Incyte and MorphoSys are co-commercializing in the U.S.; Incyte has exclusive commercialization rights outside of the U.S.

In December 2020, we announced a development collaboration to investigate the combination of ruxolitinib and CK0804, Cellenkos' cryopreserved CXCR4 enriched, allogeneic, umbilical cord blood-derived T-regulatory cells, in patients with myelofibrosis.

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Development

Clinical development is one of the main drivers of Incyte's long-term success and, as such, it makes up 50% of our annual goals. Below are some key development highlights from 2019.

LIMBER

Leadership In MPNs BEyond Ruxolitinib (LIMBER) is a keydevelopment priority for Incyte.

During 2019, we successfully completed QD ruxolitinib formulation development and completed the first part of the clinical pharmacology program required for FDA approval. The second part of the clinical pharmacology program is now ongoing, and we expect to present initial bioavailability and bioequivlance data for the QD ruxolitinib program later this year, and and are planning for potential launch in 2022.

In addition, we made a 'go-forward' decision for the ruxolitinib plus parsaclisib (PI3kd) combination and completed design of a pivotal study protocol ahead of a pivotal study of this combination in refractory myelofibrosis.

TARGETED THERAPIES

Within our targeted therapies portfolio, we achieved 12 of 18 pre-specified goals. The most significant of these goals were the FDA approval of Jakafi in steroid refractory acute GVHD, the NDA submission of pemigatinib in cholangiocarcinoma and another development program passing an interim futility analysis. We also achieved a bonus related to the initiation of a first line bladder cancer study with pemigatinib.

A goal that was not reached during 2019 was generating positive data from the pivotal Phase III GRAVITAS-301 study. As we announced in early January, GRAVITAS-301, a study evaluating itacitinib in combination with corticosteroids in patients with treatment-naïve acute GVHD did not meet the primary endpoint of improving overall response rate at Day 28 compared to placebo plus corticosteroids.

IMMUNO-ONCOLOGY

Incyte achieved 10 of 13 prespeficied goals in immuno-oncology. Among the more notable achievements were determining the recommended Phase II doses for INCB86550 (oral PD-L1), INCAGN2390 (LAG3) and INCAGN2385 (TIM3).

INFLAMMATION AND AUTOIMMUNITY (IAI)

In 2019, we achieved five of six prespecified IAI goals. Notably,we initiatied the Phase III pivotal program of ruxolitinib cream in patients with vitiligo and completed enrollment in the TRuE AD1 and TRuE AD2 Phase III trials of ruxolitinib cream in patients with mild to moderate atopic dermatitis. The results of TRuE-AD1 and TRuE-AD2 were announced earlier in 2020, and both trials achieved their primary endpoints. Data were presented at the Revolutionizing Atopic Dermatitis (RAD) Virtual Symposium in April.

Commercial

Jakafi performance continued to be very strong in 2019. During the year, we raised our revenue guidance for Jakafi and ended the year at $1,685 million, representing the high end of the revised revenue guidance range and a 21% year-over-year growth. Total net product revenues for Jakafi and Iclusig in 2019 totalled $1,782 million(1), exceeding the target of $1,750 million.

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We were also able to reach the Outperform threshold level for the number of patients with steroid-refractory acute GVHD treated with Jakafi, surpassing the target figure by 250 patients.

(1)

Iclusig sales figure based on budgeted exchange rate when goals were established, not the actual exchange rate as reported in Incyte's Annual Report on Form 10K for the year ended December 31, 2019. The budgeted exchange rate is used to avoid foreign exchange-related penalties or gains in sales calcuations.

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Business Development

The 2019 business development achievement was based on executing an in-licensing deal that would advance the LIMBER initiative by adding a new molecule that would be ready for a clinical trial by the beginning of 2020.

Incentive Awards for Named Executive Officers

This table sets forth the incentive awards under our 20192020 incentive compensation plan for our named executive officers:

Name	​	Year-End Salary (A) x		​	Target Bonus % (B) x				​	Overall Multiplier (C) =				​	Bonus Award (D)		​	​	Year-End Salary (A) x		​	Target Bonus % (B) x				​	Overall Multiplier (C) =				​	Bonus Award (D)		​
​	​	​		​	​				​	​				​	​		​	​	​		​	​				​	​				​	​		​
Hervé Hoppenot	​	$	1,047,108	​	​	100		%	​		132.0		%	​	$	1,382,183	​	​	$	1,099,465	​	​	100		%	​		127.65		%	​	$	1,403,468	​
​	​	​		​	​				​	​				​	​		​	​	​		​	​				​	​				​	​		​
Christiana Stamoulis	​	$	560,000	​	​	50		%	​		132.0		%	​	$	369,600	​	​	$	588,000	​	​	50		%	​		127.65		%	​	$	375,321	​
​	​	​		​	​				​	​				​	​		​	​	​		​	​				​	​				​	​		​
Barry P. Flannelly																		​	$	482,620	​	​	50		%	​		127.65		%	​	$	308,057	​
​																		​	​		​	​				​	​				​	​		​
Steven H. Stein	​	$	551,250	​	​	50		%	​		132.0		%	​	$	363,825	​	​	$	578,813	​	​	50		%	​		127.65		%	​	$	369,457	​
​	​	​		​	​				​	​				​	​		​	​	​		​	​				​	​				​	​		​
Wenqing Yao	​	$	486,675	​	​	50		%	​		132.0		%	​	$	321,206	​
Vijay Iyengar																		​	$	553,499	​	​	50		%	​		127.65		%	​	$	353,299	​
​	​	​		​	​				​	​				​	​		​	​	​		​	​				​	​				​	​		​
Barry P. Flannelly	​	$	459,638	​	​	50		%	​		132.0		%	​	$	303,361	​
​	​	​		​	​				​	​				​	​		​

Our incentive compensation program is designed to incentivize employees, including our executive officers, in every area of our Company, which we believe helps lead to significant achievement across all areas. Our Compensation Committee believes that measuring and rewarding achievements from all functions—including functions such as discovery, development, technical operations and business development, whose efforts take a much longer time to make an impact on our top-line revenue or on our stock price—helps ensure that we are properly incentivizing the collective efforts that lead not only to successful current commercial performance but also critically set the stage for potential continued growth and potential long-term sustained success in the years ahead. Our Compensation Committee also believes that linking incentive compensation to corporate goals aligns employees' incentives with strategic imperatives, thus paying for performance.

The chart below illustrates the achievement levels under our incentive compensation program over the last three years, and illustrates how the annual incentive compensation plan serves to execute on the Compensation Committee's goal of paying for performance:

Incentive Compensation Plan Achievement—2017-20192018-2020



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Annual Incentive Compensation Plan 20202021 Corporate Performance Objectives

In January 2020,2021, the independent members of our Board, based on the recommendations of the Compensation Committee, approved corporate objectives for our 20202021 incentive compensation plan. Under this plan, the funding targets for our executive officers remain the same as for 2019.2020. Corporate performance objectives for 20202021 are based on achievement of drug discovery objectives, drug development objectives and commercial objectives.

Threshold, target and outperform achievement levels are defined for each corporate objective and, depending on the achievement of those performance levels, a payout ranging from 0% to 150% may be made for each objective. Bonus objectives include an extra 15%20% for drug discovery, an extra 25%20% for drug development an extra 5% for commercial and an extra 10% for business development. Collectively, the bonus opportunities enable the payout of up to an additional 5550 percentage points for extraordinary achievements beyond core objectives.

The Committee and management believe that achievement of the target levels of performance will be difficult and challenging, but achievable with significant effort and skill, favorable preclinical study and clinical trial results and continued strong commercial performance.

Equity-Based Incentive Awards

The Compensation Committee administers equity-based incentive awards, such as stock option grants, RSUs and performance shares that are made to our executive officers under our 2010 Stock Incentive Plan. The Compensation Committee believes that by providing those persons who have substantial responsibility for our management and growth with an opportunity to increase their ownership of our stock, the best interests of our stockholders and executive officers will be closely aligned. Therefore, executive officers are eligible to receive equity-based incentive awards when the Compensation Committee performs its annual review, although these awards may be granted at other times in recognition of exceptional achievements. As is the case when the amounts of base salary and initial equity awards are determined, the Compensation Committee conducts a review of all components of an executive officer's compensation when determining annual equity awards to ensure that the executive's total compensation conforms to our overall philosophy and objectives.

Under our 2010 Stock Incentive Plan, we may grant stock options, restricted shares, performance shares, RSUs or stock appreciation rights.

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In 2019,2020, our executive officers received stock options, performance shares and RSUs and in 2020,2021, our U.S.-based executive officers will receive stock options, performance shares, and RSUs and our non-U.S.-based executive officers will receive RSUs. For our CEO, the total grant date target value of these equity awards is $12,900,000.was $12,900,000 in 2020 and will be $12,400,000 in 2021. For other executive officers, the range of total grant date target value of these equity awards is $500,000 to $2,200,000. Ms. Stamoulis, however, who joined us in February 2019, received initial equity awards with an aggregate grant date target value of $3,300,000 on joining us, and, pursuant to her agreement with us in connection with her commencement of employment, did not receive a 2019 annual equity award but instead received equity awards with an aggregate grant date target value of $1,300,000 on the first anniversary of the commencement of her employment in February 2020 and will be eligible to receive equity awards in July 2020 with an aggregate grant date target value of $2,200,000.

The value of all of these awards are inherently performance-based:

•

Stock options are performance based because they pay nothing to our executive officers unless stockholders benefit by stock price appreciation. In addition, with a ten-year life and a four-year vesting period, stock options are in sync with the time required for discovery, development and commercialization of new medicines. Our Compensation Committee believes that stock options help align executives' interests with the long-term interests of our Company and our stockholders. Stock options reinforce our belief that future potential growth of Incyte will be generated by innovation, our discovery and development pipeline, demand for our products and our commercial execution.



•

Performance shares do not become earned unless pre-determined performance goals are met.



•

RSU awards grow or decline in value based on stock price, also linking executive officers' compensation to the value delivered to stockholders.

In addition to the performance-based aspects of stock options, performance shares and RSUs, the time-based vesting also serves a critical retention function. Time-based vesting helps ensure the long-term retention of highly valuable executive officers, in whom we have invested considerable time and money, and the intellectual capital they create as well as continuity of their respective teams. The performance-based components and time-based components of our equity compensation program are designed to encourage both an appropriate level of risk-taking and a focus on sound long-term decision making, thus aligning executive interests with the long-term best interests of our Company and our stockholders.

For our 20192020 annual equity grants, stock options comprised 50%40% of an executive officer's target equity compensation, performance shares comprised 25%30% and RSUs comprised 25%30%. As described above under "—Equity Grant Practices," for 20202021 the Compensation Committee has determined that our U.S.-based executive officers' annual equity award mix should be 40% stock options, 30%remain the same as for 2020.

Fifty percent of performance shares and 30% RSUs to bring our practices closer in line with our peer group and the broader market norm and to provide greater retentive value from our equity awards.

Performance shares granted in July 2019 had2020 have a revenue trigger for the third year of the performance period that was determined by the Compensation Committee in February 2019, which was the same target number as the commercial objective revenue target number for the 2019 Incentive Compensation Plan—namely, $1.750 million in Jakafi and Iclusig revenues.2020. Depending on revenue actually achieved, the payout on these performance shares could have variedcan vary from 0% to 125%200% of target. The remaining 50% of performance shares are associated with certain development objectives, including from the LIMBER program, certain NDA, sNDA or MAA approvals and the initiation of certain first-in-human clinical trials. These performance shares comprised 25%30% of an executive officer's target equity compensation awarded in connection with our annual equity grants. The Compensation Committee believedbelieves that these performance shares alignedalign our executive officers' interest even more closely with the financial performance of our Company and the eventual value delivered to stockholders. The target amount of Jakafi and Iclusig revenues for

Starting with awards to be made in mid-2021, the 2019 performance shares was $1,750 million and we recorded $1,782 million* of Jakafi

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and Iclusig revenues in 2019, resulting inCompensation Committee has added a percentage achievement oftotal shareholder return (TSR) component to the 2019 performance share goal at the 101.8% level.

Performance Share Achievement*

goals.

*  PSUs were added as a component of ExecutiveIn addition, after reviewing CEO compensation within our peer group, our Compensation in 2018.Committee also lowered Mr. Hoppenot's 2021 total target equity award value from $12,900,000 to $12,400,000.

20192020 Outstanding Merit Grants

In January 2019,2020, one of our named executive officers, Barry Flannelly, Executive Vice President, General Manager, US,North America, received an outstanding merit option grant intended to incentivize and retain him with a grant date target value of $2,000,000.$1,000,000. This outstanding merit option grant is subject to four-year cliff vesting.

2018 Retention Plans

With the failure of our ECHO-301 program in April 2018 and the significant stock price decline which accompanied it, the Compensation Committee believed it was vital to act to preserve the two key engines of

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growth within Incyte—namely, the salesforce which generates the revenue to fund our day-to-day operations and the R&D effort which aims to produce the compounds that will potentially lead to future growth.

Accordingly, in June 2018, the Compensation Committee adopted retention plans utilizing performance share awards for certain groups of employees of our Company, namely key R&D employees and our salesforce. The R&D retention plan participants included two of our named executive officers, Drs. Stein and Yao, who each received performance share awards potentially representing 50,000 shares of common stock, which would be earned based on the achievement of a specificspecified number of investigational new drug (IND) filings made by our Company during a specified time frame and, if earned, would vest on the third anniversary of the initial grant date.

In April 2019, following stockholder approval of the increase in the authorized shares available for issuance under our 2010 Stock Incentive Plan, Drs. Stein and Yao received additional performance share awards under the 2018 R&D retention plan, potentially representing 50,000 shares of common stock, and withwhich would be earned based on the same performance goals as the June 2018 awards. The April 2019 performance shareachievement of a specified number of new chemical entities that are approved by regulatory authorities during a specified time frame. These awards, if earned, would vest on the third anniversary of the initial grant date of the June 2018 awards.

No other grants are planned under the 2018 Retention Plans.

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(1)

Iclusig sales figure based on budgeted exchange rate when goals were established, not the actual exchange rate as reported in Incyte's Annual Report on Form 10K for the year ended December 31, 2019. The budgeted exchange rate is used to avoid foreign exchange-related penalties or gains in sales calcuations.

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Termination Based Compensation Under Employment Agreements and Offer Letters

Our executive officers are parties to employment agreements and offer letters, as described below under "Employment Contracts, Termination of Employment and Change-in-Control Arrangements."

These employment agreements and offer letters provide for severance payments and acceleration of vesting of equity-based awards upon termination of employment under the circumstances described below under "Employment Contracts, Termination of Employment and Change-in-Control Arrangements." In general, the employment agreements provide for severance benefits if an officer's employment is terminated within 24 months following a change in control. These agreements are designed both to attract executives, as we compete for talented employees in a marketplace where such protections are routinely offered, and to retain executives and provide continuity of management in the event of an actual or threatened change in control.

Other Compensation

All of our full-time employees, including our executive officers, may participate in our health programs, such as medical, dental and vision care coverage, and our 401(k) and life and disability insurance programs. These benefits are designed to provide our executive officers and eligible employees a competitive total compensation package that enables us to attract and retain qualified personnel. Under our employment agreement with our CEO, we paid the premiums with respect to a six-year insurance policy that becomes payable to the CEO or his estate upon his disability or death, although at his suggestion, in 2019, we amended his employment agreement to eliminate our obligation to pay the last year's premium on that insurance policy, as described below under "Employment Contracts, Termination of Employment and Change-in-Control Arrangements."

Compensation Committee Report

This report shall not deemed to be "soliciting material" or "filed" with the Securities and Exchange Commission or be deemed incorporated by reference into any filing under the Securities Act of 1933 or under the Securities Exchange Act of 1934, except to the extent the Company specifically incorporates it by reference into a document filed under such Acts.

The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis set forth in this Proxy Statement with our management. Based on such review and discussions, the Compensation Committee recommended to the Board that the Compensation Discussion and Analysis be included in this Proxy Statement and incorporated by reference into the Company's Annual Report on Form 10-K for the year ended December 31, 2019.2020.

		Compensation Committee Paul A. BrookeJean Jacques Bienaimé (Chair) Julian C. Baker Jean-Jacques BienaiméPaul J. Clancy

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Named Executive Officers

The Summary Compensation Table, Grants of Plan-Based Awards Table and the tables that follow provide compensation information for our named executive officers, including Hervé Hoppenot, our President and CEO, Christiana Stamoulis, our Executive Vice President and Chief Financial Officer, and Barry P. Flannelly, Steven H. Stein Wenqing Yao and Barry P. Flannelly.Vijay Iyengar.

Our named executive officers' total compensation for 20192020 as determined under the rules of the Securities and Exchange Commission, or SEC, is set forth in the following table under the caption "Total."

SUMMARY COMPENSATION TABLE

Name and Principal Position	​	Year		​	Salary ($)		​	Bonus ($)		​	Stock Awards ($)(1)		​	Option Awards ($)(1)		​	Non-Equity Incentive Plan Compensation ($)(2)	​	All Other Compensation ($)(3)	​	Total ($)		​	​	Year		​	Salary ($)		​	Bonus ($)		​	Stock Awards ($)(1)		​	Option Awards ($)(1)		​	Non-Equity Incentive Plan Compensation ($)(2)	​	All Other Compensation ($)(3)	​	Total ($)		​
​	​	​		​	​		​	​		​	​		​	​		​	​	​	​	​	​		​	​	​		​	​		​	​		​	​		​	​		​	​	​	​	​	​		​
Hervé Hoppenot	​	2019		​	1,044,376		​	—		​	6,740,953		​	5,937,070		​	1,382,183	​	46,656	​	15,151,238		​	​	2020		​	1,094,731		​	—		​	8,317,223		​	5,515,024		​	1,403,468	​	47,746	​	16,378,192		​
President and Chief	​	2018		​	995,575		​	—		​	1,733,822		​	5,564,508		​	807,769	​	212,515	​	9,314,189		​	​	2019		​	1,044,376		​	—		​	6,740,953		​	5,937,070		​	1,382,183	​	46,656	​	15,151,238		​
Executive Officer	​	2017		​	966,505		​	—		​	1,755,563		​	11,677,844		​	1,476,505	​	210,614	​	16,087,031		​	​	2018		​	995,575		​	—		​	1,733,822		​	5,564,508		​	807,769	​	212,515	​	9,314,189		​
​	​	​		​	​		​	​		​	​		​	​		​	​	​	​	​	​		​	​	​		​	​		​	​		​	​		​	​		​	​	​	​	​	​		​
Christiana Stamoulis	​	2019		​	497,096		​	280,000		(4)	824,960		​	2,474,685		​	369,600	​	49,327	​	4,495,668		​	​	2020		​	585,468		​	—		​	1,743,359		​	1,421,498		​	375,321	​	28,604	​	4,154,250		​
Executive Vice President and Chief Financial Officer	​			​			​			​			​			​		​		​			​
Executive Vice President and																								​	2019		​	497,096		​	280,000		(4)	824,960		​	2,474,685		​	369,600	​	49,327	​	4,495,668		​
Chief Financial Officer																								​			​			​			​			​			​		​		​			​
​																								​	​		​	​		​	​		​	​		​	​		​	​	​	​	​	​		​
Barry P. Flannelly																								​	2020		​	480,542		​	—		​	2,342,694		​	940,557		​	308,057	​	45,034	​	4,116,884		​
Executive Vice President and																								​	2019		​	458,438		​	—		​	1,149,505		​	3,490,293		​	303,361	​	41,345	​	5,442,942		​
General Manager—NA																								​			​			​			​			​			​		​		​			​
​	​	​		​	​		​	​		​	​		​	​		​	​	​	​	​	​		​	​	​		​	​		​	​		​	​		​	​		​	​	​	​	​	​		​
Steven H. Stein	​	2019		​	549,812		​	—		​	4,868,505		​	1,235,249		​	363,825	​	24,093	​	7,041,484		​	​	2020		​	576,321		​	—		​	1,418,393		​	940,557		​	369,457	​	22,022	​	3,326,750		​
Executive Vice President and	​	2018		​	522,123		​	—		​	3,733,824		​	2,119,070		​	212,625	​	23,874	​	6,611,516		​	​	2019		​	549,812		​	—		​	4,868,505		​	1,235,249		​	363,825	​	24,093	​	7,041,484		​
Chief Medical Officer	​	2017		​	473,070		​	100,000		(5)	451,372		​	2,688,504		​	362,188	​	24,121	​	4,099,255		​	​	2018		​	522,123		​	—		​	3,733,824		​	2,119,070		​	212,625	​	23,874	​	6,611,516		​
​	​	​		​	​		​	​		​	​		​	​		​	​	​	​	​	​		​	​	​		​	​		​	​		​	​		​	​		​	​	​	​	​	​		​
Wenqing Yao	​	2019		​	485,405		​	—		​	4,868,505		​	1,235,249		​	321,206	​	41,195	​	6,951,560		​
Executive Vice President,	​	2018		​	462,723		​	—		​	3,733,824		​	2,119,070		​	187,718	​	36,716	​	6,540,051		​
Head of Discovery Chemistry	​	2017		​	448,798		​	—		​	451,372		​	2,688,504		​	343,125	​	41,374	​	3,973,173		​
Vijay Iyengar																								​	2020		​	552,278		​	—		​	1,418,393		​	940,557		​	353,299	​	40,323	​	3,304,850		​
Executive Vice President, Global Strategy and Corporate Development																								​			​			​			​			​			​		​		​			​
​	​	​		​	​		​	​		​	​		​	​		​	​	​	​	​	​		​	​	​		​	​		​	​		​	​		​	​		​	​	​	​	​	​		​
Barry P. Flannelly	​	2019		​	458,438		​	—		​	1,149,505		​	3,490,293		​	303,361	​	41,345	​	5,442,942		​
Executive Vice President and General Manager—US	​			​			​			​			​			​		​		​			​
​	​	​		​	​		​	​		​	​		​	​		​	​	​	​	​	​		​

(1)

Amounts shown do not reflect compensation actually received by the named executive officer. Instead, the amounts reported above in the "Stock Awards" and "Option Awards" columns represent the aggregate grant date fair value of stock awards and options awards granted in the respective fiscal years, as determined in accordance with ASC 718. The reported amounts for 2017 include the grant date fair value of awards of restricted stock units ("RSUs")2018, 2019, and option awards. The reported amounts for 2018 and 20192020 include the grant date fair value of awards of performance shares, RSUs and option awards. Additional information with respect to 20192020 performance share, RSU and option awards is set forth in the "2019"2020 Grants of Plan Based Awards" table below.



(2)

Amounts listed in this column represent bonuses paid under the annual incentive compensation plan for each of the respective years. These amounts are not reported in a separately identified Bonus column because the awards are tied to corporate performance objectives.

​

​	​	​
​ ​	​ ​	​ ​
​ 5268  |  Proxy Statement 20202021	​ ​	​

​

---

Table of Contents

​

Executive Compensation

​

(3)

Amounts listed in this column for each year represent payments made for group term life insurance and matching contributions under our 401(k) plan and also the following payments:

Name	​	Year		​	Life Insurance Premiums ($)(1)		​	Financial Planning Services ($)(2)		​	Statutory Fee for Serving as Director of EU Subsidiary ($)		​	Travel Reimbursement ($)(2)(3)				​	​	Year		​	Life Insurance Premiums ($)(a)		​	Financial Planning Services ($)(b)		​	Statutory Fee for Serving as Director of EU Subsidiary ($)		​	Travel Reimbursement ($)(b)(c)		​
​	​	​		​	​		​	​		​	​		​	​				​	​	​		​	​		​	​		​	​		​	​		​
Hervé Hoppenot	​	2019		​	5,125		​	21,643 (6,643)		​	4,400		​	​	—		​	​	​	2020		​	7,730		​	21,723 (6,723)		​	2,200		​	—		​
	​	2018		​	160,207		​	27,649 (12,649)		​	4,400		​	​	—		​	​	​	2019		​	5,125		​	21,643 (6,643)		​	4,400		​	—		​
	​	2017		​	160,207		​	26,131 (12,631)		​	4,400		​	​	—		​	​	​	2018		​	160,207		​	27,649 (12,649)		​	4,400		​	—		​
​	​	​		​	​		​	​		​	​		​	​				​	​	​		​	​		​	​		​	​		​	​		​
Christiana Stamoulis	​	2019		​	811		​	10,883 (3,321)		​	—		​	​	21,133 (6,239)		​	​	​	2020		​	2,321		​	4,055 (1,255)		​	—		​	5,128 (1,536)		​
																			​	2019		​	811		​	10,883 (3,321)		​	—		​	21,133 (6,239)		​
​																			​	​		​	​		​	​		​	​		​	​		​
Barry P. Flannelly																			​	2020		​	6,192		​	21,742 (6,742)		​	—		​	—		​
																			​	2019		​	3,226		​	21,619 (6,619)		​	—		​	—		​
​	​	​		​	​		​	​		​	​		​	​				​	​	​		​	​		​	​		​	​		​	​		​
Steven H. Stein	​	2019		​	1,377		​	1,816 (521)		​	4,400		​	​	—		​	​	​	2020		​	2,315		​	2,607 (807)		​	2,200		​	—		​
	​	2018		​	—		​	1,674 (479)		​	4,400		​	​	—		​	​	​	2019		​	1,377		​	1,816 (521)		​	4,400		​	—		​
	​	2017		​	—		​	2,358 (1,098)		​	4,400		​	​	—		​	​	​	2018		​	—		​	1,674 (479)		​	4,400		​	—		​
​	​	​		​	​		​	​		​	​		​	​				​	​	​		​	​		​	​		​	​		​	​		​
Wenqing Yao	​	2019		​	2,241		​	22,754 (10,404)		​	—		​	​	—		​	​
	​	2018		​	—		​	18,390 (5,640)		​	—		​	​	—		​	​
	​	2017		​	—		​	23,123 (11,123)		​	—		​	​	—		​	​
Vijay Iyengar																			​	2020		​	1,500		​	21,723 (6,723)		​	—		​	—		​
​	​	​		​	​		​	​		​	​		​	​				​	​	​		​	​		​	​		​	​		​	​		​
Barry P. Flannelly	​	2019		​	3,226		​	21,619 (6,619)		​	—		​	​	—		​	​
​	​	​		​	​		​	​		​	​		​	​				​

(1)(a)

Payment of life insurance premiums for Mr. Hoppenot in 2018 and earlier years was designed to compensate him for certain components of equity awards from his previous employer that he forfeited when joining Incyte. Our obligation to make these payments expired in 2019. For a more detailed explanation, please see "Employment Contracts, Termination of Employment and Change-in-Control Arrangements—President and CEO—Life Insurance and Disability Insurance Coverage" below.



(2)(b)

Amounts in this column are inclusive of tax gross-up payments. The amount of the specific tax gross-ups are detailed in the parentheses next to the total amount.



(3)(c)

Amounts in this column constitute reimbursement for travel expenses in lieu of a relocation package pursuant to Ms. Stamoulis' offer letter with the Company.

(4)

This amount represents Ms. Stamoulis'sStamoulis' signing bonus in connection with the commencement of her employment.



(5)

This amount represents a portion of Dr. Stein's signing bonus in connection with the commencement of his employment with the Company in May 2016 and was intended to compensate Dr. Stein for compensation forfeited by leaving his previous employer; payment of this portion was deferred until the second anniversary of the date of his employment.

​

​	​	​
​ ​	​ ​	​ ​
​	​	​ Proxy Statement 20202021  |  5369

​

---

Table of Contents

​

Executive Compensation

​

20192020 Grants of Plan-Based Awards

​

​

Estimated Future Payouts Under Non-Equity Incentive Plan Awards(1)(2)

​

Estimated Future Payouts Equity Incentive Plan Awards Shares(3)

​

All Other Stock Awards: Number of Shares of Stocks or

​

All Other Option Awards: Number of Securities Underlying

​

Exercise or Base Price of Option

​

Grant Date Fair Value of Stock and Option

​

​

​

Estimated Future Payouts Under Non-Equity Incentive Plan Awards(1)(2)

​

Estimated Future Payouts Equity Incentive Plan Awards Shares(3)

​

All Other Stock Awards: Number of Shares of Stocks or

​

All Other Option Awards: Number of Securities Underlying

​

Exercise or Base Price of Option

​

Grant Date Fair Value of Stock and Option

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Name

​

Grant Date

​

Threshold ($)

​

Target ($)

​

Maximum ($)

​

Threshold (#)

​

Target (#)

​

Maximum (#)

​

Units (#)(4)

​

Options (#)

​

Awards ($/Sh)

​

Awards ($)(5)

​

​

Grant Date

​

Threshold ($)

​

Target ($)

​

Maximum ($)

​

Threshold (#)

​

Target (#)

​

Maximum (#)

​

Units (#)(4)

​

Options (#)

​

Awards ($/Sh)

​

Awards ($)(5)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Hervé Hoppenot

​

​

​

785,331

​

​

1,047,108

​

1,570,662

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

824,599

​

​

1,099,465

​

2,253,903

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

01/04/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

88,558

(6)

​

72.27

​

​

2,571,785

​

​

​

01/17/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

96,328

(6)

​

80.50

​

​

2,743,458

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

96,327

(7)

​

85.01

​

​

3,365,284

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

74,720

(7)

​

106.47

​

​

2,771,567

​

​

​

07/02/2019

​

​

​

​

​

​

​

29,736

​

​

39,648

​

​

49,560

​

​

​

​

​

​

85.01

​

​

3,370,476

​

​

​

07/02/2020

​

​

​

​

​

​

​

29,294

​

​

39,059

​

​

68,353

​

​

​

​

​

​

106.47

​

​

4,158,612

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

39,648

​

​

​

​

85.01

​

​

3,370,476

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

39,059

​

​

​

​

106.47

​

​

4,158,612

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Christiana Stamoulis

​

​

​

210,000

​

​

280,000

​

420,000

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

220,500

​

​

294,000

​

602,700

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

02/11/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

72,809

(7)

​

80.21

​

​

2,474,685

​

​

​

02/11/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

34,240

(7)

​

76.14

​

​

948,820

​

​

​

02/11/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

10,285

​

​

​

​

80.21

​

​

824,960

​

​

​

02/11/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

4,268

​

​

​

​

76.14

​

​

324,966

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Steven H. Stein

​

​

​

206,719

​

​

275,625

​

413,438

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

01/04/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

22,772

(6)

​

72.27

​

​

661,317

​

​

​

04/29/2019

​

​

​

​

​

​

​

​

​

50,000

​

​

​

​

​

​

​

​

74.38

​

​

3,719,000

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

16,428

(7)

​

85.01

​

​

573,932

​

​

​

07/02/2019

​

​

​

​

​

​

​

5,071

​

​

6,761

​

​

8,451

​

​

​

​

​

​

85.01

​

​

574,753

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

6,761

​

​

​

​

85.01

​

​

574,753

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Wenqing Yao

​

​

​

182,503

​

​

243,338

​

365,006

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

01/04/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

22,772

(6)

​

72.27

​

​

661,317

​

​

​

04/29/2019

​

​

​

​

​

​

​

​

​

50,000

​

​

​

​

​

​

​

​

74.38

​

​

3,719,000

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

16,428

(7)

​

85.01

​

​

573,932

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

12,743

(7)

​

106.47

​

​

472,678

​

​

​

07/02/2019

​

​

​

​

​

​

​

5,071

​

​

6,761

​

​

8,451

​

​

​

​

​

​

85.01

​

​

574,753

​

​

​

07/02/2020

​

​

​

​

​

​

​

4,996

​

​

6,661

​

​

11,657

​

​

​

​

​

​

106.47

​

​

709,197

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

6,761

​

​

​

​

85.01

​

​

574,753

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

6,661

​

​

​

​

106.47

​

​

709,197

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Barry P. Flannelly

​

​

​

172,364

​

​

229,819

​

344,729

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

180,983

​

​

241,310

​

494,686

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

01/04/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

63,105

(8)

​

72.27

​

​

2,255,045

​

​

​

01/17/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

11,482

​

​

​

​

80.50

​

​

924,301

​

​

​

01/04/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

22,772

(6)

​

72.27

​

​

661,317

​

​

​

01/17/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

16,428

(6)

​

80.50

​

​

467,878

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

16,428

(7)

​

85.01

​

​

573,932

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

12,743

(7)

​

106.47

​

​

472,678

​

​

​

07/02/2019

​

​

​

​

​

​

​

5,071

​

​

6,761

​

​

8,451

​

​

​

​

​

​

85.01

​

​

574,753

​

​

​

07/02/2020

​

​

​

​

​

​

​

4,996

​

​

6,661

​

​

11,657

​

​

​

​

​

​

106.47

​

​

709,197

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

6,761

​

​

​

​

85.01

​

​

574,753

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

6,661

​

​

​

​

106.47

​

​

709,197

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Steven H. Stein

​

​

​

217,055

​

​

289,407

​

593,283

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

01/17/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

16,428

(6)

​

80.50

​

​

467,878

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

12,743

(7)

​

106.47

​

​

472,678

​

​

​

07/02/2020

​

​

​

​

​

​

​

4,996

​

​

6,661

​

​

11,657

​

​

​

​

​

​

106.47

​

​

709,197

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

6,661

​

​

​

​

106.47

​

​

709,197

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Vijay Iyengar

​

​

​

207,562

​

​

276,750

​

567,336

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

01/17/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

16,428

(6)

​

80.50

​

​

467,878

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

12,743

(7)

​

106.47

​

​

472,678

​

​

​

07/02/2020

​

​

​

​

​

​

​

4,996

​

​

6,661

​

​

11,657

​

​

​

​

​

​

106.47

​

​

709,197

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

​

​

​

6,661

​

​

​

​

106.47

​

​

709,197

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1)

The target amounts shown reflect our annual incentive plan awards originally provided under the 20192020 incentive compensation plan and represent the pre-establishedpre established target awards as a percentage of base salary for the 20192020 fiscal year, with the potential for actual awards under the plan to either exceed or be less than such funding target depending upon corporate performance. Actual award amounts are not guaranteed and are determined at the discretion of the Compensation Committee, which may consider an individual's performance during the period. For additional information, please refer to the section titled "Executive Compensation—Compensation Discussion and Analysis—Key Elements of Executive Compensation—Annual Incentive Compensation Plan." Actual 20192020 incentive compensation plan payouts are reflected in the Non-EquityNon Equity Incentive Plan Compensation column of the Summary Compensation Table. For additional information, please refer to the section titled "Executive Compensation—Compensation Discussion and Analysis—Key Elements of Executive Compensation—Incentive Awards for Named Executive Officers."



(2)

The threshold amounts shown shown illustrate the smallest payout that can be made under the 20192020 incentive compensation plan if all of the pre-established performance objectives are achieved at the minimum achievement level. The target amounts shown are the payouts that can be made if all of the pre-established performance objectives have been achieved at the target achievement level and, as noted in footnote (1), correlate to the pre-established target awards as a percentage of base salary. The maximum amounts shown are the greatest payout that can be made if all of the pre-established maximum performance objectives are achieved or exceeded at the outperform achievement levels and all potential bonus points under the 2019 incentive compensation plan were earned. Actual awards may be more or less than these amounts and, as noted in footnote (1), are at the discretion of the Compensation Committee. For additional information, please refer to the section titled "Executivetitled—"Executive Compensation—Compensation Discussion and Analysis—Key Elements of Executive Compensation—Annual Incentive Compensation Plan."



(3)

Awards under these columns represent performance shares. For the awards made on April 29, 2019, the performance shares become earned if a specified number of new chemical entities are approved by regulatory authorities during a specified time frame and, if earned, would vest in full on June 28, 2022. For the awards made on July 2, 2019,2020, the actual number of number of shares of common stock into which each performance share award may convert will be calculated by multiplying the target number of performance shares allocated to that award by performance percentage multipliers ranging from 0% to 125%175% based on the actual level at which the applicable revenue-baseddevelopment and revenue based performance goal isgoals are achieved, as certified by the Compensation Committee. The performance period was the year endedwill end December 31, 20192022 and achievement of maximum, target and threshold levels will result in percentage multipliers of 125%175%, 100% and 75%, respectively, with achievement below the threshold level resulting in a percentage multiplier of 0%. In JanuaryNovember 2020, the Compensation Committee of the Board of Directors determined that the performance shares were earned at the 101.8%18.5% level, resulting in 40,3607,225 shares being earned by Mr. Hoppenot and 6,8811,232 shares earned by the other executive officers who received performance shares, and the earned shares will vest in equal installmentsfull on each of the first fourthird anniversaries of the grant date of July 2, 2019.2020. Vesting of the performance shares is subject to acceleration under the circumstances described under "Employment Contracts, Termination of Employment and Change in Control Arrangements below. For additional information, please refer to the section titled "Executive Compensation—Compensation Discussion and Analysis—Key Elements of Executive Compensation—Equity Based Incentive Awards."



(4)

Represents RSUs that will vest in equal installments on each of the first four anniversaries of the grant date.date, except for the RSU granted on January 17, 2020 to Barry P. Flannelly that will vest in full on the fourth anniversary of the date of grant. Vesting of the RSUs is subject to acceleration under the circumstances described under "Employment Contracts, Termination of Employment and Change-in-ControlChange in Control Arrangements" below.



(5)

Represents the aggregate fair value of stock and option awards computed as of the grant date of each performance share, RSU or option award in accordance with ASC 718, rather than amounts paid to or realized by the named individual. There can be no assurance that options will be exercised (in which case no value will be realized by the individual), that the value on exercise of options will approximate the compensation expense we recognized, or that the price of our common stock when RSUs vest and if and when performance shares vest will equal or exceed the price of our common stock on the date of the applicable RSU or performance share award. The grant date fair values of performance shares were calculated by multiplying the closing price of our common stock on the grant date by the target number of shares payable if the performance targets for those shares are achieved at the target level of 100%.

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(6)

Options became exercisable as to one-fourthone fourth of the shares on July 2, 2019,2020, with the remaining shares vesting ratably each month thereafter over the following three years, and have a term of ten years, subject to earlier termination in certain events relating to termination of employment. Vesting of the options is subject to acceleration under the circumstances described under "Employment Contracts, Termination of Employment and Change-in-ControlChange in Control Arrangements" below.



(7)

Options becomebecame exercisable as to one-fourthone fourth of the shares on the first anniversary ofafter one year from the grant date, with the remaining shares vesting ratably each month thereafter over the following three years, and have a term of ten years, subject to earlier termination in certain events relating to termination of employment. Vesting of the options is subject to acceleration under the circumstances described under "Employment Contracts, Termination of Employment and Change-in-Control Arrangements" below.



(8)

Options become exercisable as to all of the shares on the fourth anniversary of the grant date, and have a term of ten years, subject to earlier terminationChange in certain events relating to termination of employment. Vesting of the options is subject to acceleration under the circumstances described under "Employment Contracts, Termination of Employment and Change-in-ControlControl Arrangements" below.

Compensation Risk Assessment

The Compensation Committee, in consultation with the Company's executive management, reviewed the Company's compensation policies and practices for its employees and concluded that risks arising from those policies and practices are not reasonably likely to have a material adverse effect on the Company.

Employment Contracts, Termination of Employment and Change-in-Control Arrangements

We have entered into agreements that may require us to make payments or provide benefits to our named executive officers—Mr. Hoppenot, Ms. Stamoulis, Dr. Flannelly, Dr. Stein and Dr. Iyengar—in connection with specified terminations of employment. The amount and type of compensation payable to each of these named executive officers upon termination of employment under various circumstances and upon a change in control are described below.

Equity Awards

In April 2014, the Compensation Committee and Management Stock Option Committee approved amendments to outstanding employee stock option and RSU agreements and to the forms of agreements for future employee stock option and RSU agreement to provide that, in the event of a change in control of the Company, (i) if the successor corporation does not assume or substitute comparable awards for all outstanding employee options and RSUs, then as of the date of completion of the change in control transaction, the vesting of such options and RSUs shall be accelerated in full, and (ii) if outstanding options and RSUs are assumed or replaced by comparable awards by the successor corporation and within one year after the change in control, an equity awardee's service as an employee is terminated without cause or due to constructive termination, then the vesting of such person's assumed or substituted options and RSUs shall be accelerated in full. The value of such accelerationPerformance share awards made in full for each Named Executive Officer, assuming such termination or event was effective as of December 31, 2018, is set forth2018-2020 contain provisions that will result in accelerated vesting in the table below under the heading "Potential Payments Upon Terminationevent of a change in Connectioncontrol similar to that for outstanding options and RSUs. Performance share awards made in 2020 further provide that, in connection with a Changechange in Control."control vesting event, the awards are deemed to be earned at the actual level of achievement or, if the target level is greater, at the target level.

Agreement with Our President and CEO

In connection with his appointment as President and CEO in January 2014, Mr. Hoppenot and the Companywe entered into an employment agreement.agreement with Mr. Hoppenot.

In connection with the commencement of his employment, Mr. Hoppenot received in January 2014 a one-time grant of 400,000 RSUs, designed to make him whole for equity he forfeited at his previous employer and also to further incentivize retention over a six-year period. Each RSU represented the right to acquire one share of the Company'sour common stock. Vesting of the RSUs was subject to Mr. Hoppenot's continued employment on the applicable vesting dates, with one-sixth of the RSUs vesting at the end of each of the calendar years 2014 through 2019.

Termination Without Good Reason Prior to a Change in Control.    If Mr. Hoppenot voluntarily terminates his employment with the Company other than for good reason and other than in the 24-month period following a change in control (the "Change in Control Employment Period"), the Companywe will pay Mr. Hoppenot, to the extent not already paid, his annual base salary through the date of termination, any deferred compensation and any accrued vacation pay.

Termination Without Good Reason in Connection with a Change in Control.    If Mr. Hoppenot terminates his employment with the Companyus without good reason during the Change in Control Employment Period, the Companywe will pay Mr. Hoppenot, to the extent not already paid, his annual base salary through the date of termination, any

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deferred compensation, any accrued vacation pay, and an amount equal to a pro rata portion of his target bonus calculated according to the number of days he worked through the date of termination in the current fiscal year.

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Termination Without Cause or for Good Reason Not in Connection with a Change in Control.    If, at any time other than during the Change in Control Employment Period, Mr. Hoppenot's employment is terminated by the Companyus without cause or by Mr. Hoppenot for good reason, the Companywe will pay Mr. Hoppenot, to the extent not already paid, his annual base salary through the date of termination, his signing bonus, any deferred compensation, any accrued vacation pay, and an amount equal to a pro rata portion of his target bonus for the preceding fiscal year calculated according to the number of days he worked through the date of termination in the current fiscal year. In addition, the Companywe will pay him an amount equal to the sum of 1.5 times his annual base salary and the greater of his current target bonus or hisactual bonus amount for the preceding fiscal year. The agreement also provides that Mr. Hoppenot's stock options and RSUs will vest as to the amount that would have vested had he continued to work for the Companyus for an additional 18 months. All options would continue to be exercisable for 180 days following the date of termination. The agreement also provides for the payment by us of COBRA premiums, by the Company, or the cash equivalent thereof, for Mr. Hoppenot and his family for up to 12 months, outplacement services for up 12 months, as well as payment with respect to any other accrued amounts under other of the Company'sour benefits arrangements.

Termination in Connection with a Change in Control Without Cause or for Good Reason.    If during the Change in Control Employment Period Mr. Hoppenot's employment is terminated by the Companyus without cause or by Mr. Hoppenot for good reason, the Companywe will pay Mr. Hoppenot, to the extent not already paid, his annual base salary through the date of termination, his signing bonus, any deferred compensation, any accrued vacation pay, and an amount equal to a pro rata portion of his target bonus for the preceding fiscal year calculated according to the number of days he worked through the date of termination in the current fiscal year. In addition, the Companywe will pay him an amount equal to three times the sum of his current annual base salary and the greater of his current target bonus or hisactual bonus amount for the preceding fiscal year. The agreement also provides that in the event of such a termination, all of Mr. Hoppenot's unvested RSUs and unvested stock options will vest in full, and all stock options will remain exercisable for 12 months following his termination. In addition, all performance shares will vest in full and be settled assuming the target level of performance has been achieved. The agreement also provides for the continuation of benefits for Mr. Hoppenot and his family for up to 36 months, outplacement services for up 12 months, as well as payment with respect to any other accrued amounts under other of the Company'sour benefits arrangements.

Life Insurance and Disability Insurance Coverage.    When Mr. Hoppenot became our CEO in January 2014, after being recruited by our Board, he forfeited certain equity-based awards with his previous employer that had provided for an acceleration of vesting of a majority of the awards in the event of his death or permanent disability. Our one-time grant of 400,000 RSUs to Mr. Hoppenot, described above, did not contain a similar provision. To provide Mr. Hoppenot with similar economic value commensurate with the equity based awards he had forfeited in order to join us, we agreed in Mr. Hoppenot's employment agreement to pay the premiums for an insurance policy that will remain in place for the six-year period that commenced on the first day of his employment that will pay $15 million to Mr. Hoppenot upon termination of his employment for disability or his estate on his death. The six-year period for the life and disability insurance was the same vesting period for the 400,000 RSUs. Mr. Hoppenot's initial employment agreement also required us to gross-up each premium amount so that the total payment made by us was sufficient to cover the premiums and all federal, state and local income taxes incurred by Mr. Hoppenot. In April 2015, we amended Mr. Hoppenot's employment agreement so that we would no longer be required to gross-up each premium amount to cover taxes incurred by Mr. Hoppenot. In 2019, at Mr. Hoppenot's suggestion, we amended Mr. Hoppenot's employment agreement so that we would no longer be required to pay the premiums for the life and disability insurance coverage for 2019, the last year of vesting of Mr. Hoppenot's initial RSU grant.

Post-Retirement Vesting.    In October 2019, we amended Mr. Hoppenot's employment agreement to provide that should Mr. Hoppenot remain employed by us through his retirement on a date after December 31, 2024 (as such date may be extended by mutual agreement), all outstanding unvested equity awards that are granted by us to Mr. Hoppenot after July 15, 2019 and before December 31, 2024 (or such later date after December 31,

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(or such later date after December 31, 2024) as may be mutually agreed upon would continue to vest as if he continued to be employed by us following the date of his retirement. In addition, any outstanding stock option awards that are granted to Mr. Hoppenot after July 15, 2019 and before December 31, 2024 (or such later date after December 31, 2024 as may be mutually agreed upon) that either were vested at the date of his retirement or become vested due to the post-retirement continued vesting provisions will be exercisable during the remainder of their original term. The effectiveness of these provisions will be subject to Mr. Hoppenot's continued compliance with the non-solicitation/non-hiring and non-disparagement covenants described below, including during any period of post-retirement continued vesting provided by the amendments to the agreement.

Other Covenants.    Under the agreement, Mr. Hoppenot is subject to non-solicitation/non-hiring and non-disparagement covenants that extend two years from termination of employment. Upon certain breaches of those covenants after termination of employment, Mr. Hoppenot must forfeit all of his unvested stock options, stock appreciation rights, restricted stock units, performance shares, and the gain or income realized from the exercise, vesting or settlement of the same within 24 months prior to the breach.

Agreements with Other Named Executive Officers

In November 2003, our Board approved a form of employment agreement for Executive Vice Presidents and certain other senior employees. The form of employment agreement for the Executive Vice Presidents and certain other senior employees was amended in December 2008 to comply with Section 409A of the Internal Revenue Code of 1986, as amended. In April 2012, the employment agreements with our Executive Vice Presidents and certain other senior employees were amended to increase the amount payable upon an "involuntary termination" of the executive's employment within 24 months following a change in control. The CompanyWe entered into an employment agreement with Steven H. Stein in March 2015 and Wenqing Yao in November 2003 while eachhe served as one of our senior employees. The CompanyWe entered into employment agreements with Barry P. Flannelly in August 2014, with Vijay Iyengar in May 2016 and with Christiana Stamoulis in February 2019 upon their employment with the Company.us.

The employment agreements with our Executive Vice Presidents provide that in the event of an "involuntary termination" of the executive's employment within 24 months following a change in control (which includes actual termination without cause and constructive termination by way of the assignment of duties substantially and materially inconsistent with the executive's position or other diminishment in position, requiring the executive to be based at any location outside more than 35 miles from the office or location where he or she was based prior to a change in control, a reduction in salary, bonus or adverse change in benefits, or a breach by the Companyus of the terms of the executive's employment arrangement), we will pay the executive an amount equal to two times the sum of the executive's current annual base salary and the greater of (1) the executive's current target bonus or (2) the executive's bonus amount for the preceding fiscal year.

A "change in control" generally includes a significant change in the composition of the Board, the acquisition by any person or entity of greater than 50% of the combined voting power of the Company'sour outstanding securities, the approval of aour liquidation or dissolution, of the Company, or the sale or disposition of all or substantially all of the Company'sour assets or similar transaction. We will also pay the executive a pro rata portion of the executive's target bonus calculated according to the number of days the executive worked through the termination date in the current fiscal year. The cash payment would be paid in a lump sum payment following the executive's termination.

The agreement also provides that in the event of such a termination, all of the executive's unvested stock options will vest in full, and all stock options will be exercisable for 12 months following the executive's termination. In addition, the agreement provides for the reimbursement by us of COBRA premiums by the Company for the executive and eligible dependents for up to 12 months, reimbursement (or payment) by the Companyus for the cost of continued life and disability insurance for the executive for 12 months at the same levels in effect on the termination date, as well as payment with respect to any other accrued amounts under other of the Company'sour benefits arrangements.

Christiana Stamoulis.    In December 2018, in connection with her appointment as Executive Vice President and Chief Financial Officer, Ms. Stamoulis received an offer letter that provides that if her employment is terminated without cause or for good reason, we will pay her an amount equal to the sum of her current annual base salary and her current target bonus, as well as amounts with respect to any other accrued amounts under other of our benefits arrangements. We will also pay the cost of COBRA premiums for one year, or until she becomes eligible for medical insurance with another employer.

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Potential Payments Upon Termination Without a Change in Control

The following table describes the potential payments and benefits triggered by a termination of employment of a named executive officer byfor the Company without cause, or byreasons specified in the executive for good reason,table, in each case prior to a change in control and assuming the employment of the named executive officer was terminated on December 31, 2019.2020.

Termination	​	Cash Payment ($)		​	Medical/ Insurance Benefits ($)				​	Acceleration of Equity Awards ($)(1)				​	Other ($)(2)		​	Total ($)		​	​	Cash Payment ($)		​	Medical/ Insurance Benefits ($)				​	Acceleration of Equity Awards ($)(1)				​	Other ($)(2)		​	Total ($)		​
​	​	​		​	​				​	​				​	​		​	​		​	​	​		​	​				​	​				​	​		​	​		​
Hervé Hoppenot Termination without cause	​	4,188,432		​	​	30,973		​	​		9,279,514		​	​	281,572		​	13,780,491		​
Hervé Hoppenot																					​			​	​			​	​				​	​			​			​
Termination without cause or constructive termination																					​	4,769,580		​	​	18,969		​	​		7,572,967		​	​	339,667		​	12,701,183		​
Death or Disability																					​	—		​	​	—		​	​		1,134,517		​	​	289,667		​	1,424,184		​
​	​	​		​	​				​	​				​	​		​	​		​	​	​		​	​				​	​				​	​		​	​		​
Christiana Stamoulis																					​			​	​			​	​				​	​			​			​
Termination without cause or constructive termination																					​	882,000		​	​	11,948		​	​		193,477		​	​	56,538		​	1,143,963		​
Death or Disability																					​	—		​	​	—		​	​		193,477		​	​	56,538		​	250,015		​
​																					​	​		​	​				​	​				​	​		​	​		​
Barry Flannelly																					​			​	​			​	​				​	​			​			​
Termination without cause or constructive termination																					​	—		​	​	—		​	​		193,477		​	​	55,687		​	249,164		​
Death or Disability																					​	—		​	​	—		​	​		193,477		​	​	55,687		​	249,164		​
​																					​	​		​	​				​	​				​	​		​	​		​
Steven Stein																					​			​	​			​	​				​	​			​			​
Termination without cause or constructive termination																					​	—		​	​	—		​	​		193,477		​	​	66,786		​	260,263		​
Death or Disability																					​	—		​	​	—		​	​		193,477		​	​	66,786		​	260,263		​
​																					​	​		​	​				​	​				​	​		​	​		​
Vijay Iyengar																					​			​	​			​	​				​	​			​			​
Termination without cause or constructive termination																					​	—		​	​	—		​	​		193,477		​	​	10,644		​	204,121		​
Death or Disability																					​	—		​	​	—		​	​		193,477		​	​	10,644		​	204,121		​
​																					​	​		​	​				​	​				​	​		​	​		​

(1)

Represents the amount by which the $87.32$86.98 closing price of our common stock on December 31, 20192020 exceeded the exercise price for stock options for which vesting would have accelerated as a result of termination of employment and $87.32$86.98 multiplied by the number of RSUs and performance shares for which vesting would have accelerated as a result of termination of employment.



(2)

Includes accrued amounts under other of the Company's benefits arrangements, including accrued vacation and other vested benefits the named executive officer is entitled to receive that are generally available to all salaried employees.

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Potential Payments Upon Termination in Connection with a Change in Control

The following table describes the potential payments and benefits triggered by a termination of employment of a named executive officer in connection with a change in control, by the Company without cause or by the executive for good reason, in each case assuming the employment of the named executive officer was terminated on December 31, 2019.2020.

Termination	​	Cash Payment($)		​	Medical/ Insurance Benefits($)				​	Acceleration of Equity Awards($)(1)		​	Other($)(2)				​	Total($)		​	​	Cash Payment($)		​	Medical/ Insurance Benefits($)				​	Acceleration of Equity Awards($)(1)		​	Other($)(2)				​	Total($)		​
​	​	​		​	​				​	​		​	​				​	​		​	​	​		​	​				​	​		​	​				​	​		​
Hervé Hoppenot	​			​	​			​	​			​	​			​	​			​	​			​	​			​	​			​	​			​	​			​
Termination without cause or for good reason(3)	​	7,329,756		​	​	101,667		​	​	11,838,342		​	​	281,572		​	​	19,551,337		​	​	8,492,052		​	​	66,359		​	​	14,908,424		​	​	339,667		​	​	23,806,502		​
​	​	​		​	​				​	​		​	​				​	​		​	​	​		​	​				​	​		​	​				​	​		​
Christiana Stamoulis	​			​	​			​	​			​	​			​	​			​	​			​	​			​	​			​	​			​	​			​
Termination without cause or for good reason(3)	​	1,960,000		​	​	10,840		​	​	1,415,758		​	​	19,385		​	​	3,405,983		​	​	2,209,200		​	​	11,948		​	​	2,839,106		​	​	56,538		​	​	5,116,792		​
​	​	​		​	​				​	​		​	​				​	​		​	​	​		​	​				​	​		​	​				​	​		​
Barry P. Flannelly																					​			​	​			​	​			​	​			​	​			​
Termination without cause or for good reason(3)																					​	1,813,272		​	​	34,845		​	​	4,674,407		​	​	55,687		​	​	6,578,211		​
​																					​	​		​	​				​	​		​	​				​	​		​
Steven H. Stein	​			​	​			​	​			​	​			​	​			​	​			​	​			​	​			​	​			​	​			​
Termination without cause or for good reason(3)	​	1,929,375		​	​	6,616		​	​	11,157,164		​	​	42,404		​	​	13,135,559		​	​	2,174,683		​	​	35,821		​	​	11,445,428		​	​	66,786		​	​	13,722,718		​
​	​	​		​	​				​	​		​	​				​	​		​	​	​		​	​				​	​		​	​				​	​		​
Wenqing Yao	​			​	​			​	​			​	​			​	​			​
Vijay Iyengar																					​			​	​			​	​			​	​			​	​			​
Termination without cause or for good reason(3)	​	1,703,364		​	​	32,181		​	​	11,157,164		​	​	59,898		​	​	12,952,607		​	​	2,096,546		​	​	35,315		​	​	3,211,558		​	​	10,644		​	​	5,354,063		​
​	​	​		​	​				​	​		​	​				​	​		​	​	​		​	​				​	​		​	​				​	​		​
Barry P. Flannelly	​			​	​			​	​			​	​			​	​			​
Termination without cause or for good reason(3)	​	1,608,733		​	​	34,350		​	​	3,374,895		​	​	19,446		​	​	5,037,424		​
​	​	​		​	​				​	​		​	​				​	​		​

(1)

Represents the amount by which the $87.32$86.98 closing price of our common stock on December 31, 20192020 exceeded the exercise price for stock options for which vesting would have accelerated as a result of termination of employment and $87.32$86.98 multiplied by the number of RSUs and performance shares for which vesting would have accelerated as a result of termination of employment.



(2)

Includes accrued amounts under other of the Company's benefits arrangements, including accrued vacation and other vested benefits the named executive officer is entitled to receive that are generally available to all salaried employees.



(3)

Includes constructive termination following a change in control. See the section entitled "Employment Contracts, Termination of Employment and Change-in-Control Arrangements—Agreements with Other Named Executive Officers" above.

​

​	​	​
​ ​	​ ​	​ ​
​ 58	​	​ Proxy Statement 2021  |  Proxy Statement 2020	​ ​	​ 75

​

---

Table of Contents

​

Executive Compensation

​

2020 Outstanding Equity Awards at Fiscal Year-End


2019 Outstanding Equity Awards at Fiscal Year-End

​

​

Option Awards

​

Stock Awards

​

​

​

Option Awards

​

Stock Awards

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Name

​

Grant Date

​

Number of Securities Underlying Unexercised Options (#) Exercisable (1)

​

Number of Securities Underlying Unexercised Options (#) Un-Exercisable

​

Option Exercise Price ($)

​

Option Expiration Date

​

Number of Shares or Units of Stock That Have Not Vested (#)

​

Market Value of Shares or Units of Stock That Have Not Vested ($)(2)

​

Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)

​

Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)

​

​

Grant Date

​

Number of Securities Underlying Unexercised Options (#) Exercisable (1)

​

Number of Securities Underlying Unexercised Options (#) Un-Exercisable

​

Option Exercise Price ($)

​

Option Expiration Date

​

Number of Shares or Units of Stock That Have Not Vested (#)

​

Market Value of Shares or Units of Stock That Have Not Vested ($)(2)

​

Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)

​

Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Hervé Hoppenot

​

01/21/2014

​

​

124,148

​

​

—

​

​

64.55

​

​

01/20/2021

​

​

​

​

​

​

​

​

​

​

​

**01/07/2016

​

​

20,195

​

​

—

​

​

$

95.76

​

​

01/06/2026

​

​

​

​

​

​

​

​

​

​

​

01/08/2015

​

​

89,771

​

​

—

​

​

73.21

​

​

01/07/2022

​

​

​

​

​

​

​

​

​

​

​

01/07/2016

​

​

75,138

​

​

—

​

​

$

95.76

​

​

01/06/2023

​

​

​

​

​

​

​

​

​

​

​

**01/07/2016

​

​

—

​

​

20,195

​

​

95.76

​

​

01/06/2026

​

​

​

​

​

​

​

​

​

​

​

*07/15/2016

​

​

74,245

​

​

—

​

​

$

83.83

​

​

07/14/2026

​

​

​

​

​

​

​

​

​

​

​

01/07/2016

​

��

75,138

​

​

—

​

​

95.76

​

​

01/06/2023

​

​

​

​

​

​

​

​

​

​

​

07/05/2017

​

​

​

​

​

​

​

​

​

​

3,420

(3)

​

297,472

​

​

​

​

​

​

​

*07/15/2016

​

​

63,417

​

​

10,828

​

​

83.83

​

​

07/14/2026

​

​

​

​

​

​

​

​

​

​

​

***01/17/2017

​

​

74,245

​

​

—

​

​

$

113.64

​

​

01/16/2027

​

​

​

​

​

​

​

​

​

​

​

07/15/2016

​

​

​

​

​

​

​

​

​

​

5,401

(3)

​

471,615

​

​

​

​

​

​

​

**01/17/2017

​

​

—

​

​

94,325

​

​

$

113.64

​

​

01/16/2027

​

​

​

​

​

​

​

​

​

​

​

***01/17/2017

​

​

63,417

​

​

10,828

​

​

113.64

​

​

01/16/2027

​

​

​

​

​

​

​

​

​

​

​

*07/05/2017

​

​

40,289

​

​

6,879

​

​

$

128.34

​

​

07/04/2027

​

​

​

​

​

​

​

​

​

​

​

**01/17/2017

​

​

—

​

​

94,325

​

​

113.64

​

​

01/16/2027

​

​

​

​

​

​

​

​

​

​

​

***01/23/2018

​

​

40,289

​

​

6,879

​

​

$

94.63

​

​

01/22/2028

​

​

​

​

​

​

​

​

​

​

​

*07/05/2017

​

​

28,497

​

​

18,671

​

​

128.34

​

​

07/04/2027

​

​

​

​

​

​

​

​

​

​

​

**01/24/2018

​

​

—

​

​

25,401

​

​

$

95.34

​

​

01/23/2028

​

​

​

​

​

​

​

​

​

​

​

07/05/2017

​

​

​

​

​

​

​

​

​

​

6,840

(3)

​

597,269

​

​

​

​

​

​

​

*07/02/2018

​

​

53,503

​

​

35,054

​

​

$

68.62

​

​

07/01/2028

​

​

​

​

​

​

​

​

​

​

​

***01/23/2018

​

​

28,497

​

​

18,671

​

​

94.63

​

​

01/22/2028

​

​

​

​

​

​

​

​

​

​

​

07/02/2018

​

​

​

​

​

​

​

​

​

​

10,485

(4)

​

911,985

​

​

​

​

​

​

​

**01/24/2018

​

​

—

​

​

25,401

​

​

95.34

​

​

01/23/2028

​

​

​

​

​

​

​

​

​

​

​

***01/04/2019

​

​

53,503

​

​

35,055

​

​

$

72.27

​

​

01/03/2029

​

​

​

​

​

​

​

​

​

​

​

*07/02/2018

​

​

31,363

​

​

57,194

​

​

68.62

​

​

07/01/2028

​

​

​

​

​

​

​

​

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

29,736

(3)

​

2,586,437

​

​

​

​

​

​

​

07/02/2018

​

​

​

​

​

​

​

​

​

​

15,728

(4)

​

1,373,369

​

​

​

​

​

​

​

*07/02/2019

​

​

34,115

​

​

62,212

​

​

$

85.01

​

​

07/01/2029

​

​

​

​

​

​

​

​

​

​

​

***01/04/2019

​

​

31,363

​

​

57,195

​

​

72.27

​

​

01/03/2029

​

​

​

​

​

​

​

​

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

30,270

(4)

​

2,632,885

​

​

​

​

​

​

​

*07/02/2019

​

​

—

​

​

96,327

​

​

85.01

​

​

07/01/2029

​

​

​

​

​

​

​

​

​

​

​

***01/17/2020

​

​

34,116

​

​

62,212

​

​

$

80.50

​

​

01/16/2030

​

​

​

​

​

​

​

​

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

39,648

(3)

​

3,462,063

​

​

​

​

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

7,225

(5)

​

628,431

​

​

31,834

(6)

​

2,768,921

(7)

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

39,648

(5)

​

3,462,063

(6)

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

39,059

(3)

​

3,397,352

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

535,611

​

​

409,635

​

​

​

​

​

​

67,617

​

​

5,904,316

​

​

39,648

​

​

3,462,063

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Christiana Stamoulis(7)

​

02/11/2019

​

​

​

​

​

​

​

​

​

​

10,285

(3)

​

898,086

​

​

​

​

​

​

​

*02/11/2019

​

​

—

​

​

72,809

​

​

80.21

​

​

02/11/2029

​

​

​

​

​

​

​

​

​

​

​

*07/02/2020

​

​

—

​

​

74,720

​

​

$

106.47

​

​

07/01/2030

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

—

​

​

72,809

​

​

​

​

​

​

10,285

​

​

898,086

​

​

​

​

​

​

​

​

​

499,638

​

​

402,737

​

​

​

​

​

​

120,195

​

​

10,454,562

​

​

31,834

​

​

2,768,921

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Steven H. Stein

​

03/02/2015

​

​

10,876

​

​

—

​

​

88.68

​

​

03/01/2022

​

​

​

​

​

​

​

​

​

​

Christiana Stamoulis

​

02/11/2019

​

​

​

​

​

​

​

​

​

​

7,714

(3)

​

670,964

​

​

​

​

​

​

​

*02/11/2019

​

​

33,370

​

​

39,439

​

​

$

80.21

​

​

02/11/2029

​

​

​

​

​

​

​

​

​

​

​

02/11/2020

​

​

​

​

​

​

​

​

​

​

4,268

(3)

​

371,231

​

​

​

​

​

​

​

*02/11/2020

​

​

—

​

​

34,240

​

​

$

76.14

​

​

02/11/2030

​

​

​

​

​

​

​

​

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

1,232

(5)

​

107,159

​

​

5,429

(6)

​

472,214

(7)

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

6,661

(3)

​

579,374

​

​

​

​

​

​

​

*07/02/2020

​

​

—

​

​

12,743

​

​

$

106.47

​

​

07/01/2030

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

33,370

​

​

86,422

​

​

​

​

​

​

19,875

​

​

1,728,728

​

​

5,429

​

​

472,214

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Barry P. Flannelly

​

**01/07/2016

​

​

4,039

​

​

—

​

​

$

95.76

​

​

01/06/2026

​

​

​

​

​

​

​

​

​

​

​

01/07/2016

​

​

8,870

​

​

—

​

​

95.76

​

​

01/06/2023

​

​

​

​

​

​

​

​

​

​

​

01/07/2016

​

​

18,784

​

​

—

​

​

$

95.76

​

​

01/06/2023

​

​

​

​

​

​

​

​

​

​

​

**01/07/2016

​

​

—

​

​

4,039

​

​

95.76

​

​

01/06/2026

​

​

​

​

​

​

​

​

​

​

​

*07/15/2016

​

​

19,091

​

​

—

​

​

$

83.83

​

​

07/14/2026

​

​

​

​

​

​

​

​

​

​

​

*07/15/2016

​

​

11,137

​

​

2,785

​

​

83.83

​

​

07/14/2026

​

​

​

​

​

​

​

​

​

​

​

07/05/2017

​

​

​

​

​

​

​

​

​

​

880

(3)

​

76,542

​

​

​

​

​

​

​

07/15/2016

​

​

​

​

​

​

​

​

​

​

1,389

(3)

​

121,287

​

​

​

​

​

​

​

***01/17/2017

​

​

19,091

​

​

—

​

​

$

113.64

​

​

01/16/2027

​

​

​

​

​

​

​

​

​

​

​

***01/17/2017

​

​

16,306

​

​

2,785

​

​

113.64

​

​

01/16/2027

​

​

​

​

​

​

​

​

​

​

​

*07/05/2017

​

​

10,359

​

​

1,769

​

​

$

128.34

​

​

07/04/2027

​

​

​

​

​

​

​

​

​

​

​

**01/17/2017

​

​

—

​

​

18,865

​

​

113.64

​

​

01/16/2027

​

​

​

​

​

​

​

​

​

​

​

***01/23/2018

​

​

10,359

​

​

1,769

​

​

$

94.63

​

​

01/22/2028

​

​

​

​

​

​

​

​

​

​

​

*07/05/2017

​

​

7,327

​

​

4,801

​

​

128.34

​

​

07/04/2027

​

​

​

​

​

​

​

​

​

​

​

*07/02/2018

​

​

13,758

​

​

9,014

​

​

$

68.62

​

​

07/01/2028

​

​

​

​

​

​

​

​

​

​

​

07/05/2017

​

​

​

​

​

​

​

​

​

​

1,759

(3)

​

153,596

​

​

​

​

​

​

​

07/02/2018

​

​

​

​

​

​

​

​

​

​

2,695

(4)

​

234,411

​

​

​

​

​

​

​

***01/23/2018

​

​

7,327

​

​

4,801

​

​

94.63

​

​

01/22/2028

​

​

​

​

​

​

​

​

​

​

​

***01/04/2019

​

​

13,758

​

​

9,014

​

​

$

72.27

​

​

01/03/2029

​

​

​

​

​

​

​

​

​

​

​

**01/24/2018

​

​

—

​

​

21,167

​

​

95.34

​

​

01/23/2028

​

​

​

​

​

​

​

​

​

​

​

**01/04/2019

​

​

—

​

​

63,105

​

​

$

72.27

​

​

01/03/2029

​

​

​

​

​

​

​

​

​

​

​

06/28/2018

​

​

​

​

​

​

​

​

​

​

50,000

(8)

​

4,366,000

​

​

​

​

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

5,071

(3)

​

441,076

​

​

​

​

​

​

​

*07/02/2018

​

​

8,065

​

​

14,707

​

​

68.62

​

​

07/01/2028

​

​

​

​

​

​

​

​

​

​

​

*07/02/2019

​

​

5,818

​

​

10,610

​

​

$

85.01

​

​

07/01/2029

​

​

​

​

​

​

​

​

​

​

​

07/02/2018

​

​

​

​

​

​

​

​

​

​

4,042

(4)

​

352,947

​

​

​

​

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

5,161

(4)

​

448,904

​

​

​

​

​

​

​

***01/04/2019

​

​

8,065

​

​

14,707

​

​

72.27

​

​

01/03/2029

​

​

​

​

​

​

​

​

​

​

​

01/17/2020

​

​

​

​

​

​

​

​

​

​

11,482

(8)

​

998,704

​

​

​

​

​

​

​

04/29/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

50,000

(9)

​

4,366,000

(6)

​

​

***01/17/2020

​

​

5,818

​

​

10,610

​

​

$

80.50

​

​

01/16/2030

​

​

​

​

​

​

​

​

​

​

​

*07/02/2019

​

​

—

​

​

16,428

​

​

85.01

​

​

07/01/2029

​

​

​

​

​

​

​

​

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

1,232

(5)

​

107,159

​

​

5,429

(6)

​

472,214

(7)

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

6,761

(3)

​

590,371

​

​

​

​

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

6,661

(3)

​

579,374

​

​

​

​

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

6,761

(5)

​

590,371

(6)

​

​

*07/02/2020

​

​

—

​

​

12,743

​

​

$

106.47

​

​

07/01/2030

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

77,973

​

​

105,085

​

​

​

​

​

​

63,951

​

​

5,584,201

​

​

56,761

​

​

4,956,371

​

​

​

​

​

120,875

​

​

118,634

​

​

​

​

​

​

33,182

​

​

2,886,170

​

​

5,429

​

​

472,214

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​	​	​
​ ​	​ ​	​ ​
​ 76|Proxy Statement 2021	​ ​
​	​	​ Proxy Statement 2020|59

​

---

Table of Contents

​

Executive Compensation

​

​

​

Option Awards

​

Stock Awards

​

​

​

Option Awards

​

Stock Awards

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Name

​

Grant Date

​

Number of Securities Underlying Unexercised Options (#) Exercisable (1)

​

Number of Securities Underlying Unexercised Options (#) Un-Exercisable

​

Option Exercise Price ($)

​

Option Expiration Date

​

Number of Shares or Units of Stock That Have Not Vested (#)

​

Market Value of Shares or Units of Stock That Have Not Vested ($)(2)

​

Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)

​

Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)

​

​

Grant Date

​

Number of Securities Underlying Unexercised Options (#) Exercisable (1)

​

Number of Securities Underlying Unexercised Options (#) Un-Exercisable

​

Option Exercise Price ($)

​

Option Expiration Date

​

Number of Shares or Units of Stock That Have Not Vested (#)

​

Market Value of Shares or Units of Stock That Have Not Vested ($)(2)

​

Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)

​

Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Wenqing Yao

​

02/09/2013

​

​

17,542

​

​

—

​

​

18.32

​

​

02/08/2020

​

​

​

​

​

​

​

​

​

​

​

01/21/2014

​

​

16,553

​

​

—

​

​

64.55

​

​

01/20/2021

​

​

​

​

​

​

​

​

​

​

Steven H. Stein

​

01/07/2016

​

​

8,870

​

​

—

​

​

$

95.76

​

​

01/06/2023

​

​

​

​

​

​

​

​

​

​

​

01/08/2015

​

​

21,545

​

​

—

​

​

73.21

​

​

01/07/2022

​

​

​

​

​

​

​

​

​

​

​

**01/07/2016

​

​

4,039

​

​

—

​

​

$

95.76

​

​

01/06/2026

​

​

​

​

​

​

​

​

​

​

​

**01/08/2015

​

​

20,000

​

​

—

​

​

73.21

​

​

01/07/2025

​

​

​

​

​

​

​

​

​

​

​

*07/15/2016

​

​

1,194

​

​

—

​

​

$

83.83

​

​

07/14/2026

​

​

​

​

​

​

​

​

​

​

​

**01/07/2016

​

​

—

​

​

13,631

​

​

95.76

​

​

01/06/2026

​

​

​

​

​

​

​

​

​

​

​

07/05/2017

​

​

​

​

​

​

​

​

​

​

880

(3)

​

76,542

​

​

​

​

​

​

​

01/07/2016

​

​

18,784

​

​

—

​

​

95.76

​

​

01/06/2023

​

​

​

​

​

​

​

​

​

​

​

***01/17/2017

​

​

19,091

​

​

—

​

​

$

113.64

​

​

01/16/2027

​

​

​

​

​

​

​

​

​

​

​

*07/15/2016

​

​

16,306

​

​

2,785

​

​

83.83

​

​

07/14/2026

​

​

​

​

​

​

​

​

​

​

​

**01/17/2017

​

​

—

​

​

18,865

​

​

$

113.64

​

​

01/16/2027

​

​

​

​

​

​

​

​

​

​

​

07/15/2016

​

​

​

​

​

​

​

​

​

​

1,389

(3)

​

121,287

​

​

​

​

​

​

​

*07/05/2017

​

​

10,359

​

​

1,769

​

​

$

128.34

​

​

07/04/2027

​

​

​

​

​

​

​

​

​

​

​

***01/17/2017

​

​

16,306

​

​

2,785

​

​

113.64

​

​

01/16/2027

​

​

​

​

​

​

​

​

​

​

​

***01/23/2018

​

​

10,359

​

​

1,769

​

​

$

94.63

​

​

01/22/2028

​

​

​

​

​

​

​

​

​

​

​

**01/17/2017

​

​

—

​

​

18,865

​

​

113.64

​

​

01/16/2027

​

​

​

​

​

​

​

​

​

​

​

**01/24/2018

​

​

—

​

​

21,167

​

​

$

95.34

​

​

01/23/2028

​

​

​

​

​

​

​

​

​

​

​

*07/05/2017

​

​

7,327

​

​

4,801

​

​

128.34

​

​

07/04/2027

​

​

​

​

​

​

​

​

​

​

​

06/28/2018

​

​

​

​

​

​

​

​

​

​

50,000

(9)

​

4,349,000

​

​

​

​

​

​

​

07/05/2017

​

​

​

​

​

​

​

​

​

​

1,759

(3)

​

153,596

​

​

​

​

​

​

​

*07/02/2018

​

​

3,321

​

​

9,014

​

​

$

68.62

​

​

07/01/2028

​

​

​

​

​

​

​

​

​

​

​

***01/23/2018

​

​

7,327

​

​

4,801

​

​

94.63

​

​

01/22/2028

​

​

​

​

​

​

​

​

​

​

​

07/02/2018

​

​

​

​

​

​

​

​

​

​

2,695

(4)

​

234,411

​

​

​

​

​

​

​

**01/24/2018

​

​

—

​

​

21,167

​

​

95.34

​

​

01/23/2028

​

​

​

​

​

​

​

​

​

​

​

***01/04/2019

​

​

3,321

​

​

9,014

​

​

$

72.27

​

​

01/03/2029

​

​

​

​

​

​

​

​

​

​

​

06/28/2018

​

​

​

​

​

​

​

​

​

​

50,000

(8)

​

4,366,000

​

​

​

​

​

​

​

04/29/2019

​

​

​

​

​

​

​

​

​

​

25,000

(10)

​

2,174,500

​

​

25,000

(11)

​

2,174,500

(7)

​

​

*07/02/2018

​

​

8,065

​

​

14,707

​

​

68.62

​

​

07/01/2028

​

​

​

​

​

​

​

​

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

5,071

(3)

​

441,076

​

​

​

​

​

​

​

07/02/2018

​

​

​

​

​

​

​

​

​

​

4,042

(4)

​

352,947

​

​

​

​

​

​

​

*07/02/2019

​

​

5,818

​

​

10,610

​

​

$

85.01

​

​

07/01/2029

​

​

​

​

​

​

​

​

​

​

​

***01/04/2019

​

​

8,065

​

​

14,707

​

​

72.27

​

​

01/03/2029

​

​

​

​

​

​

​

​

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

5,161

(4)

​

448,904

​

​

​

​

​

​

​

04/29/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

50,000

(9)

​

4,366,000

(6)

​

​

***01/17/2020

​

​

5,818

​

​

10,610

​

​

$

80.50

​

​

01/16/2030

​

​

​

​

​

​

​

​

​

​

​

*07/02/2019

​

​

—

​

​

16,428

​

​

85.01

​

​

07/01/2029

​

​

​

​

​

​

​

​

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

1,232

(5)

​

107,159

​

​

5,429

(6)

​

472,214

(7)

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

6,761

(3)

​

590,371

​

​

​

​

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

6,661

(3)

​

579,374

​

​

​

​

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

6,761

(5)

​

590,371

(6)

​

​

*07/02/2020

​

​

—

​

​

12,743

​

​

$

106.47

​

​

07/01/2030

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

157,820

​

​

114,677

​

​

​

​

​

​

63,951

​

​

5,584,201

​

​

56,761

​

​

4,956,371

​

​

​

​

​

72,190

​

​

95,561

​

​

​

​

​

​

96,700

​

​

8,410,966

​

​

30,429

​

​

2,646,714

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Barry P. Flannelly

​

08/11/2014

​

​

20,000

​

​

—

​

​

48.44

​

​

08/10/2021

​

​

​

​

​

​

​

​

​

​

​

01/08/2015

​

​

14,363

​

​

—

​

​

73.21

​

​

01/07/2022

​

​

​

​

​

​

​

​

​

​

Vijay Iyengar

​

05/09/2016

​

​

11,982

​

​

—

​

​

$

72.86

​

​

05/08/2023

​

​

​

​

​

​

​

​

​

​

​

**01/07/2016

​

​

—

​

​

4,039

​

​

95.76

​

​

01/06/2026

​

​

​

​

​

​

​

​

​

​

​

07/05/2017

​

​

​

​

​

​

​

​

​

​

880

(3)

​

76,542

​

​

​

​

​

​

​

01/07/2016

​

​

18,784

​

​

—

​

​

95.76

​

​

01/06/2023

​

​

​

​

​

​

​

​

​

​

​

***01/17/2017

​

​

—

​

​

18,865

​

​

$

113.64

​

​

01/16/2027

​

​

​

​

​

​

​

​

​

​

​

*07/15/2016

​

​

16,306

​

​

2,785

​

​

83.83

​

​

07/14/2026

​

​

​

​

​

​

​

​

​

​

​

*07/05/2017

​

​

10,359

​

​

1,769

​

​

$

128.34

​

​

07/04/2027

​

​

​

​

​

​

​

​

​

​

​

07/15/2016

​

​

​

​

​

​

​

​

​

​

1,389

(3)

​

121,287

​

​

​

​

​

​

​

***01/23/2018

​

​

10,359

​

​

1,769

​

​

$

94.63

​

​

01/22/2028

​

​

​

​

​

​

​

​

​

​

​

***01/17/2017

​

​

16,306

​

​

2,785

​

​

113.64

​

​

01/16/2027

​

​

​

​

​

​

​

​

​

​

​

*07/02/2018

​

​

13,758

​

​

9,014

​

​

$

68.62

​

​

07/01/2028

​

​

​

​

​

​

​

​

​

​

​

*07/05/2017

​

​

7,327

​

​

4,801

​

​

128.34

​

​

07/04/2027

​

​

​

​

​

​

​

​

​

​

​

07/02/2018

​

​

​

​

​

​

​

​

​

​

2,695

(4)

​

234,411

​

​

​

​

​

​

​

07/05/2017

​

​

​

​

​

​

​

​

​

​

1,759

(3)

​

153,596

​

​

​

​

​

​

​

***01/04/2019

​

​

13,758

​

​

9,014

​

​

$

72.27

​

​

01/03/2029

​

​

​

​

​

​

​

​

​

​

​

***01/23/2018

​

​

7,327

​

​

4,801

​

​

94.63

​

​

01/22/2028

​

​

​

​

​

​

​

​

​

​

​

**01/04/2019

​

​

—

​

​

31,552

​

​

$

72.27

​

​

01/03/2029

​

​

​

​

​

​

​

​

​

​

​

*07/02/2018

​

​

8,065

​

​

14,707

​

​

68.62

​

​

07/01/2028

​

​

​

​

​

​

​

​

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

5,071

(3)

​

441,076

​

​

​

​

​

​

​

07/02/2018

​

​

​

​

​

​

​

​

​

​

4,042

(4)

​

352,947

​

​

​

​

​

​

​

*07/02/2019

​

​

5,818

​

​

10,610

​

​

$

85.01

​

​

07/01/2029

​

​

​

​

​

​

​

​

​

​

​

***01/04/2019

​

​

8,065

​

​

16,090

​

​

72.27

​

​

01/03/2029

​

​

​

​

​

​

​

​

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

5,161

(4)

​

448,904

​

​

​

​

​

​

​

**01/04/2019

​

​

—

​

​

61,722

​

​

72.27

​

​

01/03/2029

​

​

​

​

​

​

​

​

​

​

​

***01/17/2020

​

​

5,818

​

​

10,610

​

​

$

80.50

​

​

01/16/2030

​

​

​

​

​

​

​

​

​

​

​

*07/02/2019

​

​

—

​

​

16,428

​

​

85.01

​

​

07/01/2029

​

​

​

​

​

​

​

​

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

1,232

(5)

​

107,159

​

​

5,429

(6)

​

472,214

(7)

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

6,761

(3)

​

590,371

​

​

​

​

​

​

​

07/02/2020

​

​

​

​

​

​

​

​

​

​

6,661

(3)

​

579,374

​

​

​

​

​

​

​

07/02/2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

6,761

(5)

​

590,371

(6)

​

​

*07/02/2020

​

​

—

​

​

12,743

​

​

$

106.47

​

​

07/01/2030

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

116,543

​

​

128,158

​

​

​

​

​

​

13,951

​

​

1,218,201

​

​

6,761

​

​

590,371

​

​

​

​

​

71,852

​

​

105,946

​

​

​

​

​

​

21,700

​

​

1,887,466

​

​

5,429

​

​

472,214

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1)

All options listed in this table, other than those marked with an asterisk (*), a double asterisk (**) or a triple asterisk (***), become exercisable as to one-third of the shares on the first anniversary of the date of grant, with the remaining shares vesting ratably on a monthly basis thereafter over the following two years, and have a term of seven years, subject to earlier termination in certain events relating to termination of employment. Options marked with an asterisk become exercisable as to one-fourth of the shares on the first anniversary of the date of grant, with the remaining shares vesting ratably on a monthly basis thereafter over the following three years, and have a term of ten years, subject to earlier termination in certain events relating to termination of employment. Options marked with a double asterisk become exercisable as to all of the shares on the fourth anniversary of the date of grant, and have a term of ten years, subject to earlier termination in certain events relating to termination of employment. Options marked with a triple asterisk become exercisable as to one-fourth of the shares on the first anniversary of the grant date in July of the preceding year with the remaining shares vesting ratably on a monthly basis thereafter over the following three years, and have a term of ten years, subject to earlier termination in certain events relating to termination of employment. Vesting of all options listed in this table is subject to acceleration under the circumstances described under "Employment Contracts, Termination of Employment and Change-in-Control Arrangements."



(2)

The market value of unvested RSUs and earned performance shares is calculated by multiplying the number of unvested shares held by the applicable named executive officer by $87.32,$86.98, the closing price of our common stock on December 31, 2019.2020.



​

​	​	​
​ ​	​ ​	​ ​
​ 60|Proxy Statement 2020	​ ​	​

​

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Table of Contents

​

Executive Compensation

​

(3)

RSUs that vest in equal installments on each of the first four anniversaries of the grant date, subject to the holder's continued service through such dates. Vesting of the RSUs is subject to acceleration under the circumstances described under "Employment Contracts, Termination of Employment and Change-in-Control Arrangements."



​

​	​	​
​ ​	​ ​	​ ​
​	​	​ Proxy Statement 2021|77

​

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Table of Contents

​

Executive Compensation

​

(4)

Represents the number of shares of common stock underlying performance shares that were earned based upon the achievement of revenue based performance criteria. The earned performance shares will vest in equal installments on each of the first four anniversaries of the grant date.date, subject to the holder's continued service through such dates. Vesting of the performance shares is subject to acceleration under the circumstances described under "Employment Contracts, Termination of Employment and Change in Control Arrangements."



(5)

Represents shares of common stock underlying performance shares earned upon the interim achievement of performance criteria determined to be satisfied on November 16, 2020. The earned shares will vest on the third anniversary of the July 2, 2020 grant date, subject to the holder's continued service through that date. Vesting of the performance shares is subject to acceleration under the circumstances described under "Employment Contracts, Termination of Employment and Change in Control Arrangements."



(6)

Represents the remaining target number of shares of common stock underlying performance shares that can be earned based upon the achievement of revenue basedspecified development and revenue-based performance criteria.goals. The actual number of number of shares of common stock into which each performance share award may convert will be calculated by multiplying the target number of performance shares allocated to that award by performance percentage multipliers ranging from 0% to 125%175% based on the actual level at which the applicable specified development and revenue-based performance goal isgoals are achieved, as certified by the Compensation Committee. The shares, if earned, will vest on the third anniversary of the July 2, 2020 grant date, subject to the holder's continued service through such dates. Vesting of the performance shares will vestis subject to acceleration under the circumstances described under "Employment Contracts, Termination of Employment and Change in equal installments on each of the first four anniversaries of the grant date of July 2, 2019.Control Arrangements."



(6)(7)

The market value of unearned and unvested performance shares assumes achievement of the performance goals at the target level of 100% and is calculated by multiplying the number of unearned and unvested target shares held by the applicable named executive officer by $87.32,$86.98, the closing price of our common stock on December 31, 2019.



(7)

Ms. Stamoulis was appointed Executive Vice President and Chief Financial Officer on February 11, 2019.2020.



(8)

Represents RSUs that vest on the fourth anniversary of the grant date, subject to the holder's continued service through such date. Vesting of the RSUs is subject to acceleration under the circumstances described under "Employment Contracts, Termination of Employment and Change-in-Control Arrangements."



(9)

Represents the number of shares of common stock underlying performance shares that were earned based upon the achievement of a specified number of IND filings during a specified time frame. The earned performance shares will vest in full on the third anniversary of the grant date.date, subject to the holder's continued service through such dates. Vesting of the performance shares is subject to acceleration under the circumstances described under "Employment Contracts, Termination of Employment and Change in Control Arrangements."



(9)(10)

Represents the number of shares of common stock underlying performance shares that were earned based upon the achievement of a specified number of new chemical entities approved by regulatory authorities. The earned performance shares will vest in full on June 28, 2022, subject to the holder's continued service through such dates. Vesting of the performance shares is subject to acceleration under the circumstances described under "Employment Contracts, Termination of Employment and Change in Control Arrangements."



(11)

Represents the number of shares of common stock underlying performance shares that become earned if a specified number of new chemical entities are approved by regulatory authorities during a specified time frame and, if earned, vest in full on June 28, 2022.2022, subject to the holder's continued service through such dates. Vesting of the performance shares is subject to acceleration under the circumstances described under "Employment Contracts, Termination of Employment and Change in Control Arrangements."

20192020 Option Exercises and Stock Vested Table

​

​

Option Awards

​

​

Stock Awards

​

​

​

​

Option Awards

​

​

Stock Awards

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Name

​

Number of Shares Acquired on Exercise (#)

​

Value Realized on Exercise ($)(1)

​

Number of Shares Acquired on Vesting (#)

​

Value Realized on Vesting ($)(2)

​

​

Number of Shares Acquired on Exercise (#)

​

Value Realized on Exercise ($)(1)

​

Number of Shares Acquired on Vesting (#)

​

Value Realized on Vesting ($)(2)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Hervé Hoppenot

​

​

—

​

​

—

​

​

91,173

(3)

​

$

6,189,208

​

​

​

​

213,919

​

​

8,065,323

​

​

100,732

(3)

​

9,350,807

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Christiana Stamoulis

​

​

—

​

​

—

​

​

—

​

​

—

​

​

​

​

—

​

​

—

​

​

2,571

(4)

​

195,756

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Barry P. Flannelly

​

​

34,363

​

​

1,189,187

​

​

7,025

(5)

​

746,028

​

​

​

​

​

​

​

​

​

​

​

​

Steven H. Stein

​

​

—

​

​

—

​

​

6,225

(4)

​

$

496,208

​

​

​

​

44,478

​

​

1,300,657

​

​

7,025

(6)

​

746,028

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Wenqing Yao

​

​

70,354

​

​

$

4,766,190

​

​

6,225

(5)

​

$

496,208

​

​

Vijay Iyengar

​

​

7,866

​

​

252,813

​

​

5,636

(7)

​

601,225

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Barry P. Flannelly

​

​

9,324

​

​

$

245,517

​

​

6,225

(6)

​

$

496,208

​

​

​

​

​

​

​

​

​

​

​

​

(1)

Value realized is based on the fair market value of our common stock on the date of exercise minus the exercise price and does not necessarily reflect proceeds actually received by the individual.



(2)

Value realized is based on the fair market value of our common stock on the vesting date and does not necessarily reflect proceeds actually received by the individual.



(3)

Represents 91,173100,732 shares received upon vesting of RSUs, of which 38,59643,926 shares were automatically withheld to cover tax withholding obligations.



(4)

Represents 6,2252,571 shares received upon vesting of RSUs, of which 1,940780 shares were automatically withheld to cover tax withholding obligations.



(5)

Represents 6,2257,025 shares received upon vesting of RSUs, of which 2,4702,819 shares were automatically withheld to cover tax withholding obligations.



(6)

Represents 6,2257,025 shares received upon vesting of RSUs, of which 2,0162,366 shares were automatically withheld to cover tax withholding obligations.



(7)

Represents 5,636 shares received upon vesting of RSUs, of which 2,041 shares were automatically withheld to cover tax withholding obligations.

​

​	​	​
​ ​	​ ​	​ ​
​	​	​ Proxy Statement 202078  |  61Proxy Statement 2021	​ ​	​

​

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Table of Contents

CEO PAY RATIOPay Ratio

As required by Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 402(u) of Regulation S-K we are providing the following information about the relationship of the annual total compensation of our employees and the annual total compensation of Mr. Hoppenot, our CEO. The pay ratio included in this information is a reasonable estimate calculated in a manner consistent with Item 402(u) of Regulation S-K.

For 2019,2020, our last completed fiscal year:

•

the median of the annualized total compensation of all employees of our Company (other than our CEO), was $254,237;$253,386; and



•

the annual total compensation of our CEO, as reported in the Summary Compensation Table presented elsewhere in this Proxy Statement, was $15,151,238.$16,378,192.

Based on this information, for 20192020 the ratio of the annual total compensation of Mr. Hoppenot, our CEO, to the median of the annual total compensation of all employees was 6065 to 1.

To identify the median of the annual total compensation of all our employees, as well as to determine the annual total compensation of the "median employee," the methodology and the material assumptions, adjustments, and estimates that we used were as follows:

•

We determined that, as of December 31, 2019,2020, our employee population consisted of 1,4561,772 employees other than Mr. Hoppenot, with 1,1561,380 based in the United States and 300North America, 356 based in Europe and Japan.36 based in Asia.



•

We selected December 31, 2019,2020, which is within the last three months of 2019,2020, as the date upon which we would identify the "median employee."



•

For all employees, we examined total compensation, which included: base salary, incentive compensation plan payments for non-sales employees, sales incentive compensation plan payments for sales employees, equity awards consisting of stock options and restricted stock units, and other compensation such as 401(k) matching contributions and Company-paid life insurance premiums.



•

We included all employees, whether employed on a full-time or part-time basis, and we annualized the compensation of all permanent employees who were not employed by us for all of 2019.2020.



•

We did not make any cost-of-living adjustments in identifying the "median employee."



•

For employees outside the United States, we converted their compensation to U.S. dollars using the average exchange rate for 2019.2020.

​

​	​	​
​ ​	​ ​	​ ​
​ 62	​	​ Proxy Statement 2021  |  Proxy Statement 2020	​ ​	​ 79

​

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Table of Contents

Equity Compensation Plan Information

The following table gives information about our common stock that may be issued upon the exercise of options, warrants and rights under all of our existing equity compensation plans as of December 31, 2019,2020, including the 1997 Employee Stock Purchase Plan and the 2010 Stock Incentive Plan.

​

Number of securities to be issued upon exercise of outstanding options, warrants and rights

​

Weighted-average exercise price of outstanding options, warrants and rights ($)

​

Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))

​

​

Number of securities to be issued upon exercise of outstanding options, warrants and rights

​

Weighted-average exercise price of outstanding options, warrants and rights ($)

​

Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Plan Category

​

(a)

​

(b)

​

(c)

​

​

(a)

​

(b)

​

(c)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Equity compensation plans approved by security holders

​

​

15,255,225

(1)

​

$

81.42

(2)

​

10,315,861

(3)

​

​

​

15,456,321

(1)

​

$

88.31

(2)

​

6,404,210

(3)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Equity compensation plans not approved by security holders

​

​

—

​

​

—

​

​

—

​

​

​

​

—

​

​

—

​

​

—

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total

​

​

15,255,225

​

​

$

81.42

​

​

10,315,861

​

​

​

​

15,456,321

​

​

$

88.31

​

​

6,404,210

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1)

Includes 1,975,3042,617,869 shares subject to RSUs, 173,545466,448 shares subject to earned performance shares and 473,719256,716 shares subject to unearned performance shares outstanding as of December 31, 20192020 that were issued under the 2010 Stock Incentive Plan. The number of shares subject to such unearned performance shares represents the maximum number of shares issuable pursuant to such performance shares as of such date.



(2)

RSUs and performance shares, which do not have an exercise price, are excluded in the calculation of weighted-average exercise price.



(3)

Includes 453,931945,478 shares available for issuance under the 1997 Employee Stock Purchase Plan and 9,861,9305,458,732 shares available for issuance under the 2010 Stock Incentive Plan.

​

​	​	​
​ ​	​ ​	​ ​
​	​	​ Proxy Statement 202080  |  63Proxy Statement 2021	​ ​	​

​

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Table of Contents

Report of the Audit and Finance Committee of the Board

The Audit and Finance Committee of the Board is composed of four directors, each of whom qualifies as "independent" under the current listing requirements of The Nasdaq Stock Market. The current members of the Audit and Finance Committee are Paul J. Clancy, Paul A. Brooke, Wendy L. Dixon and Jacqualyn A. Fouse. The Audit and Finance Committee acts pursuant to a written charter that has been adopted by the Board. The charter is reviewed annually for changes, as appropriate.

In performing its functions, the Audit and Finance Committee acts in an oversight capacity and necessarily relies on the work and assurances of the Company's management, which has the primary responsibility for financial statements and reports, and of the independent registered public accounting firm, who, in their report, express an opinion on the conformity of the Company's annual financial statements with accounting principles generally accepted in the United States and the effectiveness of the Company's internal control over financial reporting. It is not the duty of the Audit and Finance Committee to plan or conduct audits, to determine that the Company's financial statements are complete and accurate and are in accordance with generally accepted accounting principles, or to assess or determine the effectiveness of the Company's internal control over financial reporting.

Within this framework, the Audit and Finance Committee has reviewed and discussed with management the Company's audited financial statements as of and for the year ended December 31, 20192020 and the Company's internal control over financial reporting. The Audit and Finance Committee has also discussed with the independent registered public accounting firm, Ernst & Young LLP, the matters required to be discussed by Auditing Standard No. 1301, "Communications with Audit Committees," issued by the Public Company Accounting Oversight Board. In addition, the Audit and Finance Committee has received the written disclosures and the letter from the independent registered public accounting firm required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent registered public accounting firm's communications with the Audit and Finance Committee concerning independence, and has discussed with the independent registered public accounting firm the independent registered public accounting firm's independence.

Based upon these reviews and discussions, the Audit and Finance Committee recommended to the Board that the audited financial statements be included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019.2020.

		Audit and Finance Committee Paul J. Clancy (Chair) Paul A. Brooke Wendy L. Dixon Jacqualyn A. Fouse

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PROPOSAL 3 Proposal to Amend the 1997 Employee Stock Purchase Plan

In April 2020, the Board approved an amendment to the Company's 1997 Employee Stock Purchase Plan, subject to the approval of the Company's stockholders at the Annual Meeting. The following summary of the principal features of the Employee Stock Purchase Plan is qualified by reference to the terms of the Employee Stock Purchase Plan, a copy of which is available without charge upon stockholder request to Secretary, Incyte Corporation, 1801 Augustine Cut-Off, Wilmington, Delaware 19803. The Employee Stock Purchase Plan, as amended, has also been filed electronically with the Securities and Exchange Commission together with this Proxy Statement, and can be accessed on the SEC's web site athttp://www.sec.gov.

Description of Amendment

The amendment to the Employee Stock Purchase Plan approved by the Board and submitted for stockholder approval consists of an increase in the number of shares of common stock reserved for issuance under the Employee Stock Purchase Plan by 750,000 shares, from 8,850,000 shares to 9,600,000 shares.

Employee Stock Purchase Plan

The Employee Stock Purchase Plan was initially adopted by the Board in February 1997, effective August 1, 1997, and first approved by the Company's stockholders in April 1997. The Employee Stock Purchase Plan was amended and restated by the Board in September 2006. It was further amended by the Board in March 2009, March 2010, March 2011, and March 2016, and our stockholders approved the amendments in May 2009, May 2010, May 2011, and May 2016, respectively. The Board approved an amendment and restatement of the Employee Stock Purchase Plan in November 2014.

The purpose of the Employee Stock Purchase Plan is to provide employees with an opportunity to acquire shares of common stock at a price below their market value and to pay for the purchases through payroll deductions, thereby enabling the Company to attract, retain and motivate valued employees. A total of 8,850,000 shares of common stock currently are reserved for issuance under the Employee Stock Purchase Plan. As of April 1, 2020, 453,931 shares of common stock were available for future issuance under the Employee Stock Purchase Plan (or 1,203,931 shares of common stock including the 750,000 shares subject to stockholder approval at the Annual Meeting).

Administration

The Employee Stock Purchase Plan is administered by the Compensation Committee. The Compensation Committee has the authority to construe, interpret and apply the terms of the Employee Stock Purchase Plan, to determine eligibility, to establish such limitations and procedures as it determines are consistent with the Employee Stock Purchase Plan and to adjudicate any disputed claims under the Employee Stock Purchase Plan.

Eligibility; Price of Shares

Each regular full-time and part-time employee of the Company and certain subsidiaries designated by the Company who customarily works at least 20 hours per week and more than five months in any calendar year, and who is employed by the Company or its designated subsidiary for one month or more on an enrollment date, is eligible to participate in the Employee Stock Purchase Plan. However, no employee is eligible to participate in the Employee Stock Purchase Plan if, immediately after electing to participate, the employee would own stock of the Company (including stock such employee may purchase under outstanding options) representing 5% or more of the total combined voting power or value of all classes of stock of the Company. In addition, no employee is permitted to continue to participate under the Employee Stock Purchase Plan and all

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Proposal 3 Amend the Amended and Restated 2010 Stock Incentive Plan

In March 2021, the Board approved amendments to the Amended and Restated 2010 Stock Incentive Plan (referred to in this proposal description as the "2010 Plan"), subject to the approval of our stockholders at the Annual Meeting, to increase the number of shares available for issuance by 9,500,000 shares, extend the term of the 2010 Plan by five years, and modify the annual grants to our nonemployee directors.

Incyte has continued to grow at a significant rate. As our revenue and our discovery and development pipeline have substantially increased over the last several years, so too has our number of employees. Our 2016 expansion into Europe and our 2017 expansion into Japan has also contributed to our increasing employee headcount.

Even though our employee headcount has risen substantially in the last several years, including in 2020, we have carefully managed the 2010 Plan to ensure that stockholders are subject to minimal dilution and that there is as little overhang as possible on our common stock. In fact, as the chart below shows, since the 2019 amendment to the 2010 Plan that added 7,700,000 shares, our overhang percentage remains low, at 9.5%, and our 3-year average burn rate is 2.7% (assuming that each full value award equates to 2.0 shares and each stock option award equates to 1.0 share), all while our employee headcount has grown by 30% over the past three years.



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​		50th percentile three-year average burn rate for peer group is 3.4%		​
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Further detail of our year-end overhang percentage is set forth in the table below:

2017

2018

2019

2020

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Overhang:

Options and awards available for grant

4,678,903

7,023,328

9,882,122

5,515,182

Options and awards outstanding

12,385,213

14,328,496

15,235,033

15,399,871

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Total overhang

17,064,116

21,351,824

25,117,155

20,915,053

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Common outstanding shares

211,262,906

213,274,660

216,177,830

219,489,329

Overhang Percentage

8.1

%

10.0

%

11.6

%

9.5

%




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​		50th percentile peer group overhang is 15.7%		​
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We believe that we have been careful stewards of the 2010 Plan and we now seek stockholder approval of amendments to the 2010 Plan to add an additional 9,500,000 shares, extend the term of the plan, and modify the annual grants to our nonemployee directors (as detailed further below) so that we will be in a position to continue our substantial growth as we seek to execute on our 2021 and longer-term strategic goals.

Description of Amendments

The first amendment to the 2010 Plan approved by the Board and submitted for stockholder approval consists of an increase in the number of shares available for issuance thereunder by 9,500,000 shares, from 44,453,475 shares to 53,953,475 shares.

The proposed increase of 9,500,000 in the number of shares reserved for issuance under the 2010 Plan is needed to allow us to continue to provide effective and appropriate equity incentives to our growing number of employees and our directors. Our equity awards have historically consisted of stock options, RSUs and performance shares. Our Board and the Compensation Committee of the Board have believed that equity awards align compensation incentives with stockholder interests, provide at-risk compensation for management by providing them with a strong incentive to improve the Company's performance, and provide employees with the opportunity to benefit significantly from the success of the Company. We offer equity awards to all new hires and have found that attractive and competitive initial equity awards are often an important inducement for the high-performing, entrepreneurial individuals who we believe are key to our success. We expect to continue to expand our workforce in support of our research and development and commercialization efforts as we execute on our long-term growth strategy. As we recruit to fill these new positions, the amount of shares required for initial awards to new hires, together with the amount required for annual awards to existing employees, in each case consistent with our historical practices, increases.

We do not believe the proposed 9,500,000 share increase will be unduly dilutive to stockholders. A common measure of potential dilution from outstanding equity awards is "overhang," generally defined as equity awards outstanding but not exercised, plus equity awards available to be granted (together referred to as potential equity award shares), divided by the common shares outstanding. As of March 29, 2021, our overhang was 9.2%, as compared with 11.1% as of March 31, 2020. We believe that our overhang has been reduced as a result of our equity award guidelines that were implemented in January 2014 and July 2016, pursuant to which the number of stock option awards was reduced through the use of RSUs and performance shares. For our annual awards and new employee awards beginning in July 2016, each U.S. recipient received a mix of stock options and RSUs, with the value as of the grant date of the options equal to 66²/3% (75% for our executive officers), and the value of the shares underlying the RSU award equal to 33¹/3% (25% for our executive officers), of the aggregate value of such options and shares, in each case as determined under generally accepted accounting principles consistent with the valuation of our Company's equity incentives. In 2018, we changed the 25% portion of our executive officer awards from RSUs to performance shares, which combine the time-based vesting aspects of RSUs with performance-based vesting requirements, and in 2019, our executive officers received their annual awards in a mix of 50% stock options, 25% performance shares and 25% RSUs. In 2020, our U.S.-based executive officer annual awards consisted of a mix of 40% stock options, 30%

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Proposal 3 Proposal to Amend the 1997 EmployeeAmended and Restated 2010 Stock PurchaseIncentive Plan

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similar purchase plansperformance shares and 30% RSUs, and the same mix will be used for the 2021 annual awards. Non-U.S. recipients only receive RSUs.

The second amendment approved by the Board and submitted for stockholder approval is an extension of the Company or its subsidiaries, in any calendar year if his or her purchase rights would exceed $25,000termination date of the 2010 Plan, from June 30, 2021 to June 30, 2026. This will allow us to continue using the 2010 Plan for equity awards through the date of our annual meeting of stockholders in 2026.

The third amendment approved by the Board and submitted for stockholder approval is a change to the annual grants to our nonemployee ("outside") directors. Each of these directors currently receives an annual grant having an aggregate grant date fair market value of such$500,000 and entitling the recipient to receive a mix of stock (determined atoptions and RSUs, with the timevalue as of the right is granted) forgrant date of the options equal to 75% and the value of the shares underlying the RSU award equal to 25% of the aggregate grant date fair value, in each case as determined under generally accepted accounting principles consistent with the valuation of our Company's equity incentives. The amendment would give the Board discretion to set the aggregate grant date fair value of the annual grant, provided that calendar year. Asthe value does not exceed the current limit of December 31, 2019, 1,456 employees were eligible to participate in$500,000. For the Employee Stock Purchase Plan.

Under2021 annual grants, the Employee Stock Purchase Plan, each calendar year is divided into two six-month "purchase periods" commencing May 1 and November 1Board has determined that the aggregate grant date fair value of each year. Atgrant would be $400,000. In addition, the end of each purchase period,amendment would change the Company will apply the amount contributed by the participant during that period to purchase shares of common stock for him or her. The purchase price will be equal to 85%mix of the lowerannual grants from 75% stock options and 25% RSUs to 60% stock options and 40% RSUs. The methodology for applying these percentages to determine the specific numbers of (a)shares subject to the market pricestock options and RSUs each year will remain unchanged and is described below under "2010 Stock Incentive Plan—Automatic Annual Grants to Directors."

The following summary of common stockthe principal features of the 2010 Plan, as amended, is qualified by reference to the terms of the plan, a copy of which is available without charge upon stockholder request to Secretary, Incyte Corporation, 1801 Augustine Cut-Off, Wilmington, Delaware 19803. The 2010 Plan, as amended, has also been filed electronically with the Securities and Exchange Commission together with this Proxy Statement, and can be accessed on the first day of the applicable "offering period" or (b) the market price of common stock on the last business day of the purchase period. In general, each offering period is 24 months long, but a new offering period begins every six months. Thus, up to four overlapping offering periods may be in effectSEC's website at the same time. If the market price of common stock is lower on the purchase date, then the subsequent offering period automatically becomes the applicable offering period. No participant may purchase more than 8,000 shares in any one purchase period. On April 1, 2020, the closing price for our common stock on The Nasdaq Global Select Market was $74.18.http://www.sec.gov.

Participation; Payroll Deductions; Purchase of Shares2010 Stock Incentive Plan

Eligible employees become participantsThe 2010 Plan was initially adopted by the Board in March 2010 and approved by our stockholders in May 2010. It was last amended and restated by the Board in April 2013 and our stockholders approved the amended and restated 2010 Plan in May 2013. The Board further amended the 2010 Plan in 2014, 2016, 2018, and 2019, and our stockholders approved each of those amendments.

The purpose of the 2010 Plan is to assist in the Employee Stock Purchaserecruitment, retention and motivation of employees, outside directors and consultants who are in a position to make material contributions to our long-term success and the creation of stockholder value. The 2010 Plan offers a significant incentive to encourage our employees, outside directors and consultants by executing a subscription agreement authorizing payroll deductionsenabling those individuals to acquire shares of our common stock, thereby increasing their proprietary interest in the growth and filing it withsuccess of our Company.

The 2010 Plan provides for the direct award or sale of shares of common stock administrator at least ten business days before(including restricted shares), the first dayaward of RSUs and stock appreciation rights, the award of performance shares and the grant of incentive stock options to purchase common stock intended to qualify for preferential tax treatment under Section 422 of the applicable offering period. The payroll deductions madeInternal Revenue Code of 1986, as amended (the "Code"), and nonstatutory stock options to purchase common stock that do not qualify for each participant may be not be less than 1% and not more than 10%such treatment under the Code. All employees, including officers, of the participant's cash compensation, and may not exceed such percentageCompany or any subsidiary, non-employee directors of the participant's cash compensation asCompany and any consultant who performs services for the participant designates. Payroll deductions commence with the first paycheck issued during the offering periodCompany or any subsidiary are eligible to purchase shares of common stock and are deducted from subsequent paychecks throughout the offering period unless terminated as provided in the Employee Stock Purchase Plan.

Participants are notified by statements of account as soon as practicable following the end of each purchase period as to the amount of payroll deductions, the numberreceive awards of shares, purchased,restricted shares, performance shares, RSUs or stock appreciation rights or grants of nonstatutory stock options. Only employees are eligible to receive grants of incentive stock options. As of December 31, 2020, 1,773 employees (including officers) and non-employee directors would have been eligible to purchase common stock and to receive awards under the purchase price and the remaining cash balance of their accounts. The purchased shares are delivered to a brokerage account and kept in such account pursuant to the subscription agreement.2010 Plan.

Withdrawal From the Employee Stock Purchase Plan; Termination of Employment

Participants may withdraw from the Employee Stock Purchase Plan at any time up to two business days prior to the purchase date. As soon as practicable after withdrawal, payroll deductions cease and all amounts credited to the participant's account are refunded in cash, without interest. A participant who has withdrawn from the Employee Stock Purchase Plan cannot be a participant in future offering periods unless he or she re-enrolls pursuant to the Employee Stock Purchase Plan's guidelines.

Termination of a participant's status as an eligible employee is treated as an automatic withdrawal from the Employee Stock Purchase Plan. A participant may designate in writing a beneficiary who is to receive shares and cash in the event of the participant's death subsequent to the purchase of shares, but prior to delivery. A participant may also designate a beneficiary to receive cash in his or her account in the event of such participant's death prior to the last day of the offering period. Any other attempted assignment, except by will, and the laws of descent and distribution, may be treated as a withdrawal.

Amendment and TerminationAdministration

The Employee Stock Purchase2010 Plan may be amended or terminated at any timeis administered by the Board of Directors, subjectCompensation Committee. Subject to applicable laws.

Effect of Certain Corporate Events

In the event of an increase or decreaselimitations set forth in the number of issued shares of common stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the common stock,plan, the Compensation Committee has the authority to determine, among other things, to whom awards will make adjustments in the number and/or purchase price of shares and/orbe granted, the number of shares available undersubject to awards, the Employee Stock Purchase Plan, as appropriate.term during which an option or stock appreciation right

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Proposal 3 Proposal to Amend the 1997 EmployeeAmended and Restated 2010 Stock PurchaseIncentive Plan

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may be exercised and the rate at which the awards may vest or be earned, including any performance criteria to which they may be subject. The Compensation Committee also has the authority to determine the consideration and methodology of payment for awards. The Board has created a secondary committee, the Non-Management Stock Option Committee, which is authorized to make awards and grants under the 2010 Plan to eligible individuals other than members of the Board, the "Section 16 officers," and employees who hold the title of Senior Vice President or above.

Maximum Shares and Award Limits

A total of 44,453,475 shares of common stock are currently reserved for issuance under the 2010 Plan, and that total would increase to 53,953,475 shares if the proposed amendments to the 2010 Plan are approved by our stockholders at our Annual Meeting. As of March 29, 2021, the Company had outstanding options to purchase an aggregate of 12,508,925 shares of common stock (with exercise prices ranging from $18.97 to $138.52 per share) under the 2010 Plan, outstanding RSUs covering 2,920,166 shares, and outstanding performance shares pursuant to which a maximum of 721,664 shares could be issued and had 4,067,100 shares of common stock available for issuance under the 2010 Plan (or 13,567,100 shares of common stock including the 9,500,000 shares subject to stockholder approval at the Annual Meeting). As of March 29, 2021, the Company had outstanding options to purchase an aggregate of 12,508,925 shares of common stock under the 2010 Plan at a weighted average exercise price of $88.89 per share and with a weighted average remaining contractual term of 6.73 years. The 2010 Plan replaced the 1991 Stock Plan and the 1993 Directors' Stock Option Plan. Shares that are subject to awards that expire, terminate or are cancelled under either the 1991 Stock Plan or the 1993 Directors' Stock Option Plan will not be made available for future awards under the 2010 Plan. Other than outstanding options to purchase common stock under the 2010 Plan and outstanding RSUs and performance shares under the 2010 Plan, the Company had no other outstanding awards as of March 29, 2021, and no shares remain available for future issuance under either the 1991 Stock Plan or the 1993 Directors' Stock Option Plan. No one award recipient may receive awards under the 2010 Plan in any calendar year that relate to more than 800,000 shares of common stock. Each "full value" award such as an award of RSUs, restricted shares or performance shares (that is, any sales or awards of shares other than upon exercise of options or other than pursuant to sales at purchase prices at least equal to the fair market value of the shares) will reduce the total share pool available under the 2010 Plan by 2.0 shares, and each stock option and any other non-full value award will reduce the total share pool by 1.0 share for each underlying award share granted. In addition, other than automatic grants to outside directors, awards for no more than 5% of the total number of shares of common stock reserved for issuance under the 2010 Plan may vest sooner than 12 months from the date of grant.

These limitations shall be adjusted as appropriate and equitable in the event of a stock dividend, stock split, reclassification of stock or similar events. If an award made under the 2010 Plan expires without having been exercised in full, or if any restricted shares, RSUs or performance shares are forfeited or repurchased by Company due to failure to vest, then the corresponding shares will again become available for awards under the 2010 Plan. Upon the settlement of stock appreciation rights, all of the shares subject to any such stock appreciation right will reduce the number of shares available under the 2010 Plan, regardless of the number of shares actually issued. If any award is paid in cash rather than shares of common stock, the payment of cash will not reduce the number of available shares. The Company may grant awards under other plans or programs, which may be settled in shares of common stock issued under the 2010 Plan. Such shares shall be treated like shares issued in settlement of RSUs and, when issued, will reduce the number of shares of common stock available for issuance under the 2010 Plan.

Stock Options

The terms of any grants of stock options under the 2010 Plan will be set forth in a stock option agreement to be entered into between the Company and the recipient. The Compensation Committee will determine the terms and conditions of such option grants, which need not be identical. Stock options may provide for the accelerated exercisability in the event of the award recipient's death, disability, or retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the award recipient's service. The Compensation Committee may modify, extend or assume outstanding options or may accept the

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Proposal 3 Amend the Amended and Restated 2010 Stock Incentive Plan

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cancellation of outstanding options in return for the grant of new options for the same or a different number of shares and at the same or a different exercise price, or in return for the grant of the same or a different number of shares. However, outstanding options may not be modified to lower the exercise price, nor may outstanding options be assumed or accepted for cancellation in return for the grant of new options with a lower exercise price, unless approved by the Company's stockholders. In no event will the Company purchase or assume in exchange for cash any stock option whose exercise price exceeds the fair market value of the underlying shares of common stock.

The exercise price of each option will be set by the Compensation Committee, subject to the following limits. The exercise price of an incentive stock option cannot be less than 100% of the fair market value of a share of common stock on the date the option is granted, and in the event an option recipient is deemed to be a 10% owner of our Company or one of our subsidiaries, the exercise price of an incentive stock option cannot be less than 110% of the fair market value of a share of common stock on the date the option is granted. The exercise price of a nonstatutory stock option cannot be less than 100% of the fair market value of a share of common stock on the date the option is granted. On March 29, 2021, the closing price for our common stock on The Nasdaq Global Select Market was $81.10. The maximum period in which an option may be exercised will be fixed by the Compensation Committee and included in each stock option agreement but cannot exceed ten years in the case of an incentive stock option, and in the event an option recipient is deemed to be a 10% owner of our Company or one of our subsidiaries, the maximum period for an incentive stock option granted to that person cannot exceed five years. In addition, no option recipient may be granted incentive stock options that are exercisable for the first time in any calendar year for common stock having a total fair market value (determined as of the option grant) in excess of $100,000.

The exercise price for the exercise of a stock option may be paid in cash or, to the extent that the stock option agreement so provides, by surrendering shares of common stock, by delivery of an irrevocable direction to a securities broker to sell shares and to deliver all or part of the sale proceeds to the Company in payment of the aggregate exercise price, by delivery of an irrevocable direction to a securities broker or lender to pledge shares, as security for a loan, and to deliver all or part of the loan proceeds to the Company in payment of the aggregate exercise price, by delivering a full-recourse promissory note, or in any other form that is consistent with applicable laws, regulations and rules. Options generally will be nontransferable except in the event of the option recipient's death.

Stock options granted under the 2010 Plan must be exercised by the optionee before the expiration of such option. Each stock option agreement will set forth the extent to which the option recipient will have the right to exercise the option following the termination of the recipient's service with us, and the right to exercise the option of any executors or administrators of the award recipient's estate or any person who has acquired such options directly from the award recipient by bequest or inheritance.

Automatic Annual Grants to Directors

As discussed above under "Description of Amendments," each of our nonemployee ("outside") directors currently receives an annual grant following the conclusion of the Annual Meeting having an aggregate grant date fair value of $500,000 and entitling the recipient to receive a mix of stock options and RSUs, with the value as of the grant date of the options equal to 75% and the value of the shares underlying the RSU award equal to 25% of the aggregate grant date fair value, in each case as determined under generally accepted accounting principles consistent with the valuation of our Company's equity incentives. If the proposed amendments are approved by our stockholders at the Annual Meeting, the Board would have discretion to set the aggregate grant date fair value of each annual grant, provided that the value does not exceed the current limit of $500,000. For the 2021 annual grants, the Board has determined that the aggregate grant date fair value of each grant would be $400,000. In addition, the proposed amendments would change the mix of the annual grants from 75% stock options and 25% RSUs to 60% stock options and 40% RSUs. If the proposed amendments are approved by our stockholders, the number of shares subject to the nonstatutory options in each 2021 annual grant will be determined by dividing 60% of $400,000 (or $240,000) by the Black-Scholes value of one such option, based on the average closing sale price for our shares on The Nasdaq Global Select Market over the 30 consecutive trading days concluding with the last trading day prior to the grant date,

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Proposal 3 Amend the Amended and Restated 2010 Stock Incentive Plan

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rounded down to the nearest whole share. The number of shares subject to the RSUs in each 2021 annual grant will be determined by dividing 40% of $400,000 (or $160,000) by such 30 trading day average price, rounded down to the nearest whole share. The exercise price of the options will be equal to the fair market value on the date of the grant, and the options will have a term of ten years. Each outside director who is not initially elected at a regular annual meeting of our stockholders will receive awards within 10 business days of his or her election having an aggregate grant date fair value of a pro rata portion of $500,000 or such lower dollar limit then in effect for annual grants ($400,000 for 2021 annual grants, if the proposed amendments are approved by our stockholders), determined based on the number of full calendar months remaining from the date of election until the next regular annual meeting divided by 12. Such outside director's awards will consist of 60% nonstatutory options and 40% RSUs determined in a manner similar to that used for the annual awards to outside directors following the conclusion of the regular annual meeting, except that the values of the awards to such outside director will be determined as of the grant date of such awards. All annual awards to outside directors will vest (and in the case of options, become exercisable) on the earlier of the first anniversary of the date of grant or immediately prior to the next regular annual meeting of our stockholders.

Options granted to outside directors will become fully vested if a change in control occurs with respect to the Company during the director's service. The Board may from time to time increase the number of shares subject to an annual grant if the Board determines that the increase is necessary to induce individuals to become or remain non-employee directors, or to address an increase in the duties or responsibilities of a non-employee director. The Board may also determine that the exercise price of such an option shall be greater than the fair market value of the common stock on the date of grant and that the option shall be exercisable on a different schedule than stated above.

Restricted Shares

The terms of any awards of restricted shares under the 2010 Plan will be set forth in a restricted share agreement to be entered into between the Company and the recipient. The Compensation Committee will determine the terms and conditions of the restricted share agreements, which need not be identical. Restricted share awards generally will be subject to vesting requirements of a minimum period of three years, and may be subject to transfer restrictions. Award recipients who are granted restricted shares generally have all of the rights of a stockholder with respect to those shares. Restricted shares may be issued for consideration as the Compensation Committee may determine, including cash, cash equivalents, full-recourse promissory notes, past services and future services.

Restricted Stock Units

The terms of any awards of RSUs under the 2010 Plan will be set forth in an RSU agreement to be entered into between the Company and the recipient. The Compensation Committee will determine the terms and conditions of the RSU agreements, which need not be identical. RSUs give an award recipient the right to acquire a specified number of shares of common stock, or at the Compensation Committee's discretion, cash, or a combination of common stock and cash, at a future date upon the satisfaction of certain vesting conditions based upon a vesting schedule or performance criteria established by the Compensation Committee. RSUs generally will be subject to vesting requirements of a minimum period of three years. RSUs may be granted in consideration of a reduction in the award recipient's other compensation, but no cash consideration is required of the award recipient. Unlike restricted shares, the stock underlying RSUs will not be issued until the stock units have vested, and recipients of RSUs generally will have no voting or dividend rights prior to the time of issuance of any common stock upon settlement.

Stock Appreciation Rights

The terms of any awards of stock appreciation rights under the 2010 Plan will be set forth in an agreement to be entered into between the Company and the recipient. The Compensation Committee will determine the terms, conditions and restrictions of any such agreements, which need not be identical. A stock appreciation right generally entitles the award recipient to receive a payment upon exercise equal to the amount by which the fair market value of a share of common stock on the date of exercise exceeds the value of a share of

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common stock on the date of grant. The exercise price of a stock appreciation right cannot be less than 100% of the fair market value of a share of common stock on the date the stock appreciation right is granted. The amount payable upon the exercise of a stock appreciation right may be settled in cash or by the issuance of shares of common stock.

Performance Shares

The terms of any awards of performance shares under the 2010 Plan will be set forth in an agreement to be entered into between the Company and the recipient. The Compensation Committee will determine the terms, conditions and restrictions of any such agreements, which need not be identical.

Performance shares give an award recipient the right to acquire a specified number of shares of common stock, or at the Compensation Committee's discretion, cash, or a combination of common stock and cash, at a future date, based on performance criteria set forth in the performance share agreement. The actual number of performance shares eligible for settlement may be larger or smaller than the number included in the original award, based on the performance criteria. Performance shares may be granted in consideration of a reduction in the award recipient's other compensation, but no cash consideration is required of the award recipient. An award of performance shares generally will vest only if the award recipient performs services for the entire performance period (or if less, one year). Recipients of performance shares generally will have no voting or dividend rights prior to the time of issuance of any common stock upon settlement.

Qualifying Performance Criteria

The 2010 Plan sets forth performance criteria that may be used in the case of performance shares and certain other awards intended to qualify for the "performance-based compensation" exemption from the corporate deduction limit under Section 162(m) of the Code. The "performance-based compensation" exemption has been repealed effective for tax years beginning after December 31, 2017, subject to certain transition rules for previously granted awards, as described below under "Certain Federal Income Tax Aspects of Awards Under the Plan—Code Section 162(m)." The Compensation Committee may, but is not required to, apply the performance criteria set forth in the 2010 Plan to performance shares and other awards granted in 2021 and future years.

To qualify as a "performance-based compensation," the number of shares or other benefits granted, issued, retainable or vested under an award may be made subject to the attainment of performance goals for a specified period of time relating to one or more of the following performance criteria, either individually, alternatively or in any combination, applied to either us as a whole or to a business unit or subsidiary, either individually, alternatively or in any combination, and measured either annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, to previous years' or quarter's results or to the performance of one or more comparable companies or a designated comparison group or index, in each case as specified by the Compensation Committee in the award: (a) cash flow (including operating cash flow), (b) earnings per share, (c) earnings before any combination of interest, taxes, depreciation, or amortization, (d) return on equity, (e) total stockholder return, (f) share price performance, (g) return on capital, (h) return on assets or net assets, (i) revenue, (j) income or net income, (k) operating income or net operating income, (l) operating profit or net operating profit, (m) operating margin or profit margin (including as a percentage of revenue), (n) return on operating revenue, (o) return on invested capital, (p) market segment shares, (q) economic profit, (r) achievement of target levels of discovery and/or development of products, including but not limited to regulatory achievements, (s) achievement of research and development objectives, and (t) formation of joint ventures, strategic relationships or other commercial, research or development collaborations. The Compensation Committee may appropriately adjust any evaluation of performance under a qualifying performance criteria to exclude any of the following events that occur during a performance period: (i) asset write-downs, (ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results, (iv) accruals for reorganization and restructuring programs and (v) any extraordinary, nonrecurring items disclosed in the Company's financial statements or in management's discussion and analysis of financial condition and results of operations appearing in our annual report to stockholders for the applicable year. If applicable, the Compensation

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Proposal 3 Amend the Amended and Restated 2010 Stock Incentive Plan

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Committee will determine the qualifying performance criteria and any permitted exclusions for events described in the preceding sentence not later than the 90th day of the performance period, and will determine and certify the extent to which the qualifying performance criteria have been met. For awards intended to qualify as "performance-based compensation" under Section 162(m) of the Code, the Compensation Committee may not in any event increase the amount of compensation payable under the 2010 Plan upon the attainment of qualifying performance criteria to an award recipient who is a "covered employee" within the meaning of Section 162(m) of the Code.

Amendment and Termination

No awards may be granted under the 2010 Plan after June 30, 2021 or, if the proposed amendments are approved by our stockholders, after June 30, 2026. The Board may amend or terminate the 2010 Plan at any time, but an amendment will not become effective without the approval of the Company's stockholders to the extent required by applicable laws, regulations or rules. No amendment or termination of the 2010 Plan will affect an award recipient's rights under outstanding awards without the award recipient's consent.

Effect of Certain Corporate Events

In the event of a sale of all or substantially allsubdivision of the assetsoutstanding common stock or a combination or consolidation of the Company,outstanding common stock (by reclassification or otherwise) into a lesser number of shares, a spin-off or a similar occurrence, or declaration of a dividend payable in common stock or, if in an amount that has a material effect on the mergerprice of the Company with or into another company,shares, in cash, the Employee Stock Purchase PlanCompensation Committee will terminatemake appropriate adjustments in the number of shares covered by outstanding awards and any purchase periodsthe exercise price of outstanding options and offering periods then in progress will be shortened to end prior tostock appreciation rights, and the sale or merger.number of shares available under the 2010 Plan.

Certain Federal Income Tax Aspects of Awards Under the Plan

This is a brief summary of the federal income tax aspects of participation inawards that may be made under the Employee Stock Purchase2010 Plan based on existing U.S. federal income tax laws. This summary provides only the basic tax rules. It does not purport todescribe a number of special tax rules, including the alternative minimum tax and various elections that may be complete, andapplicable under certain circumstances. It also does not discuss the tax consequencesreflect provisions of a participant's death or the income tax laws of any municipality, state or foreign country in which a holder may reside, nor does it reflect the participant may reside.

tax consequences of a holder's death. The Employee Stock Purchasetax consequences of awards under 2010 Plan depend upon the type of award and, if the award is intended to qualify as an "employee stock purchase plan" underexecutive officer, whether compensation paid to the officer is subject to the tax deduction limit imposed by Section 423162(m) of the Code. A participant

Incentive Stock Options

The recipient of an incentive stock option generally will not be taxed upon grant of the option. Federal income taxes are generally imposed only when the shares of common stock from exercised incentive stock options are disposed of, by sale or otherwise. The amount by which the fair market value of the common stock on the date of exercise exceeds the exercise price is, however, included in determining the option recipient's liability for the alternative minimum tax. If the incentive stock option recipient does not sell or dispose of the shares of common stock until more than one year after the receipt of the shares and two years after the option was granted, then, upon sale or disposition of the shares, the difference between the exercise price and the market value of the shares of common stock as of the date of exercise will be treated as a capital gain, and not ordinary income. If a recipient fails to hold the shares for the minimum required time the recipient will recognize ordinary income in the year of disposition generally in an amount equal to any taxable incomeexcess of the market value of the common stock on the date of exercise (or, if less, the amount realized or disposition of the shares) over the exercise price paid for the shares. Any further gain (or loss) realized by the recipient generally will be taxed as short-term or long-term gain (or loss) depending on the holding period. We will generally be entitled to a tax deduction at the same time shares are purchased underand in the Employee Stock Purchase Plan. Instead, taxablesame amount as ordinary income is recognized by the participantoption recipient.

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Proposal 3 Amend the Amended and Restated 2010 Stock Incentive Plan

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Nonstatutory Stock Options

The recipient of stock options not qualifying as incentive stock options generally will not be taxed upon the grant of the option. Federal income taxes are generally due from a recipient of nonstatutory stock options when the shares purchased under the Employee Stock Purchase Planstock options are sold or otherwise disposed of.

Upon a sale or other disposition of the shares, the participant generally will be subject to tax in an amount that depends on how long the participant held the shares. If the shares are sold or otherwise disposed of more than 2 years from the first day of the applicable offering period and 1 year from the date of purchase, the participant will recognize ordinary income equal to the lesser of theexercised. The excess of the fair market value of the shares at the time ofcommon stock purchased on such sale or dispositiondate over the purchaseexercise price of the option is taxed as ordinary income. Thereafter, the tax basis for the acquired shares or 15%is equal to the amount paid for the shares plus the amount of ordinary income recognized by the recipient. We will generally be entitled to a tax deduction at the same time and in the same amount as ordinary income is recognized by the option recipient by reason of the exercise of the option.

Other Awards

Recipients who receive RSU awards will generally recognize ordinary income when they receive shares upon settlement of the awards, in an amount equal to the fair market value of the shares onat that time. Recipients who receive awards of restricted shares subject to a vesting requirement will generally recognize ordinary income at the first daytime vesting occurs, in an amount equal to the fair market value of the offering period. Any additional gain will be treated as long-term capital gain. Ifshares at that time minus the amount, if any, paid for the shares. However, a recipient who receives restricted shares which are not vested may, within 30 days of the date the shares are sold or otherwise disposedtransferred, elect in accordance with Section 83(b) of before the expiration of either of these holding periods, the participant willCode to recognize ordinary compensation income at the time of transfer of the shares rather than upon the vesting dates. Recipients who receive stock appreciation rights will generally recognize ordinary income upon exercise in an amount equal to the excess of the fair market value of the underlying shares of common stock on the exercise date the shares are purchasedand cash received, if any, over the purchaseexercise price. Any additional gain or loss on such sale or dispositionRecipients who receive performance shares will be long-term or short-term capital gain or loss, depending on how longgenerally recognize ordinary income at the time of settlement, in an amount equal to the cash received, if any, and the fair market value of any shares have been held from the date of purchase.

The Companyreceived. We will generally is notbe entitled to a tax deduction for amounts taxedat the same time and in the same amount as ordinary income or capital gain to a participant, except to the extent of ordinary incomeis recognized by the participant uponrecipient.

Code Section 162(m)

Section 162(m) of the Code generally disallows a sale or dispositiontax deduction to us for annual compensation in excess of $1,000,000 paid to certain executive officers. Prior to 2018, however, we could deduct compensation above $1,000,000 if it was "performance-based compensation" within the meaning of Section 162(m). Stock options and performance shares granted prior to the expiration of the holding periods described above.2018 were intended to qualify as performance-based compensation.

The Section 162(m) exemption for performance-based compensation has been repealed, effective for tax years beginning after December 31, 2017, subject to a transition rule for amounts payable pursuant to written binding contracts in effect on November 2, 2017. We believe that outstanding stock options granted prior to November 2, 2017 qualify for this transition rule, and thus retain their status as deductible performance-based compensation.

New Plan Benefits

Purchase rights are subjectOther than to a participant's discretion, including an employee's decisionset the grant date target value for the annual equity awards to be made in July 2021 of $12,400,000 for our CEO and $2,200,000 for our other U.S.-based executive officers, as described under "Compensation Discussion and Analysis—Key Elements of Executive Compensation—Equity-Based Incentive Awards," the Compensation Committee has not made any determination with respect to participate in the Employee Stock Purchase Plan, andfuture awards under the Employee Stock Purchase2010 Plan and, except for automatic grants to non-employee "outside" directors, awards and the terms of any awards under the plan for the current year or any future year are not determinable. DirectorsAs described above, the 2010 Plan provides for the automatic grant of awards to outside directors. If our stockholders approve the proposed amendments to the 2010 Plan, each outside director nominee who are not employees are not eligiblewill continue to participate in,serve as a member of the Board will receive a grant consisting of 60% nonstatutory options and will not receive any benefit under,40% RSUs having an aggregate grant date fair value of $500,000 or such lower dollar amount as may be selected by the Employee Stock Purchase Plan.Board. The Board has limited the aggregate grant date fair market value of each outside director's 2021 annual grant to $400,000.

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Proposal 3 Amend the Amended and Restated 2010 Stock Incentive Plan

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Required Vote

Approval of the amendmentamendments to the 1997 Employee Stock Purchase2010 Plan requires the affirmative vote of a majority of the shares present and entitled to vote.



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PROPOSAL 4 Ratification of Independent Registered Public Accounting Firm

The Audit and Finance Committee has appointed the firm of Ernst & Young LLP as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2020,2021, subject to reconsideration by the Audit and Finance Committee should our stockholders fail to ratify such appointment at the Annual Meeting or should the Audit and Finance Committee not approve Ernst & Young LLP's audit plan for the fiscal year ending December 31, 2020.2021. Ernst & Young LLP has audited our financial statements since the Company's inception in 1991. Representatives of Ernst & Young LLP are expected to be present at the Annual Meeting. They will have an opportunity to make a statement, if they desire to do so, and will be available to respond to appropriate questions.

Principal Accountant Fees and Services

The following table sets forth the aggregate fees billed or expected to be billed by Ernst & Young LLP for audit and other services rendered.

Year Ended December 31,

Year Ended December 31,

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2019

2018

2020

2019

(in thousands)

(in thousands)

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Audit Fees(1)

$

2,290

$

2,174

$

2,297

$

2,290

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(1)

Audit fees include fees and out-of-pocket expenses billed for the audit of the Company's annual statements and reviews of the Company's quarterly financial statements, including the Company's Annual Report on Form 10-K, the audit of the Company's internal control over financial reporting, and include fees for SEC registration statements and consultation on accounting standards or transactions.

The Audit and Finance Committee considered whether the provision of the services other than the audit services is compatible with maintaining Ernst & Young LLP's independence.

Pre-Approval Policies and Procedures

The Audit and Finance Committee has established a policy to pre-approve all audit and permissible non-audit services provided by the Company's independent registered public accounting firm. All of the services provided by the Company's independent registered public accounting firm in 20192020 and 20182019 were pre-approved.

Required Vote

Ratification will require the affirmative vote of a majority of the shares present and entitled to vote. Stockholder ratification of the selection of Ernst & Young LLP as the Company's independent registered public accounting firm is not required by the Company's Bylaws or otherwise. However, the Board is submitting the selection of Ernst & Young LLP to the stockholders for ratification as a matter of corporate practice. If the stockholders fail to ratify the selection, the Audit and Finance Committee will reconsider whether or not to retain that firm. Even if the selection is ratified, the Audit and Finance Committee in its discretion may direct the appointment of a different independent registered public accounting firm at any time during the year if the Audit and Finance Committee determines that such a change would be in the best interests of the Company and its stockholders.



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PROPOSAL 5 Stockholder Proposal

Proposal 5 set forth below was submitted to the Company by Dundas I. Flaherty and Sandra J. Kulli, of 3749 Malibu Vista Drive, Malibu, California 90265. Mr. Flaherty and Ms. Kulli state that, as of November 11, 2019, they own in the aggregate 82,210 shares of our common stock and that they intend to continue holding significantly more than the $2,000 minimum through the date of the 2020 Annual Meeting. Mr. Flaherty's and Ms. Kulli's proposal is printed below verbatim. The Company is not responsible for the contents of this proposal or the supporting statement of Mr. Flaherty and Ms. Kulli. Mr. Flaherty and Ms. Kulli have advised the Company that they intend to present the proposal at our Annual Meeting.Our Board recommends a voteAGAINST the proposal for the reasons set forth following the proposal.

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STOCKHOLDER PROPOSAL FOR AN INDEPENDENT BOARD CHAIR

RESOLVED: Stockholders of Incyte Corporation urge the Board of Directors to take the steps necessary to adopt a policy, with amendments to governing documents as needed, so that, to the extent feasible, the Chairman of the Board shall be an independent director who has not previously served as an executive officer of the Company. The policy should be implemented so as not to violate any contractual obligations and should specify the process for selecting a new independent chairman if the Chairman ceases to be independent between annual meetings of shareholders or if no independent director is available and willing to serve as Chairman.

SUPPORTING STATEMENT

Last year we proposed that Incyte add an independent Board Chair; 42% of non-insider shareholders voted for that proposal. Nevertheless, our CEO remains Chairman. We believe that, notwithstanding a lead independent director, this arrangement fails to provide needed oversight and accountability. Institutional Shareholder Services evidently agrees, reporting Incyte's Governance Quality Score in the worst 10% of companies rated.

In October 2018, the Securities and Exchange Commission questioned Incyte's non-GAAP accounting, which Incyte changed. We believe Incyte attempted to use inventive accounting to present results favorably, a lapse in good governance.

Incyte has not described a meaningful business strategy, mission definition, or how stockholders will benefit from the strategy and mission. Instead, the Chair/CEO said, in a July 2019Philadelphia Inquirer article:

"We have this plan—it goes with ups and downs—but the plan is to establish a research-driven biopharma company worldwide: Asia, Europe, North America. We have enough coming th[r]ough the pipeline to give us a realistic perspective of being [worth] multiples of what we are today in five to 10 years. But, even if we are very good and very fast, the return on investment won't be before 2030."

We believe shareholders deserve a serious articulation of Incyte's strategy.

In 2014, the company had one FDA-approved product, ruxolitinib, with two products out-licensed; ruxolitinib has succeeded commercially. However, Incyte has not had much success with other new products. One analyst observed in September 2019:We find it difficult to point to a specific pipeline asset on which we have high conviction from clinical and commercial perspectives.

Concern over new products is the compelling reason to strengthen Incyte by adding an independent Chair. Current good performance from ruxolitinib will eventually not suffice to keep Incyte growing. Results with other new products since 2014, notably the failure of epacadostat in April 2018, have been disappointing. As of late 2019, the stock price was just over half what it was at the time of peak hopes for epacadostat, and up only moderately from its value in 2014.

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Proposal 5 Stockholder Proposal

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Last year, Incyte's Board argued that adding a new chair would put Incyte at a competitive disadvantage against nimble competitors. We believe the opposite is true, and that independent board leadership would make Incyte even better.

Please vote FOR this proposal.

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BOARD OF DIRECTORS' STATEMENT IN OPPOSITION TO PROPOSAL 5

Our Board of Directors unanimously recommends a vote "AGAINST" Proposal 5. The Board has considered Proposal 5, and, for the reasons described below, believes that the proposal is not in the best interests of the Company or its stockholders.

Summary.

Our Board is committed to high standards of corporate governance. Our current leadership structure and governing documents permit the roles of Chairman and CEO to be filled by the same or different individuals. Where the Chairman and CEO roles are filled by the same individual, our Corporate Governance Guidelines require the independent directors on our Board to appoint a Lead Independent Director.

The Board has had the roles of Chairman and CEO held by two separate individuals and by the same individual at various times over the past ten years. The Board values its flexibility to select, from time to time, a leadership structure that it believes is most able to serve stockholders' best interests based on the circumstances existing at the time.

Currently, the Board believes that it is in the best interests of our stockholders to have Hervé Hoppenot serve as our CEO and Chairman, coupled with Julian C. Baker—a managing member of the general partner of our largest stockholder (Baker Bros. Advisors LP and affiliated entities (the "Baker Funds"))—serving as our Lead Independent Director. The Baker Funds long-term position as Incyte's largest stockholder closely aligns Mr. Baker's leadership of the Board, as Lead Director, with the long-term interests of all of Incyte's stockholders.

The Board believes that a policy limiting its flexibility to choose, consistent with its fiduciary duties, a leadership structure that in the Board's view enables our Company to most effectively execute its strategy and business plans to maximize stockholder value would also be detrimental to our Company and our stockholders. In this regard, our policy is consistent with at least 80% of the companies in our peer group.

The Board believes it is important to also directly address some of the specific concerns raised in the stockholder proposal.

Commitment to Science and Recent Successes.

The proposal attempts to argue that Incyte does not have or articulate a coherent business strategy. The proposing stockholders have cherry-picked one quote out of context from an article inThe Philadelphia Inquirer; and then followed with their conclusion that: "we believe shareholders deserve a serious articulation of Incyte's strategy."

Instead of relying on excerpts from a single article inThe Philadelphia Inquirer, we recommend that our stockholders refer to the presentations regularly made by our executives as part of our investor relations communications for "a serious articulation of Incyte's strategy." These presentations are announced in advance and are webcast live and certain materials used in these presentations are archived on our website under "For Investors—Events and Presentations", and specifically under "For Investors—Events & Presentations—Quarterly Results" for our earnings call materials and under "For Investors—Events & Presentations—Corporate Presentations" for other supporting materials.

The proposing stockholders argue that there should be "concern over new products" and focus on whether Mr. Hoppenot's leadership will enable us to continue to grow beyond ruxolitinib. Our Board believes that

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Proposal 5 Stockholder Proposal

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Mr. Hoppenot is doing exactly that, as evidenced by the late-stage clinical successes, recent FDA approval and upcoming FDA approval decisions set forth below:

·

We announced positive results from our pivotal trial of pemigatinib in patients with previously treated, advanced cholangiocarcinoma in 2019. We then filed a New Drug Application ("NDA") with the U.S. Food and Drug Administration ("FDA") for pemigatinib in this indication which was accepted by the FDA for Priority Review, and we recently announced the FDA approval of pemigatinib as Pemazyre.



·

We entered into a collaboration and license agreement with MorpoSys AG in January 2020 by which we have gained co-commercialization rights in the U.S. and exclusive commercialization rights outside the U.S. for tafasitamab, an investigational humanized Fc-engineered monoclonal antibody directed against CD19. A Biologics License Application for tafasitamab in combination with lenalidomide for the treatment of patients with relapsed or refractory diffuse large B-cell lymphoma has been submitted under Breakthrough Therapy designation and granted Priority Review. The PDUFA date is August 30, 2020.



·

We announced in the first quarter of 2020 that both pivotal Phase 3 studies in our TRuE-AD program evaluating ruxolitinib cream for the treatment of patients with mild-to-moderate atopic dermatitis met their primary and secondary endpoints. The data were presented at the 2020 Revolutionizing Atopic Dermatitis Virtual Conference on April 5, 2020. We plan to file an NDA seeking approval of ruxolitinib cream with the FDA before the end of 2020.



·

An NDA has been filed for capmatinib, seeking approval in non-small cell lung cancer. Capmatinib is a compound discovered by Incyte scientists and subsequently licensed to Novartis. The capmatinib NDA was submitted under Breakthrough Therapy designation and was granted Priority Review by the FDA with an FDA decision expected in the second half of 2020. If approved, Incyte will be eligible for royalties on global net sales, as well as potential significant milestone payments from Novartis.

Board Commitment to Independence.

The Board maintains a strong commitment to ensuring Board independence so that it is able to maintain effective oversight of management. The Board's commitment to independence includes:

✓

Annual appointment of a strong Lead Independent Director, who also currently represents our largest stockholder, the Baker Funds, thereby ensuring strong representation of stockholder interests



✓

Robust duties of the Lead Independent Director, which include:



•

presiding at all meetings of the Board at which the Chairman is not present, including executive sessions of the independent directors



•

serving as liaison between the Chairman/CEO and the other independent directors



•

Mr. Baker is actively involved with our Company and devotes a significant amount of his time and energy to fulfilling his responsibilities as Lead Independent Director. Mr. Baker meets regularly, and works closely with, our Chairman and CEO and other senior members of management; also, he facilitates communication among the independent directors on our Board and speaks regularly with each independent director, promoting the candid exchange of ideas among Board members



•

approving information sent to the Board



•

approving meeting agendas for the Board



•

Mr. Baker provides guidance with respect to, in addition to approving, the agendas



•

approving meeting schedules to assure that there is sufficient time for discussion of all agenda items



•

authority to call meetings and executive sessions of the independent directors



•

being available for consultation with stockholders, when appropriate



•

during 2019 and early 2020, Mr. Baker held discussions with several of our leading stockholders, collectively representing nearly 30% of our common stock

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Proposal 5 Stockholder Proposal

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✓

Review, at least annually, of the Company's strategic plan and the following year's capital and operating budgets



✓

Annual election of all directors, ensuring accountability to stockholders



✓

Regular executive sessions of the independent, non-management directors—without Mr. Hoppenot—to review Company performance, CEO performance, management effectiveness, proposed programs and transactions and the Board meeting agenda items



✓

Requirement that only independent directors serve on the Audit and Finance Committee, the Compensation Committee and the Nominating and Corporate Governance Committee



✓

Requirement that a majority of the Board be comprised of independent directors



•

currently, all members of the Board other than Mr. Hoppenot are independent directors



✓

Corporate Governance Guidelines providing that the Board may have access to Company management and employees and its own advisors, at the Board's discretion.

Benefits of Combined Leadership Structure

The Board believes that the Company and our stockholders have been best served by having Mr. Hoppenot in the role of Chairman and CEO for the following reasons:

​	​	​
Mr. Hoppenot is most familiar with our business and the unique challenges we face. As such, Mr. Hoppenot is the director best suited to identify strategic opportunities and focus the activities of the Board.		Mr. Hoppenot's day-to-day insight into our challenges facilitates a timely deliberation by the Board of important matters.
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Mr. Hoppenot has and will continue to identify agenda items and lead effective discussions on the important matters affecting us. Mr. Hoppenot's knowledge and extensive experience regarding our operations and the highly-regulated industries and markets in which we compete position him to identify and prioritize matters for Board review and deliberation.		As Chairman and CEO, Mr. Hoppenot serves as an important bridge between the Board and management and provides critical leadership for carrying out our strategic initiatives and confronting our challenges. The Board believes that Mr. Hoppenot brings a unique, stockholder-focused insight to assist the Company to most effectively execute its strategy and business plans to maximize stockholder value.
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The strength and effectiveness of the communications between Mr. Hoppenot as our Chairman and Mr. Baker as our Lead Independent Director result in effective Board oversight of the issues, plans and prospects of our Company.		This leadership structure provides the Board with more complete and timely information about the Company, a unified structure and consistent leadership direction internally and externally and provides a collaborative and collegial environment for Board decision-making.
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✓

Effective Action on Stockholder Feedback. The substantial and sustained engagement with our stockholders by Mr. Hoppenot—as our Chairman and CEO—and Mr. Baker—as our Lead Independent Director—and their collective and detailed knowledge of stockholder concerns have ensured that stockholder interests in significant governance and compensation enhancements are brought before the Board in a meaningful and timely way. The significant governance and compensation changes enacted following and in response to stockholder feedback in recent years are detailed above in this proxy statement under "Stockholder Engagement", starting on page 8, and include:



o

Aligning the compensation of our Board of Directors to that of our peers



o

Enhancing pay-for-performance by using performance-based shares in executive compensation, increasing the percentage of overall long-term equity compensation that is performance-based shares in

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Proposal 5 Stockholder Proposal

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2019 to 25% and again in 2020 to 30% and pegging the 2020 awards to a three-year performance period

o

Requiring majority voting for directors in uncontested elections



o

Adopting a 3-year cash clawback policy for executives



o

Requiring that all directors and executive officers hold a minimum amount of Incyte equity



o

Imposing a 12-month minimum vesting period for employee equity awards generally



o

Eliminating tax gross-ups on perquisites



o

Prohibiting hedging transactions in Incyte stock by directors and officers



o

Increasing transparency in our discussion of compensation practices and our corporate goals

Strategic Flexibility Helps Maintain Competitive Position with Our Peers.

Our Board currently believes it is in the best interest of the stockholders that Mr. Hoppenot act as Chairman and CEO. The Board has separated the Chairman and CEO roles in the past. The Board considers its leadership structure every year. In the future, circumstances may lead the Board to believe that separating the roles is in the best interests of our stockholders at that time. The proposed requirement of Proposal 5 that the Chairman and CEO rolesmust be separated would restrict your Board from doing what it thinks is in your best interests at any given time.

Of the 20 companies in our current executive compensation peer group, at least 80%—16 companies—provide their boards with the strategic flexibility to structure their leadership as they believe to be in the best interests of their respective stockholders. The strategic inflexibility proposed by Proposal 5 would force us into a competitive disadvantage against the nimble peer companies with whom we compete for executive talent.

Conclusion and Recommendation AGAINST Proposal 5.

The strong leadership role of the Board's independent directors in the oversight of our Company is evident from the independent composition of the Board aside from our CEO, the exclusively independent composition of the Board's Audit and Finance, Compensation and Nominating and Corporate Governance Committees, and the functioning of the Board's independent directors and Lead Independent Director, who is also a principal in the general partner of the Baker Funds, our largest stockholder. It is important that the Board continues to be able to assess all relevant facts and circumstances, in fulfilment of its fiduciary duty, to determine the leadership structure that is best suited to meet the needs of our Company at any given time. Accordingly, the Board believes that adoption of a fixed policy requiring an independent Chairman is not in the best interests of stockholders.



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Security Ownership of Certain Beneficial Owners and Management

The following table sets forth certain information as of April 1, 2020,March 29, 2021, as to shares of our common stock beneficially owned by: (i) each person who is known to us to own beneficially more than 5% of our common stock, (ii) each of our directors, (iii) each of our executive officers named under "Executive Compensation—Summary Compensation Table" and (iv) all of our directors and executive officers as a group. Ownership information is based upon information furnished by the respective individuals or entities, as the case may be. Unless otherwise indicated below, the address of each beneficial owner listed on the table is c/o Incyte Corporation, 1801 Augustine Cut-Off, Wilmington, DE 19803. The percentage of our common stock beneficially owned is based on 216,951,933219,876,892 shares outstanding as of April 1, 2020.March 29, 2021. In addition, shares issuable pursuant to options or convertible securities that may be acquired within 60 days of April 1, 2020March 29, 2021 are deemed to be issued and outstanding and have been treated as outstanding in calculating and determining the beneficial ownership and percentage ownership of those persons possessing those securities, but not for any other individuals.

Name and Address of Beneficial Owner(1)		Shares Beneficially Owned(#)(1)			Percentages Beneficially Owned(%)(1)				Shares Beneficially Owned(#)(1)			Percentages Beneficially Owned(%)(1)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
5% Stockholders
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Felix J. Baker(2)			32,580,439			15.0				32,524,056			14.8
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Baker Bros. Advisors LP and affiliated entities(2)			32,144,737			14.8				32,159,009			14.6
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
The Vanguard Group and affiliates(3)			20,026,323			9.2
T. Rowe Price Associates, Inc.(3)										32,594,682			14.8
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
BlackRock, Inc.(4)			15,210,086			7.0
The Vanguard Group and affiliates(4)										20,156,224			9.2
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Wellington Management Group LLP(5)			13,431,834			6.2
BlackRock, Inc.(5)										17,808,827			8.1
​								​	​	​	​	​	​	​
Wellington Management Group LLP(6)										13,499,976			6.1
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Named Executive Officers and Directors
​	​		​	​	​	​	​	​	​	​	​	​	​	​
Hervé Hoppenot(6)			798,410			*
Hervé Hoppenot(7)										872,576			*
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Christiana Stamoulis(7)			24,859			*
Christiana Stamoulis(8)										56,506			*
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Steven H. Stein(8)			95,782			*
Barry P. Flannelly(9)										136,857			*
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Wenqing Yao(9)			196,514			*
Steven H. Stein(10)										97,952			*
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Barry P. Flannelly (10)			134,858			*
Vijay Iyengar(11)										101,751			*
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Julian C. Baker(2)			32,578,022			15.0				32,521,639			14.8
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Jean-Jacques Bienaimé(11)			110,172			*
​	​	​	​	​	​	​	​
Paul A. Brooke(12)			409,383			*
Jean-Jacques Bienaimé(12)										121,907			*
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Paul J. Clancy(13)			105,216			*				117,782			*
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Wendy L. Dixon(14)			160,251			*				152,639			*
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Jacqualyn A. Fouse(15)			55,166			*				73,870			*
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Paul A. Friedman(16)			365,503			*				377,299			*
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Edmund P. Harrigan (17)			5,024			—
Edmund P. Harrigan(17)										17,366			*
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Katherine A. High (18)			1,424			—
Katherine A. High(18)										13,220			*
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
All directors and executive officers as a group (20 persons)(19)			35,363,691			16.1
All directors and executive officers as a group (19 persons)(19)										35,168,046			15.8
​	​	​	​	​	​	​	​	​		​	​	​	​	​

*

Represents less than 1% of our common stock.

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Security Ownership of Certain Beneficial Owners and Management

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(1)

To our knowledge, the persons named in the table have sole voting and investment power with respect to all shares of common stock shown as beneficially owned by them, subject to community property laws where applicable and the information contained in the notes to this table.



(2)

Baker Bros. Advisors LP is the investment adviser to 667, L.P. and Baker Brothers Life Sciences, L.P. ("Baker Funds"). Baker Bros. Advisors (GP), LLC is the sole general partner of Baker Bros. Advisors LP. Julian C. Baker and Felix J. Baker are the managing members of Baker Bros. Advisors (GP), LLC. The address for Baker Bros. Advisors LP, the Baker Funds, Julian C. Baker and Felix J. Baker is 860 Washington Street, 3rd Floor, New York, New York 10014. Pursuant to the management agreements, as amended, among Baker Bros. Advisors LP, the Baker Funds and their respective general partners, the Baker Funds' respective general partners relinquished to Baker Bros. Advisors LP all discretion and authority with respect to the investment and voting power of the securities held by the Baker Funds, and thus Baker Bros. Advisors LP has complete and unlimited discretion and authority with respect to the Baker Funds' investments and voting power over investments. According to an amended Schedule 13D filed April 29, 2020, and Forms 4 filed May 26, 2020, June 7, 2019,30, 2020, September 30, 2020, and December 31, 2020, the total number of shares of our common stock beneficially owned includes shares directly held as follows:

Holder		Shares
​	​	​	​	​
667, L.P.			2,686,870
​	​	​	​	​
Baker Brothers Life Sciences, L.P.			29,150,637
​	​	​	​	​
Julian C. Baker			418,531441,005
​	​	​	​	​
Felix J. Baker			281,190
​	​	​	​	​
Entities affiliated with Julian C. Baker and Felix J. Baker			154,51283,857
​	​	​	​	​




Pursuant to an agreement between Baker Bros. Advisors LP and Julian C. Baker, Baker Bros. Advisors LP has sole voting and dispositive power with respect to 139,758162,232 shares owned directly by Julian C. Baker that were received by Mr. Baker either upon exercise of options, upon vesting of RSUs or in lieu of cash fees in connection with serving as a member of our Board of Directors and with respect to 168,992159,268 shares subject to RSUs that will vest and options exercisable within 60 days of April 1, 2020March 29, 2021 that are held by Julian C. Baker and that are included in the number of shares shown as beneficially owned. Excludes 364 shares issued on March 31, 2021 pursuant to Mr. Baker's election to receive immediately vested restricted stock in lieu of quarterly cash retainer fees for service as a member of our Board of Directors, as described under "Compensation of Directors."



(3)

According to an amended Schedule 13G filed February 12, 2020,16, 2021, filed by T. Rowe Price Associates, Inc. ("T. Rowe Price"), T. Rowe Price, in its capacity as investment adviser, may be deemed to beneficially own and has sole dispositive power with respect to all shares listed in the table and has sole voting power with respect to 11,750,244 shares. The address of the principal place of business of T. Rowe Price is 100 E. Pratt Street, Baltimore, Maryland 21202.



(4)

According to an amended Schedule 13G filed February 10, 2021, filed by The Vanguard Group ("Vanguard"), Vanguard, in its capacity as investment adviser, may be deemed to beneficially own all shares listed in the table, and has sole dispositive power with respect to 19,714,37719,312,859 shares, shared dispositive power with respect to 311,946 shares, sole voting power with respect to 277,943843,365 shares, and shared voting power with respect to 50,490335,935 shares. The address of the principal place of business of Vanguard is 100 Vanguard Blvd., Malvern, Pennsylvania 19355.



(4)(5)

According to an amended Schedule 13G filed February 5, 2020,January 29, 2021, filed by BlackRock, Inc. ("BlackRock"), BlackRock, in its capacity as investment adviser, may be deemed to beneficially own and has sole dispositive power with respect to all shares listed in the table and has sole voting power with respect to 13,749,80716,270,183 shares. The address of the principal place of business of BlackRock is 55 East 52nd Street, New York, New York, 10022.



(5)(6)

According to an amended Schedule 13G filed January 27, 2020,February 4, 2021, filed by Wellington Management Group LLP, Wellington Group Holdings LLP, Wellington Investment Advisors LLP (collectively, "Wellington") and Wellington Management Company LLP, (collectively, "Wellington"), Wellington and Wellington Management Company LLP, in itstheir capacity as investment adviser, may be deemed to beneficially own all shares listed in the table, and Wellington has shared dispositive power with respect to all such shares and shared voting power with respect to 12,947,66513,015,498 shares, with Wellington Management Company LLP having shared voting power with respect to 12,821,926 shares and shared dispositive power with respect to 12,902,408 shares. The address of the principal place of business of Wellington and Wellington Management Company LLP is 280 Congress Street, Boston, Massachusetts 02110.



(6)(7)

Includes 599,550642,306 shares subject to RSUs and earned performance shares that will vest and options exercisable within 60 days of April 1, 2020.March 29, 2021.



(7)(8)

Includes 22,75251,654 shares subject to RSUs and earned performance shares that will vest and options exercisable within 60 days of April 1, 2020.March 29, 2021.



(8)(9)

Includes 93,260131,567 shares subject to RSUs and earned performance shares that will vest and options exercisable within 60 days of April 1, 2020.March 29, 2021.



(9)(10)

Includes 165,15797,952 shares subject to RSUs and earned performance shares that will vest and options exercisable within 60 days of April 1, 2020.

March 29, 2021.

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(10)(11)

Includes 131,83097,293 shares subject to RSUs and earned performance shares that will vest and options exercisable within 60 days of April 1, 2020.March 29, 2021.



(11)(12)

Includes 103,992114,268 shares subject to RSUs that will vest and options exercisable within 60 days of April 1, 2020.March 29, 2021.



(12)(13)

Includes 148,992114,268 shares subject to RSUs that will vest and options exercisable within 60 days of April 1, 2020.March 29, 2021. Excludes 298 shares issued on March 31, 2021 pursuant to Mr. Clancy's election to receive immediately vested restricted stock in lieu of quarterly cash retainer fees for service as a member of our Board of Directors, as described under "Compensation of Directors."



(13)(14)

Includes 103,992139,268 shares subject to RSUs that will vest and options exercisable within 60 days of April 1, 2020.March 29, 2021. Excludes 225 shares issued on March 31, 2021 pursuant to Dr. Dixon's election to receive immediately vested restricted stock in lieu of quarterly cash retainer fees for service as a member of our Board of Directors, as described under "Compensation of Directors."



(14)(15)

Includes 148,99269,893 shares subject to RSUs that will vest and options exercisable within 60 days of April 1, 2020.March 29, 2021. Excludes 251 shares issued on March 31, 2021 pursuant to Dr. Fouse's election to receive immediately vested restricted stock in lieu of quarterly cash retainer fees for service as a member of our Board of Directors, as described under "Compensation of Directors."



(16)

Includes 106,768 shares subject to RSUs that will vest and options exercisable within 60 days of March 29, 2021.



(17)

Includes 16,156 shares subject to RSUs that will vest and options exercisable within 60 days of March 29, 2021. Excludes 219 shares issued on March 31, 2021 pursuant to Dr. Harrigan's election to receive immediately vested restricted stock in lieu of quarterly cash retainer fees for service as a member of our Board of Directors, as described under "Compensation of Directors."



(18)

Includes 13,081 shares subject to RSUs that will vest and options exercisable within 60 days of March 29, 2021.



(19)

Includes shares included pursuant to the second paragraph of note (2) and notes (7), (8), (9), (10), (11), (12), (13), (14), (15), (16), (17), and (18) above and 395,141 shares subject to RSUs and earned performance shares that will vest and options exercisable within 60 days of March 29, 2021 held by other executive officers of the Company.

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(15)

Includes 53,367 shares subject to RSUs that will vest and options exercisable within 60 days of April 1, 2020.



(16)

Includes 96,492 shares subject to RSUs that will vest and options exercisable within 60 days of April 1, 2020.



(17)

Dr. Harrigan was appointed to the Board of Directors effective December 2019. Includes 4,822 shares subject to RSUs that will vest and options that will become exercisable immediately prior to the date of the 2020 Annual Meeting.



(18)

Dr. High was appointed to the Board of Directors effective March 2020. Includes 1,424 shares subject to RSUs that will vest and options that will become exercisable immediately prior to the date of the 2020 Annual Meeting.



(19)

Includes shares included pursuant to the second paragraph of note (2) and notes (6), (7), (8), (9), (10), (11), (12), (13), (14), (15), (16), (17) and (18) above and 235,955 shares subject to RSUs and earned performance shares that will vest and options exercisable within 60 days of April 1, 2020 held by other executive officers of the Company.

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Other Matters

Section 16(a) Beneficial Ownership Reporting Compliance

Under the securities laws of the United States, our directors, executive officers and any persons holding more than 10% of our common stock are required to report their initial ownership of our common stock and any subsequent changes in that ownership to the Securities and Exchange Commission. Specific due dates for these reports have been established and we are required to identify in this Proxy Statement those persons who failed to timely file these reports. Based solely on our review of the copies of such forms received by us, or written representation from certain reporting persons, we believe that all of the filing requirements for such persons were satisfied for 2019.2020.

Stockholder Proposals for the 20212022 Annual Meeting

To be considered for inclusion in the Company's proxy statement for the Company's 20212022 Annual Meeting of Stockholders, stockholder proposals must be received by the Secretary of the Company no later than December 17, 2020.2021. These proposals also must comply with the proxy proposal submission rules of the Securities and Exchange Commission under Rule 14a-8.

A stockholder proposal not included in the Company's proxy statement for the 20212022 Annual Meeting will be ineligible for presentation at the meeting unless the stockholder gives timely notice of the proposal in writing to the Secretary of the Company at the principal executive offices of the Company, provides the information required by the Company's Bylaws, and otherwise complies with the provisions of the Company's Bylaws. To be timely, our Bylaws provide that the Company must have received the stockholder's notice not less than 90 days nor more than 120 days prior to the first anniversary of the preceding year's annual meeting of stockholders. However, in the event that the 20212022 Annual Meeting is called for a date that is more than 30 days before or more than 60 days after the first anniversary date of the preceding year's annual meeting of stockholders, notice by the stockholder to be timely must be so received by the Secretary of the Company not later than the close of business on the later of (1) the 90th day prior to the date of the meeting and (2) the 10th day following the first public announcement or disclosure of the date of the 20212022 Annual Meeting.

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Annual Report

We will furnish without charge, upon written request of any person who was a stockholder or beneficial owner of common stock at the close of business on April 1, 2020,March 29, 2021, the record date, a copy of our Annual Report on Form 10-K, including the financial statements, the financial statement schedules, and all exhibits. The written request should be sent to: Investor Relations Department, Incyte Corporation, 1801 Augustine Cut-Off, Wilmington, DE 19803.

Whether you intend to be present at the Annual Meeting or not, we urge you to vote by telephone, the internet, or by signing and mailing the enclosed proxy promptly.

		By Order of the Board of Directors
		Hervé Hoppenot President and Chief Executive Officer

April 20, 202016, 2021

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Frequently Asked Questions

Will there be any other items of business on the agenda?

We do not expect any other items of business because the deadline for stockholder proposals and nominations has already passed. Nonetheless, in case there is an unforeseen need, the accompanying proxy gives discretionary authority to the persons named on the proxy with respect to any other matters that might be brought before the meeting. Those persons intend to vote that proxy in accordance with their best judgment.

Why did I receive a one-page notice in the mail regarding the Internet availability of proxy materials instead of a full set of proxy materials?

We have elected to provide access to our proxy materials over the Internet, as permitted by the rules of the SEC. Accordingly, we are mailing a Notice of Internet Availability of Proxy Materials (Proxy Availability Notice) to our stockholders. All stockholders will have the ability to access our proxy materials on the website referred to in the Proxy Availability Notice or may request to receive printed versions of our proxy materials for the Annual Meeting. Instructions on how to access the proxy materials over the Internet or to request a printed copy may be found in the Proxy Availability Notice.

We intend to mail the Proxy Availability Notice on or about April 16, 2021 to all stockholders of record entitled to vote at the Annual Meeting. We expect that this Proxy Statement and the other proxy materials will be available to stockholders on or about April 16, 2021.

What does it mean if I receive more than one notice regarding the Internet availability of proxy materials?

If you hold your shares in more than one account, you may receive a separate Proxy Availability Notice for each account. Please follow the voting instructions on each Proxy Availability Notice to ensure that all of your shares are voted.

Who is entitled to vote?

Stockholders of record at the close of business on April 1, 2020,March 29, 2021, the Record Date, may vote at the Annual Meeting. Each stockholder is entitled to one vote for each share of our common stock held by such stockholder as of the Record Date.

How many shares must be present to hold the Annual Meeting?

The presence, in person or by proxy, of the holders of a majority of our outstanding common stock on the Record Date constitutes a quorum, which is required to hold and conduct business at the Annual Meeting. As of the close of business on the Record Date, there were 216,951,933219,876,892 shares of our common stock outstanding. If you are a record holder and you submit your proxy, regardless of whether you abstain from voting on one or more matters, your shares will be counted as present at the Annual Meeting for purposes of determining a quorum. If your shares are held in street name, your shares are counted as present for purposes of determining a quorum if your broker, bank or other nominee submits a proxy covering your shares. Your broker, bank or other nominee is entitled to submit a proxy covering your shares as to certain "routine" matters, even if you have not instructed your broker, bank or other nominee on how to vote on those matters. Please see "How are votes counted?" below. If a quorum is not present, we expect that the Annual Meeting will be adjourned until we obtain a quorum.

What is the difference between holding shares as a stockholder of record and as a beneficial owner?

Stockholder of Record.    If your shares are registered directly in your name with our transfer agent, Computershare, you are considered, with respect to those shares, the "stockholder of record." This Proxy Statement, our Annual Report and the proxy card have been sent directly to you by Incyte.

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Beneficial Owner.    If your shares are held in a stock brokerage account or by a broker, bank or other nominee, you are considered the "beneficial owner" of shares held in street name. This Proxy Statement and our Annual Report have been forwarded to you by your broker, bank or other nominee who is considered, with respect to those shares, the stockholder of record. As the beneficial owner, you have the right to direct your broker, bank or other nominee how to vote your shares by using the voting instruction form provided by your broker, bank or other nominee.

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How do I vote?

You may vote using any of the following methods:

By Mail		By Telephone		By Internet		In Person at the Annual Meeting*
Mail – Follow the instructions in your proxy materials.		Telephone – Stockholders of record may call toll-free 1-800-652–VOTE (8683)		By Internet – Stockholders of record may vote online atwww.envisionreports.com/INCY		In Person at the Annual Meeting – You may obtain directions to the Annual Meeting by contacting our Company's Investor Relations Department at (302)  498-6700.
		Most stockholders who hold shares beneficially in street name may provide voting instructions to their brokers, banks or other nominees by telephone by calling the number specified on the voting instruction form provided by their brokers, banks or other nominees. The telephone voting facilities will close at 11:59pm, Eastern Daylight Time, the day before the meeting date.		Most stockholders who hold shares beneficially in street name may provide voting instructions to their brokers, banks or other nominees by accessing the website specified on the voting instruction form provided by their brokers, banks or other nominees. The internet voting facilities will close at 11:59pm, Eastern Daylight Time, the day before the meeting date.		Even if you plan to attend the Annual Meeting, we recommend that you also submit your proxy or voting instructions or vote by telephone or the internet so that your vote will be counted if you later decide not to attend the meeting.

*

We intend to hold our Annual Meeting in person. However, we are actively monitoring the coronavirus (COVID-19) situation and are sensitive to the public health and travel concerns our stockholders may have and the protocols that federal, state, and local governments may impose. If stockholder attendance is not permitted or we determine that it is not in the best interest of our employees, stockholders and community to permit stockholder attendance, we will announce alternative arrangements for the meeting as promptly as practicable, which may include holding the meeting solely by means of remote communication. If we take this step, we will announce the decision to do so via a press release, and will post details on how to participate on our website and file additional proxy materials with the SEC.

Can I change my vote or revoke my proxy?

You may change your vote or revoke your proxy at any time prior to the vote at the Annual Meeting. If you submitted your proxy by mail, you must file with the Secretary of our Company a written notice of revocation or deliver, prior to the vote at the Annual Meeting, a valid, later dated proxy. If you submitted your proxy by telephone or the internet, you may change your vote or revoke your proxy with a later telephone or internet proxy, as the case may be. Attendance at the Annual Meeting will not have the effect of revoking a proxy unless you give written notice of revocation to the Secretary before the proxy is exercised or you vote by written ballot at the Annual Meeting. For shares you hold beneficially in street name, you may change your vote or revoke your proxy by submitting new voting instructions to or informing your broker, bank or other nominee in accordance that entity's procedures for changing or revoking your voting instructions.

How are votes counted?

In the election of directors, you may vote "FOR," "AGAINST" or "ABSTAIN" for each nominee. For each of Proposals 2, 3, 4 and 5,4, you may vote "FOR," "AGAINST" or "ABSTAIN."

If you provide specific instructions, your shares will be voted as you instruct. If you sign your proxy card or voting instruction form with no further instructions, your shares will be voted in accordance with the recommendations of the Board ("FOR" all of the nominees to the Board of Directors, "FOR" the approval of the compensation of our named executive officers, "FOR" the approval of the amendmentamendments to our 1997 EmployeeAmended and Restated 2010 Stock PurchaseIncentive Plan, "FOR" the ratification of the independent registered public accounting firm "AGAINST" the stockholder proposal, if properly presented, and, in the discretion of the proxy holders, on any other matters that may properly come before the meeting.

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If you hold shares beneficially in street name and do not provide your broker, bank or other nominee with voting instructions, your shares may constitute "broker non-votes." Generally, broker non-votes occur on a matter when a broker, bank or other nominee is not permitted to vote on that matter without instructions from the beneficial owner and instructions are not given. If you hold shares beneficially in street name and do not vote your shares, your broker, bank or other nominee can vote your shares at its discretion only on Proposal 4, the

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ratification of the independent registered public accounting firm. In tabulating the voting result for any particular proposal, shares that constitute broker non-votes are not considered entitled to vote on that proposal. Thus, broker non-votes will not affect the outcome of any matter being voted on at the Annual Meeting, other than Proposal 4, assuming that a quorum is obtained.

What vote is required to approve each item?

We have a majority voting standard for the election of directors in an uncontested election, which is generally defined as an election in which the number of nominees does not exceed the number of directors to be elected at the meeting. Cumulative voting is not permitted, which means that each stockholder may vote no more than the number of shares he or she owns for a single director candidate. Under our majority voting standard, in uncontested elections of directors, such as this election, each director must be elected by the affirmative vote of a majority of the votes cast by the shares present in person or represented by proxy. A "majority of the votes cast" means that the number of votes cast "FOR" a director nominee exceeds the number of votes cast "AGAINST" the nominee. If a director nominee is an incumbent director and does not receive a majority of the votes cast in an uncontested election, that director will continue to serve on the Board as a "holdover" director, but will be subject to our director resignation policy. Additional information concerning our director resignation policy is set forth under the heading "Corporate Governance—Majority Voting Policy."

The table below describes the proposals to be considered at the Annual Meeting and the vote required for each proposal:

Proposal				Vote Required		Effect of Abstentions(1)		Broker Discretionary Voting Allowed?(2)
​	​	​	​	​	​	​	​	​
1		Election of Directors		A nominee for director will be elected if the votes cast "FOR" such nominee exceed the votes cast "AGAINST" such nominee.		No effect Not considered votes cast on this proposal		No Brokers without voting instructions will not be able to vote on this proposal
​	​	​	​	​	​	​	​	​
2		Advisory Vote to Approve Executive Compensation		Non-binding, advisory proposal. We will consider the matter approved if it receives the affirmative vote of a majority of the shares of common stock present at the Annual Meeting in person or by proxy and entitled to vote.vote on this proposal.		Counted as vote Same effect as votes against		No Brokers without voting instructions will not be able to vote on this proposal
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3		Approval of the AmendmentAmendments to the 1997 EmployeeAmended and Restated 2010 Stock PurchaseIncentive Plan		The affirmative "FOR" vote of a majority of the shares present at the Annual Meeting in person or by proxy and entitled to vote.vote on this proposal.		Counted as vote Same effect as votes against		No Brokers without voting instructions will not be able to vote on this proposal
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4		Ratification of the Appointment of Ernst & Young LLP		The affirmative "FOR" vote of a majority of the shares present at the Annual Meeting in person or by proxy and entitled to vote.vote on this proposal.		Counted as vote Same effect as votes against		Yes Brokers without voting instructions will have discretionary authority to vote
​	​	​	​	​	​	​	​	​
5		Stockholder Proposal		Non-binding, advisory proposal. We will consider the matter approved if it receives the affirmative vote of a majority of the shares of common stock present at the Annual Meeting in person or by proxy and entitled to vote.		Counted as vote Same effect as votes against		No Brokers without voting instructions will not be able to vote on this proposal
​	​	​	​	​	​	​	​	​

(1)

As noted above, abstentions will be counted as present for purposes of establishing a quorum at the Annual Meeting.



(2)

Only relevant if you are the beneficial owner of shares held in street name. If you are a stockholder of record and you do not cast your vote, no votes will be cast on your behalf on any of the items of business at the Annual Meeting.

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Frequently Asked Questions

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If any other matter is properly brought before the Annual Meeting, such matter also will be determined by the affirmative vote of a majority of the shares of common stock present at the Annual Meeting in person or by proxy and entitled to vote at the Annual Meeting.

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Frequently Asked Questions

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What is "householding" and how does it affect me?

We have adopted a process for mailing our Annual Report and this Proxy Statement called "householding," which has been approved by the Securities and Exchange Commission. Householding means that stockholders who share the same last name and address will receive only one copy of our Annual Report and this Proxy Statement, unless we receive contrary instructions from any stockholder at that address. We will continue to mail a proxy card to each stockholder of record.

If you prefer to receive multiple copies of our Annual Report and this Proxy Statement at the same address, additional copies will be provided to you upon request. If you are a stockholder of record, you may contact us by writing to Investor Relations Department, Incyte Corporation, 1801 Augustine Cut-Off, Wilmington, Delaware 19803 or by calling (302) 498-6700 and asking for Investor Relations. Eligible stockholders of record receiving multiple copies of our Annual Report and this Proxy Statement can request householding by contacting us in the same manner. We have undertaken householding to reduce printing costs and postage fees, and we encourage you to participate.

If you are a beneficial owner, you may request additional copies of our Annual Report and this Proxy Statement or you may request householding by notifying your broker, bank or other nominee.

How are proxies solicited?

Our employees, officers and directors may solicit proxies. We will pay the cost of printing and mailing proxy materials, and will reimburse brokerage houses and other custodians, nominees and fiduciaries for their reasonable out-of-pocket expenses for forwarding proxy and solicitation material to the owners of our common stock. In addition, we have engaged D.F. King & Co., Inc. to assist us in soliciting proxies for a fee of $12,500, plus out-of-pocket expenses.

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Appendix A

Note Regarding Forward-Looking Statements

Except for the historical information set forth herein, the matters set forth in this proxy statement contain predictions, estimates and other forward-looking statements, including without limitation statements regarding: tafasitamab adding to our near and longer-term growth; our expectations regardingthe expected timing of an FDA approvalsdecision on the sNDA for capmatinib and tafasitamab and the timing thereof;ruxolitinib for stereo-refractory chronic GVHD; our expectations regarding the submission of once-a-day ruxolitinib to the FDA and the timing of any related FDA decision; our applicationexpectations for commercial success of Monjuvi; our expectations with respect to initiation of clinical trials for our and our collaborative partners' drug candidates; our expectations regarding the submission of an NDA for parsaclisib; expectations regarding the timing of an FDA decision on the BLA for retifanlimab; expectations regarding FDA approval and timing thereof of ruxolitinib cream in mild-to-moderate atopic dermatitis and to progressthe sNDA for vitiligo; expectations regarding the timing of regulatory decisions for the application for approval of tafasitamab for diffuse-large B-cell lymphoma in Europe; expectations of our Phase 3 program in vitiligo;collaborative partners regarding regulatory submissions; our expectations regarding our reporting of progress across multiple additional developmentinclusion commitment and increasing opportunities in oncology;for ethnic minorities; our expectation that 2020 will be a transformational year for Incyte;expectations with respect to our environmental disclosures and environmental impact; our expectations regarding our global responsibility initiative; and our beliefs regarding the benefits and effects of our compensation policies and methods.

These forward-looking statements are based on our current expectations and are subject to risks and uncertainties that may cause actual results to differ materially, including: unanticipated delays, including delays as a resultdelays; effects of the COVID-19 outbreakpandemic and measures intended to limit the outbreak;pandemic; determinations made by the FDA and other regulatory authorities, including the possibility that the results of clinical trials are insufficient to meet applicable regulatory standards for approval; unanticipated delays in obtaining results from clinical trials; the ability to enroll sufficient numbers of subjects for our clinical trials; risks relating to further research and development and the results of clinical trials; the effects of market competition; risks related to our ability to achieve our environmental and global responsibility goals, including the costs involved in doing so and changes in regulations, technology and other factors beyond our control; and other risks detailed from time to time in our reports filed with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2019.2020. We disclaim any intent or obligation to update these forward-looking statements.

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Appendix B


INCYTE CORPORATION

AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN

(As Amended and Restated on March 23, 2021)


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				Page
SECTION 1.		ESTABLISHMENT AND PURPOSE.		1
SECTION 2.		DEFINITIONS.		1
(a)		"Affiliate"		1
(b)		"Award"		1
(c)		"Board of Directors"		1
(d)		"Change in Control"		1
(e)		"Code"		2
(f)		"Committee"		2
(g)		"Corporation"		2
(h)		"Consultant"		2
(i)		"Employee"		2
(j)		"Exchange Act"		2
(k)		"Exercise Price"		2
(l)		"Fair Market Value"		2
(m)		"ISO"		2
(n)		"Nonstatutory Option" or "NSO"		2
(o)		"Offeree"		2
(p)		"Option"		2
(q)		"Optionee"		3
(r)		"Outside Director"		3
(s)		"Parent"		3
(t)		"Participant"		3
(u)		"Performance Shares"		3
(v)		"Performance Share Agreement"		3
(w)		"Plan"		3
(x)		"Purchase Price"		3
(y)		"Qualifying Performance Criteria"		3
(z)		"Restricted Share"		3
(aa)		"Restricted Share Agreement"		3
(bb)		"Restricted Stock Unit"		3
(cc)		"Restricted Stock Unit Agreement"		3
(dd)		"SAR"		3
(ee)		"SAR Agreement"		3
(ff)		"Service"		3
(gg)		"Share"		3
(hh)		"Stock"		3
(ii)		"Stock Option Agreement"		4
(jj)		"Subsidiary"		4
(kk)		"Total and Permanent Disability"		4
SECTION 3.		ADMINISTRATION.		4
(a)		Committee Composition		4
(b)		Committee for Non-Officer Grants		4
(c)		Committee Procedures		4
(d)		Committee Responsibilities		4
SECTION 4.		ELIGIBILITY.		5

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(a)		General Rule		5
(b)		Ten-Percent Stockholders		5
(c)		Attribution Rules		5
(d)		Outstanding Stock		5
SECTION 5.		STOCK SUBJECT TO PLAN.		5
(a)		Basic Limitation		5
(b)		Award Limitation		6
(c)		Additional Shares		6
SECTION 6.		RESTRICTED SHARES.		6
(a)		Restricted Share Agreement		6
(b)		Payment for Awards		6
(c)		Vesting		6
(d)		Voting and Dividend Rights		6
(e)		Restrictions on Transfer of Shares		6
SECTION 7.		TERMS AND CONDITIONS OF OPTIONS.		6
(a)		Stock Option Agreement		6
(b)		Number of Shares		7
(c)		Exercise Price		7
(d)		Withholding Taxes		7
(e)		Exercisability and Term		7
(f)		Exercise of Options		7
(g)		Effect of Change in Control		7
(h)		No Rights as a Stockholder		7
(i)		Modification, Extension and Assumption of Options		7
(j)		Restrictions on Transfer of Shares		7
(k)		Buyout Provisions		8
SECTION 8.		PAYMENT FOR SHARES.		8
(a)		General Rule		8
(b)		Surrender of Stock		8
(c)		Services Rendered		8
(d)		Cashless Exercise		8
(e)		Exercise/Pledge		8
(f)		Promissory Note		8
(g)		Other Forms of Payment		8
(h)		Limitations under Applicable Law		8
SECTION 9.		STOCK APPRECIATION RIGHTS.		8
(a)		SAR Agreement		8
(b)		Number of Shares		8
(c)		Exercise Price		8
(d)		Exercisability and Term		9
(e)		Effect of Change in Control		9
(f)		Exercise of SARs		9
(g)		Modification or Assumption of SARs		9
(h)		Buyout Provisions		9
SECTION 10.		RESTRICTED STOCK UNITS.		9
(a)		Restricted Stock Unit Agreement		9
(b)		Payment for Awards		9

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(c)		Vesting Conditions		9
(d)		Voting and Dividend Rights		9
(e)		Form and Time of Settlement of Restricted Stock Units		10
(f)		Death of Recipient		10
(g)		Creditors' Rights		10
SECTION 11.		PERFORMANCE SHARES.		10
(a)		Performance Shares and Performance Share Agreement		10
(b)		Payment for Awards		10
(c)		Terms of Performance Share Awards		10
(d)		Voting and Dividend Rights		11
(e)		Form and Time of Settlement of Performance Shares		11
(f)		Death of Recipient		11
(g)		Creditors' Rights		11
SECTION 12.		AUTOMATIC GRANTS TO OUTSIDE DIRECTORS		11
(a)		Annual Grants		11
(b)		Vesting Conditions		12
(c)		Award Agreement		12
(d)		Additional Grants		12
SECTION 13.		ADJUSTMENT OF SHARES; REORGANIZATIONS.		12
(a)		Adjustments		12
(b)		Dissolution or Liquidation		12
(c)		Reorganizations		12
(d)		Reservation of Rights		13
SECTION 14.		DEFERRAL OF AWARDS.		14
(a)		Committee Powers		14
(b)		General Rules		14
(c)		Code Section 409A		14
SECTION 15.		PAYMENT OF DIRECTOR'S FEES IN SECURITIES		14
(a)		Effective Date		14
(b)		Elections to Receive NSOs, Restricted Shares or Restricted Stock Units		14
(c)		Number and Terms of NSOs, Restricted Shares or Restricted Stock Units		15
SECTION 16.		AWARDS UNDER OTHER PLANS.		15
SECTION 17.		LEGAL AND REGULATORY REQUIREMENTS.		15
SECTION 18.		WITHHOLDING TAXES.		15
(a)		General		15
(b)		Share Withholding		15
SECTION 19.		OTHER PROVISIONS APPLICABLE TO AWARDS.		15
(a)		Transferability		15
(b)		Qualifying Performance Criteria		15
(c)		Vesting Restrictions on Awards		16
SECTION 20.		NO EMPLOYMENT RIGHTS.		16
SECTION 21.		APPLICABLE LAW.		16
SECTION 22.		DURATION AND AMENDMENTS.		16
(a)		Term of the Plan		16
(b)		Right to Amend or Terminate the Plan		16
(c)		Effect of Termination		16

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INCYTE CORPORATION

AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN


Appendix BSECTION 1.ESTABLISHMENT AND PURPOSE.

        

1997 EMPLOYEE STOCK PURCHASE PLAN OF

INCYTE CORPORATION

(As amendedThe Plan was adopted by the Board of Directors on April 14, 2020)

The following constitute the provisions of the 1997 Employee Stock Purchase Plan of Incyte Corporation, asMarch 19, 2010, amended and restated effectiveon March 8, 2011, April 14, 2020.

1.Purpose.18, 2012, and April 17, 2013, amended on January 7, 2014, March 4, 2014, April 22, 2014, March 16, 2016, and March 2, 2018, and further amended and restated on March 18, 2019 and March 23, 2021. The purpose of the Plan is to provide employeespromote the long-term success of the CompanyCorporation and its Designated Subsidiariesthe creation of stockholder value by (a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees, Outside Directors and Consultants with an opportunityexceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to purchase Commonstockholder interests through increased stock ownership. The Plan seeks to achieve this purpose by providing for Awards in the form of Restricted Shares, Restricted Stock of the Company through accumulated payroll deductions.  It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of the Internal Revenue Code of 1986, as amended.  The provisions of the Plan, accordingly, shall be construed so as to extendUnits, Performance Shares, Options (which may constitute ISOs or NSOs) and limit participation in a manner consistent with the requirements of that section of the Code.

SARs.

SECTION 2.Definitions.

DEFINITIONS.    

(a)                                 “Administrator”"Affiliate" shall mean any entity other than a Subsidiary, if the Board Corporation and/or one or more Subsidiaries own not less than 50% of such entity.

        (b)   "Award" shall mean any award of an Option, a committee consisting exclusively of members of the Board that has been appointed by the Board and authorized to administerSAR, Restricted Shares, Restricted Stock Units or Performance Shares under the Plan.

(b)        (c)                                    “"Board” of Directors" shall mean the Board of Directors of the Company.Corporation, as constituted from time to time.

        (d)   "Change in Control" shall mean the occurrence of any of the following events:

(i)

A change in the composition of the Board of Directors, as a result of which fewer than one-half of the incumbent directors are directors who either:



(A)

Had been directors of the Corporation 24 months prior to such change; or



(B)

Were elected, or nominated for election, to the Board of Directors with the affirmative votes of at least a majority of the directors who had been directors of the Corporation 24 months prior to such change and who were still in office at the time of the election or nomination; or



(ii)

Any "person" (as defined below) by the acquisition or aggregation of securities is or becomes the beneficial owner (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Corporation representing 50% or more of the combined voting power of the Corporation's then outstanding securities ordinarily (and apart from rights accruing under special circumstances) having the right to vote at elections of directors (the "Base Capital Stock"); except that any change in the relative beneficial ownership of the Corporation's securities by any person resulting solely from a reduction in the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person's ownership of securities, shall be disregarded until such person increases in any manner, directly or indirectly, such person's beneficial ownership of any securities of the Corporation; or



(iii)

The consummation of a merger or consolidation of the Corporation with or into another entity or any other corporate reorganization, if persons who were not stockholders of the Corporation immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other reorganization 50% or more of the voting power of the outstanding securities of (A) the continuing or surviving entity and (B) any direct or indirect parent corporation of such continuing or surviving entity; or



(iv)

The consummation of the sale, transfer or other disposition of all or substantially all of the assets of the Corporation.

        For purposes of subsection (d)(ii) above, the term "person" shall have the same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act but shall exclude (1) a trustee or other fiduciary holding securities

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under an employee benefit plan maintained by the Corporation or a Parent or Subsidiary and (2) a corporation owned directly or indirectly by the stockholders of the Corporation in substantially the same proportions as their ownership of the Stock.

        Any other provision of this Section 2(d) notwithstanding, a transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Corporation's incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Corporation's securities immediately before such a transaction.

(c)        (e)                                     “Code”"Code" shall mean the Internal Revenue Code of 1986, as amended.

(d)        (f)                                     “Common Stock”"Committee" shall mean the Common Stock, $.001 par value, of the Company.

(e)                                  “Company” shall mean Incyte Corporation.

(f)                                   “Compensation” shall mean all cash salary, wages, commissions and bonuses, but shall not include any imputed income or income arising from the exercise or disposition of equity compensation.

(g)                                  “Effective Date” shall mean April 14, 2020.

(h)                                 “Designated Subsidiary” shall mean any Subsidiary which has beencommittee designated by the Board of Directors to administer the Plan, as described in Section 3 hereof (or in the absence of such designation, the Board of Directors itself).

        (g)   "Corporation" shall mean Incyte Corporation, a Delaware corporation.

        (h)   "Consultant" shall mean a consultant or byadvisor who provides bona fide services to the Corporation, a Parent, a Subsidiary or an executive officerAffiliate as an independent contractor (not including service as a member of the Company, from time to timeBoard of Directors) or a member of the board of directors of a Parent or a Subsidiary, in the Board’s or such officer’s sole discretion, as eligible to participate in the Plan.  A listing of Designated Subsidiaries shall be maintained as Appendix A to the Plan.

each case who is not an Employee.

(i)                                     “Employee”"Employee" shall mean any individual who is an Employeea common-law employee of the CompanyCorporation, a Parent, a Subsidiary or its Designated Subsidiaries for tax purposes whose customary employment is at least twenty (20) hours per week and more than five (5) months in any calendar year.  For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on sick leave or other leave of absence approved by the Company or its Designated Subsidiaries, as applicable.  Where the period of leave exceeds 90 days and the individual’s right to reemployment is not guaranteed either by statute or by contract, the employment relationship shall be deemed to have terminated on the 91st day of such leave.

an Affiliate.

(j)                                    “Enrollment Date”"Exchange Act" shall mean the first daySecurities Exchange Act of each Offering Period.

1934, as amended.

(k)                                 “"Exercise Date”Price" shall mean (a) in the case of an Option, the amount for which one Share may be purchased upon exercise of such Option, as specified in the applicable Stock Option Agreement, and (b) in the case of a SAR, an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value of one Share in determining the amount payable upon exercise of such SAR.

        (l)    "Fair Market Value" with respect to a Share, shall mean the last Trading Daymarket price of each Purchase Period.

(l)                                     “Fair Market Value” shall mean,one Share, determined by the Committee as of any date, the value of Common Stock determined as follows:

(1)

(i)

If the Common Stock is listedwas traded on any established stock exchange other than The NASDAQNasdaq Stock Market, itsthen the Fair Market Value shall be equal to the last reported sale price for the Common Stock reported

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by the applicable composite transactions report for such date by The Nasdaq Stock Market; or



(ii)

If the Stock was not traded on The Nasdaq Stock Market but was traded on another United States stock exchange on the date of determination, as reported on such stock exchange’s website or such other source, including The Wall Street Journal, asin question, then the Administrator deems reliable; or

(2)                                 If the Common Stock is listed on The NASDAQ Stock Market, its Fair Market Value shall be equal to the closing price reported for such date by the applicable composite-transactions report; or



(iii)

If the Stock was traded over-the-counter on the date in question, then the Fair Market Value shall be equal to the last reported sale price reported for the Common Stock quoted on The NASDAQ Stock Market on thesuch date of determination, as reported on www.nasdaq.com or such other source, including The Wall Street Journal, as the Administrator deems reliable;

(3)                                 If the Common Stock is traded over-the-counter and is quoted on the OTC Bulletin Board, its Fair Market Value shall be the last transaction price for the Common Stock quoted by the OTC Bulletin Board onor, if not so reported, shall be equal to the closing sale price quoted for such date of determination, asby OTC Markets Group Inc. or similar organization or, if no last reported on www.otcbb.com or closing sale price is reported, shall be equal to the mean between the last reported representative bid and asked prices quoted for such other source asdate by the Administrator deems reliable;

(4)                                 IfOTC Bulletin Board or, if the Common Stock is traded over-the-counter but is not quoted on the OTC Bulletin Board, itsby OTC Markets Group Inc. or similar organization; or



(iv)

If none of the foregoing provisions is applicable, then the Fair Market Value shall be determined by the meanCommittee in good faith on such basis as it deems appropriate.

        In all cases, the determination of the closing bid and asked prices for the Common Stock on the date of determination, as reported on www.pinksheets.com or such other source as the Administrator deems reliable; or

(5)                                 In the absence of an established market for the Common Stock, the Fair Market Value thereofby the Committee shall be determined in good faith by the Board.

conclusive and binding on all persons.

(m)                             “Offering Periods” shall mean the periods of approximately twenty-four (24) months during which an option granted pursuant to the Plan may be exercised, commencing on the first Trading Day on or after May 1 and November 1 of each year and terminating on the last Trading Day in the periods ending twenty-four months later.  The duration and timing of Offering Periods may be changed pursuant to Section 4 of this Plan.

(n)"ISO"                                 “Plan” shall mean this 1997 Employee Stock Purchase Plan of Incyte Corporation.

(o)                                 “Purchase Price” shall mean an amount equal to 85%employee incentive stock option described in Section 422 of the Fair Market Value of a share of Common Stock on the Enrollment DateCode.

        (n)   "Nonstatutory Option" or on the Exercise Date, whichever is lower.

(p)"NSO"                                 “Purchase Period” shall mean an employee stock option that is not an ISO.

        (o)   "Offeree" shall mean an individual to whom the approximately six-month period commencing after one Exercise DateCommittee has offered the right to acquire Shares under the Plan (other than upon exercise of an Option).

        (p)   "Option" shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares.

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        (q)   "Optionee" shall mean an individual or estate who holds an Option or SAR.

        (r)    "Outside Director" shall mean a member of the Board of Directors who is not an Employee or a Consultant.

        (s)   "Parent" shall mean any corporation or other entity (other than the Corporation) in an unbroken chain of corporations or other entities ending with the next Exercise Date, except that the first Purchase Period of any Offering Period shall commence on the Enrollment Date and end with the next Exercise Date.  The duration and timing of Purchase Periods may be changed pursuant to Section 4 of this Plan.

(q)                                 “Reserves” shall mean the number of shares of Common Stock covered byCorporation, if each option under the Plan which have not yet been exercised and the number of shares of Common Stock which have been authorized for issuance under the Plan but not yet placed under option.

(r)                                    “Subsidiary” shall mean a corporation (as defined in Treasury Regulation section 1.421-1(i)), domestic or foreign, of which not less than 50% of the voting shares are held bycorporations or other entities other than the Company or a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary.

(s)                                   “Trading Day” shall mean a day on which the national securities exchange or stock market on which the Common Stock is principally traded, or, if the Common Stock is not listed or quoted on any securities exchange or stock market, the New York Stock Exchange, is open for trading.

3.Eligibility.

(a)                                 Any Employee who has been employed for one month or more on a given Enrollment Date shall be eligible to participate in the Plan.

(b)                                 Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) to the extent that, immediately after the grant, such Employee (or any other

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person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own stock and/or hold outstanding options to purchase suchCorporation owns stock possessing five percent (5%)50% or more of the total combined voting power or value of all classes of stock in one of the Company, its parentother corporations in such chain. A corporation or any Subsidiary,other entity that attains the status of a Parent on a date after the adoption of the Plan shall be a Parent commencing as of such date.

        (t)    "Participant" shall mean an individual or (ii)estate who holds an Award.

        (u)   "Performance Shares" shall mean a bookkeeping entry representing the Corporation's obligation to deliver Shares (or distribute cash) on a future date in accordance with the provisions of a Performance Share Agreement.

        (v)   "Performance Share Agreement" shall mean the agreement between the Corporation and the recipient of Performance Shares that contains the terms, conditions and restrictions pertaining to such Performance Shares.

        (w)  "Plan" shall mean this Amended and Restated 2010 Stock Incentive Plan of Incyte Corporation, as amended from time to time.

        (x)   "Purchase Price" shall mean the consideration for which one Share may be acquired under the Plan (other than upon exercise of an Option), as specified by the Committee.

        (y)   "Qualifying Performance Criteria" shall have the meaning set forth in Section 19(b).

        (z)   "Restricted Share" shall mean a Share awarded under the Plan and subject to the extentterms, conditions and restrictions set forth in a Restricted Share Agreement.

        (aa) "Restricted Share Agreement" shall mean the agreement between the Corporation and the recipient of a Restricted Share that contains the terms, conditions and restrictions pertaining to such Restricted Shares.

        (bb) "Restricted Stock Unit" shall mean a bookkeeping entry representing the Corporation's obligation to deliver one Share (or distribute cash) on a future date in accordance with the provisions of a Restricted Stock Unit Agreement.

        (cc) "Restricted Stock Unit Agreement" shall mean the agreement between the Corporation and the recipient of a Restricted Stock Unit that contains the terms, conditions and restrictions pertaining to such Restricted Stock Unit.

        (dd) "SAR" shall mean a stock appreciation right granted under the Plan.

        (ee) "SAR Agreement" shall mean the agreement between the Corporation and an Optionee that contains the terms, conditions and restrictions pertaining to his or her rightsSAR.

        (ff)   "Service" shall mean service as an Employee, Consultant or Outside Director, subject to purchase stock under all employee stock purchase planssuch further limitations as may be set forth in the Plan or the applicable Stock Option Agreement, SAR Agreement, Restricted Share Agreement, Restricted Stock Unit Agreement or Performance Share Agreement. Service does not terminate when an Employee goes on a bona fide leave of absence, that was approved by the Corporation in writing, if the terms of the Company, its parent and Subsidiaries accrues atleave provide for continued Service crediting, or when continued Service crediting is required by applicable law. However, for purposes of determining whether an Option is entitled to ISO status, an Employee's employment will be treated as terminating 90 days after such Employee went on leave, unless such Employee's right to return to active work is guaranteed by law or by a rate which exceeds Twenty-Five Thousand Dollars ($25,000) worth of stock (determined atcontract. Service terminates in any event when the fair market value of the shares at the timeapproved leave ends, unless such option is granted) for each calendar year in which such option is outstanding at any time.

4.Offering Periods.Employee immediately returns to active work. The PlanCorporation shall be implemented by consecutive, overlapping Offering Periods with a new Offering Period commencing onentitled to determine in its sole discretion which leaves of absence count toward Service, and when Service terminates for all purposes under the first Trading Day on or after May 1 and November 1 each year, or on such other datesPlan.

        (gg) "Share" shall mean one share of Stock, as the Board shall determine, and continuing thereafter until terminatedadjusted in accordance with Section 19 hereof.  The Board or a committee thereof13 (if applicable).

        (hh) "Stock" shall havemean the power to change the duration of Offering Periods (including the commencement dates thereof) and Purchase Periods thereunder with respect to future offerings without stockholder approval if such change is announced at least five (5) days prior to the scheduled beginningcommon stock of the first Offering PeriodCorporation, $.001 par value per share.

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        (ii)    "Stock Option Agreement" shall mean the agreement between the Corporation and an Optionee that contains the terms, conditions and restrictions pertaining to be affected thereafter.

such Option.

5.        (jj)    Participation.

(a)"Subsidiary"                                 An eligible Employee may become shall mean any corporation, if the Corporation or one or more other Subsidiaries own not less than 50% of the total combined voting power of all classes of outstanding stock of such corporation. A corporation that attains the status of a participant inSubsidiary on a date after the adoption of the Plan by completingshall be considered a subscription agreement authorizing payroll deductions substantially in the formSubsidiary commencing as of Exhibit A to this Plan and filing it with the Company’s stock administrator not later than ten (10) business days prior to the applicable Enrollment Date.

such date.

(b)        (kk)                                  Payroll deductions"Total and Permanent Disability" shall mean that the Optionee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted, or can be expected to last for a participant shall commence on the first payroll following the Enrollment Date and shall end on the last payroll in the Offering Period to which such authorization is applicable, unless sooner terminated by the participant as provided in Section 10 hereof.

6.Payroll Deductions.

(a)                                 At the time a participant files his or her subscription agreement, he or she shall elect to have payroll deductions made on each pay day during the Offering Period in an amountcontinuous period of not less than one percent (1%) and not more than ten percent (10%) of the participant’s Compensation, with such amount designated in integral multiples of one percent (1%); provided, however, that the aggregate of such payroll deductions during any Offering Period shall not exceed ten percent (10%) of the participant’s aggregate Compensation during such Offering Period.

year.

(b)SECTION 3.                                 All payroll deductions made for a participant shall be credited to his or her account under the Plan and shall be withheld in whole percentages only.  A participant may not make any additional payments into such account.

ADMINISTRATION.    

(c)        (a)                                     A participant may discontinue his or her participation in the Plan as provided in Section 10, or may increase or decrease the rate of his or her payroll deductions as provided in this Section 6(c).  A participant may increase the rate of his or her payroll deductions only as of the beginning of a Purchase Period.  Such increase shall take effect with the first payroll following the beginning of the new Purchase Period provided the participant has completed and delivered to the Company’s stock administrator a new subscription agreement authorizing the increase in the payroll deduction rate at least ten (10) business days prior to the beginning of the new Purchase Period.  A participant may decrease the rate of his or her payroll deductions each month.  Any decrease shall become effective as of the first payroll of the next calendar month following the date that the participant completes and delivers to the Company’s stock administrator a new subscription agreement authorizing the decrease in the payroll deduction rate.  However, if the subscription agreement is not received at least five (5) business days prior to such payroll, the decrease shall become effective as of the first payroll of the second succeeding calendar month.  The Administrator may, in its discretion, limit the number of participation rate changes during any Offering Period.  Subject to the foregoing, a participant’s subscription agreement shall remain in effect for successive Offering Periods unless terminated as provided in Section 10 hereof.

(d)Committee Composition                                 Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(b) hereof, a participant’s payroll deductions may be decreased to zero

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percent (0%) at any time during a Purchase Period.  Such a decrease shall not be treated as a withdrawal from the Plan subject to Section 10, unless the participant elects to withdraw pursuant to Section 10.  Payroll deductions shall recommence at the rate provided in such participant’s subscription agreement at the beginning of the first Purchase Period which is scheduled to end in the following calendar year, unless the participant elects to withdraw from the Plan as provided in Section 10 hereof.

(e)                                  At the time the option is exercised, in whole or in part, or at the time some or all of the Common Stock issued under the Plan is disposed of, the participant must make adequate provision for the federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the option or the disposition of the Common Stock.  At any time, the Company or a Designated Subsidiary, as applicable, may, but shall not be obligated to, withhold from the participant’s compensation the amount necessary to meet applicable withholding obligations, including any withholding required to make available any tax deductions or benefits attributable to sale or early disposition of Common Stock by the Employee.

7.Grant of Option.  On the Enrollment Date of each Offering Period, each eligible Employee participating in such Offering Period shall be granted an option to purchase on each Exercise Date during such Offering Period (at the applicable Purchase Price) up to a number of shares of Common Stock determined by dividing such Employee’s payroll deductions accumulated prior to such Exercise Date and retained in the Participant’s account as of the Exercise Date by the applicable Purchase Price; provided that in no event shall an Employee be permitted to purchase during each Purchase Period more than eight thousand (8,000) shares of Common Stock (subject to any adjustment pursuant to Section 18) on the Enrollment Date, and provided further that such purchase shall be subject to the limitations set forth in Sections 3(b) and 13 hereof.  Exercise of the option shall occur as provided in Section 8 hereof, unless the participant has withdrawn pursuant to Section 10 hereof.  The option shall expire on the last day of the Offering Period.

8.Exercise of Option.  Unless a participant withdraws from the Plan as provided in Section 10 hereof, his or her option for the purchase of shares of Common Stock shall be exercised automatically on the Exercise Date, and the maximum number of full shares of Common Stock subject to option shall be purchased for such participant at the applicable Purchase Price with the accumulated payroll deductions in his or her account.  No fractional shares shall be purchased; any payroll deductions accumulated in a participant’s account which are not sufficient to purchase a full share shall be retained in the participant’s account for the subsequent Purchase Period or Offering Period, subject to earlier withdrawal by the participant as provided in Section 10 hereof.  Any other monies left over in a participant’s account after the Exercise Date shall be returned to the participant.  During a participant’s lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or her.

9.Delivery.  As promptly as practicable after each Exercise Date on which a purchase of shares occurs, a share certificate or certificates representing the number of shares of Common Stock so purchased shall be delivered to a brokerage account designated by the Company and kept in such account pursuant to a subscription agreement between each participant and the Company and subject to the conditions described therein which may include a requirement that shares be held and not sold for certain time periods, or the Company shall establish some other means for such participants to receive ownership of the shares.

10.Discontinuation; Withdrawal.

(a)                                 A participant may discontinue his or her participation in the Plan only by withdrawing from the Plan as provided in this Section 10.  A participant may withdraw all but not less than all the payroll deductions credited to his or her account and not yet used to exercise his or her option under the Plan by giving written notice to the Company substantially in the form of Exhibit B to this Plan.  Such notice must be received by the Company no later than 2:00 p.m. Pacific Standard Time on the second Trading Day preceding the Exercise Date.  All of the participant’s payroll deductions credited to his or her account shall be paid to such participant promptly after receipt of notice of withdrawal and such participant’s option for the Offering Period shall be automatically terminated, and no further payroll deductions for the purchase of shares shall be made for such Offering Period.  If a participant withdraws from an Offering Period, payroll deductions shall not resume at the beginning of the succeeding Offering Period unless the participant delivers to the Company a new subscription agreement in accordance with Section 5(a).

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(b)                                 A participant’s withdrawal from an Offering Period shall not have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which commence after the participant withdraws from the Plan, subject to compliance with Section 5(a).

11.Termination of Employment.

Upon a participant’s ceasing to be an Employee, for any reason, he or she shall be deemed to have elected to withdraw from the Plan and the payroll deductions credited to such participant’s account during the Offering Period but not yet used to exercise the option shall be returned to such participant or, in the case of his or her death, to the person or persons entitled thereto under Section 15 hereof, and such participant’s option shall be automatically terminated.

12.Interest.  No interest shall accrue on the payroll deductions of a participant in the Plan.

13.Stock.

(a)                                 The maximum number of shares of Common Stock which shall be made available for sale under the Plan shall be nine million six hundred thousand (9,600,000) shares, subject to adjustment upon changes in capitalization of the Company as provided in Section 18 hereof.  If, on a given Exercise Date, the number of shares with respect to which options are to be exercised exceeds the number of shares then available under the Plan, the Company shall make a pro rata allocation of the shares remaining available for purchase in as uniform a manner as shall be practicable and as it shall determine to be equitable.

(b)                                 The participant shall have no interest or voting right in shares covered by his option until such option has been exercised.

(c)                                  Shares purchased by a participant under the Plan shall be registered in the name of the participant or in the name of the participant and his or her spouse.

14.Administration. The Plan shall be administered by the Administrator.Board of Directors or a Committee appointed by the Board of Directors. The AdministratorCommittee shall consist of two or more members of the Board of Directors. In addition, to the extent required by the Board of Directors, the composition of the Committee shall satisfy (i) such requirements as the Securities and Exchange Commission may establish for administrators acting under plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act; and (ii) such other applicable independence standards imposed by law, regulation or listing standard.

        (b)   Committee for Non-Officer Grants. The Board of Directors may also appoint one or more separate committees of the Board of Directors, each composed of one or more members of the Board of Directors who need not satisfy the requirements of Section 3(a), who may administer the Plan with respect to Employees who are not considered officers or directors of the Corporation under Section 16 of the Exchange Act, may grant Awards under the Plan to such Employees and may determine all terms of such grants. Within the limitations of the preceding sentence, any reference in the Plan to the Committee shall include such committee or committees appointed pursuant to the preceding sentence. To the extent permitted by applicable laws, the Board of Directors may also authorize one or more officers of the Corporation to designate Employees, other than persons subject to Section 16 of the Exchange Act, to receive Awards and to determine the number of such Awards to be received by such Employees.

        (c)   Committee Procedures. The Board of Directors shall designate one of the members of the Committee as chairman. The Committee may hold meetings at such times and places as it shall determine. The acts of a majority of the Committee members present at meetings at which a quorum exists, or acts reduced to or approved in writing (including via email) by all Committee members, shall be valid acts of the Committee.

        (d)   Committee Responsibilities. Subject to the provisions of the Plan, the Committee shall have full authority and exclusive discretionary authoritydiscretion to take the following actions:

(i)

To interpret the Plan and to apply its provisions;



(ii)

To adopt, suchamend or rescind rules, guidelinesprocedures and forms relating to the Plan;



(iii)

To adopt, amend or terminate sub-plans established for the purpose of satisfying applicable foreign laws, including qualifying for preferred tax treatment under applicable foreign tax laws;



(iv)

To authorize any person to execute, on behalf of the Corporation, any instrument required to carry out the purposes of the Plan;



(v)

To determine when Awards are to be granted under the Plan;



(vi)

To select the Offerees and Optionees;



(vii)

To determine the number of Shares to be made subject to each Award;



(viii)

To prescribe the terms and conditions of each Award, including the Exercise Price, the Purchase Price, the performance criteria, the performance period, and the vesting or duration of the Award (including accelerating the vesting of Awards, either at the time of the Award or thereafter, without the consent of the Participant), to determine whether an Option is to be classified as it deems appropriatean ISO or as a Nonstatutory Option, and to implementspecify the provisions of the agreement relating to such Award;

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(ix)

To amend any outstanding Award agreement, subject to applicable legal restrictions and to the consent of the Participant if the Participant's rights or obligations would be materially impaired;



(x)

To prescribe the consideration for the grant of each Award or other right under the Plan to construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan.  Every finding, decision and determination made bysufficiency of such consideration;



(xi)

To determine the Administrator shall, to the full extent permitted by law, be final and binding upon all parties.

15.Designationdisposition of Beneficiary.

(a)                                 A participant may file a written designation of a beneficiary who is to receive any shares and cash, if any, from the participant’s accounteach Award or other right under the Plan in the event of a Participant's divorce or dissolution of marriage;



(xii)

To determine whether Awards under the Plan will be granted in replacement of other grants under an incentive or other compensation plan of an acquired business;



(xiii)

To correct any defect, supply any omission, or reconcile any inconsistency in the Plan or any Award agreement;



(xiv)

To establish or verify the extent of satisfaction of any performance goals or other conditions applicable to the grant, issuance, exercisability, vesting and/or ability to retain any Award; and



(xv)

To take any other actions deemed necessary or advisable for the administration of the Plan.

        Subject to the requirements of applicable law, the Committee may designate persons other than members of the Committee to carry out its responsibilities and may prescribe such participant’s death subsequentconditions and limitations as it may deem appropriate, except that the Committee may not delegate its authority with regard to the selection for participation of or the granting of Awards under the Plan to persons subject to Section 16 of the Exchange Act. All decisions, interpretations and other actions of the Committee shall be final and binding on all Participants, and all persons deriving their rights from a Participant. No member of the Committee shall be liable for any action that he or she has taken or has failed to take in good faith with respect to the Plan or any Award.

SECTION 4.ELIGIBILITY.

        (a)   General Rule. Only Employees shall be eligible for the grant of ISOs. Only Employees, Consultants and Outside Directors shall be eligible for the grant of Restricted Shares, Restricted Stock Units, Performance Shares, Nonstatutory Options or SARs.

        (b)   Ten-Percent Stockholders. An Employee who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Corporation, a Parent or Subsidiary shall not be eligible for the grant of an ISO unless such grant satisfies the requirements of Section 422(c)(5) of the Code.

        (c)   Attribution Rules. For purposes of Section 4(b) above, in determining stock ownership, an Employee shall be deemed to own the stock owned, directly or indirectly, by or for such Employee's brothers, sisters, spouse, ancestors and lineal descendants. Stock owned, directly or indirectly, by or for a corporation, partnership, estate or trust shall be deemed to be owned proportionately by or for its stockholders, partners or beneficiaries.

        (d)   Outstanding Stock. For purposes of Section 4(b) above, "outstanding stock" shall include all stock actually issued and outstanding immediately after the grant but shall not include shares authorized for issuance under outstanding options held by the Employee or by any other person.

SECTION 5.STOCK SUBJECT TO PLAN.

        (a)   Basic Limitation. Shares offered under the Plan shall be authorized but unissued Shares or treasury Shares. The aggregate number of Shares authorized for issuance as Awards under the Plan shall not exceed 53,953,475. The limitation of this Section 5(a) shall be subject to adjustment pursuant to Section 13. Any Shares issued in connection with Options and SARs shall be counted against this limitation as one Share for every one Share so issued. Any Shares issued in connection with Awards other than Options and SARs shall be counted against this limitation as 2.0 Shares for every one Share so issued. The number of Shares that are subject to Awards outstanding at any time under the Plan shall not exceed the number of Shares which then remain available for issuance under the Plan. The Corporation, during the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan. Shares tendered or withheld in full or partial payment of the Exercise DatePrice of an Award or to satisfy tax withholding obligations in connection with an Award, and Shares issued under an Award that are purchased by the Corporation on which the option is exercised but prioropen market, shall not be available for future issuance under the Plan.

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        (b)   Award Limitation. Subject to delivery to such participantthe provisions of such shares and cash.  In addition, a participantSection 13, no Participant may file a written designation of a beneficiary who is to receive any cash from the participant’s accountAwards under the Plan in any calendar year that relate to more than 800,000 Shares.

        (c)   Additional Shares. If an Award expires or becomes unexercisable without having been exercised in full, or, with respect to Restricted Shares, Restricted Stock Units or Performance Shares, is forfeited to or repurchased by the eventCorporation due to failure to vest, the unpurchased Shares (or for Awards other than Options or SARs the forfeited or repurchased Shares) which were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated). With respect to SARs, when a stock settled SAR is exercised, all of the Shares subject to the SAR shall be counted against the number of Shares available for future grant or sale under the Plan, regardless of the number of Shares actually issued pursuant to such exercise. Shares that have actually been issued under the Plan under any Award will not be returned to the Plan and will not become available for future distribution under the Plan; provided, however, that if Shares issued pursuant to Awards of Restricted Shares, Restricted Stock Units or Performance Shares are repurchased by the Corporation or are forfeited to the Corporation, such Shares will become available for future grant under the Plan. To the extent an Award under the Plan is paid out in cash rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance under the Plan.

SECTION 6.RESTRICTED SHARES.

        (a)   Restricted Share Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Share Agreement between the recipient and the Corporation. Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Share Agreements entered into under the Plan need not be identical.

        (b)   Payment for Awards. Restricted Shares may be sold or awarded under the Plan for such consideration as the Committee may determine, including cash, cash equivalents, full-recourse promissory notes, past services and future services.

        (c)   Vesting. Each Award of Restricted Shares shall vest over a minimum period of three years of the Participant's Service, subject to Section 19(c). Vesting shall occur, in full or in installments, upon satisfaction of such participant’s death prior to exercise ofService requirement and such other conditions specified in the option.  If a participant is married and the designated beneficiary is not the spouse, spousal consent shall be requiredRestricted Share Agreement. A Restricted Share Agreement may provide for such designation to be effective.

(b)                                 Such designation of beneficiary may be changed by the participant at any time by written notice.  Inaccelerated vesting in the event of the Participant's death, of a participantTotal and in the absence of a beneficiary validly designated under the Plan who is livingPermanent Disability or retirement or other events. The Committee may determine, at the time of granting Restricted Shares or thereafter, that all or part of such participant’s death,Restricted Shares shall become vested upon a Change in Control. Except as may be set forth in a Restricted Share Agreement, vesting of the CompanyRestricted Shares shall deliver such shares and/orcease on the termination of the Participant's Service.

        (d)   Voting and Dividend Rights. The holders of Restricted Shares awarded under the Plan shall have the same voting, dividend and other rights as the Corporation's other stockholders. A Restricted Share Agreement, however, may require that the holders of Restricted Shares invest any cash dividends received in additional Restricted Shares. Such additional Restricted Shares shall be subject to the executorsame conditions and restrictions as the Award with respect to which the dividends were paid.

        (e)   Restrictions on Transfer of Shares. Restricted Shares shall be subject to such rights of repurchase, rights of first refusal or administratorother restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Restricted Share Agreement and shall apply in addition to any general restrictions that may apply to all holders of Shares.

SECTION 7.TERMS AND CONDITIONS OF OPTIONS.

        (a)   Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Corporation. Such Option shall be subject to all applicable terms and conditions of the estatePlan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Committee deems appropriate for inclusion in a Stock Option Agreement. The Stock Option Agreement shall specify whether the Option is an ISO or an NSO. The provisions of the participant, or if no such executor or administrator has been appointed (tovarious Stock Option Agreements entered into under the knowledgePlan need not be identical. Options may be granted in consideration of a reduction in the Optionee's other compensation.

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        (b)   Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option (subject to adjustment in accordance with Section 13).

        (c)   Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an ISO shall not be less than 100% of the Company)Fair Market Value of a Share on the date of grant, except as otherwise provided in Section 4(b), and the Exercise Price of an NSO shall not be less 100% of the Fair Market Value of a Share on the date of grant. Subject to the foregoing in this Section 7(c), the Company,Exercise Price under any Option shall be determined by the Committee at its sole discretion. The Exercise Price shall be payable in its discretion, may deliver such shares and/or cash to the spouse or to any one or more dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.

forms described in Section 8.

16.        (d)   TransferabilityWithholding Taxes. Neither payroll deductions credited toAs a participant’s account nor any rights with regardcondition to the exercise of an optionOption, the Optionee shall make such arrangements as the Corporation may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such exercise. The Optionee shall also make such arrangements as the Corporation may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with the disposition of Shares acquired by exercising an Option.

        (e)   Exercisability and Term. Each Stock Option Agreement shall specify the date when all or any installment of the Option is to receive sharesbecome exercisable, subject to Section 12(c) in the case of automatic Option grants to Outside Directors and to Section 19(c) for all other Option grants. The Stock Option Agreement shall also specify the term of the Option; provided, however, that the term of an ISO shall in no event exceed 10 years from the date of grant (five years for Employees described in Section 4(b)). A Stock Option Agreement may provide for accelerated exercisability in the event of the Optionee's death, Total and Permanent Disability or retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee's Service. Options may be awarded in combination with SARs, and such an Award may provide that the Options will not be exercisable unless the related SARs are forfeited. Subject to the foregoing in this Section 7(e), the Committee at its sole discretion shall determine when all or any installment of an Option is to become exercisable and when an Option is to expire.

        (f)    Exercise of Options. Each Stock Option Agreement shall set forth the extent to which the Optionee shall have the right to exercise the Option following termination of the Optionee's Service with the Corporation and its Subsidiaries, and the right to exercise the Option of any executors or administrators of the Optionee's estate or any person who has acquired such Option(s) directly from the Optionee by bequest or inheritance. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service.

        (g)   Effect of Change in Control. The Committee may determine, at the time of granting an Option or thereafter, that such Option shall become exercisable as to all or part of the Shares subject to such Option upon a Change in Control.

        (h)   No Rights as a Stockholder. An Optionee, or a permitted transferee of an Optionee, shall have no rights as a stockholder of the Corporation with respect to any Shares covered by the Option until the date of the issuance of the Shares underlying the Option upon a valid exercise thereof.

        (i)    Modification, Extension and Assumption of Options. Within the limitations of the Plan, the Committee may modify, extend or assume outstanding Options or may accept the cancellation of outstanding Options (whether granted by the Corporation or another issuer) in return for the grant of new Options for the same or a different number of Shares and at the same or a different Exercise Price; provided, however, that the Committee may not modify outstanding Options to lower the Exercise Price nor may the Committee assume or accept the cancellation of outstanding Options in return for the grant of new Options or SARs with a lower Exercise Price, unless such action has been approved by the Corporation's stockholders. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, materially impair such Optionee's rights or increase his or her obligations under such Option.

        (j)    Restrictions on Transfer of Shares. Any Shares issued upon exercise of an Option shall be subject to such special forfeiture conditions, rights of repurchase, rights of first refusal and other transfer restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in addition to any general restrictions that may apply to all holders of Shares.

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        (k)   Buyout Provisions. Except with respect to an Option whose Exercise Price exceeds the Fair Market Value of the Shares subject to the Option, the Committee may at any time (a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case at such time and based upon such terms and conditions as the Committee shall establish.

SECTION 8.PAYMENT FOR SHARES.

        (a)   General Rule. The entire Exercise Price or Purchase Price of Shares issued under the Plan shall be payable in lawful money of the United States of America at the time when such Shares are purchased, except as provided in Section 8(b) through Section 8(g) below.

        (b)   Surrender of Stock. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by surrendering, or attesting to the ownership of, Shares which have already been owned by the Optionee or his representative. Such Shares shall be valued at their Fair Market Value on the date when the new Shares are purchased under the Plan. The Optionee shall not surrender, or attest to the ownership of, Shares in payment of the Exercise Price if such action would cause the Corporation to recognize compensation expense (or additional compensation expense) with respect to the Option for financial reporting purposes.

        (c)   Services Rendered. At the discretion of the Committee, Shares may be awarded under the Plan in consideration of services rendered to the Corporation or a Subsidiary prior to the award. If Shares are awarded without the payment of a Purchase Price in cash, the Committee shall make a determination (at the time of the award) of the value of the services rendered by the Offeree and the sufficiency of the consideration to meet the requirements of Section 6(b).

        (d)   Cashless Exercise. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker to sell Shares and to deliver all or part of the sale proceeds to the Corporation in payment of the aggregate Exercise Price.

        (e)   Exercise/Pledge. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker or lender to pledge Shares, as security for a loan, and to deliver all or part of the loan proceeds to the Corporation in payment of the aggregate Exercise Price.

        (f)    Promissory Note. To the extent that a Stock Option Agreement or Restricted Share Agreement so provides, payment may be made all or in part by delivering (on a form prescribed by the Corporation) a full-recourse promissory note.

        (g)   Other Forms of Payment. To the extent that a Stock Option Agreement or Restricted Share Agreement so provides, payment may be made in any other form that is consistent with applicable laws, regulations and rules.

        (h)   Limitations under Applicable Law. Notwithstanding anything herein or in a Stock Option Agreement or Restricted Share Agreement to the contrary, payment may not be made in any form that is unlawful, as determined by the Committee in its sole discretion.

SECTION 9.STOCK APPRECIATION RIGHTS.

        (a)   SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by a SAR Agreement between the Optionee and the Corporation. Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical. SARs may be granted in consideration of a reduction in the Optionee's other compensation.

        (b)   Number of Shares. Each SAR Agreement shall specify the number of Shares to which the SAR pertains and shall provide for the adjustment of such number in accordance with Section 13.

        (c)   Exercise Price. Each SAR Agreement shall specify the Exercise Price, which shall not be less than 100% of the Fair Market Value of a Share on the date of grant. A SAR Agreement may specify an Exercise Price that varies in accordance with a predetermined formula while the SAR is outstanding.

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        (d)   Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable, subject to Section 19(c). The SAR Agreement shall also specify the term of the SAR. A SAR Agreement may provide for accelerated exercisability in the event of the Optionee's death, Total and Permanent Disability or retirement or other events. Except as may be set forth in a SAR Agreement, vesting of the SAR shall cease on the termination of the Participant's Service. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options are forfeited. A SAR may be included in an ISO only at the time of grant but may be included in an NSO at the time of grant or thereafter. A SAR granted under the Plan may provide that it will be assigned, transferred, pledged or

exercisable only in the event of a Change in Control.

B-        (e)   5Effect of Change in Control. The Committee may determine, at the time of granting a SAR or thereafter, that such SAR shall become fully exercisable as to all Shares subject to such SAR upon a Change in Control.

        (f)    Exercise of SARs. Upon exercise of a SAR, the Optionee (or any person having the right to exercise the SAR after his or her death) shall receive from the Corporation (a) Shares, (b) cash or (c) a combination of Shares and cash, as the Committee shall determine. The amount of cash and/or the Fair Market Value of Shares received upon exercise of SARs shall, in the aggregate, be equal to the amount by which the Fair Market Value (on the date of surrender) of the Shares subject to the SARs exceeds the Exercise Price.

        (g)   Modification or Assumption of SARs. Within the limitations of the Plan, the Committee may modify, extend or assume outstanding SARs or may accept the cancellation of outstanding SARs (whether granted by the Corporation or by another issuer) in return for the grant of new SARs for the same or a different number of Shares and at the same or a different exercise price; provided, however, that the Committee may not modify outstanding SARs to lower the Exercise Price nor may the Committee assume or accept the cancellation of outstanding SARs in return for the grant of new SARs or Options with a lower Exercise Price, unless such action has been approved by the Corporation's stockholders. The foregoing notwithstanding, no modification of a SAR shall, without the consent of the holder, materially impair his or her rights or obligations under such SAR.

        (h)   Buyout Provisions. Except with respect to a SAR whose Exercise Price exceeds the Fair Market Value of the Shares subject to the SAR, the Committee may at any time (a) offer to buy out for a payment in cash or cash equivalents a SAR previously granted, or (b) authorize an Optionee to elect to cash out a SAR previously granted, in either case at such time and based upon such terms and conditions as the Committee shall establish.

SECTION 10.RESTRICTED STOCK UNITS.

        (a)   Restricted Stock Unit Agreement. Each grant of Restricted Stock Units under the Plan shall be evidenced by a Restricted Stock Unit Agreement between the recipient and the Corporation. Such Restricted Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Stock Unit Agreements entered into under the Plan need not be identical. Restricted Stock Units may be granted in consideration of a reduction in the recipient's other compensation.

        (b)   Payment for Awards. To the extent that an Award is granted in the form of Restricted Stock Units, no cash consideration shall be required of the Award recipients.

        (c)   Vesting Conditions. Each Award of Restricted Stock Units shall vest over a minimum period of three years of the Participant's Service, subject to Section 19(c). Vesting shall occur, in full or in installments, upon satisfaction of such Service requirement and such other conditions specified in the Restricted Stock Unit Agreement. A Restricted Stock Unit Agreement may provide for accelerated vesting in the event of the Participant's death, Total and Permanent Disability or retirement or other events. The Committee may determine, at the time of granting Restricted Stock Units or thereafter, that all or part of such Restricted Stock Units shall become vested in the event that a Change in Control occurs with respect to the Corporation. Except as may be set forth in a Restricted Stock Unit Agreement, vesting of the Restricted Stock Units shall cease on the termination of the Participant's Service.

        (d)   Voting and Dividend Rights. The holders of Restricted Stock Units shall have no voting rights. Prior to settlement or forfeiture, any Restricted Stock Unit awarded under the Plan may, at the Committee's discretion,

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carry with it a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on one Share while the Restricted Stock Unit is outstanding. Dividend equivalents may be converted into additional Restricted Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form of Shares, or in a combination of both. Prior to distribution, any dividend equivalents which are not paid shall be subject to the same conditions and restrictions (including without limitation, any forfeiture conditions) as the Restricted Stock Units to which they attach.

        (e)   Form and Time of Settlement of Restricted Stock Units. Settlement of vested Restricted Stock Units may be made in the form of (a) cash, (b) Shares or (c) any combination of both, as determined by the Committee. The actual number of Restricted Stock Units eligible for settlement may be larger or smaller than the number included in the original Award, based on predetermined performance factors. Methods of converting Restricted Stock Units into cash may include (without limitation) a method based on the average Fair Market Value of Shares over a series of trading days. A Restricted Stock Unit Agreement may provide that vested Restricted Stock Units may be settled in a lump sum or in installments. A Restricted Stock Unit Agreement may provide that the distribution may occur or commence when all vesting conditions applicable to the Restricted Stock Units have been satisfied or have lapsed, or it may be deferred to any later date. The amount of a deferred distribution may be increased by an interest factor or by dividend equivalents. Until an Award of Restricted Stock Units is settled, the number of such Restricted Stock Units shall be subject to adjustment pursuant to Section 13.

        (f)    Death of Recipient. Any Restricted Stock Units that become payable after the recipient's death shall be distributed to the recipient's beneficiary or beneficiaries. Each recipient of Restricted Stock Units under the Plan shall designate one or more beneficiaries for this purpose by filing the prescribed form with the Corporation. A beneficiary designation may be changed by filing the prescribed form with the Corporation at any time before the Award recipient's death. If no beneficiary was designated or if no designated beneficiary survives the Award recipient, then any Restricted Stock Units that become payable after the recipient's death shall be distributed to the recipient's estate.

        (g)   Creditors' Rights. A holder of Restricted Stock Units shall have no rights other than those of a general creditor of the Corporation. Restricted Stock Units represent an unfunded and unsecured obligation of the Corporation, subject to the terms and conditions of the applicable Restricted Stock Unit Agreement.

SECTION 11.PERFORMANCE SHARES.

        (a)   Performance Shares and Performance Share Agreement. Each grant of Performance Shares under the Plan shall be evidenced by a Performance Share Agreement between the recipient and the Corporation. Such Performance Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Performance Share Agreements entered into under the Plan need not be identical. Performance Shares may be granted in consideration of a reduction in the recipient's other compensation.

        (b)   Payment for Awards. To the extent that an Award is granted in the form of Performance Shares, no cash consideration shall be required of the Award recipients.

        (c)   Terms of Performance Share Awards. The Committee shall determine the terms of Performance Share Awards, which may include subjecting such Awards to the attainment of "Qualifying Performance Criteria" as described in Section 19(b) of the Plan. Each Performance Share Agreement shall set forth the number of Shares subject to such Performance Share Award, the Qualifying Performance Criteria and the performance period. Subject to Section 19(c), the Participant shall be required to perform Service for the entire performance period (or if less, one year) in order to be eligible to receive payment under the Performance Share Award. Except as otherwise disposedprovided in the Performance Share Agreement, the Performance Share Award shall terminate upon the termination of the Participant's Service. Prior to settlement, the Committee shall determine the extent to which Performance Shares have been earned. Performance periods may overlap and the holders may participate simultaneously with respect to Performance Shares Awards that are subject to different performance periods and different Qualifying Performance Criteria. The number of Shares may be fixed or may vary in accordance with such Qualifying Performance Criteria as may be determined by the Committee. A Performance Share Agreement may provide for accelerated vesting in the event of the Participant's death, Total and Permanent Disability or retirement or other events. The Committee may determine, at the time of granting

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Performance Share Awards or thereafter, that all or part of the Performance Shares shall become vested upon a Change in Control.

        (d)   Voting and Dividend Rights. The holders of Performance Shares shall have no voting rights with respect to such Performance Shares. Prior to settlement or forfeiture, any way (otherPerformance Share awarded under the Plan may, at the Committee's discretion, carry with it a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on one Share while the Performance Share is outstanding. Dividend equivalents may be converted into additional Performance Shares. Settlement of dividend equivalents may be made in the form of cash, in the form of Shares, or in a combination of both. Prior to distribution, any dividend equivalents which are not paid shall be subject to the same conditions and restrictions (including without limitation, any forfeiture conditions) as the Performance Shares to which they attach.

        (e)   Form and Time of Settlement of Performance Shares. Settlement of Performance Shares may be made in the form of (a) cash, (b) Shares or (c) any combination of both, as determined by the Committee and set forth in the Performance Share Agreements. The actual number of Performance Shares eligible for settlement may be larger or smaller than the number included in the original Award, based on the Qualifying Performance Criteria. Methods of converting Performance Shares into cash may include (without limitation) a method based on the average Fair Market Value of Shares over a series of trading days. A Performance Share Agreement may provide that Performance Shares may be settled in a lump sum or in installments. A Performance Share Agreement may provide that the distribution may occur or commence when all vesting conditions applicable to the Performance Shares have been satisfied or have lapsed, or it may be deferred to any later date. The amount of a deferred distribution may be increased by an interest factor or by dividend equivalents. Until an Award of Performance Shares is settled, the number of such Performance Shares shall be subject to adjustment pursuant to Section 13.

        (f)    Death of Recipient. Any Performance Share Award that becomes payable after the recipient's death shall be distributed to the recipient's beneficiary or beneficiaries. Each recipient of a Performance Share Award under the Plan shall designate one or more beneficiaries for this purpose by filing the prescribed form with the Corporation. A beneficiary designation may be changed by filing the prescribed form with the Corporation at any time before the Award recipient's death. If no beneficiary was designated or if no designated beneficiary survives the Award recipient, then any Performance Share Award that becomes payable after the recipient's death shall be distributed to the recipient's estate.

        (g)   Creditors' Rights. A holder of Performance Shares shall have no rights other than those of a general creditor of the Corporation. Performance Shares represent an unfunded and unsecured obligation of the Corporation, subject to the terms and conditions of the applicable Performance Share Agreement.

SECTION 12.AUTOMATIC GRANTS TO OUTSIDE DIRECTORS

        (a)   Annual Grants. On the first business day following the conclusion of each regular annual meeting of the Corporation's stockholders beginning with the 2021 annual meeting, each Outside Director who will continue serving as a member of the lawsBoard of descentDirectors thereafter shall receive Awards having an aggregate grant date fair value of $500,000 or such lesser dollar amount as shall be designated by the Board of Directors (the "Applicable Dollar Amount"), of which 60% shall be Nonstatutory Options and distribution40% shall be Restricted Stock Units. The number of Shares subject to such Nonstatutory Options shall be determined by dividing 60% of the Applicable Dollar Amount by the Black-Scholes value of one such Option, based on the average closing sale price for the Stock on The Nasdaq Global Select Market (or such other United States stock exchange or over-the-counter market on which the Stock is then traded) over the 30 consecutive trading days concluding with the last trading day prior to the grant date, rounded down to the nearest whole Share. The number of Shares subject to such Restricted Stock Units shall be determined by dividing 40% of the Applicable Dollar Amount by such 30 trading day average price, rounded down to the nearest whole Share. Each Outside Director who is not initially elected at a regular annual meeting of the Corporation's stockholders in 2021 or a subsequent year shall receive Awards within 10 business days of his or her election having an aggregate grant date fair value of a pro rata portion of the Applicable Dollar Amount, such pro rata portion to be determined based on the number of full calendar months remaining from the date of election until the next regular annual meeting of the Corporation's stockholders divided by 12. Such Outside Director's Awards shall consist of 60% Nonstatutory Options and 40% Restricted Stock Units determined in a manner similar to that used for the

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annual Awards to Outside Directors following the conclusion of the regular annual meeting of the Corporation's stockholders, except that the values of the Awards to such Outside Director shall be determined as of the grant date of such Awards.

        (b)   Vesting Conditions. Except as set forth in the next succeeding sentence and in the last sentence of this Subsection (b), each Award granted under Subsection (a) of this Section 12 shall become vested and (in the case of Options) exercisable in full on the first anniversary of the date of grant; provided, however, that each such Award shall become vested and exercisable in full immediately prior to the next regular annual meeting of the Corporation's stockholders following such date of grant in the event such meeting occurs prior to such first anniversary date. Except as set forth in the last sentence of this Subsection (b), each Award granted under Subsection (a) to Outside Directors who were not initially elected at a regular annual meeting of the Corporation's stockholders shall become vested and exercisable in full immediately prior to the next regular annual meeting of the Corporation's stockholders following the date of grant. Notwithstanding the foregoing, each Award granted under Subsection (a) above that is outstanding shall become vested and exercisable in full in the event that a Change in Control occurs with respect to the Corporation.

        (c)   Award Agreement. All grants to Outside Directors under this Section 12 shall be evidenced by a Stock Option Agreement or Restricted Stock Unit Agreement, as applicable, between the Outside Director and the Corporation. Such Awards shall be subject to all applicable terms and conditions of the Plan and may be subject to other terms and conditions that are not inconsistent with the Plan and that the Board of Directors deems appropriate for inclusion in a Stock Option Agreement or Restricted Stock Unit Agreement, as applicable.

        (d)   Additional Grants. Notwithstanding the foregoing provisions of this Section 12, the Board of Directors may from time to time increase the amount of the annual grant of Awards under Section 12(a) to any Outside Director to the extent the Board of Directors determines necessary to induce an Outside Director to become or remain an Outside Director or to reflect an increase in the duties or responsibilities of the Outside Director, subject to all terms and conditions of the Plan otherwise applicable to grants of Awards. Each such Award may become vested and exercisable on the same schedule as set forth in Section 12(b) or on a different schedule, as the Board of Directors in each case shall determine.

SECTION 13.ADJUSTMENT OF SHARES; REORGANIZATIONS.

        (a)   Adjustments. In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a declaration of a dividend payable in a form other than Shares in an amount that has a material effect on the Fair Market Value of Shares, a combination or consolidation of the outstanding Stock (by reclassification or otherwise) into a lesser number of Shares, a recapitalization, a spin-off or a similar occurrence, the Committee shall make appropriate and equitable adjustments in:

(i)

The numerical limitations set forth in Sections 5(a) and (b);



(ii)

The number of Shares covered by all outstanding Awards; and



(iii)

The Exercise Price under each outstanding Option and SAR.

        (b)   Dissolution or Liquidation. To the extent not previously exercised or settled, all outstanding Awards shall terminate immediately prior to the dissolution or liquidation of the Corporation.

        (c)   Reorganizations. In the event the Corporation is party to a merger or other reorganization, subject to any vesting acceleration provisions in an Award agreement, outstanding Awards shall be treated in the manner provided in the agreement of merger or reorganization (including as the same may be amended). Such agreement shall not be required to treat all Awards or individual types of Awards similarly in the merger or reorganization; provided, however, that such agreement shall provide for one of the following with respect to all outstanding Awards (as applicable):

(i)

The continuation of the outstanding Award by the Corporation, if the Corporation is a surviving corporation;



(ii)

The assumption of the outstanding Award by the surviving corporation or its parent or subsidiary;

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(iii)

The substitution by the surviving corporation or its parent or subsidiary of its own award for the outstanding Award;



(iv)

Full exercisability or vesting and accelerated expiration of the outstanding Award, followed by the cancellation of such Award;



(v)

The cancellation of an outstanding Option or SAR and a payment to the Optionee equal to the excess of (i) the Fair Market Value of the Shares subject to such Option or SAR (whether or not such Option or SARs is then exercisable or such Shares are then vested) as of the closing date of such merger or reorganization over (ii) its aggregate Exercise Price. Such payment may be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent with a Fair Market Value equal to the required amount. Such payment may be made in installments and may be deferred until the date or dates when such Option or SAR would have become exercisable or such Shares would have vested. Such payment may be subject to vesting based on the Optionee's continuing Service, provided that the vesting schedule shall not be less favorable to the Optionee than the schedule under which such Option or SAR would have become exercisable or such Shares would have vested (including any vesting acceleration provisions). If the Exercise Price of the Shares subject to any Option or SAR exceeds the Fair Market Value of the Shares subject thereto, then such Option or SAR may be cancelled without making a payment to the Optionee with respect thereto. For purposes of this Subsection (v), the Fair Market Value of any security shall be determined without regard to any vesting conditions that may apply to such security;



(vi)

The cancellation of an outstanding Restricted Stock Unit and a payment to the Participant equal to the Fair Market Value of the Shares subject to such Restricted Stock Unit (whether or not such Restricted Stock Unit is then vested) as of the closing date of such merger or other reorganization. Such payment may be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent with a Fair Market Value equal to the required amount. Such payment may be made in installments and may be deferred until the date or dates when such Restricted Stock Unit would have vested. Such payment may be subject to vesting based on the Participant's continuing Service, provided that the vesting schedule shall not be less favorable to the Participant than the schedule under which such Restricted Stock Unit would have vested (including any vesting acceleration provisions). For purposes of this Subsection (vi), the Fair Market Value of any security shall be determined without regard to any vesting conditions that may apply to such security; or



(vii)

The cancellation of an outstanding Performance Share Award and a payment to the Participant equal to the Fair Market Value of the target Shares subject to such Performance Share Award (whether or not such Performance Share Award is then vested) as of the closing date of such merger or reorganization. Such payment may be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent with a Fair Market Value equal to the required amount. Such payment may be made in installments and may be deferred until the date or dates when such Performance Share Award would have settled. Such payment may be subject to the Participant's continuing Service and the achievement of performance criteria that are based on the performance criteria set forth in the Performance Share Award, with such changes that may necessary to give effect to the merger or other reorganization, provided that the performance period shall not be less favorable to the Participant than the performance period under such Performance Share Award (including any vesting acceleration provisions). For purposes of this Subsection (vii), the Fair Market Value of any security shall be determined without regard to any vesting conditions that may apply to such security.

        (d)   Reservation of Rights. Except as provided in Section 15 hereof)13, a Participant shall have no rights by reason of the participant.  Any such attempt at assignment, transfer, pledgeoccurrence of (or relating to) any merger or other disposition shall be without effect, exceptreorganization, any transaction described in Section 13(a), or any transaction that the Company may treat such act asresults in an election to withdraw funds from an Offering Period in accordance with Section 10 hereof.

17.Use of Funds.  All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions.

18.Adjustments Upon Changes in Capitalization, Dissolution, Liquidation, Merger or Asset Sale.

(a)Changes in Capitalization.  Subject to any required action by the stockholders of the Company, the Reserves, the maximum number of shares each participant may purchase each Purchase Period (pursuant to Section 7), as well as the Purchase Price per share and the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassificationof any class of the Common Stock, or any other increase or decrease in the number of outstanding shares of Common Stock effected without receipt of considerationCorporation. Any issue by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration”.  Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive.  Except as expressly provided herein, no issuance by the CompanyCorporation of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, Awards. The grant of an Award pursuant to the numberPlan shall not affect in any way the right or price of shares of Common Stock subject to an option.

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Corporation to effect any merger or other reorganization, any transaction described in Section 13(a), any dissolution or liquidation of the Company,Corporation or any transaction that results in an increase or decrease in the Offering Periods shall terminate immediately priornumber of shares of stock of any class of the Corporation.

SECTION 14.DEFERRAL OF AWARDS.

        (a)   Committee Powers. The Committee in its sole discretion may permit or require a Participant to:

(i)

Have cash that otherwise would be paid to such Participant as a result of the consummationexercise of a SAR or the settlement of Restricted Stock Units or Performance Shares credited to a deferred compensation account established for such proposed action, unless otherwise providedParticipant by the Board.

(c)Merger or Asset Sale.  InCommittee as an entry on the event ofCorporation's books;



(ii)

Have Shares that otherwise would be delivered to such Participant as a proposed sale of all or substantially allresult of the assetsexercise of an Option or SAR converted into an equal number of Restricted Stock Units; or



(iii)

Have Shares that otherwise would be delivered to such Participant as a result of the Company,exercise of an Option or SAR or the mergersettlement of Restricted Stock Units or Performance Shares converted into amounts credited to a deferred compensation account established for such Participant by the Company with or into another corporation, limited liability company or other entity, the Plan shall terminate upon the date of the consummation of such transaction and any Purchase Periods then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”) and any Offering Periods then in progress shall endCommittee as an entry on the New Exercise Date, unless the plan of merger, consolidation or reorganization provides otherwise.  The New Exercise DateCorporation's books. Such amounts shall be determined by reference to the Board in its sole discretion; provided, thatFair Market Value of such Shares as of the New Exercise Datedate when they otherwise would have been delivered to such Participant.

        (b)   General Rules. A deferred compensation account established under this Section 14 may be credited with interest or other forms of investment return, as determined by the Committee. A Participant for whom such an account is established shall have no rights other than those of a general creditor of the Corporation. Such an account shall represent an unfunded and unsecured obligation of the Corporation and shall be beforesubject to the dateterms and conditions of the Company’s proposed saleapplicable agreement between such Participant and the Corporation. If the deferral or merger.  The Administrator shall notify each participant in writing, at least ten (10) business days prior toconversion of Awards is permitted or required, the New Exercise Date, that the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 10 hereof.  The Plan shall in no event be construed to restrict the Company’s right to undertake any liquidation, dissolution, merger, consolidation or other reorganization.

19.Amendment or Termination.

(a)                                 The Board may at any time and for any reason terminate or amend the Plan.  Except as provided in Section 18 hereof, no such termination can affect options previously granted, provided that an Offering Period may be terminated by the Board on any Exercise Date if the Board determines that the termination of the Plan is in the best interests of the Company and its stockholders.  Except as provided in Section 18 hereof, no amendment may make any change in any option theretofore granted which adversely affects the rights of any participant.  To the extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company shall obtain stockholder approval in such a manner and to such a degree as required.

(b)                                 Without stockholder consent and without regard to whether any participant rights may be considered to have been “adversely affected,” the Administrator shall be entitled to change the Offering Periods or Purchase Periods, limit the frequency and/or number of changes in the amount withheld during an Offering Period,

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establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as the Administrator determinesCommittee in its sole discretion advisable whichmay establish rules, procedures and forms pertaining to such Awards, including (without limitation) the settlement of deferred compensation accounts established under this Section 14.

        (c)   Code Section 409A. Notwithstanding the foregoing, any deferrals of Award payments in respect of an Award held by a Participant who is subject to United States federal income tax shall be subject to the applicable requirements of Section 409A of the Code and the Treasury Regulations promulgated thereunder. To the extent that the Committee determines that any Award granted under the Plan is subject to Section 409A of the Code, the Award agreement evidencing such Award shall incorporate the terms and conditions required by Section 409A of the Code. In the event that following the grant of an Award the Committee determines that such Award may be subject to Section 409A of the Code, the Committee may adopt such amendments to the applicable Award agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Committee determines are consistentnecessary or appropriate to (a) exempt the Award from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the Plan.

requirements of Section 409A of the Code and the Treasury Regulations promulgated thereunder and thereby avoid the application of any penalty taxes under such Section.

20.SECTION 15.PAYMENT OF DIRECTOR'S FEES IN SECURITIES    Notices

        (a)   Effective Date. All notices or other communications by a participant to the Company under or in connection with the PlanNo provision of this Section 15 shall be deemedeffective unless and until the Board has determined to have been duly given when receivedimplement such provision.

        (b)   Elections to Receive NSOs, Restricted Shares or Restricted Stock Units. An Outside Director may elect to receive his or her annual retainer payment and/or meeting fees from the Corporation in the form specifiedof cash, NSOs, Restricted Shares or Restricted Stock Units, or a combination thereof, as determined by the Company atBoard. Such NSOs, Restricted Shares or Restricted Stock Units shall be issued under the location,Plan. An election under this Section 15 shall be filed with the Corporation on the prescribed form. For the avoidance of doubt, any Awards issued to an Outside Director pursuant to this Section 15 shall not be counted towards the limit on annual Awards to the Outside Director prescribed by Section 12(a).

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        (c)   Number and Terms of NSOs, Restricted Shares or Restricted Stock Units. The number of NSOs, Restricted Shares or Restricted Stock Units to be granted to Outside Directors in lieu of annual retainers and meeting fees that would otherwise be paid in cash shall be calculated in a manner determined by the person, designatedBoard. The term of such NSOs, Restricted Shares or Restricted Stock Units shall also be determined by the CompanyBoard.

SECTION 16.AWARDS UNDER OTHER PLANS.

        The Corporation may grant awards under other plans or programs. Such awards may be settled in the form of Shares issued under this Plan. Such Shares shall be treated for all purposes under the receipt thereof.

Plan like Shares issued in settlement of Restricted Stock Units and shall, when issued, reduce the number of Shares available under Section 5.

21.SECTION 17.LEGAL AND REGULATORY REQUIREMENTS.    Conditions Upon Issuance of Shares.

        Shares shall not be issued with respect to an optionunder the Plan unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall complyShares complies with (or is exempt from) all applicable provisionsrequirements of law, domestic or foreign, including without limitation,(without limitation) the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations and the requirementsregulations of any stock exchange or stock market uponon which the sharesCorporation's securities may then be listed, and the Corporation has obtained the approval or favorable ruling from any governmental agency which the Corporation determines is necessary or advisable. The Corporation shall not be liable to a Participant or other persons as to: (a) the non-issuance or sale of Shares as to which the Corporation has been unable to obtain from any regulatory body having jurisdiction the authority deemed by the Corporation's counsel to be necessary to the lawful issuance and sale of any Shares under the Plan; and (b) any tax consequences expected, but not realized, by any Participant or other person due to the receipt, exercise or settlement of any Award granted under the Plan.

SECTION 18.WITHHOLDING TAXES.

        (a)   General. To the extent required by applicable federal, state, local or foreign law, a Participant or his or her successor shall make arrangements satisfactory to the Corporation for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Corporation shall not be required to issue any Shares or make any cash payment under the Plan until such obligations are satisfied.

        (b)   Share Withholding. The Corporation may permit a Participant to satisfy all or part of his or her withholding or income tax obligations by having the Corporation withhold all or a portion of any Shares that otherwise would be issued to him or her or by surrendering all or a portion of any Shares that he or she previously acquired. Such Shares shall be furthervalued at their Fair Market Value on the date when taxes otherwise would be withheld in cash. In no event may a Participant have Shares withheld that would otherwise be issued to him or her in excess of the number necessary to satisfy the legally required minimum tax withholding.

SECTION 19.OTHER PROVISIONS APPLICABLE TO AWARDS.

        (a)   Transferability. Unless the agreement evidencing an Award (or an amendment thereto authorized by the Committee) expressly provides otherwise, no Award granted under this Plan, nor any interest in such Award, may be assigned, conveyed, gifted, pledged, hypothecated or otherwise transferred in any manner (prior to the vesting and lapse of any and all restrictions applicable to Shares issued under such Award), other than by will, by designation of a beneficiary (which shall be a family member or family trust) delivered to the Company, or by the laws of descent and distribution; provided, however, that an ISO may be transferred or assigned only to the extent consistent with Section 422 of the Code. Notwithstanding the foregoing, in no event may a Participant sell or otherwise transfer for value any Award granted under the Plan or any interest in such an Award, other than Shares issued to the Participant that are no longer subject to vesting or other restrictions under the terms of the applicable Award. Any purported sale, assignment, conveyance, gift, pledge, hypothecation or transfer in violation of this Section 19(a) shall be void and unenforceable against the Corporation.

        (b)   Qualifying Performance Criteria. The number of Shares or other benefits granted, issued, retainable and/or vested under an Award may be made subject to the approvalattainment of counselperformance goals for a specified period of time relating to one or more of the following performance criteria, either individually, alternatively or in any combination, applied to either the Corporation as a whole or to a business unit or Subsidiary, either individually, alternatively or in any combination, and measured either annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, to previous years' or quarter's results or to

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the performance of one or more comparable companies or a designated comparison group or index, in each case as specified by the Committee in the Award: (a) cash flow (including operating cash flow), (b) earnings per share, (c) (i) earnings before interest, (ii) earnings before interest and taxes, (iii) earnings before interest, taxes and depreciation, (iv) earnings before interest, taxes, depreciation and amortization, or (iv) earnings before any combination of such expenses or deductions, (d) return on equity, (e) total stockholder return, (f) share price performance, (g) return on capital, (h) return on assets or net assets, (i) revenue, (j) income or net income, (k) operating income or net operating income, (l) operating profit or net operating profit, (m) operating margin or profit margin (including as a percentage of revenue), (n) return on operating revenue, (o) return on invested capital, (p) market segment shares, (q) economic profit, (r) achievement of target levels of discovery and/or development of products, including but not limited to regulatory achievements, (s) achievement of research and development objectives, or (t) formation of joint ventures, strategic relationships or other commercial, research or development collaborations ("Qualifying Performance Criteria"). The Committee may appropriately adjust any evaluation of performance under a Qualifying Performance Criteria to exclude any of the following events that occur during a performance period: (i) asset write-downs, (ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results, (iv) accruals for reorganization and restructuring programs and (v) any extraordinary, nonrecurring items to be disclosed in the Corporation's financial statements (including footnotes) for the Companyapplicable year and/or in management's discussion and analysis of the financial condition and results of operations appearing in the Corporation's annual report to stockholders for the applicable year. If applicable, the Committee shall determine the Qualifying Performance Criteria and any permitted exclusions pursuant to the preceding sentence not later than the 90th day of the performance period, and shall determine and certify, for each Participant (or for all Participants), the extent to which the Qualifying Performance Criteria have been met. The Committee may not in any event increase the amount of compensation payable under the Plan upon the attainment of a Qualifying Performance Criteria to a Participant who is a "covered employee" within the meaning of Section 162(m) of the Code.

        (c)   Vesting Restrictions on Awards. Except with respect to such compliance.

As a condition to the exercisemaximum of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by anyfive percent (5%) of the aforementioned applicable provisionstotal number of law.

22.No Rights As An Employee.  Nothing inShares authorized under the Plan or, in the case of automatic grants to Outside Directors, as otherwise permitted under Section 12(b), no Award may vest sooner than twelve (12) months from the date of grant.

SECTION 20.NO EMPLOYMENT RIGHTS.

        No provision of the Plan, nor any rightAward granted under the Plan, shall confer upon a participantbe construed to give any person any right to continue inbecome, to be treated as, or to remain an Employee. The Corporation and its Subsidiaries reserve the employ of the Company or any Designated Subsidiary for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company or any Designated Subsidiary or of a participant, which rights are hereby expressly reserved by each,right to terminate his or her employmentany person's Service at any time and for any reason, with or without cause.notice.

SECTION 21.APPLICABLE LAW.

        The Plan shall be construed and enforced in accordance with the law of the State of Delaware, without reference to its principles of conflicts of law.

23.SECTION 22.DURATION AND AMENDMENTS.    

        (a)   Term of the Plan. The Plan, as amendedset forth herein, shall terminate automatically on June 30, 2026 and restated,may be terminated on any earlier date pursuant to Subsection (b) below.

        (b)   Right to Amend or Terminate the Plan. The Board of Directors may amend or terminate the Plan at any time and from time to time. Rights and obligations under any Award granted before amendment of the Plan shall become effective uponnot be materially impaired by such amendment, except with consent of the Effective Date.  ItParticipant. An amendment of the Plan shall continue until terminated under Section 19 hereof.

24.Automatic Transferbe subject to Low Price Offering Period.  Tothe approval of the Corporation's stockholders only to the extent permittedrequired by any applicable laws, regulations or stock exchange rules, ifrules.

        (c)   Effect of Termination. No Awards shall be granted under the Fair Market ValuePlan after the termination thereof. The termination of the Common Stock on any Exercise Date in an Offering Period is lower thanPlan shall not affect Awards previously granted under the Fair Market Value of the Common Stock on the Enrollment Date of such Offering Period, then all participants in such Offering Period shall be automatically withdrawn from such Offering Period immediately after the exercise of their option on such Exercise Date and automatically re-enrolled in the immediately following Offering Period as of the first day thereof.Plan.

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Your vote matters – here’s how to vote! You may vote online or by phone instead of mailing this card. Votes submitted electronically must be received by 11:59pm, (EDT), on May 25, 20202021 Online Go to www.envisionreports.com/INCY or scan the QR code — login details are located in the shaded bar below. Phone Call toll free 1-800-652-VOTE (8683) within the USA, US territories and Canada Save paper, time and money! Sign up for electronic delivery at Using a black ink pen, mark your votes with an X as shown in this example. www.envisionreports.com/INCY Please do not write outside the designated areas. q IF VOTING BY MAIL, SIGN, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. q + 1. Election of Directors: For Against Abstain For Against Abstain For Against Abstain 01 - Julian C. Baker 02 - Jean-Jacques Bienaimé 03 - Paul J. Clancy 04 - Wendy L. Dixon 05 - Jacqualyn A. Fouse 06 - Paul A. Friedman 07 - Edmund P. Harrigan 0807 - Katherine A. High 0908 - Hervé Hoppenot For Against Abstain For Against Abstain 2. To approve,Approve, on a non-binding, advisory basis, the compensation of the Company's named executive officers. 3. To approve an amendmentApprove amendments to the Company's 1997 EmployeeCompany’s Amended and Restated 2010 Stock PurchaseIncentive Plan. 4. To ratifyRatify the appointment of Ernst & Young LLP as the Company'sCompany’s independent registered public accounting firm for 2020.2021. 5. To vote on a stockholder proposal, if properly presented, described in more detail in the proxy statement. 6. In their discretion, upon such other business as may properly come before the meeting or any adjournment thereof. Please sign exactly as name(s) appears hereon. Joint owners should each sign. When signing as attorney, executor, administrator, corporate officer, trustee, guardian, or custodian, please give full title. Date (mm/dd/yyyy) — Please print date below. Signature 1 — Please keep signature within the box. Signature 2 — Please keep signature within the box. + 9 48 3 B M 038NCC03ET2B B Authorized Signatures — This section must be completed for your vote to count. Please date and sign below. A Proposals — The Board of Directors recommends a vote FOR all the nominees listed and FOR Proposals 2-4 and AGAINST Proposal 5. 20202-4. 2021 Annual Meeting Proxy Card



 

Important notice regarding the Internet availability of proxy materials for the Annual Meeting of Stockholders. The Proxy Statement and the Annual Report on Form 10-K for the year ended December 31, 20192020 are available at http://www.envisionreports.com/incy q IF VOTING BY MAIL, SIGN, DETACH AND RETURN THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. q + PROXY SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS For Annual Meeting — May 26, 20202021 HERVÉ HOPPENOT, CHRISTIANA STAMOULIS, and MARIA E. PASQUALE, or any of them, each with the power of substitution, are hereby authorized to represent as proxies and vote with respect to the proposals set forth below and in the discretion of such proxies on all other matters that may be properly presented for action all shares of stock of Incyte Corporation (the “Company”) the undersigned is entitled to vote at the Annual Meeting of Stockholders of the Company to be held at the Company’s offices at 1815 Augustine Cut-Off,Cut-off, Wilmington, Delaware 19803, on Tuesday,Wednesday, May 26, 20202021 at 1:00 p.m., Eastern Daylight Time, or at any postponement or adjournment thereof, and instructs said proxies to vote as follows: Shares represented by this proxy will be voted as directed by the stockholder. If no such directions are indicated, the proxies will have authority to vote FOR each director nominee and FOR items 2, 3 and 4 and AGAINST item 5 and in accordance with the discretion of the proxies on any other matters as may properly come before the Annual Meeting. (continued and to be signed on reverse side) Change of Address — Please print new address below. Comments — Please print your comments below. + C Non-Voting Items Proxy – INCYTE CORPORATION Small steps make an impact. Help the environment by consenting to receive electronic delivery, sign up at www.envisionreports.com/INCY