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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. )

Filed by the RegistrantFiled by a Partyparty other than the Registrant     


CHECK THE APPROPRIATE BOX:
 Preliminary Proxy Statement
Confidential, Forfor Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
Definitive Proxy Statement
 Definitive Additional Materials
Soliciting Material Under Rule 14a-12under §240.14a-12

Gilead Sciences, Inc.

(Name of Registrant as Specified In Its Charter)

(Name of Person(s) Filing Proxy Statement, if Other Thanother than the Registrant)

PAYMENT OF FILING FEE (CHECK THE APPROPRIATE BOX)ALL BOXES THAT APPLY):
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Fee paid previously with preliminary materials
Fee computed on table belowin exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11.0-11


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2023 Notice of
Annual Meeting of
Stockholders and
Proxy Statement


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OUR VISION

1) Title of each class of securities to which transaction applies:

To create a healthier world for all people

2) Aggregate number of securities to which transaction applies:
3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
4) Proposed maximum aggregate value of transaction:
5) Total fee paid:
Fee paid previously with preliminary materials:
Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the form or schedule and the date of its filing.
1) Amount previously paid:
2) Form, Schedule or Registration Statement No.:
3) Filing Party:
4) Date Filed:

OUR MISSION

 

To discover, develop and deliver
innovative therapeutics for people
with life-threatening diseases

OUR CORE VALUES

IntegrityInclusionExcellenceTeamworkAccountability
Doing What’s RightEncouraging DiversityBeing Your BestWorking TogetherTaking Personal Responsibility
  
 2020 Notice of
Annual Meeting of
Stockholders and
Proxy Statement
  

OUR CORPORATE STRATEGY

 

LONG-TERM AMBITIONS

TableBring 10+
Transformative
Therapies to
Patients by 2030
Be the Biotech
Employer and
Partner
of ContentsChoice
Deliver Shareholder
Value in a Sustainable,
Responsible Manner

STRATEGIC PRIORITIES
(Refreshed in 2023)

Maximize Near-Term Revenue Growth

CREATING A BETTER, HEALTHIER WORLD.Maximize Impact of Long-Acting HIV Therapies

Through researchExpand and development, including a wide range of clinical studies, we’re creating possible the next generation of life-changing therapeutics. We believe the impossible is not impossible. It simply hasn’t been achieved yet.

For more than 30 years, Gilead’s research program has achieved advancements that were once thought impossible. As we bring new products into clinical development, our goal remains the same – to discover, develop and commercialize therapeutics that transform care for people around the world.

Deliver on Oncology Programs

Beyond the Science: Reaching Patients GloballyChampion an Environment of Inclusion and Employee Growth

Gilead is committedRemove Barriers to providing access to people who need our medicines around the world. Our commitment to patients goes beyond the science: We innovate with the goal of eliminating barriers to healthcare. In the United States, we do this through our patient assistance programs and drug donations. Globally, we workSpeed in nearly 140 resource-challenged countries, using a variety of approaches to increase disease awareness, engage partners strategically and deliver medicines efficiently.

We have operations in more than

35 countries

worldwide with approximately

12,000 employees

across six continents.Execution

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Message

Letter from our Chairman
and Chief Executive Officer

March 24, 2020

Dear Stockholders:

For more than three decades, Gilead has pursued and achieved breakthroughs once thought impossible in medicine with the goal of creating a healthier world for all people. We helped transform care for people living with HIV, delivered four curative treatments for hepatitis C in less than four years and continued to grow our portfolio of investigational compounds. We continue to be inspired by the opportunity to address unmet medical needs for people living with life-threatening diseases around the world.

These tremendous accomplishments, our promise and potential are the reasons I joined Gilead. As I reflect back on my first year asOur Chairman and Chief Executive Officer and look forward to our future, I’m excited with the progress we’ve made and the opportunities that lie ahead.

For Gilead’s next chapter, we are focused on building on our strength in antiviral medicine, as well as our growing expertise in immunomodulation. We believe this has enormous potential to impact human health as we expand into new areas, such as inflammatory diseases and oncology. We are committed to continuing to advance scientific innovation and position Gilead to deliver strong results.

Business Advancements

Looking back, 2019 was an impactful year for Gilead. A few areas to highlight include:

HIV Franchise: We achieved sales of $16.4 billion across our HIV franchise in 2019, an increase of 12% from 2018, reaching another all-time high. This continued growth was driven by the demand for Biktarvy® and the increase in the number of individuals taking our products for PrEP.
Drug Approvals and Geographic Expansion: We made notable advancements in securing HIV and HCV drug approvals in key geographies, including approval of Descovy for PrEP® in the United States, approval of Biktarvy and Vosevi®in China and approval of Biktarvy and Epclusa® in Japan. We also had four products (Vemlidy®, Epclusa, Harvoni® and Genvoya®) listed on China’s National Reimbursement Drug List effective in January 2020.
Galapagos Partnership: We expanded our partnership with Galapagos with a transformative 10-year global research and development collaboration. This strategic partnership reflects Gilead’s intent to grow our innovation network through diverse and creative partnerships and enables us to gain access to an innovative portfolio of compounds.
Filgotinib: We submitted filings for regulatory approval of filgotinib for the treatment of rheumatoid arthritis in the United States (under priority review by the FDA), Europe and Japan.
Immuno-Oncology: Our Kite operating company submitted KTE-X19 for regulatory approval in the U.S. and Europe as a treatment for relapsed or refractory mantle cell lymphoma. If approved, Kite will be the first company with two cell therapies on the market. In addition to cell therapy, we continued to grow our research portfolio across complementary immuno-oncology platforms.

Future Growth

As we look ahead, we believe these three pillars will drive Gilead’s continued growth:

Durable Core Business: We are building on our strong base in antivirals and our leadership in HIV. That includes continuing to focus on hepatitis C through branded medicines and authorized generics and growing our cell therapy business. We are also focused on driving growth in new geographies, such as China.
Existing Pipeline Opportunities: Beyond our core business, our pipeline at the end of 2019 included 40 clinical stage programs, four of which have Breakthrough Therapy designation from the FDA. Our transformative collaboration with Galapagos has the potential to double our research footprint and will enable us to build our inflammation portfolio for the future. We have the financial strength to continue to supplement our pipeline through business development. We completed 27 strategic collaborations and equity investments in 2019, and we recently announced an agreement to acquire Forty Seven (subject to customary closing conditions), which we expect to strengthen our immuno-oncology research and development portfolio.
Corporate Strategy to Drive Additional Growth: Our corporate strategy encompasses three key ambitions: to bring 10+ transformative therapies to patients in the next 10 years; to be the biotech employer and partner of choice; and to deliver shareholder value in a sustainable, responsible manner.

Daniel P. O’Day

Chairman and

Chief Executive Officer

“For Gilead’s next

chapter, we are

focused on building

on our strength in

antiviral medicine,

as well as our

growing expertise in

immunomodulation.”


Dear Stockholders,

2020 Proxy Statement1

Leadership Team

OneOn behalf of my immediate priorities in taking on this role was to work with our Board of Directors to ensure we have an outstanding team of executives to shape Gilead’s long-term success. By bringing together a combination of long-tenured leaders and those from other companies, we have strategically created a senior leadership team that provides Gilead with deep expertise and diversity of thought across a range of specialties, geographies and therapeutic areas. The new appointments to the executive bench include Andrew D. Dickinson, Executive Vice President and Chief Financial Officer; Jyoti K. Mehra, Executive Vice President, Human Resources; Johanna Mercier, Chief Commercial Officer; Merdad V. Parsey, M.D., Ph.D., Chief Medical Officer; and Christi L. Shaw, Chief Executive Officer of Kite.

Stockholder Engagement

As a continuation of our robust stockholder engagement program, in 2019, our senior leadership team and our Lead Independent Director were honored to meet several of Gilead’s largest stockholders in order to gain critical insights about our company’s strategy, governance and compensation practices, ongoing sustainability initiatives and potential risks. Stockholder feedback will always be valuable to our business, and I was pleased to share and review this constructive feedback with our Board of Directors.

On behalf of our entire Board of Directors and approximately 12,000 employees, thank you for your investment in Gilead. With your support, we are making important progress in our work to make the world a healthier place for all people. 2022 was a remarkable year for Gilead. The efforts we have been undertaking to transform the company became fully evident with a return to growth and significant advances in our research and development. As a result, we are approaching 2023 from a very strong position, with a diverse and sustainable business and the potential to help more people and communities than ever before.

Our strategy to build a more diverse and sustainable business includes expanding on Gilead’s long-standing leadership in antiviral therapies. We achieved an important milestone in this respect with the first approvals of Sunlenca in 2022. Sunlenca is a first-of-its-kind, long-acting HIV treatment with twice-yearly dosing approved for a subset of heavily treatment-experienced adults and with the potential for use in multiple other options for HIV prevention and treatment. We believe that long-acting HIV therapy could be the most important tool yet in helping to end the HIV epidemic. In 2022, the demand for our once-daily oral HIV treatment, Biktarvy, continued to grow, and we made further progress with research on a potential cure.

Our antiviral therapy for COVID-19, Veklury, remains a critical tool in managing the pandemic. In the U.S., for example, Veklury is used in more than half of all hospitalized patients who are treated for COVID-19, and it has now reached nearly 13 million people around the world. Most of these patients were treated in the developing world through our voluntary licensing programs. We also are looking to expand treatment options for COVID-19 and recently launched two pivotal patient studies of an oral antiviral.

As we continue to build on Gilead’s legacy in antivirals, we also are rapidly expanding our portfolio of cancer therapies. The demand for Trodelvy is increasing across the multiple countries where it is already available. Having already been available for one type of breast cancer since 2020, Trodelvy was recently approved for a second type of breast cancer in patients at a very advanced stage of the disease. Trodelvy is being studied across most major cancer types as part of our comprehensive research and development program in oncology. New regulatory approvals drove increased demand for our cell therapies in 2022, reinforcing our leadership in this transformative cancer treatment.

Gilead’s diversification strategy also includes expansion into inflammatory diseases where there is a significant need for new treatment options. We took an important step toward accelerating our progress in this area in 2022 with the acquisition of a UK-based biotechnology company, MiroBio.

Today, Gilead employs more than 17,000 people worldwide. As we grow, we maintain a strong focus on inclusion and diversity and the entrepreneurial spirit that has contributed to our success. In 2022, as we marked the 35th anniversary of the company’s founding, we reflected on how we had started out with just a handful of people in a small group of buildings in Foster City, California. Today, Foster City remains our global headquarters as we continue to expand in a responsible and sustainable manner. In 2022, this expansion included a new wellbeing center and the Gilead Park, as well as plans for a new research facility. These investments represent what Gilead values most – our people and our ability to advance innovative science.

As we consider the next 35 years for Gilead, our aim is to help increasing numbers of patients and communities worldwide. We will do this through scientific innovation and by supporting organizations that aim to address stigma, discrimination and other factors that stand in the way of health equity. Gilead will also continue to place a strong emphasis on responsible corporate citizenship by giving back to the communities in which we live and work.

I encourage you to readlearn more about our 2019 performance2022 highlights in the Year in Review,our inaugural ESG Report, which will be available for download at www.gilead.com in early May 2020.April 2023.

In 2023, we look forward to continuing our positive momentum so that we can make an even greater impact on global health. Thank you for your support as we continue the journey together.

Sincerely,

Daniel P. O’Day


Chairman and Chief Executive Officer

A Word of Appreciation2023 Proxy Statement

As John F. Cogan, Ph.D., and Gayle E. Wilson prepare to retire from their roles on Gilead’s Board of Directors in May, I’d like to thank them for their tremendous contributions to our organization. I would also like to thank George P. Shultz, Ph.D., whose term as Director Emeritus is ending. Dr. Cogan has served as a Director since 2005, has been our Lead Independent Director since 2013, and currently serves as a member of our Audit Committee and our Scientific Committee. Ms. Wilson joined Gilead’s Board in 2001; she currently serves as Chair of the Nominating and Corporate Governance Committee, and as a member of the Scientific Committee. Dr. Shultz was a member of our Board from 1996 to 2005, and has served as Director Emeritus since 2006. Dr. Cogan, Ms. Wilson and Dr. Shultz have each been instrumental in helping to shape Gilead into the company it is today.

1

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Letter from Our Lead Independent Director

Dear Stockholders,

Gilead employees gathered on the Foster City campus to commemorate the company’s 35th anniversary last June. There was much to celebrate. Since its founding, Gilead has transformed the treatment and prevention of HIV, delivered a cure for hepatitis C, become the global leader in cell therapy and improved the lives of millions of patients with our breakthrough therapies. And while the company has grown and evolved, we have remained steadfast in our commitment to invest in world-class science, drive access to our medicines and address societal barriers to care.

I am proud to be part of an organization with a deeply rooted dedication to building a better world for all. One of my responsibilities as Gilead’s Lead Independent Director is to represent the interests of stockholders, and I welcome opportunities to connect with you and to learn more about your priorities. In 2022, my discussions with fellow stockholders centered on Gilead’s transformative journey and the strong connections between our corporate strategy and our environmental, social and governance (ESG) initiatives. As a result of these conversations, I was able to relay to the full Board stockholder perspectives on our governance practices, Board composition and recommended actions to take in response to last year’s stockholder proposals, as further described in this Proxy Statement.

In 2022, the Board of Directors worked closely with management to continue Gilead’s evolution as a more sustainable and diversified business while fulfilling our responsibilities as a strong corporate citizen. It was a standout year for the company, marked by continued leadership in virology, great momentum in our oncology business and outstanding financial performance. We are in a strong position to further accelerate our progress in areas where we have the most potential to transform current care options for patients: in long-acting HIV therapies and breast, lung and blood cancer treatments.

At the core of Gilead’s success is our commitment to our people. We launched a number of programs to support our employees and to create an inclusive workplace that is representative of the diverse patients and communities that we serve. We continue to build internal and external pipelines for diverse talent, made steady progress toward ambitious employee representation goals and exceeded our diverse supplier and Black-owned supplier spend targets. We are proud to report that 85% of employee survey respondents said they believe Gilead has demonstrated a commitment to inclusion and diversity.

We also made meaningful strides to advance health equity, break down barriers to care and support organizations that share our mission. In HIV, for example, we supported underrepresented and disproportionately impacted communities through programs such as the COMPASS Initiative, a 10-year partnership with community organizations to help combat the epidemic in the Southern United States. And we were proud to be named the number one philanthropic funder of HIV-related programs by Funders Concerned About AIDS in 2022.

In recognition of our work to expand health equity, increase access to our medicines and champion environmental stewardship, we were named as one of the most sustainable pharmaceutical companies by the Dow Jones Sustainability World Index. I encourage you to learn more about these efforts in our ESG Report, which will be published on Gilead’s website in April.

Throughout its history, Gilead has set and achieved bold ambitions – and we will continue to work to improve the health of the world for generations to come while delivering value to stockholders. On behalf of all nine of us on the Board, I thank you for your investment in Gilead.

Sincerely,

Kevin E. Lofton
Lead Independent Director

  
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Notice of Annual Meeting of Stockholders

When
WHEN
Wednesday,
May 6, 2020, 3, 2023

10:00 a.m.
Pacific Daylight Time
 Where
Westin San Francisco Airport,
1 Old Bayshore Highway,
Millbrae, California 94030WHERE
Via Webcast at www.virtualshareholdermeeting.com/GILD2023
Record Date
Friday, RECORD DATE
Wednesday,
March 13, 202015, 2023
      

ProposalItems of BusinessBoard
Recommendation
1
Proposal 1  FOR
To elect the eightnine director nominees named in this Proxy Statement to serve for the next year and until their successors are elected and qualified.FOR
each Director
director nominee
2Proposal 2 FOR
To ratify the selection of Ernst & Young LLP by the Audit Committee of the Board of Directors as theour independent registered public accounting firm of Gilead for the fiscal year ending December 31, 2020.2023.FOR
3Proposal 3 FOR
To approve, on an advisory basis, the compensation of our Named Executive Officers as presented in the Proxy Statement.FOR
4Proposal 4 To approve, on an advisory basis, the frequency of future advisory stockholder votes on executive compensation.AGAINST1 YEAR
5To approve an amendment and restatement of the Gilead Sciences, Inc. Employee Stock Purchase Plan and the Gilead Sciences, Inc. International Employee Stock Purchase Plan.FOR
6To vote on a stockholder proposal, if properly presented at the meeting, requesting that the Board adoptimplement a policy thatprocess to nominate at least one more candidate than the Chairpersonnumber of the Board of Directorsdirectors to be an independent director.elected.AGAINST
7Proposal 5 AGAINST
To vote on a stockholder proposal, if properly presented at the meeting, requesting that the Board eliminateamend the ownership threshold for stockholderscompany governing documents to requestgive street name shares and non-street name shares an equal right to call a record date to take action by written consent.special stockholder meeting.AGAINST
8To vote on a stockholder proposal, if properly presented at the meeting, requesting a report on a process by which the impact of extended patent exclusivities on product access would be considered in deciding whether to apply for secondary and tertiary patents.AGAINST
To transact such other business as may properly come before the meeting or any adjournment or postponement thereof. 

Voting

Holders of Gilead common stock at the close of business on the Record Date are entitled to vote. Whether or not you expect to attend the Annual Meeting, please grant a proxy to vote by one of the following procedures as promptly as possible in order to ensure your representation at the Annual Meeting. For more specific voting instructions, including how to access a list of registered stockholders entitled to vote at the Annual Meeting, please refer to “Questions and Answers” in this Proxy Statement.

PRIOR TO THE MEETING:DURING THE MEETING:
   

By Order of the Board of Directors,

Brett A. Pletcher
Corporate Secretary
Foster City, California

March 24, 2020

Voting    BY INTERNET*    BY TELEPHONE*    BY MAIL    BY INTERNET*
Holders of Gilead common stock at the close of business on the Record Date are entitled to vote. Whether or not you expect to attend the Annual Meeting, please grant a proxy to vote byone of the following procedures as promptly as possible in order to ensure your representation at the Annual Meeting. For more specific voting instructions, please refer to “Questions and Answers” in this Proxy Statement.
www.proxyvote.com

By Internet*

www.proxyvote.com

By Telephone*

+1-800-690-6903


(for stockholders of record)

By Mail

Complete, date, sign and return the proxy card mailed to you (if you request one) or voting instruction card (if sent by your nominee)

www.virtualshareholdermeeting.com/GILD2023
  

In Person

Holders of our common stock at the close of business on the Record Date and holders of a valid legal proxy for the Annual Meeting are entitled to attend and vote at the meeting in person

  
*You will need to provide the control number that appears on your Notice of Internet Availability of Proxy Materials. Voting by telephone and internet closes on May 5, 20202, 2023 at 11:59 p.m., Eastern Daylight Time.


We are actively monitoring*    You will need to provide the public health and travel safety concerns relating to the coronavirus (COVID-19) and the advisories or mandatescontrol number that federal, state and local governments, and related agencies, may issue. In the event it is not possible or advisable to hold the Annual Meeting as currently planned, we will publicly announce any additional or alternative arrangements for the meetingappears on our Investors page athttp://investors.gilead.com/annual-meeting, which may include a change in venue or holding the meeting solely by meansyour Notice of remote communication. If we decide to hold the Annual Meeting solely by meansInternet Availability of remote communication, the meeting will occur at the above date and time via live audio webcast, and you or your proxyholder will be able to participate, vote and examine our stockholder list by visitingeast.virtualshareholdermeeting.com/GILD2020and using your 16-digit control number. If you are planning to attend the Annual Meeting, please check our Investors page the week of the meeting. As always, we encourage you to vote your shares prior to the Annual Meeting.
2020 Proxy Statement3
Table of Contents

Table of Contents

Overview5
2019 Business Highlights5
Corporate Governance Highlights9
Executive Compensation Highlights13Materials.
  

Deborah H. Telman
Corporate Secretary
March 23, 2023

2023 Proxy Statement3

Table of Contents

Table of Contents

20192022 Potential Payments uponUpon Involuntary Termination or Change in Control Termination7577
CEO Pay Ratio7679
Pay versus Performance80
  Proposal 4: Advisory Vote to Approve the Frequency of Future Advisory Stockholder ProposalsVotes on Executive Compensation7783
Employee Stock Purchase Plans84

  Proposal 5: Approval of the Amended and Restated Gilead Sciences, Inc. Employee Stock Purchase Plan and International Employee Stock Purchase Plan

84
Stockholder Proposals89
  Proposal 6: Stockholder Proposal Requesting a Policy Requiring More Director Candidates than Board Seats89
  Proposal 7: Stockholder Proposal Requesting that Shares Held in Street Name Be Able to Call a Special Stockholder Meeting92
  Proposal 8: Stockholder Proposal Requesting that the Board AdoptEstablish and Report on a Policy thatProcess to Consider the ChairpersonImpact of the Board of Directors be an Independent Director77Extended Patent Exclusivities on Product Access in Deciding Whether to Apply for Secondary and Tertiary Patents
Stockholder Proposal7794
Our Board Recommends a Vote AGAINST this ProposalStock Ownership Information78

 Proposal 5 

Stockholder Proposal Requesting that the Board Eliminate the Ownership Threshold for Stockholders to Request a Record Date to Take Action by Written Consent8097
Stockholder Proposal80
Our Board Recommends a Vote AGAINST this Proposal81
Stock Ownership Information82
Security Ownership of Certain Beneficial Owners and Management8297
Delinquent Section 16(a) Reports98
Other Information99
Householding of Proxy Materials99
Other Legal Matters99
Questions and Answers100
Appendix A: Gilead Sciences, Inc. Employee Stock Purchase PlanA-1
Appendix B: Gilead Sciences, Inc. International Employee Stock Purchase PlanB-1
Details for the Gilead Sciences, Inc. 2023 Annual Meeting of Stockholders

 

  
Other Information484

Table of Contents

Overview

2022 Business Highlights

Executing Our Corporate Strategy

2022 was a standout year for Gilead and a strong indication of how far we have come in our business transformation. In 2019, we outlined a strategy to build on Gilead’s legacy in antiviral medicines and also expand into new therapeutic areas. Since then, the growth trajectory of our HIV portfolio and the now fast-growing oncology business demonstrate significant progress in executing our strategy. Along with consistent commercial and clinical execution, we achieved strong financial performance in 2022 and have built the strongest pipeline in Gilead’s history, one with depth and breadth across multiple therapeutic areas. We are positioned for continued growth in 2023 and beyond as we look to expand on our legacy of delivering transformative therapies to patients around the world.

Sustaining Our Leadership in Virology

Innovation and Strength in HIV

The performance of our HIV treatment and prevention therapies continues to reinforce our leadership in virology. Our HIV portfolio delivered total sales of $17.2 billion in 2022, up 5% from the previous year. We also achieved new heights in innovation with the first regulatory approvals for our first-in-class, long-acting HIV capsid inhibitor, lenacapavir, which is dosed at 6-month intervals. We have confidence that lenacapavir will anchor our portfolio of long-acting options in treatment and prevention, unlocking significant potential in our HIV portfolio for many years to come.

It has been five years since Biktarvy®, a once-a-day pill was first approved for treatment of HIV. Biktarvy remains the leading HIV treatment for people starting treatment in the U.S. and Europe, with nearly 1 million patients worldwide treated in 2022. Demand continues to grow, with 20% year-over-year revenue growth and an additional 2-3% of market share gained in the U.S. and EU in 2022. Biktarvy revenues in 2022 were $10.4 billion, marking the first time that full-year revenue exceeded $10 billion.
Sunlenca® (lenacapavir) was approved in the U.S. and Europe as a twice-yearly HIV treatment option for a subset of heavily treatment-experienced adults living with HIV who previously had limited options.
Lenacapavir is a breakthrough innovation with the potential to be a preferred and versatile foundational long-acting agent due to its therapeutic potency and a range of dosing frequencies and routes of administration. With lenacapavir as a foundation for Gilead’s future HIV therapies, our goal is to offer several long-acting options that address individual needs and preferences, optimize outcomes and reduce burden of care.  We continue to study lenacapavir in multiple ongoing early and late-stage development programs for HIV treatment and prevention.
There remains a significant unmet need for HIV prevention options. Only about 1 in 4 people in the U.S. who could benefit from pre-exposure prophylaxis (“PrEP”) currently take it. Demand for our PrEP medication, Descovy®, continued to increase in 2022, up more than 20% year-over-year. At the end of 2022, Descovy for PrEP held a 43% market share in the U.S. We also are advancing long-acting lenacapavir for PrEP in pivotal Phase 3 studies.
In 2022, we resolved litigation related to our tenofovir alafenamide patents against generic manufacturers who were seeking to market and manufacture generic versions of Descovy, Vemlidy® and Odefsey®. The agreements that we entered into with the generic manufacturers are expected to significantly extend the projected exclusivity of these products, which reflect the innovativeness and strength of our intellectual property.

Playing a Vital Role in the COVID-19 Pandemic

Veklury® (remdesivir) continues to benefit people around the world during the third year of the pandemic, and it has proven active against all variants to date. Our decades of virology research enabled us to quickly mobilize when COVID-19 first emerged and to rapidly develop, research and manufacture the medicine – and Veklury is a case study in the importance of continued investment in countermeasures against infectious diseases. Today, it is the antiviral standard of care for the treatment of people hospitalized with COVID-19 and is used in more than 50% of hospitalized patients being treated in the U.S. In 2022, Veklury was included in updated guidelines from the World Health Organization and approved for use in pediatric patients in the U.S., and it is now recommended for patients with both mild-to-moderate and severe COVID-19 in guidelines in more than 50 countries.

  
Householding2023 Proxy Statement5

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Overview

2022 revenues from Veklury were $3.9 billion, with total revenues of more than $12 billion since the start of the pandemic. Nearly 13 million patients around the world have received the treatment to date, including more than 8 million people in low- and middle-income countries through Gilead’s voluntary licensing program. Real-world evidence from a study of more than 500,000 hospitalized patients showed a statistically significant reduction in mortality and significantly lower rates of hospital readmission in the overall patient population across all variant time periods of the pandemic. In 2022, we also progressed the development of a novel oral treatment option for COVID-19.

Accelerating and Delivering in Oncology

Growing Oncology Portfolio

Oncology is now a significant business driver with strong momentum for additional growth. Since our acquisition of Kite, we have added three commercial products with multiple approved indications and lines of therapy to our portfolio. Our oncology revenues increased by 71% from 2021 to more than $2.1 billon, exceeding the $2 billion mark for the first time. Oncology represented approximately 8% of our total revenues in 2022 and approximately 50% of our core business year-over-year revenue growth in 2022.

We are the global leader in cell therapy, and oncology revenues from our cell therapy products increased to $1.5 billion in 2022, a 68% year-over-year increase, driven by continued demand for Yescarta® in second-line and third-line plus large B-cell lymphoma (“LBCL”) and follicular lymphoma (“FL”), as well as Tecartus® in mantle cell lymphoma and adult acute lymphoblastic leukemia (“ALL”).
Trodelvy®, a cornerstone of Proxy Materialsour oncology portfolio, generated $680 million in 2022 in its second full year on the market. Trodelvy growth has been driven by its adoption in both the second- and third-line settings for the treatment of metastatic triple-negative breast cancer (“TNBC”). Trodelvy is now approved for second-line TNBC in more than 40 countries, and we continue to work with regulators, payers and clinicians around the world to broaden overall access.

Additionally, we delivered transformative oncology therapies to new patients in 2022, including:

84Yescarta is the first FDA-approved CAR T-cell therapy for the initial treatment of adult patients with relapsed or refractory LBCL.
Yescarta is the first CAR T-cell therapy approved for adult patients in Europe who do not respond to first-line treatment for diffuse LBCL and high-grade B-cell lymphoma.
Tecartus received approval in Europe for the treatment of adult patients with relapsed or refractory B-cell precursor ALL.

Expanding and Advancing Our Oncology Pipeline

In 2022, we made significant progress in expanding and advancing our oncology pipeline. We have clinical trials in approximately 20 different solid and hematological tumor types, including breast, lung and blood cancers, where there is high unmet need, and we plan to have more than 50 oncology trials by the end of 2023. With our diverse and growing pipeline, we have the potential to deliver more than 20 transformative indication approvals in solid tumors and blood cancers by 2030.

Notable pipeline highlights in 2022 include:

Trodelvy received FDA Priority Review for the treatment of patients with pre-treated HR+/HER2- metastatic breast cancer, with subsequent FDA approval in February 2023. We continue to study Trodelvy as a monotherapy or in combination with other agents across multiple indications, including breast, lung and bladder cancers, as well as in earlier lines of therapy in approved indications.
Magrolimab has three pivotal Phase 3 studies in myelodysplastic syndrome and acute myeloid leukemia underway with potential approval as a first-in-class anti-CD47 treatment. We are confident in magrolimab based on clinical evidence, safety profile and the broad base of combinations that we are exploring.
Together with Arcus Biosciences, Inc., we announced clinically meaningful data from the ARC-7 Phase 2 study in patients with first-line metastatic non-small cell lung cancer. The results reinforce our confidence in the TIGIT pathway, and we have four Phase 3 trials evaluating domvanalimab, an anti-TIGIT antibody, in lung and upper gastrointestinal cancer.

In addition, we continued to build our pipeline and capabilities through strategic partnerships and transactions in 2022, including:

A collaboration with MacroGenics, Inc. to develop bispecific antibodies, including a potential treatment for certain blood cancers;
A research collaboration with Dragonfly Therapeutics, Inc. to develop natural killer cell engager-based immunotherapies in oncology and inflammation;
A global strategic collaboration with Arcellx, Inc. to co-develop and co-commercialize their lead late-stage product candidate, CART-ddBCMA, for the treatment of patients with relapsed or refractory multiple myeloma;
  
Questions6

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Overview

The acquisition of Tmunity Therapeutics, a company focused on next-generation CAR T-cell therapies and Answers85


Cautionary Note Regarding Forward-Looking Statementstechnologies, to complement Kite’s existing in-house cell therapy research capabilities; and
The acquisition of all remaining rights to GS-1811, an anti-CCR8 antibody in development as a potential treatment for solid tumors, from Jounce Therapeutics, Inc.

Investing in the Future of Cell Therapy

In 2022, Kite activated a state-of-the-art manufacturing site in Maryland and implemented a variety of optimization efforts across Kite’s global CAR T-cell manufacturing network, further increasing its manufacturing network capacity to meet increasing demand. With this facility and our recently FDA-approved viral vector manufacturing facility in Oceanside, California, Kite remains well positioned to ensure clinical and commercial supply availability while it continues its geographic expansion.

Achieving Strong Financial Performance

In 2022, Gilead had the strongest revenue growth in our core business since 2015. We delivered robust financial performance, driven by growth in HIV and oncology. With this financial performance and the strength of our diverse business, we are positioning our company for both near- and long-term growth. Financial highlights for 2022 include:

Our total product revenue was $27.0 billion, which exceeded our initial guidance of $23.8 billion to $24.3 billion. Our total product revenue, excluding Veklury, was $23.1 billion, which represented a year-over-year increase of 8%.
This Proxy Statement contains “forward-looking statements” — that is, statements relatedThrough dividends and share repurchases, we returned over $5.1 billion to future events that by their nature address matters that are, to different degrees, uncertain. Risksour shareholders and uncertainties that may cause our actual future results to differ are set forth in the “Risk Factors” sectionrepaid $1.5 billion of and elsewhere in, our 2019 Annual Report on Form 10-K and other filings with the U.S. Securities and Exchange Commission (the “SEC”). All forward-looking statements are based on management’s estimates, projections and assumptions as of the date hereof, and Gilead undertakes no obligation to update any such statements.

4debt.
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Overview

The Annual Meeting and this Proxy Statement provide an important opportunity for us to communicate with you about the achievements of the past year and our stewardship of Gilead. Your vote is important to us. As you consider your vote, we ask that you carefully review all of the the information in this Proxy Statement. Below is an overview of our business and a summary of key aspects of ourOur strong financial performance and corporate governance to assist in your review of the more detailed information contained elsewhere in this Proxy Statement.

2019 Business Highlights

Building the Foundation for Gilead’s Next Chapter

2019 was a pivotal year for Gilead with a strong focus on building the foundation for our next chapter of future growth.

New Chief Executive Officer

Daniel P. O’Day was appointed as our new Chief Executive Officer, effective March 1, 2019. Following his appointment, Mr. O’Day immediately focused his efforts on building on the strength of our core business resulted in one- and three-year total shareholder return of 24% and 14% respectively, as illustrated below.

TOTAL SHAREHOLDER RETURN

Prioritizing Human Capital Management

In 2022, we made progress in our efforts to champion an environment of inclusion and employee development as we advance toward becoming a biotech employer of choice.

Advancing Inclusion and Diversity

We believe that a diverse and inclusive workforce fuels innovation and contributes directly to our success as a business. 2021 was the first year that we set annual and five-year inclusion and diversity goals, which focused on the representation of Black, Hispanic/Latino and female employees, to measure progress. In 2022, we achieved our one-year representation goals by maintaining more than 50% female global representation and exceeding our goal for Hispanic/Latino representation, though we fell slightly short on our Black representation goal. We will be prioritizing these areas in 2023, with a strong cash flows to position Gilead for continued success. Throughoutfocus on inclusion and the year, Mr. O’Day made several strategic decisions and changesoverall employee experience, in order to drive Gilead into our next chapter, including rolling out a new corporate strategy to drive future growththe hiring and assembling our current senior leadership team. He also oversaw our pursuitretention of strategic collaborations and investments and the continued development of our product pipeline.

New Corporate Strategy

In 2019, we developed and communicated our new corporate strategy to drive future growth and to create possibilities for patients through scientific breakthroughs and innovation. Our strategy includes (1) long-term ambitions that define what success looks like over the next decade and (2) strategic priorities that enable us to achieve those ambitions:

employees from underrepresented groups.

Long-Term
Ambitions
Bring 10+ Transformative
Therapies to Patients by 2030
Be the Biotech Employer and
Partner of Choice
Deliver Shareholder Value in a
Sustainable, Responsible Manner
Strategic
Priorities
Expand Internal and
External Innovation
Strengthen Portfolio
Strategy and
Decision-Making
Increase Patient Access
and Benefit
Continue to Evolve
Our Culture

Senior Leadership Team

During the course of the year, Mr. O’Day assembled a diverse, highly experienced leadership team composed of executives who have the right combination of financial, commercial, scientific and legal experience and expertise to drive us into the future and execute on our new strategy. Senior leadership changes in 2019 included the appointments of Andrew D. Dickinson, Executive Vice President and Chief Financial Officer; Jyoti K. Mehra, Executive Vice President, Human Resources; Johanna Mercier, Chief Commercial Officer; Merdad V. Parsey, M.D., Ph.D., Chief Medical Officer; and Christi L. Shaw, Chief Executive Officer of Kite.

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Our Solid Performance in 2019

Strategic Collaborations and Investments

We continued to utilize our strong balance sheet to pursue tailored transactions that drive strategic value. In 2019, we executed 27 strategic collaborations and partnerships, including several equity investments, as summarized below:

We have the financial capability to continue supplementing our pipeline through strategic collaborations and partnerships consistent with our new corporate strategy, as evidenced by our recently announced agreement to acquire Forty Seven, Inc. (“Forty Seven”).

Product and Pipeline Developments

We continued to advance our product pipeline across our therapeutic areas with the goal of delivering best-in-class drugs that have the potential to improve the lives of patients with serious illnesses. At the end of 2019, we had 40 clinical stage programs, with 14 programs in registrational or label-enabling studies and four programs with Breakthrough Therapy designation from U.S. Food and Drug Administration (“FDA”).

In addition:

We entered into a transformative strategic collaboration with Galapagos NV (“Galapagos”) in July, effectively enabling us to double our R&D footprint and accelerate our development of novel treatments for inflammatory and fibrotic diseases.Notably, we submitted filings for regulatory approval in the United States and Japan of filgotinib for the treatment of rheumatoid arthritis, obtained validation of our marketing authorization application in Europe and actively prepared for competitive launches of filgotinib in all three regions. We also continued to advance a Phase 3 study for an investigational therapy for the treatment of idiopathic pulmonary fibrosis.
  
2023 Proxy StatementIn cell therapy, Kite submitted KTE-X197

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Overview

We continued our efforts in 2022 to create internal and external pipelines for diverse talent and to educate our managers on driving inclusion and diversity on their teams. Notable accomplishments included:

Fostering partnerships with HBCUs and Hispanic-Serving Institutions to expand the diverse talent pipeline and to create opportunities for regulatory approvalengagement and health equity
Supporting participation in the United States and Europe for the treatment of relapsed or refractory mantle cell lymphoma.If approved, Kite will be the first company with two cell therapies on the market. Data shared at the end of 2019 continued to demonstrate the efficacy of Yescarta®, showing that approximatelyour six employee resource groups, which now involve more than half of patients treated with Yescarta for refractory large B-cell lymphoma were still alive three years following treatment in the ZUMA-1 study. In additionour employees
Exceeding diverse supplier and Black-owned supplier spend targets by 119% and 129%, respectively
Launching multiple initiatives to cell therapy, we continued to growsupport our research portfolio across complementary immuno-oncology platforms, which we expect to be further strengthened by our recently announced proposed acquisition of Forty Seven.inclusion and diversity goals

Notably, 85% of employee survey respondents said they believe Gilead demonstrated a commitment to inclusion and diversity. For more information about our aspirations and our progress, we encourage you to visit our Inclusion & Diversity page on our website at: www.gilead.com/careers/inclusion-and-diversity.

Employee Engagement

Our listening strategy gathers input from our employees to shape our engagement strategies and programs and measure our progress. In addition to ongoing internal and external data collection and benchmarking, we conducted comprehensive reviews of the employee experience in 2022, including through the use of employee surveys. The results from an employee pulse survey conducted in September 2022 indicated that employee engagement remains strong. The overall engagement index among employees increased to 78% since the last employee survey in April 2021. Among other things, the engagement index measures whether employees are confident in Gilead, are energized by their roles, intend to remain with the company and would recommend Gilead to others. These results represent progress towards our target of reaching 80% by 2030.

  
8Our business also expanded geographically.We secured HIV and hepatitis C virus (“HCV”) drug approvals, including Descovy for PrEP® in the United States, Biktarvy® and Vosevi® in China and Biktarvy and Epclusa® in Japan. Eight of our products have been approved in China since 2017, and four products have been listed on China’s National Reimbursement Drug List effective in January 2020.

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Overview

Financial Performance and Shareholder Return

Since 2000, excluding our HCV business, our HIV and other businesses have grown at a compound annual growth rateTable of approximately 30% as measured by total product sales. While the unique dynamics created by the curative nature of our HCV products have impacted our five-year total shareholder return (“TSR”), these results should not overshadow the significant and consistent growth we experienced in our core HIV business since inception.Contents

Overview

In 2013, we launched our first HCV cure product, which was a significant improvement over the then standard of care for HCV treatment. As a result, our results were positively impacted by a one-time market opportunity as a significant number of “warehoused” patients whose treatment had been delayed sought therapy, contributing to our substantial HCV product sales in 2014 and 2015. Our HCV product sales peaked in 2015, resulting in nearly a tripling of our total product sales that year compared to 2013.

Once the initial group of patients was treated and as competitive HCV therapies entered the market, our HCV product sales rapidly declined. Our HCV product sales continued to decline in 2019 by 20%, compared to 2018, as we expected.

The following chart illustrates the impact of these HCV product dynamics on our total product sales and stock price and the performance of our core HIV and other non-HCV products since inception:

HIV and Non-HCV Product Sales Continued to Grow Over Time while HCV Product Sales Peaked in 2015

(1)Based on the closing price on the last business day of the applicable year

The impact of our HCV products on our total product sales and stock price over the last five years has also impacted our TSR as shown in the charts below.

Total Shareholder Return(1)

(1)Data per S&P Research Insight as of December 31, 2019

2020 Proxy Statement7
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Despite the expected decline in our HCV product sales, we achieved total product sales of $22.1 billion in 2019, compared to $21.7 billion in 2018, primarily due to higher sales of our HIV products. We achieved HIV product sales of $16.4 billion in 2019, an increase of 12% from 2018, reaching an all-time high, despite the loss of exclusivity for tenofovir disoproxil fumarate (“TDF”), a backbone component of our earlier HIV treatment products, in the United States, the European Union and certain other markets. The growth in our HIV product sales in 2019 was driven by higher demand and a shift in product mix toward Biktarvy, a tenofovir alafenamide (“TAF”)-based product, and the increase in the number of individuals taking our products for pre-exposure prophylaxis (“PrEP”). At the end of 2019, Biktarvy was available in most major markets and, in the United States, approximately 27% of individuals on PrEP were receiving Descovy®, a TAF-based product. Looking ahead, we expect underlying growth in our core HIV business in 2020 as we see the continued uptake of our TAF-based products, including Biktarvy and Descovy for PrEP, which is expected to offset the entry of a generic version of Truvada®, a TDF-based product, in the United States in late 2020.

We announced increases to our quarterly dividend in 2019 and again in early 2020, which underscore our confidence in the strength of our business and future cash flows.

Other financial accomplishments in 2019 included:
$9.1 billion
of operating cash flows
$2.8 billion
of principal debt
repayments
$3.2 billion
of cash dividend payments
$1.7 billion
of common stock
repurchases

Environmental, Social and Governance (“ESG”) AchievementsProgram

Our Commitment

To help ensure that we continueInvesting in corporate responsibility is core to executeour business strategy and reflects our values of accountability, inclusion, teamwork, excellence and integrity. This is in service to our mission ofto advance global health by providing lifesaving medicinesinnovative therapeutics in areas of unmet need in a way that is socially responsible and environmentally sustainable. Gilead’s environmental, social and governance (“ESG”) program reflects this commitment to our stakeholders.

Our Governance Structure

Our Board monitors our ESG practices through oversight by the Nominating and Corporate Governance Committee. We also have a management-led Corporate Responsibility Committee comprised of leaders from Public and Government Affairs, Human Resources, Office of General Counsel, the Chief Financial Officer organization, Commercial and Manufacturing. The Corporate Responsibility Committee is responsible for managing ESG issues and, in consultation with our senior leadership team, driving ESG-related goals, strategies, stakeholder engagement, public reporting, risk mitigation and other relevant activities across the company.

ESG Materiality Assessment

In 2020, we have builtcompleted a corporate social responsibility programmateriality assessment that supports patients, society,identified five topics that will be prioritized in our ESG efforts. Our most significant ESG topics are: 1) Pricing, Access and Affordability of Medicines; 2) Research and Development for Unmet Medical Needs; 3) Inclusion and Diversity; 4) Employee Recruitment, Development and Retention; and 5) Climate Change. The materiality assessment enabled us to create our ESG strategy, goals and commitments that address our most significant issues. It also serves as the planetbackbone to how we report on our existing efforts and the progress we are making toward our business. goals.

2022 ESG-Related Milestones and Achievements

Environmental

  Eliminated in scope plastics at 45% of Gilead sites

  Achieved Platinum LEED certification for Gilead Employee Wellness Center and Silver LEED certification at two additional U.S. sites

  Completed ten energy and water assessments at high intensity sites with the potential for 14,000,000 KWh avoided in 2023

  Launched a U.S. electric vehicle pilot program

  Improved our CDP score to the B rating

Social

  Contributed an additional $85 million to the Gilead Foundation to advance health equity

Announced $24 million in grants for The Zeroing In: Ending the HIV Epidemic program

  Awarded $20 million to organizations working to advance health through education equity

  Supported the Robert A. Winn Diversity in Clinical Trials Award Program to increase available scholarship and award opportunities

  Continued to facilitate patient access to Veklury and generic remdesivir through royalty-free licenses in 127 middle- and low-income countries

  Accelerated our application for remdesivir World Health Organization prequalification to improve access

  Mobilized a coalition of LGBTQ+ and human rights organizations to address the monkeypox public health emergency

  Endorsed the Kigali Declaration on preventing, controlling and eliminating neglected tropical diseases

  Announced collaboration with Morehouse School of Medicine and Xavier University of Louisiana College of Pharmacy to address inequities in HIV care

  Joined first-of-its-kind public-private initiative to improve management of viral hepatitis in Vietnam and the Philippines

  Ranked #1 as top overall philanthropic funder of HIV-related programs by Funders Concerned About AIDS Report

  Maintained a perfect score on the Human Rights Campaign Corporate Equality Index

Governance

  Engaged with stockholders representing 47% of our outstanding stock on ESG topics

  Honored by the U.S. Patent and Trademark Office with a Patent for Humanity award for our COVID-19 efforts

  Admitted for the second consecutive year to the Dow Jones Sustainability World Index

  Ranked #9 among pharmaceutical and biotech companies by JUST Capital

  Ranked #1 most sustainable U.S. biopharma company by Corporate Knights

  Awarded an ESG Impact Award from Corporate Secretary / IR Weekly Magazine

For more information about our corporate social responsibilityESG program and our ESG highlights for 2019,achievements in 2022, we encourage you to read our 2019 Year in Review,2022 ESG Report, which will be available for download at www.gilead.com in early May 2020.April 2023.

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Corporate Governance Highlights

We are committed to strong corporate governance structures and practices that reflect our commitment to integrity and excellence in conducting our business and that are designed to drive Board effectiveness in exercising its oversight role. The governing framework within which our Board fulfills its responsibilities, together with the associated governance documents, is available at http://www.gilead.com on the Investors page under “Corporate Governance.” Our Board regularly reviews these materials in light of legal and regulatory requirements, evolving best practices and other developments.

Our Board values the feedback we receive from our stockholders regarding corporate governance and other matters, and we have a history of being responsive to stockholders. Our Board has adopted corporate governance structures and practices that are both responsive and create accountability to our stockholders, as summarized in the table below.

What We Do

  Annually Elect All Directors

  Majority Vote to Elect Directors

  Substantial Majority of Independent Directors

  Robust Lead Independent Director Role

  Regular Executive Sessions of Independent Directors

  Fully Independent Board Committees

  Independent Evaluation of Chief Executive Officer

  Robust Board Guidelines and Committee Charters

  Commitment to Board Diversity

  Annual Corporate Responsibility Report

  Stockholder Right to Call Special Meetings

  Stockholder Right to Act By Written Consent   NEW 

  Proxy Access on Market Terms, with 3% / Three-Year Threshold

  Annual Say-on-Pay Vote

  Compensation Clawback Policy

  Proactive Year-Round Stockholder Engagement

  Annual Board and Committee Evaluations

  Director Succession Planning and Ongoing Board Refreshment

What We Do Not Do
  
2023 Proxy Statement9

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Proxy Voting Roadmap

This voting roadmap highlights information contained elsewhere in this Proxy Statement. This summary does not contain all of the information that you should consider, and you should read the entire Proxy Statement carefully before voting. Page references are supplied to help you find further information in this Proxy Statement.

PROPOSALNo “Poison Pill”
1Election of Directors
See page 14The Board recommends a vote FOR each director nominee.

Kevin E.
Lofton*
Jacqueline
K. Barton,
Ph.D.
Jeffrey A.
Bluestone,
Ph.D.
Sandra J.
Horning,
M.D.
Kelly A.
Kramer
Harish
Manwani
Daniel P.
O’Day**
Javier J.
Rodriguez
Anthony
Welters

* Lead Independent Director        ** Chairman and Chief Executive Officer

ETHNIC
DIVERSITY
GENDER
DIVERSITY
INDEPENDENCETENURE
4 out of 9
are ethnically
diverse
3 out of 9
are women

8 out of 9
are independent

All Committee chairs and
members are
independent

0-3 years: 33-6 years: 4>6 years: 2

PROPOSALRatification of the Selection
of Independent Registered
Public Accounting Firm
2 
No Supermajority Voting Provisions
No Dual Class Stock Structure with Unequal Voting Rights
See page 41 The Board recommends a vote FOR this proposal.

2020 Proxy Statement9

Overview

Ongoing Board Refreshment

We believe Board refreshmentBased on an evaluation of Ernst & Young LLP’s independence and performance, our Audit Committee has determined that it is integralin the best interest of Gilead and its stockholders to effective corporate governance. We continue to review our Board’s composition and seekretain Ernst & Young LLP to balance continuity and fresh perspectives. Our Nominating and Corporate Governance Committee is responsible for identifying and recommending director candidates to our Board for nomination. Our Nominating and Corporate Governance Committee seeks to include diverse candidates in every director search.

We have taken a number of steps to refresh our Board since 2015, when some stockholders noted that many of our directors were long tenured. Five of our eight director nominees were appointed to our Board in the last four years:

2020In May 2020, John F. Cogan, Ph.D. (our current Lead Independent Director) and Gayle E. Wilson will retire from our Board.NewKevin E. Lofton, current member of our Board and retiring Chief Executive Officer of CommonSpirit Health, will become our new Lead Independent Director, effective May 2020. New We appointed Sandra J. Horning, M.D., retired Chief Medical Officer of Roche, Inc., to our Board, Nominating and Corporate Governance Committee and Scientific Committee. 2019In March 2019, John C. Martin, Ph.D., retired as Chairman and member of our Board.New We appointed Daniel P. O’Day, former Chief Executive Officer of Roche Pharmaceuticals,serve as our new Chairman and member of our Board in connection with his appointment as our Chief Executive Officer. 2018Two of our directors retired from our Board.New We appointed Jacqueline K. Barton, Ph.D., Professor of Chemistry atindependent registered public accounting firm for the California Institute of Technology, to our Board and Scientific Committee. New We appointed Harish Manwani, retired Chief Operating Officer of Unilever, to our Board and Compensation Committee. 2017One of our directors retired from our Board.2016Two of our directors retired from our Board.New We appointed Kelly A. Kramer, Executive Vice President and Chief Financial Officer of Cisco Systems, Inc., to our Board and Audit Committee. New We appointed John F. Milligan, Ph.D. to our Board in connection with his appointment as our Chief Executive Officer. Dr. Milligan stepped down as Chief Executive Officer and member of our Board at the end of 2018.fiscal year ending December 31, 2023.

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Overview

Stockholder Outreach and Engagement

We believe that strong corporate governance includes outreach and engagement with our stockholders on a regular basis throughout the year to better understand the issues that are important to them. This enables us to address these matters in a more meaningful and effective way and to drive improvements in our policies, communications and other areas. As part of our robust stockholder engagement program, our senior management team addresses a variety of topics through regular contact with investors, including in quarterly earnings calls, investor and industry conferences, analyst meetings and individual discussions with stockholders.

We Have a Year-Round Stockholder Engagement Program

Conduct meetings between our largest stockholders and our management, with strategic director participation. Share the feedback with the Board for discussion and consideration.
Incorporate feedback from investor meetings into annual meeting planning and enhance governance practices and disclosures when warranted. Review stockholder proposals and determine any next steps.
Review annual meeting results and determine any next steps, including engagement priorities.
Conduct investor meetings in advance of the annual meeting to answer questions and obtain stockholder feedback on proxy matters.

During the fall of 2019, we contacted stockholders representing approximately 51% of our outstanding shares, compared to 38% the prior year, to gain valuable insights on the issues that matter most to our stockholders. Of those that we contacted, we met with stockholders representing approximately 41% of our outstanding shares and the two largest proxy advisor firms. During these meetings, we discussed a range of topics, including company strategy and performance, corporate governance, executive compensation, corporate social responsibility and other current and emerging topics. A key topic at the time was the senior leadership transition, including the one-time make-whole compensation awards provided to our new executives in connection with their recruitment to Gilead. Our Lead Independent Director met with stockholders representing approximately 27% of our outstanding shares and the two largest proxy advisors and answered questions about the transition. We gained constructive feedback from our stockholders during these engagements, which was shared with our Board and management.

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Our Board is Responsive to Stockholder Feedback

  
We received stockholder feedback over
the past year in the following areas:10

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Proxy Voting Roadmap

PROPOSAL Advisory Vote to Approve the
Compensation of Our Named
Executive Officers
3
See page 46The Board recommends a vote FOR this proposal.

To succeed, we must attract, engage and retain highly talented individuals who are committed to our mission and core values. Our Compensation and Talent Committee reviews our executive compensation programs and awards annually to ensure that our programs are fair, are aligned with stockholder expectations and deliver pay that is aligned with company performance:

  Our Board respondedcompensation programs are designed to recognize both short- and long-term successes, and a substantial portion of the target total direct compensation is at-risk and tied directly to company performance.

  Our annual incentive plan aligns pay to company performance through rigorous annual incentive metrics with financial metrics weighted at 50% and strategic metrics comprising the other 50%.

  Our long-term incentive plan aligns pay with the following actions:long-term interests of our stockholders and provides value based on stock price appreciation, relative Total Shareholder Return growth and achievement of financial goals.

  Our programs and practices are aligned with “best-in-class” governance standards.


Compensation program metricsPROPOSAL OurAdvisory Vote to Approve the
Frequency of Executive
Compensation Committee approved certain changes to our annual bonus structure for 2020, including introducing non-GAAP operating income as a metric. Changes to the 2020 annual bonus structure are discussed in greater detail on page 50.
Advisory Stockholder Votes
Continued Board and Lead Independent Director refreshment4
See page 83 The Board recommends 1 YEAR for this proposal.

The Board recommends continuing to hold executive compensation advisory stockholder votes every year to allow our stockholders to provide us with their direct input on our executive compensation philosophy, policies and practices on a more consistent basis.

PROPOSALWe have taken steps to continue to refresh the Board in early 2020. In January 2020, Dr. Horning was appointed to the Board. Effective asApproval of the Annual Meeting in May 2020, two directors will retire from our BoardGilead Sciences, Inc.
Employee Stock Purchase Plan
and Mr. Lofton will become our new Lead Independent Director.
International Employee Stock Purchase Plan
Board evaluations and director skills5
See page 84 Our directors conducted an annual self-assessment of theThe Board and committees in late 2019.recommends a vote FOR this proposal.

We believe that our Employee Stock Purchase Plans provide an important employee benefit that helps us attract, engage and retain highly talented individuals and encourages their participation in and commitment to our business and financial success. We are asking stockholders to approve an amendment and restatement to our Employee Stock Purchase Plan and International Employee Stock Purchase Plan. If approved, the number of shares of common stock authorized for issuance under the Plans will be increased by an additional 25,000,000 shares.

  In February 2020, our Board engaged a third-party advisory firm to independently assess and confirm the skills and experience of the individual directors and the overall Board. See our enhanced summary of director skills and experience on pages 17-18.
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Proxy Voting Roadmap

PROPOSAL In March 2020, our Board amendedStockholder Proposals
(in each case, if properly presented at the Compensation Committee charter to expressly delegate to the Compensation Committee oversight responsibility of the company’s strategies and policies related to human capital management, including with respect to matters such as diversity and inclusion, workplace environment and culture, talent recruitment, development and retention and employee engagement and effectiveness.meeting)
Compensation clawback6-8
See page 89-96 In March 2020, ourThe Board amended our compensation clawback policy to (1) expand its scope to cover executive officers’ significant misconduct resulting inrecommends a violationvote AGAINST each of significant company policy, law or regulation that caused material financial, operational or reputational harm to Gilead, including the failure to appropriately supervise a subordinate employee that engaged in misconduct, and (2) expressly commit to publicly disclose recoupment of compensation where the underlying facts are disclosed, subject to certain legal and privacy rights considerations.these proposals.
Environmental, social and governance programOur Nominating and Corporate Governance Committee continued to oversee and receive periodic reports on our ESG program from the Corporate Responsibility Committee, a management committee responsible for developing and reviewing our sustainability strategy and reporting.

Each stockholder proposal included in this Proxy Statement is followed by Gilead’s response. For the reasons set forth in our responses, the Board recommends a vote AGAINST each stockholder proposal, to the extent such stockholder proposal is properly presented at the meeting.

  
12In early 2020, we partnered with a third-party advisory firm to initiate a 2020 sustainability materiality assessment to identify and prioritize the ESG issues that are most important for the long-term sustainability of our business. The results of the assessment will be shared with management and our Board. This process will inform the development and evolution of our corporate sustainability strategy.

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Overview

Executive Compensation Highlights

Given the senior leadership changes as described above, 2019 was an atypical year from a compensation perspective. In addition to ongoing annual pay elements, some of our Named Executive Officers received one-time new hire and promotion awards while certain outgoing executives received termination payments and equity vesting required by pre-existing arrangements.

CEO Transition-Related Compensation

Mr. O’Day’s 2019 compensation, including ongoing pay elements and new hire pay, reflects our pay-for-performance compensation philosophy and the Board’s measured approach to transition-related pay elements.

His annual pay is closely aligned to both the market median pay and our former Chief Executive Officer’s pay, with a significant emphasis on performance-based compensation.
His make-whole payments were carefully designed to align in form and timing with what he forfeited from his former employer of 30 years, and for other economic consequences of accepting employment with us.

Alignment of Pay and Performance

Annual Bonus.Our annual bonus plan is contingent upon performance in a number of pre-established categories that include granular pipeline and product objectives, in addition to near-term financial criteria and organizational goals.Our CEO’s bonus is tied entirely to corporate objectives.

Long-Term Incentives (“LTI”).Our long-term incentives, awarded in the form of performance shares, stock options and restricted stock units, align executives’ compensation directly with revenue and TSR performance. The realized value of equity granted to our Named Executive Officers over the past four years reflects the strong alignment of our incentive programs with performance.

As of December 31, 2019, all stock options granted to our Named Executive Officers over the past four years were underwater, or “out of the money.”
In addition, our performance share awards, granted over the same period, have paid out below target.

To illustrate the alignment of our annual compensation program with stockholder value, the following table compares the average 2017 LTI target value to the average actual LTI payout for our Named Executive Officers who received a 2017 award and shows that only 37% of the target value was delivered.

(1)Brett A. Pletcher, Gregg H. Alton and Robin L. Washington received a 2017 LTI award. The chart excludes John G. McHutchison, M.D., due to his being equity retirement eligible and receiving a pro-rated vesting.
(2)Target performance share value is based on grant-date fair value of the 2017 performance shares at 100% target level attainment.
(3)Actual performance share award value is based on 4% payout for the TSR tranche and 163.4% for the absolute revenue tranches, valued at the $64.30 share price as of the release date of January 29, 2020.
(4)Target stock option value is based on the 2017 stock option grant, valued at the grant date fair value. Stock options have no value as of December 31, 2019.

2020 Proxy Statement13
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Proxy Statement for the 20202023 Annual Meeting of Stockholders on May 6, 20203, 2023

GILEAD SCIENCES, INC.

333 Lakeside Drive

Foster City, California 94404

We are providing these proxy materials in connection with the solicitation by the Board of Directors (the “Board”) of Gilead Sciences, Inc., a Delaware corporation (“Gilead,” “we,” “our” or “us”), of proxies to be voted at our 20202023 annual meeting of stockholders (the “Annual Meeting”) to be held on Wednesday, May 6, 20203, 2023 at 10:00 a.m., Pacific Daylight Time, or at any adjournment or postponement thereof, for the purposes set forth herein and in the accompanying Notice of Annual Meeting of Stockholders. The Annual Meeting will be held virtually by webcast at www.virtualshareholdermeeting.com/GILD2023. We have designed the Westin San Francisco Airport, 1 Old Bayshore Highway, Millbrae, California 94030.format of the Annual Meeting to ensure that stockholders are afforded similar rights and opportunities to participate as they would at an in-person meeting. For additional information on how to attend the Annual Meeting, please refer to the back cover page of this Proxy Statement and “Questions and Answers” in this Proxy Statement.

WeOn or about March 23, 2023, we first mailed or made available this Proxy Statement and the accompanying proxy card on or about March 24, 2020 to all stockholders entitled to vote at the Annual Meeting.

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Corporate Governance

Proposal 1Election of Directors

PROPOSAL 1


There are eightnine nominees for the Board positions presently authorized. Proxies cannot be voted for a greater number of persons than the number of nominees standing for election. Directors are elected by a majority of the votes cast (number of shares voted “for” a director must exceed the number of shares voted “against” that director) with respect to the election of each director at the Annual Meeting. Each director who is elected will hold office until the next annual meeting of stockholders and until his or her successor is elected and qualified, or until such director’s earlier death, resignation or removal. Each nominee listed below is currently a director of Gilead and other than Sandra J. Horning, M.D., was previously elected by the stockholders at the 20192022 annual meeting of stockholders. Dr. Horning was recommended for consideration to our Nominating and Corporate Governance Committee by a third-party search firm and joined the Board in January 2020. John F. Cogan, Ph.D., and Gayle E. Wilson are retiring effective at the Annual Meeting, and our Board size will be reduced from ten to eight members effective at the Annual Meeting.

Shares represented by executed proxies will be voted for or against the election of the eightnine nominees named below. In the event that any nominee should beis unable or for good cause, unwilling to serve as a director, such shares will be voted for the election of such substitute nominee as our Board may propose or the Board may reduce the size of the Board. Each person nominated for election has agreed to serve if elected and our Board and management have no reason to believe that any nominee will be unable to serve.

Our Nominating and Corporate Governance Committee recommended each of the nominees listed below to our Board for nomination. Each member of our Nominating and Corporate Governance Committee meets the criteria of “independent director” as specified by applicable laws and regulations of the SEC, the listing rules of Nasdaq and our Board Guidelines, as determined affirmatively by our Board.Guidelines.

Our Board unanimously recommends a vote FOR each named
director nominee:


JACQUELINE K. BARTON, PH.D.

JEFFREY A. BLUESTONE, PH.D.

Jacqueline K. Barton, Ph.D.

SandraSANDRA J. Horning,HORNING, M.D.

Kelly A. Kramer

Kevin E. Lofton

Harish Manwani

Daniel P. O’Day

Richard J. Whitley, M.D.

Per Wold-Olsen

KELLY A. KRAMER

KEVIN E. LOFTON

HARISH MANWANI

DANIEL P. O’DAY

JAVIER J. RODRIGUEZ

ANTHONY WELTERS

 
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Corporate Governance

The Gilead Board of Directors

Board Overview

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Corporate Governance

Director Skills, Experience and Background

We believe effective oversight comes from a board of directors that represents a diverse range of experience and perspectives that provides the collective skills, qualifications, backgrounds and experience necessary for sound governance. Our Nominating and Corporate Governance Committee establishes, and regularly reviews with the Board, the skills and experience that it believes are desirable to be represented on our Board to meet the needs of our business and align with our long-term strategy. In 2020, we engaged a third-party advisory firm to independently assess and confirm the skills and experience of our Board, which assisted our Board to determine the diversity of skills and experience that we consider important for our directors in light of our business and the structure that will contribute to the overall effectiveness of our Board. These skills and experience are listed below and are periodically reviewed by our Nominating and Corporate Governance Committee.

Skill / ExperienceDefinition
Public / Private
Company CEO
Has been the Chief Executive Officer of a publicly traded company (or a private/non-profit organization of comparable scale and complexity, with external market considerations similar to a public company board)
Financial ExpertHas held a role as a Chief Financial Officer, Chief Accounting Officer, Controller or Certified Public Accountant of a public company, or actively supervised such role, or has experience overseeing or assessing performance of the preparation, audit or evaluation of financial statements at a public company
GlobalAn executive who has worked and/or lived extensively outside the United States and/or an executive with oversight of global operations, including in a role as Regional General Manager or Chief Executive Officer of a global firm or on-the-ground operational roles outside the United States
Sales & MarketingHas held senior executive roles in which sales and/or marketing were a primary function, including as a Sales Manager, General Manager, Brand Manager or Chief Marketing Officer
Public Company
Board
Has served, or is currently serving, on a public company board as an independent or executive director; does not include service on our Board
Digital / Technology –
Driven Innovation
Has practical experience with disruption including application of robotics, hardware, digital, data, artificial intelligence or cyber security innovations, including in a role as a Chief Digital Officer, Chief Technology Officer, Chief Information Officer or General Manager for a business enabled by technology or a business that has undergone a digital transformation
Pharma ExperienceHas held an executive and/or operational role at a pharmaceutical or biotechnology company, including general management, financial reporting, operations, research & development, commercialization, manufacturing and/or sales
Provider or Payer
Perspective
Has an understanding of the delivery and/or payment of medical services obtained through experience working as a medical provider or payer, including executive or operational roles at a hospital or health insurance organization
Government /
Regulatory
Has worked in or closely with governmental organizations that set and/or enforce laws and regulations related to medical products and/or healthcare delivery or similarly highly regulated industry (e.g., financial services, food, chemicals, oil & gas), resulting in relevant governmental expertise and connections; may include relevant legal expertise
Science / ResearchDeep knowledge of relevant sciences (e.g., biology, chemistry, medicine) as evidenced by an M.D. or Ph.D. and/or experience in the research function at a healthcare business (including pharmaceutical and medical research); ideally this includes experience with breakthrough or innovative scientific discovery and/or experience in relevant therapeutic areas, including HIV, immunotherapy, oncology and liver disease
M&A / TransactionHas had direct responsibility for collaborations and deals, including mergers, acquisitions, divestitures, joint ventures and other partnerships
Environmental, Social
and Governance
Has had direct responsibility for ESG issues as demonstrated by experience as a Chief Sustainability Officer, Corporate Secretary, Chair of a related committee (e.g., Governance, Sustainability, Corporate Responsibility) or Chief Executive Officer of a company with leading ESG practices
Human Capital
Management
Has had direct responsibility for human capital management, including leadership development, succession planning, oversight of corporate culture, diversity & inclusion and compensation as demonstrated by experience as a Chief Executive Officer, Chief Human Resources Officer or Chair of a related committee (e.g., Compensation, Human Capital, Management Development)
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The table below includes the primary skills and experience of each director nominee that led our Board to conclude that he or she is qualified to serve on our Board. This high-level summary is not intended to be an exhaustive list of each director nominee’s skills or contributions to the Board.

Relevant Skills and Experience
Name and AgeIndependentDirector
Since

Kevin E. Lofton, 68

Lead Independent Director

Retired Chief Executive Officer, CommonSpirit Health

Yes2009

Jacqueline K. Barton, Ph.D., 70

Professor Emerita, California Institute of Technology

Yes2018

Jeffrey A. Bluestone, Ph.D., 69

President and Chief Executive Officer, Sonoma Biotherapeutics

Yes2020

Sandra J. Horning, M.D., 74

Retired Chief Medical Officer, Roche

Yes2020

Kelly A. Kramer, 55

Retired Executive Vice President and Chief Financial Officer, Cisco Systems

Yes2016

Harish Manwani, 69

Senior Operating Partner, Blackstone; Retired Chief Operating Officer, Unilever

Yes2018

Daniel P. O’Day, 58

Chairman of the Board

Chief Executive Officer, Gilead Sciences

No2019

Javier J. Rodriguez, 52

Chief Executive Officer, DaVita

Yes2020

Anthony Welters, 68

Chairman and Chief Executive Officer, CINQ Care; Retired Senior Advisor to the Office of CEO, UnitedHealth Group

Yes2020

SKILLS AND EXPERIENCE

Public / Private Company CEOFinancial ExpertGlobalSales & Marketing
Public Company BoardDigital / Technology – Driven InnovationPharma ExperienceProvider or Payer Perspective
Government / RegulatoryScience / ResearchM&A / TransactionEnvironmental, Social and Governance
Human Capital Management
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BACKGROUND

INDEPENDENCEGENDER
DIVERSITY
ETHNIC
DIVERSITY
TENURE

8 out of 9

are independent

3 out of 9

are women

4 out of 9

are ethnically
diverse

0-3 years: 3

3-6 years: 4

>6 years: 2

BOARD DIVERSITY MATRIX

Gender IdentityLoftonBartonBluestoneHorningKramerManwaniO’DayRodriguezWeltersTotal
Male6
Female3
Non-Binary0
Did Not DiscloseN/A
Demographic Background
African American or Black2
Alaskan Native or Native American0
Asian1
Hispanic or Latinx1
Native Hawaiian or Pacific Islander0
White5
Two or More Races or Ethnicities0
LGBTQ+0
Did Not DiscloseN/A

DIRECTOR OVERBOARDING GUIDELINES

In order to mitigate potential risks relating to director overboarding, our Board Guidelines reflect our Board’s expectation that (i) a non-employee director should not serve on the board of directors of more than three other public companies and (ii) a non-employee director who is a current executive officer of a public company should not serve on the board of directors of more than one other public company. Each of our Board members is currently in compliance with our Board Guidelines.

1.2

Average Number of
Other Public
Directorships
(Currently Held)


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Corporate Governance

Evaluating Director Candidates

In evaluating candidates for membership on the Board, our Nominating and Corporate Governance Committee considers the candidate’s relevant experience, the number and nature of other board memberships held and possible conflicts of interest. Diversity is an important attribute of a well-functioning board. Our Nominating and Corporate Governance Committee advises our Board on matters of diversity, including race, gender, culture, thought and geography, and nominates director candidates that will enhance the Board’s mix of viewpoints, backgrounds, skills, experience and expertise. Our Nominating and Corporate Governance Committee seeks to include diverse candidates in any director search and specifically requests diverse candidates from our third-party search firm. In addition to the traditional candidate pool of corporate directors and officers, the committee also considers qualified candidates from a broad array of organizations, including academic institutions, privately held businesses, nonprofit organizations and trade associations. In 2017, our Board amended the Nominating and Corporate Governance Committee Charter to formalize our Board’s commitment to diversity. Each year, our Nominating and Corporate Governance Committee reviews its Board membership criteria and assesses the composition of the Board against the criteria.

Our Nominating and Corporate Governance Committee also will consider all factors it determines appropriate to meeting the needs of the Board at that particular time. According to the Board membership criteria established by our Nominating and Corporate Governance Committee and set forth in our Board Guidelines, candidates nominated for election or reelection to the Board should possess the following qualifications:

the highest standards of personal and professional integrity;
the ability and judgment to serve the long-term interest of our stockholders;
background, experience and expertise relevant to our business and that will contribute to the overall effectiveness and diversity of the Board;Board, including diversity of race, ethnicity, gender and sexual orientation;
broad business and social perspective;
the ability to communicate openly with other directors and to meaningfully and civilly participate in the Board’s decision-making process;
commitment to serve on the Board for an extended period of time to ensure continuity and to develop knowledge about our business and willingness to devote appropriate time and effort to fulfilling the duties and responsibilities of a Board member;
independence from any particular constituency; and
the ability and willingness to objectively appraise the performance of management.

OUR COMMITMENT TO DIVERSITY

Diversity is an important attribute of a well-functioning board, and our Board’s commitment to inclusion and diversity is formally reflected in our Board Guidelines and our Nominating and Corporate Governance Committee Charter. Our Nominating and Corporate Governance Committee advises our Board on matters of diversity, including race, ethnicity, gender, sexual orientation, culture, thought and geography, and nominates director candidates that will enhance the Board’s mix of viewpoints, backgrounds, skills, experience and expertise. In addition to the traditional candidate pool of corporate directors and officers, our Nominating and Corporate Governance Committee considers qualified candidates from a broad array of organizations, including academic institutions, privately held businesses, nonprofit organizations and trade associations.

In 2021, we amended our Board Guidelines and our Nominating and Corporate Governance Committee Charter to formalize our historical practice of utilizing the “Rooney Rule” in new director searches. The Nominating and Corporate Governance Committee includes, and instructs any search firm it engages to include, qualified candidates with diverse backgrounds, including female and racially or ethnically diverse candidates.

The composition of our Board reflects our commitment to advancing diverse representation on our Board, as a third of our Board is female, and of the other Board members, four are from diverse backgrounds. In addition, our Lead Independent Director and the chairs of all of our Board committees are either female or from diverse backgrounds.

In identifying potential director candidates, our Nominating and Corporate Governance Committee considers candidates recommended through a variety of methods and sources. These include suggestions from current Board members, senior management, stockholders, professional search firms and other sources. Our Nominating and Corporate Governance Committee reviews all candidates in the same manner regardless of the source of the recommendation.

It is the policy of our Nominating and Corporate Governance Committee to consider properly submitted stockholder recommendations of new director candidates. Our Nominating and Corporate Governance Committee’s evaluation process for director nominees does not vary based on whether a candidate is recommended by a stockholder orCommittee reviews all candidates in the Board. same manner regardless of the source of the recommendation.

Any stockholder recommendation must include the candidate’s name and qualifications for Board membership, the candidate’s age, business address, residence address, principal occupation or employment, the number of shares beneficially owned by the candidate and all other information that would be required to solicit a proxy under federal securities law. In addition, the recommendation must include the stockholder’s name, address and the number of shares beneficially owned. The recommendation should be sent to the Corporate Secretary, Gilead Sciences, Inc., 333 Lakeside Drive, Foster City, California 94404. The recommendation must be delivered to the Corporate Secretary prior to the same deadline for director nominations not for inclusion in theother than under our proxy materials,access bylaw, as described under question 1517 in “Questions and Answers.”

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Director Skills and Experience

We believe effective oversight comes from a Board of Directors that represents a diverse range of experience and perspectives that provides the collective skills, qualifications, backgrounds and experience necessary for sound governance. Our Nominating and Corporate Governance Committee establishes and regularly reviews with the Board the skills and experience that it believes are desirable to be represented on our Board to meet the needs of our business and align with our long-term strategy.

Listed below are the skills and experience that we consider important for our directors in light of our business and structure that will contribute to the overall effectiveness and diversity of our Board.

  
Skill / ExperienceDefinition
Public / Private
Company CEO
Has been the Chief Executive Officer of a publicly traded company (or a private/non-profit   organization of comparable scale and complexity, with external market considerations similar to a public company board)
Financial ExpertCurrent or recently retired (within 5 years) Chief Financial Officer or Senior Audit Leader (region/   practice lead at a Big 4 accounting firm)
GlobalAn executive who has worked and/or lived extensively outside the United States and/or an executive with oversight of global operations, including in a role as Regional General Manager or Chief Executive Officer of a global firm or on-the-ground operational roles outside the United States
Sales &
Marketing
Has held senior executive roles in which sales and/or marketing were a primary function, including as a Sales Manager, General Manager, Brand Manager or Chief Marketing Officer
Public Company
Board
Has served, or is currently serving, on a public company board as an independent or executive director; does not include service on our Board
Digital /
Technology –
Driven Innovation
Has practical experience with disruption including application of robotics, hardware, digital, data,   artificial intelligence or cyber security innovations, including in a role as a Chief Digital Officer,   Chief Technology Officer, Chief Information Officer or General Manager for a business enabled by   technology or a business that has undergone a digital transformation
Pharma
Experience
Has held an executive and/or operational role at a pharmaceutical or biotechnology company,   including general management, financial reporting, operations, research & development,   commercialization, manufacturing and/or sales
Provider or Payer
Perspective
Has an understanding of the delivery and/or payment of medical services obtained through   experience working as a medical provider or payer, including executive or operational roles at a   hospital or health insurance organization
Government /
Regulatory
Has worked in or closely with governmental organizations that set and/or enforce laws and regulations related to medical products and/or healthcare delivery or similarly highly regulated industry (e.g. financial services, food, chemicals, oil & gas), resulting in relevant governmental expertise and connections; may include relevant legal expertise
Science /
Research
Deep knowledge of relevant sciences (e.g. biology, chemistry, medicine) as evidenced by an M.D. or Ph.D. and/or experience in the research function at a healthcare business (including   pharmaceutical and medical research); ideally this includes experience with breakthrough or   innovative scientific discovery and/or experience in relevant therapeutic areas, including HIV, inflammation, immunotherapy, oncology and liver disease
M&A /
Transaction
Has had direct responsibility for collaborations and deals, including mergers, acquisitions, divestitures, joint ventures and other partnerships
Environment,
Social
and Governance
Has had direct responsibility for environmental, social and governance (ESG) issues as   demonstrated by experience as a Chief Sustainability Officer, Corporate Secretary, Chair of a   related committee (e.g. Governance, Sustainability, Corporate Social Responsibility) or Chief   Executive Officer of a company with leading ESG practices
Human Capital
Management
Has had direct responsibility for human capital management, including leadership development, succession planning, oversight of corporate culture, diversity & inclusion and compensation as demonstrated by experience as a Chief Executive Officer, Chief Human Resources Officer or Chair of a related committee (e.g. Compensation, Human Capital, Management Development)

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The table below includes the primary skills and experience of each director nominee that led our Board to conclude that he or she is qualified to serve on our Board. This high-level summary is not intended to be an exhaustive list of each director nominee’s skills or contributions to the Board.

Relevant Skills and Experience
Name and AgeIndependentDirector
Since
 
Kevin E. Lofton,65
Lead Independent Director      
(effective May 2020)Yes2009lllllll
Retiring Chief Executive Officer,
CommonSpirit Health
Jacqueline K. Barton, Ph.D.,67
Professor of Chemistry, CaliforniaYes2018llll
Institute of Technology
Sandra J. Horning, M.D.,71      
Retired Chief Medical Officer,Yes2020llll
Roche, Inc.
Kelly A. Kramer,52
Executive Vice President and
Chief Financial Officer,Yes2016llll
Cisco Systems, Inc.
Harish Manwani,66
Retired Chief Operating Officer,Yes2018lllll
Unilever
Daniel P. O’Day,55
Chairman of the Board
Chief Executive Officer,No2019lllllll
Gilead Sciences, Inc.
Richard J. Whitley, M.D.,74
Professor of Medicine, University ofYes2008ll
Alabama at Birmingham
Per Wold-Olsen,72
Retired President, Merck & Co., Inc.,Yes2010llllll
Human Health Intercontinental Division

Skills and Experience

Public / Private Company CEOFinancial ExpertGlobalSales & Marketing
Public Company BoardDigital / Technology –
Driven Innovation
Pharma ExperienceProvider or Payer
Perspective
Government / RegulatoryScience / ResearchM&A / TransactionEnvironment, Social   and Governance
Human Capital Management

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Corporate GovernanceNominees

Nominees

Our Nominating and Corporate Governance Committee has evaluated and recommended, and our full Board has considered and nominated for election at the Annual Meeting, each of the eightnine director nominees described below. The names of the nominees and certain information about them as of March 24, 2020,23, 2023, as well as the relevant skills and experience of the director nominees that led our Nominating and Corporate Governance Committee to conclude that the nominee should serve as a director ofon our Board, are set forth below:

Age: 68
Director since:
2009
Committees:
Audit,
Compensation
and Talent (Chair),
Nominating
and Corporate
Governance

 

Lead Independent

Director NEW 

(effective May 2020)

Age:65

Director Since:2009

Committees:

Audit, Compensation

Effective May 2020:

Nominating and Corporate Governance (Chair)

Kevin E. Lofton

Lead Independent Director

Mr. Lofton isjoined our Board in 2009 and was appointed Lead Independent Director in May 2020. In June 2020, Mr. Lofton retired as the Chief Executive Officer (CEO) of Common Spirit Health (CSH), a $30 billion system of hospitals and other care centers in 21 states that resulted from the merger of Catholic Health Initiatives (CHI) and Dignity Health. Mr. Lofton plans to retire from this role on June 30, 2020. Prior to leading CSH, he served as the CEO of CHI from 2003 to 2019. Mr. Lofton also served as CEO of two university hospitals, the UAB Hospital and Howard University Hospital. In 2014,2016, he received an honorary Doctor of Humanities in Medicine degree from the Baylor College of Medicine, and in 2014, he received the Healthcare Financial Management Association’s Richard L. Clarke Board of Directors Award. He is recognized for his extensive work in the area of heath care management, eliminating health disparities and creating healthier communities. Mr. Lofton was the chairman of the board of the American Hospital Association in 2007.2007, and received their Distinguished Service Award in 2021. He alsocurrently serves on the board of directors of Medtronic plc, and previously served on the board of directors of Rite Aid Corporation.

Corporation from 2013 to 2022.

Relevant Skills and Experience:

Significant leadership experience in the healthcare industry, including serving as chief executive officer of multiple organizations. Expertise and knowledge in health systems management and patient care. Demonstrated commitment to improving access to medical services, particularly for the underserved. Breadth of knowledge about Gilead’s business.

Other Public Company Board Service:

  Medtronic plc


Age: 70
Director since:
2018
Committees:
Compensation
and Talent,
Science

 

Independent

Age:67

Director Since:2018

Committees:Scientific

Effective May 2020:

Compensation

Jacqueline K. Barton, Ph.D.

Independent

Dr. Barton joined our Board in January 2018. Dr. Barton is the John G. Kirkwood and Arthur A. Noyes Professor of Chemistry Emerita in the Division of Chemistry and Chemical Engineering at the California Institute of Technology, where she has beenwas a member of the faculty for nearlymore than 30 years and served as the Norman Davidson Leadership Chair of the division from 2009 to 2019. She is a member of the board of directors of Dow Inc., and previously served on the board of directors for both Dow Inc. and The Dow Chemical Company, and was a member of the Board and Materials Advisory Committee of DowDupont Inc. and the board of directors of The Dow Chemical Company. Dr. Barton also founded and served on the board of directors of GeneOhm Sciences Inc., a molecular diagnostics company acquired by Becton, Dickinson and Company, and was a member of Gilead’s Scientific Advisory Board from 1989 to 2007. She is a member of the National Academy of Sciences, the National Academy of Medicine and the American Philosophical Society. In 2011,2021, Dr. Barton was elected as a Vice President of the American Philosophical Society. Dr. Barton received the 2010 National Medal of Science for her discovery of new chemistry of the DNA helix and inthe 2015 she received the Priestley Medal, the highest award of the American Chemical Society.

Relevant Skills and Experience:

Extensive experience in the fields of chemistry and related fields, for which she has received many awards. Accomplished academic and inventor who has performed pioneering medical research and discovery. Business experience in foundingas a founder and leadingleader of a molecular diagnostics company.

Other Public Company Board Service:

  None

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Age: 69
Director since:
2020
Committees:
Science

 

Jeffrey A. Bluestone, Ph.D.

Independent

Dr. Bluestone joined our Board in December 2020. Dr. Bluestone is the President and Chief Executive Officer of Sonoma Biotherapeutics, Inc., a role he has held since 2019. From 2015 to 2019, he led the Parker Institute for Cancer Immunotherapy as President and Chief Executive Officer. Dr. Bluestone is the A.W. and Mary Margaret Clausen Distinguished Professor Emeritus in the Diabetes Center at University of California San Francisco, where he has been a member of the faculty and served in various other roles for over 20 years, including the Director of the Diabetes Center from 2000 to 2019. He is an international leader in the field of immunotherapy and has published more than 500 papers over nearly four decades focused on understanding the basic processes that control T-cell activation and immune tolerance in autoimmunity, organ transplantation and cancer. His research has led to the development of multiple immunotherapies, including the first medicine approved by the U.S. Food and Drug Administration (FDA) to delay/prevent autoimmune Type 1 diabetes and the first FDA-approved checkpoint inhibitor for the treatment of metastatic melanoma and other cancers. Dr. Bluestone was the founding director of the Immune Tolerance Network, the largest National Institutes of Health-funded multicenter clinical immunology research program, testing novel immunotherapies in transplantation, autoimmunity and asthma/allergy. He served as a member of the Blue Ribbon Panel, appointed by then Vice President Joe Biden, as a member of the National Cancer Moonshot Task Force. Dr. Bluestone is a member of the National Academy of Medicine and American Academy of Arts and Sciences, was a recipient of the prestigious Guggenheim Fellowship, and previously served as the Ludwig Professor and Director of the Ben May Institute at the University of Chicago. He previously served on the board of directors of Provention Bio, Inc. from 2013 to 2022.

Relevant Skills and Experience:

Internationally-recognized leader in the field of immunotherapy and related fields, with a distinguished scientific and academic career spanning nearly four decades. Strong leadership experience in the healthcare industry.

Other Public Company Board Service:

None


Independent NEW 

Age:71

74
Director Since:since:
2020


Committees:
Nominating
and Corporate
Governance, Scientific

Science (Chair)

Sandra J. Horning, M.D.

Independent

Dr. Horning joined our Board in January 2020. Dr. Horning was the Chief Medical Officer and Global Head of Product Development of Roche, Inc., until her retirement in 2019. During her 10-year career at Roche and Genentech, she helped bring 15 new medicines to patients in disease areas including cancer, multiple sclerosis, influenza and blindness. Prior to her career at Roche, Dr. Horning spent 25 years as a practicing oncologist, investigator and tenured professor at Stanford University School of Medicine, where she remains a professor of medicine emerita. From 2005 to 2006, she served as President of the American Society of Clinical Oncology. Dr. Horning was recognized as the 2020 Healthcare Businesswomen’s Association Woman of the Year. She was also selected as the 2017 recipient of the Duane Roth Memorial Award, an honor dedicated to leaders in healthcare, whose work has overcome numerous scientific obstacles to create new paradigms in research and treatment. From 2015 to 2018, Dr. Horning previously served on the board of directors of Foundation Medicine.Medicine from 2015 to 2018. She currently serves as an advisor to EQRx.

on the board of directors of Moderna, Inc., Olema Pharmaceuticals, Inc. and EQRx, Inc.

Relevant Skills and Experience:

Significant leadership experience in the pharmaceutical and healthcare industry, including expertise in drug development in multiple therapeutic areas. Medical professional with experience treating patients as a practicing oncologist.

Other Public Company Board Service:

Moderna, Inc.  Olema Pharmaceuticals, Inc.  EQRx, Inc.
  
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Age: 55
Director since:
2016
Committees:
Audit (Chair),
Compensation
and Talent

 

Independent

Age:52

Director Since:2016

Committee:Audit (Chair)

Kelly A. Kramer

Independent

Ms. Kramer has beenjoined our Board in August 2016. Ms. Kramer was Executive Vice President and Chief Financial Officer of Cisco Systems, Inc., a worldwide technology leader, since 2015.from 2015 until her retirement in 2020. Prior to that, she was Senior Vice President of Corporate Finance at Cisco. She previously served as Vice President and Chief Financial Officer of GE Healthcare Systems and Chief Financial Officer of GE Healthcare Biosciences. Ms. Kramer has also worked in GE’s Corporate Headquarters, Transportation Systems and Aerospace divisions. She is a member ofcurrently serves on the board of directors of the Silicon Valley chapter of City Year, a non-profit organization that provides educational support for at-risk students in high-poverty communities.

Snowflake Inc. and Coinbase, Inc.

Relevant Skills and Experience:

Significant financial expertise, including serving as a chief financial officer of major companies or divisions in the technology and healthcare industries. Experience in strategic and financial planning and corporate development.

Other Public Company Board Service:

  

20Snowflake Inc.  Coinbase, Inc.                      

Age: 69
Director since:
2018
Committees:
Compensation
and Talent,
Nominating
and Corporate
Governance

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Independent

Age:66

Director Since:2018

Committees:

Compensation

Effective May 2020:

Audit

Harish Manwani

Independent

Mr. Manwani joined our Board in May 2018. Mr. Manwani is a Senior Operating Partner at Thefor Blackstone Group L.P.Inc., a leading global alternative asset manager, which he joined ininvestment firm, and has advised select Blackstone portfolio companies since 2015. He was previously was Chief Operating Officer of the Unilever Group from 2011 until his retirement in 2014. Mr. Manwani joined Unilever in 1976 as a management trainee in India and held several senior management roles around the world, including overseeing Unilever’s businesses in North America, Latin America, Asia Africa and Central and Eastern Europe.Africa. Mr. Manwani is an honorsHonors graduate from Bombay University. He holds a master’sMaster’s degree in Management Studies, and he attended the Advanced Management Program at Harvard Business School. Mr. Manwani currently serves on the board of directors of Whirlpool Corporation. He also serves on the board of directors of EDBI Pte Ltd., Tata Sons Private Limited and Alinamin Pharmaceutical Co. Ltd., a private Blackstone portfolio company in Japan, and is the Chairman of the Executive Board of the Indian School of Business, and also serves on the board or directors of Whirlpool Corporation, Qualcomm Incorporated, Nielsen Holdings plc., EDBI Pte Ltd. and Tata Sons Private Limited.Business. He previously served as the non-executiveNon-Executive Chairman of Hindustan Unilever Limited from 2005 to 2018, and as a member ofon the board of directors of The Economic Development Board of Singapore from 2013 to 2019 and Pearson plc from 2013 to 2018.

2018, Singapore Economic Development Board from 2013 to 2019, Nielsen Holdings plc from 2015 to 2021 and Qualcomm Incorporated from 2014 to 2022.

Relevant Skills and Experience:

Strong leadership skills and broad global operational, sales and marketing and human resources expertise at a complex, multi-national complex organization.company. Experience in driving growth across complex organizations on a global scale.

Other Public Company Board Service:

Whirlpool Corporation

  
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Age: 58
Director since:
2019

 

Chairman of the Board

Age:55

Director Since:2019

Daniel P. O’Day

Chairman of The Board

Mr. O’Day joined Gilead Sciences in March 2019 as Chairman of the Board of Directors and Chief Executive Officer on March 1, 2019.Officer. Prior to Gilead, Mr. O’Day served as the Chief Executive Officer of Roche Pharmaceuticals. His career at Roche spanned more than three decades, during which he held a number of executive positions in the company’s pharmaceutical and diagnostics divisions in North America, Europe and Asia. During his time at Roche, Mr. O’Day demonstrated vision and leadership, helping to engineer the acquisitions of Flatiron Health and Foundation Medicine in 2018. He served as a member of Roche’s Corporate Executive Committee, as well as on a number of public and private boards, including Genentech, Inc.,Flatiron Health and Foundation Medicine, Inc. and Chugai Pharmaceutical Co., Ltd.Medicine. Mr. O’Day holds a bachelor’s degree in biology from Georgetown University and an MBA from Columbia University in New York.

He currently serves on the board of directors for the Pharmaceutical Research and Manufacturers of America organization and Galapagos NV.

Relevant Skills and Experience:

Significant leadership and international business experience in the pharmaceutical industry. Deep understanding of the evolving global healthcare environment and demonstrated commitment to driving innovation across the business.

Other Public Company Board Service:

Galapagos NV


Age: 52
Director since:
2020
Committees:
Audit

 

Javier J. Rodriguez

2020 Proxy Statement21

Independent

Mr. Rodriguez joined our Board in June 2020. Mr. Rodriguez is the Chief Executive Officer of DaVita Inc., a Fortune 500 company providing healthcare services to kidney disease patients throughout the United States and internationally. He assumed his current role with DaVita in 2019, building on his more than 20 years of increasing company leadership and commitment to transforming care delivery for patients with kidney disease – from the earliest stages through transplantation. From 2014 to 2019, he was the CEO of DaVita Kidney Care, the company’s business unit that treats patients with kidney failure and end-stage renal disease. Mr. Rodriguez is recognized for his vision and leadership in transforming how kidney care is delivered and accelerating the digital transformation to improve patients’ lives while lowering costs for the health care system. He currently serves on the board of directors of DaVita.

Relevant Skills and Experience:

Significant leadership experience in the healthcare industry, including serving as chief executive officer and in various other executive roles of a Fortune 500 public company.

Other Public Company Board Service:

DaVita, Inc.

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Age: 68
Director since:

2020

Committees:

Compensation

and Talent,

Nominating

and Corporate

Governance

(Chair)

 

Anthony Welters

Independent

Independent

Age:74

Director Since:2008

Committees:NominatingMr. Welters joined our Board in October 2020. Mr. Welters is Founder, Chairman and Corporate Governance, Scientific (Chair)

Richard J. Whitley, M.D.

Dr. Whitley isChief Executive Officer of CINQ Care Inc., a physician-led, community-based ambulatory care delivery system that delivers whole person care in the Distinguished Professor, Loeb Scholar Chair in Pediatrics,home, whenever possible, to Black and Professor of Pediatrics, Microbiology, Medicine and Neurosurgery at the University of Alabama at Birmingham.Brown communities. He is also Executive Chairman of the Co-Director, DivisionBlackIvy Group, an organization focused on building and growing commercial enterprises in Sub-Saharan Africa, and Chairman of Pediatric Infectious Diseases; Vice-Chair, DepartmentSomatus, Inc., a value-based kidney care company. Mr. Welters founded AmeriChoice in 1989 and upon acquisition by UnitedHealth Group (UHG) in 2002, joined UHG as Senior Adviser to the Office of Pediatrics; Senior Scientist, Departmentthe Chief Executive Officer, Executive Vice President and Member of Gene Therapy; Director for Drug Discoverythe Office of the Chief Executive Officer, until retiring in 2016. He currently serves on the board of directors of Loews Corporation and Development; Senior Leader, Comprehensive Cancer Center; Associate Director for Clinical Studies,the Carlyle Group. Mr. Welters previously served on the board of directors of West Pharmaceutical Services, Inc. from 1997 to 2016, and C.R. Bard, Inc. from 1999 to 2017. He is Trustee Emeritus of Morehouse School of Medicine Board of Trustees, Chairman Emeritus of the Board of New York University School of Law, Vice Chairman of the Board of New York University, a Trustee of NYU Langone Medical Center, Vice Chair of the John F. Kennedy Center for AIDS Research;the Performing Arts and Co-Founder and Co-Director, Alabama Drug Discovery Alliance. Dr. Whitley is responsible for the National Institute of Allergy and Infectious Diseases (NIAID) Collaborative Antiviral Study Group and directs a center for drug discovery in the arena of emerging infections. He is a past President of the International Society of Antiviral Research and the Infectious Diseases Society of America, and currently chairs both the NIAID Recombinant DNA Advisory Council and the NIAID HIV Vaccine Data Safety and Management Board. He is an electedfounding member of the National Museum of African American SocietyHistory and Culture. Mr. Welters is a graduate of Clinical Investigation, the AssociationManhattanville College and received his law degree from New York University School of American Physicians and an Honorary member of the Irish Academy of Science.

Law.

Relevant Skills and Experience:

Extensive experience in the health insurance and managed care industry. Demonstrated commitment to delivering healthcare to underserved communities.

Significant medical and health policy experience, particularly with respect to infectious disease and cancer and research and development of antiviral therapies, for which he has been widely recognized. Extensive knowledge of Gilead’s business as a result of service on Gilead’s Scientific AdvisoryOther Public Company Board from 2003 to 2008 and on Gilead’s Board of Directors since 2008.Service:

  
Loews Corporation
  Carlyle Group                      

Independent

Age:72

Director Since:2010

Committees:Compensation (Chair), Nominating and Corporate Governance, Scientific

Per Wold-Olsen

Mr. Wold-Olsen has served as the Chair of Gilead’s Health Policy Advisory Board since 2007. From 2005 to 2006, he served as President of the Human Health Intercontinental Division of Merck & Co., Inc., a global pharmaceutical company. From 1997 until 2005, he served as President of Human Health Europe, Middle East/Africa and Worldwide Human Health Marketing for Merck. Mr. Wold-Olsen is currently Chairman of the Board of GN Store Nord A/S and Oncopeptides AB. In addition, he is the Chairman of the Board of the Medicines for Malaria Venture (MMV), a non-profit initiative dedicated to the discovery, development and delivery of new medicines for the treatment of malaria.

Relevant Skills and Experience:

Significant leadership and international business experience in the pharmaceutical industry.

Breadth of knowledge about Gilead’s business.

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Independence of the Board of Directors

The Nasdaq listing rules require that a majority of the members of a listed company’s board of directors qualify as “independent” as affirmatively determined by our Board. In addition, our Board Guidelines require that a substantial majority of our Board consist of “independent” directors as defined by the Board Guidelines. Our Board Guidelines are available on our website at http://www.gilead.com on the Investors page under “Corporate Governance.“Governance.

After a review of all relevant transactions and relationships between each director, as well as his or her family members, and us, our senior management and independent registered public accounting firm, our Board has determined that seveneight of our eightnine nominees for director are “independent” directors as specified by applicable laws and regulations of the SEC, the listing rules of Nasdaq and our Board Guidelines. In addition, the Board previously determined that Dr. Cogan and Ms. Wilson are independent. Mr. O’Day, our Chairman of the Board, is not an independent director because he is currently an executive officer of theour company.

Majority Vote Standard for Election of Directors

Our bylaws require directors to be elected by a majority of the votes cast with respect to such director in uncontested elections (number of shares voted “for” a director must exceed the number of shares voted “against” that director). In a contested election (a situation in which the number of nominees for director exceeds the number of directors to be elected), the standard for election of directors will be a plurality of the shares voting in the election of directors at any such meeting at which a quorum is present. Under our Board Guidelines, any director who fails to receive at least a majority of the votes cast in an uncontested election must tender his or her resignation to our Board. Our Nominating and Corporate Governance Committee would then evaluate the tendered resignation and make a recommendation to our Board to accept or reject the resignation or to take other action. Our Board will act on our Nominating and Corporate Governance Committee’s recommendation and publicly disclose its decision and the rationale for such decision within 90 days from the date the election results are certified. The director who tenders his or her resignation will not participate in our Board’s decision. If a nominee who was not already serving as a director does not receive at least a majority of the votes cast for such director at the annual meeting, that nominee will not become a director.

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Our Board’s Role and Responsibilities

Corporate Governance

We are committed to strong corporate governance structures and practices that reflect our commitment to integrity, accountability and excellence in conducting our business. Our Board has adopted certain corporate governance principles, which we refer to asare set forth in our Board Guidelines to promote the functioning of the Board and its committees and the interests of stockholders andother key governance documents, to set forth a common set of expectations as toframework for how the Board, its various committees and individual directors should perform their functions. These principles are designed to drive effective functioning of the Board in its oversight role and to promote the interests of stockholders. Our Board regularly reviews and updates our governance materials in light of legal and regulatory requirements, evolving best practices and other developments. In considering possible modifications of our corporate governance structures and practices, our Board focuses on those changes that are best for our company and our business. Our focus is on advancing the long-term interests of our company, our stockholders and our other stakeholders. Provided below is a summary of our corporate governance practices. Additional information regarding our governance framework and associated governance documents, including our Board Guidelines, are available on our website at http://www.gilead.com on the Investors page under “Corporate Governance.“Governance.

WHAT WE DO

WHAT WE DO NOT DO

  Annually Elect All Directors

  Majority Vote to Elect Directors

  Substantial Majority of Independent Directors

  Robust Lead Independent Director Role

  Regular Executive Sessions of Independent Directors

  Fully Independent Board Committees

  Independent Evaluation of Chief Executive Officer

  Robust Board Guidelines and Committee Charters

  Commitment to Board Diversity, including “Rooney Rule” in new director searches

  Robust Board-Level Oversight of ESG Matters

  Annual Corporate Responsibility Report

Stockholder Right to Call Special Meetings - Lowered to 15% Threshold  NEW 

  Stockholder Right to Act By Written Consent

  Proxy Access on Market Terms, with 3% / Three-Year Threshold

  Annual Say-on-Pay Vote

  Compensation Clawback Policy

  Proactive Year-Round Stockholder Engagement

  Annual Board and Committee Evaluations

  Director Succession Planning and Board Refreshment

  No Classified Board

  No “Poison Pill”

  No Supermajority Voting Provisions

  No Dual Class Stock Structure with Unequal Voting Rights

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Oversight of Corporate Strategy

Our Board’s RoleBoard actively oversees management’s establishment and Responsibilitiesexecution of corporate strategy, including major business and organizational initiatives, annual budget and long-term strategic plans, capital allocation priorities, financial results, potential corporate development opportunities and other matters that are material to the company. Our Board regularly receives information and formal updates from our management and actively engages with the senior leadership team with respect to the implementation of our corporate strategy. Our independent directors also hold regularly scheduled executive sessions during which they review and discuss our corporate strategy. Consistent with our corporate transaction approval policy, our Board also, directly or indirectly through a committee, reviews and approves strategic transactions that are material to our business, including significant acquisitions and collaborations.

Oversight of Risk

Our Board exercises its risk oversight responsibility directly and through its committees. Our Board considers specific risk topics directly, including, but not limited to, risks associated with our company’s strategic plan, capital allocation and risks relating to pricing strategies of newly approved products. Our Board has delegated responsibility to its committees for oversight of certainspecific risks to relevant committees:

Audit Committee
Oversees risks associated with our financial and accounting systems, accounting policies and investment strategies, in addition to finance-related public reporting, regulatory compliance and certain other matters delegated to the Committee, including risks associated with our information systems and technology (including cybersecurity and anti-corruption compliance).
Compensation Committee
Oversees risks related to 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 Gilead.
Nominating and Corporate Governance Committee
Oversees risks related to corporate governance matters and certain other non-financial or non-compensation-related risks, including, but not limited to, clinical trials, manufacturing, healthcare compliance, human resources and ESG matters.

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that fall within the committee’s areas of responsibility. Each of the committees periodically reports to the Board on its risk oversight activities. In addition to receiving reports from our Board committees, our Board is periodically reviewsbriefed by Gilead’s management ofon specific material risks or legal developments. We believe our Board’s leadership structure effectively supports the Board’s independent evaluation and management of risk.

Oversight of Corporate Strategy

Our Board actively oversees management’s establishment and execution of corporate strategy, including major business and organizational initiatives, annual budget and long-term strategic plans, capital allocation priorities and potential corporate development opportunities. Our Board also reviews and approves strategic transactions, including significant acquisitions and collaborations. At the Board and committee meetings and throughout the year, our Board regularly receives information and formal updates from our management and actively engages with the senior leadership team with respect to our corporate strategy. The Board’s independent directors also hold regularly scheduled executive sessions at which strategy is discussed.

AUDIT COMMITTEE

Oversees risks associated with our financial and accounting systems, accounting policies and investment strategies, in addition to finance-related public reporting, regulatory compliance (other than healthcare compliance) and certain other matters delegated to the Committee, including risks associated with our information systems and technology (including cybersecurity).

COMPENSATION AND
TALENT COMMITTEE

Oversees risks related to our compensation practices to ensure that these practices are not reasonably likely to have a material adverse effect on Gilead or encourage employees to take unnecessary or excessive risks; also oversees risks related to talent management and succession planning of our executive officers.

NOMINATING AND CORPORATE
GOVERNANCE COMMITTEE

Oversees risks related to corporate governance matters and certain other non-financial or non-compensation-related risks, including, but not limited to, Gilead’s compliance program, clinical trials, manufacturing, human resources, competition law, political contributions (including payments to trade associations) and ESG matters.

Oversight of Human Capital Management and Succession Planning

Our Board believes thatour success depends on the work of dedicated employees who embrace a shared sense of purpose and a culture of excellence. As such, our human capital managementobjective is to make Gilead an employer of choice for the best talent in our industry. Our Compensation and succession planning, including diversity and inclusion initiatives, are vital to Gilead’s continued success. Our Board’s involvement in leadership development and succession planning is ongoing, and the Board provides input on important decisions in each of these areas. Our Board, with leadership from our Lead Independent Director,Talent Committee has primary oversight responsibility for succession planning for the Chief Executive Officer and in talent retention and development programs for members of senior management. Our Compensation Committee performs an annual formal evaluation of the Chief Executive Officer and other executive officers.

In March 2020, our Board amended the Compensation Committee charter to expressly delegate to the Compensation Committee oversight responsibility of the company’s strategies and policies related to human capital management, including with respect to matters such as diversityinclusion and inclusion, workplace environment anddiversity, culture, talent recruitment, development and retention and employee engagement and effectiveness. Our Compensation and Talent Committee receives regular updates from our management regarding human capital management matters throughout the year.

Our Board is actively involved in talent development and succession planning for our senior management team. Our Compensation and Talent Committee has responsibility for overseeing and making recommendations to our Board with respect to talent development and succession planning for the Chief Executive Officer and our other executive officers. In connection with these efforts, our Compensation and Talent Committee performs a formal evaluation of the performance of our senior leadership team on an annual basis.

INCLUSION AND DIVERSITY IN 2022

Inclusion is a core value of our company, and our Board remained focused on guiding our efforts to advance inclusion and diversity in our workforce and in our community. For information regarding the progress we made in 2022, see “Advancing Inclusion and Diversity” on page 7.

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Oversight of Environmental, Social and Governance Matters

Our ESG program is at the heart of our mission to provide innovative medicines to prevent and treat life-threatening illnesses. We are committed to operating in a manner that is environmentally sustainable and socially responsible, as we believe doing so is critical to the success of our business and our ability to generate long-term, shared value for all of our stakeholders. This commitment is reflected in our ongoing investment in our ESG program as well as the involvement of the highest levels of company leadership in the program. Our Nominating and Corporate Governance Committee has primary responsibility for overseeingoversight of ESG matters. Our Nominating and Corporate Governance Committee overseesmatters and receives periodicregular reports onfrom our Corporate Responsibility Committee regarding our ESG program. Our Corporate Responsibility Committee, which is comprised of key members of leadership, manages our ESG program and, in consultation with our senior leadership team, sets and implements strategy, reporting and other initiatives to advance our program.

ESG ACHIEVEMENTS IN 2022

For additional information regarding our ESG program, including an overview of our key achievements in 2022, see “Our Environmental, Social and Governance Program” on page 9.

Oversight of Cybersecurity Matters

Our Audit Committee has primary responsibility for overseeing risks associated with our information systems and technology, including cybersecurity. Our Audit Committee receives quarterly reports from our Head of Information Security, Risk and Compliance and an annual report from our Chief Information Officer regarding our information systems and technology and associated policies, processes and practices for managing and mitigating cybersecurity and technology-related risks. As part of our risk mitigation program, we provide annual information security training to our employees. We also provide specialized trainings to our Security Operations team and employees with access to certain sensitive information systems. In addition, we engage a third-party advisory firm to review our security controls and maturity against the Corporate Responsibility Committee, a management committee responsibleNational Institute of Standards and Technology (NIST) cybersecurity framework. We have information security risk insurance policies for developingcertain of our operating subsidiaries. We have not experienced any material information security breaches, including within the last three years, which reflects our commitment to maintaining the integrity and reviewingsecurity of our sustainability strategysystems and reporting.technology.

Stockholder Communications with ourOur Board

Stockholders may communicate with our Board by sending a letter to the Corporate Secretary, Gilead Sciences, Inc., 333 Lakeside Drive, Foster City, California 94404. Our Corporate Secretary reviews all communications from stockholders, but may, in hisher sole discretion, disregard any communication that heshe believes is not: related to our business; within the scope of our responsibility; credible; or material or potentially material.

If deemed an appropriate communication, the Corporate Secretary will submit the stockholder communication to the member of our Board addressed in the communication and to our Lead Independent Director. We maintain a “Stockholders Communications with the Board” policy that outlines the applicable procedures and is available on our website at http://www.gilead.com on the Investors page under “Corporate Governance.“Governance.

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Our Stockholder Outreach and Engagement

Gilead recognizes the value of and is committed to engaging with our stockholders. We believe strong corporate governance includes proactive outreach and engagement with our stockholders on a regular basis throughout the year to better understand the issues that are important to them. This enables us to address these matters in a more meaningful and effective way and to drive improvements in our policies, communications and other areas. As part of our stockholder engagement program, our senior leadership team engages with investors on a variety of topics in a number of forums, including in quarterly earnings calls, investor and industry conferences, analyst meetings and individual corporate governance and ESG-related discussions with stockholders. In addition, our Lead Independent Director participates in many of our investor meetings and shares the investor views expressed in these meeting with the full Board.

Our Year-Round Stockholder Engagement Program  
 
Fall 2022 Engagement

In Fall 2022, we contacted stockholders representing approximately 57% of our outstanding shares to gain valuable insights on the issues that matter most to our stockholders.

Of those that we contacted, our engagement team led by our General Counsel and leadership from our Investor Relations, Executive Compensation, Corporate Responsibility and Office of General Counsel teams met with stockholders representing approximately 47% of our outstanding shares as well as the two largest proxy advisory firms.

Our Lead Independent Director met with stockholders representing approximately 33% of our outstanding shares to provide a direct line of communication between our stockholders and the Board.

We gained constructive feedback during these engagements, which was shared with our Board and management. This ongoing feedback drives improvements in our governance policies and practices.

KEY TOPICS DISCUSSED WITH STOCKHOLDERS IN 2022:
2022 Stockholder ProposalsCorporate GovernanceCompensationEnvironmental, Social and Other
Appropriate threshold to call a special stockholder meetingBoard leadership structure, including Lead Independent Director roleInclusion of non-financial and ESG metrics into the compensation programDiversity and human capital management initiatives and targets, including data related to employee engagement, retention and turnover
Lobbying disclosures and proposed political congruency reportBoard composition, refreshment and succession planningInvestors’ approaches to new SEC pay versus performance disclosure rulesBoard oversight of ESG strategy and risks, including climate goals, access to medicine, diversity in clinical trials and human capital
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Response to 2022 Stockholder Proposals

Our stockholder outreach and engagement since our 2022 annual meeting of stockholders (“2022 Annual Meeting”) included discussing with investors potential responses to two stockholder proposals that received majority or near-majority support.

Threshold to Call Special Meetings

At our 2022 Annual Meeting, holders of a majority of shares represented at the meeting approved an advisory proposal seeking to lower the ownership threshold required to call a special stockholder meeting from 20% to 10%. Investor outreach since that vote, among other things, sought stockholders’ input on the threshold percentage that should be required to call special meetings. During our engagement, we met with stockholders representing approximately 47% of our outstanding shares, including both investors who voted for and against the proposal. Several of these investors expressed the view that our then-existing 20% threshold continued to be appropriate. Some of these investors shared our concern that a 10% ownership threshold could be too low in light of the significant costs and diversion of resources associated with special meetings. Other investors indicated that while they supported the proposal because they believed 20% was too high a threshold, they would be supportive of a special meeting threshold between 20% and 10%.

After careful consideration of the views expressed during our stockholder outreach, in February 2023, our Board amended our bylaws to reduce the ownership threshold required to call a special stockholder meeting from 20% to 15%. Consistent with the feedback we received from the stockholders with whom we engaged, the Board believes that a 15% ownership threshold is a reasonable threshold that strikes an appropriate balance between ensuring that stockholders have a meaningful right to call a stockholder meeting and protecting against the risk that a small minority of stockholders could trigger a special meeting and its associated expense and disruption to Gilead’s business.

Political Congruency Report

At our 2022 Annual Meeting, a stockholder proposal requesting a third-party review of whether our lobbying activities align with our vision statement received support from holders of more than 49% of shares represented at the meeting. Given this significant support, our engagement with stockholders sought further feedback on this topic. Many investors expressed a desire for greater disclosure on the topic but indicated that a third-party review would be unnecessary.

After careful consideration of the views expressed by stockholders, the Board determined that it would be appropriate to publish a political congruency report. Accordingly, in March 2023, we published a report analyzing the congruency of the positions taken by our most significant trade association relationships against our publicly stated values and policies. Those trade associations are Biotechnology Innovation Organization, California Life Sciences, Pharmaceutical Research and Manufacturers of America, and the United States Chamber of Commerce. We analyzed the trade associations’ positions on Gilead’s core public policy priorities (Drug Pricing and Access, and Intellectual Property Rights) and two other important company priorities: Climate Change, and Diversity, Equity and Inclusion. The report is available on our website at www.gilead.com on the “Public Policy Engagement” page under “Our Company.” In addition, we have also enhanced our disclosures on the “Public Policy Engagement” page based on investor feedback.

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Board Structure

Board Leadership

Mr. O’Day was appointed as our Chief Executive Officer and Chairman of the Board, effective March 1, 2019.

Our Board believes that it is currently in the best interests of Gilead and its stockholders for Mr. O’Day to serve as our Chief Executive Officer and Chairman of the Board because it positions Mr. O’Day to effectively drive future strategy and decision-making for our organization. In addition to public, private and non-profit board experience, Mr. O’Day has a track record of success in highly scientific and competitive therapeutic areas, deep understanding of the evolving healthcare environment around the world and unwavering commitment to driving innovation across all aspects of the business. As the individual with primary responsibility and accountability for managing our day-to-day operations, Mr. O’Day can provide unified leadership of Gilead and ensure that key business and strategic issues, risks and opportunities are brought to our Board’s attention in a way that prioritizes and makes the best use of our Board’s time.

24

Daniel P. O’Day

Chairman of the Board

Our Board believes that it is currently in the best interests of Gilead and its stockholders for Mr. O’Day to serve as our Chief Executive Officer and Chairman of the Board because it positions Mr. O’Day to effectively drive future strategy and decision-making for our organization. In addition to public, private and non-profit board experience, Mr. O’Day has a track record of success in highly scientific and competitive therapeutic areas, deep understanding of the evolving healthcare environment around the world and unwavering commitment to driving innovation across all aspects of the business. As the individual with primary responsibility and accountability for managing our day-to-day operations, Mr. O’Day can provide unified leadership of Gilead and ensure that key business and strategic issues, risks and opportunities are brought to our Board’s attention in a way that prioritizes and makes the best use of our Board’s time.

Kevin E. Lofton

Lead Independent Director

In May 2020, our Board unanimously appointed Kevin E. Lofton as our new Lead Independent Director, in recognition of his leadership, in-depth knowledge of Gilead and demonstrated commitment to our mission. Mr. Lofton has a deep knowledge of our operations and business cycles. He also has significant leadership experience on other public boards and in the healthcare industry, including experience serving as a chief executive officer and a board member of several large organizations. In addition, Mr. Lofton has demonstrated a commitment to improving access to medical care, particularly for the underserved. Given his proven leadership capability, breadth of industry experience and business success, our Board believes Mr. Lofton is a strong and effective partner to our Chairman of the Board.

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Our Board Guidelines provide that the independent directors will designate a Lead Independent Director when the Chairperson is not an independent director. Dr. Cogan currently serves as the Lead Independent Director and has held the role since May 2013. Upon Dr. Cogan’s retirement at the Annual Meeting on May 6, 2020, Mr. Lofton will become our Lead Independent Director.

We believe the robust duties of our Lead Independent Director empower our independent directors to provide guidance and oversight of management. The role of Lead Independent Director at Gilead is modeled on the role of an independent Chairperson, ensuring a strong, independent and active Board of Directors. Our Board regularly reviews its leadership structure to evaluate whether it remains appropriate for our company, and we continue to believe the robust duties of our Lead Independent Director empower our independent directors to provide guidance and effective oversight of management. As set forth in the Lead Independent Director Charter, the Lead Independent Director has clearly delineated and comprehensive duties.

duties, which are described further below:

Mr. Lofton will become our Lead Independent Director upon Dr. Cogan’s retirement at the Annual Meeting.

Lead Independent Director duties include:

Consulting with the Chairperson as to an appropriate schedule of Board meetings, seeking to ensure that the independent directors can perform their duties responsibly while not interfering with ongoing company operations;
Consulting with the Chairperson regarding and approving the information, agenda and schedules of meetings of the Board of Directors and Board committees;
Chairing meetings of the Board of Directors when the Chairperson is not present or when otherwise appropriate, including all executive sessions of independent directors;
Facilitating the effective functioning of key Board committees and providing input on functioning of the committees, when required;
Advising the Chairperson as to the information necessary or appropriate for the independent directors to effectively and responsibly perform their duties and provide feedback on the quality, quantity and timeliness of information submitted by management;
Advising the Board of Directors and its committees on the retention of advisers and consultants who report directly to the Board of Directors;
Calling meetings of the independent directors, as appropriate;
  
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Serving as chairperson of meetings of the independent directors;
Serving as principal liaison between the independent directors and the Chairperson and between the independent directors and senior management;
Ensuring that independent directors have adequate opportunities to meet and discuss issues in meetings of the independent directors;
Encouraging director participation by fostering an environment of open dialogue and constructive feedback among independent directors;
Communicating to management, as appropriate, the results of private discussions among independent directors;
Chairing meetings of the Board of Directors when the Chairperson is not present;
Facilitating the effective functioning of key Board committees and providing input on functioning of the committees, when required;
Participating on ad-hoc committees established to deal with extraordinary matters, such as investigations and mergers and acquisitions;
Providing guidance on director succession and development;
Ensuring Board agendas provide the Board with the ability to periodically review and provide input on the company’s long-term strategy and to monitor management’s execution of the long term-strategy;
Unless otherwise directed by the Board, servingServing as the independent directors’ representative in crisis situations;situations, unless otherwise directed by the Board;
Monitoring conflicts of interest of all directors, including the Chairperson;
Participating in succession planning for the Chief Executive Officer and in talent retention and development programs for members of senior management;
Responding to major stockholder and other stakeholder questions and comments that are directed to the Lead Independent Director or to the independent directors as a group, with such consultation with the Chairperson and other directors as the Lead Independent Director may deem appropriate;
Representing independent directors in communications with other stakeholders, as required; and
Performing such other duties as the Board of Directors may from time to time delegate.


The Lead Independent Director also frequently attends meetings of all our Board committees and leads our Board in conducting an annual assessment of our Board and the committees to evaluate their effectiveness.

In addition, as required by our Board Guidelines, our independent directors meet without executive management on a regular basis to review, among other things, Gilead’s strategy, performance, management effectiveness and succession planning.

Consistent with our commitment to robust engagement with our stockholders, the Lead Independent Director also participates in meetings with stockholders as part of our year-round stockholder engagement program.

The Lead Independent Director Charter is available on our website at http://www.gilead.com on the Investors page under “Corporate Governance.“Governance.

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Board Evaluations

Our Board believes that a robust and constructive Board and committee evaluation process is an essential component of board effectiveness. Our Board and each of the committees conduct an annual evaluation which includes an assessment by each director of the performance of our Board and the committees oncommittee performance, which the director sits, and a discussion of Board performance among each director, our Lead Independent Director and our Chairperson. The evaluation process is organized by our Nominating and Corporate Governance Committee and led by our Lead Independent Director. The resultsAn overview of theour 2022 annual evaluation process are shared with our full Board.is provided below.

Development Annual
Evaluation Process
Written QuestionnairesOne-on-One DiscussionsEvaluation Results
Each director completes aOur Lead IndependentOur Lead Independent

DEVELOPMENT OF
ANNUAL EVALUATION
PROCESS

  Our Nominating and Corporate Governance Committee develops an annual self-evaluation process and prepares the questionnaires for our Board and the committees.

WRITTEN
SELF-ASSESSMENT

  Each director completes a written questionnaire.self-assessment evaluating the performance of the Board and their respective committees.

ONE-ON-ONE
DISCUSSIONS

  Our Lead Independent Director and our Chairperson have one-on-one discussions with each director.

EVALUATION OF
RESULTS

  The full Board and each committee review and discuss the results from the written self-assessments.

  Our Lead Independent Director consolidatesshares the feedback and sharesfrom the resultsone-on-one discussions with ourthe full Board for discussion and consideration.

  
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Meetings of ourOur Board of Directors and Board Committees; Attendance at Annual Meetings

All directors attended greater than 75% of the aggregate of all meetings of our Board and of the committees on which they served during the year ended December 31, 20192022 (or the period for which they served in 2019).2022), and on average we had a 98.5% attendance rate for such meetings. Current committee membership and the number of meetings of our full Board and committees held in 20192022 are shown in the table below:

      Board     Audit
Committee
     Compensation
and Talent
Committee
     Nominating and
Corporate
Governance
Committee
     Science
Committee
Jacqueline K. Barton, Ph.D.       
Jeffrey A. Bluestone, Ph.D.        
Sandra J. Horning, M.D.       
Kelly A. Kramer       
Kevin E. Lofton Lead Independent Director     
Harish Manwani       
Daniel P. O’Day Chairman        
Javier J. Rodriguez        
Anthony Welters       
Number of 2022 Meetings 6 9 5 4 5

 

             
   Board Audit
Committee
 Compensation
Committee
 Nominating
and Corporate
Governance
Committee
 Scientific
Committee
 
 Jacqueline K. Barton, Ph.D.(1) Member       Member 
 John F. Cogan, Ph.D.(2) Lead Independent Director Member     Member 
 Sandra J. Horning, M.D.(3) Member     Member Member 
 Kelly A. Kramer Member Chair       
 Kevin E. Lofton(4) Member Member Member     
 Harish Manwani(5) Member   Member     
 Daniel P. O’Day Chairman         
 Richard J. Whitley, M.D. Member     Member Chair 
 Gayle E. Wilson(2) Member     Chair Member 
 Per Wold-Olsen Member   Chair Member Member 
 Number of 2019 Meetings 8 10 8 4 3 
             

(1)Effective as of the Annual Meeting, Dr. Barton will become a member of the Compensation Committee.
(2)Effective as of the Annual Meeting, Dr. Cogan and Ms. Wilson will retire from the Board and the committees on which they serve.
(3)Dr. Horning became a member of the Nominating and Corporate Governance Committee and the Scientific Committee in March 2020.

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(4)Effective as of the Annual Meeting, Mr. Lofton will become our Lead Independent Director and the chair of the Nominating and Corporate Governance Committee.
(5)Effective as of the Annual Meeting, Mr. Manwani will become a member of the Audit Committee.

Our Board expects our directors to attenddirector attendance at our annual meetings of stockholders. EightAll of nine of our then-serving Board members attended the 20192022 annual meeting of stockholders.

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Committees of ourOur Board of Directors

Our Board has an Audit Committee, a Compensation and Talent Committee, a Nominating and Corporate Governance Committee and a ScientificScience Committee. The charter for each of these committees is available on our website at http://www.gilead.com on the investorsInvestors page under “Corporate Governance.“Governance.

Audit Committee

Audit Committee

2022 Meetings: 9

Current Committee Members

2019 Meetings
Members:

Kelly A. Kramer (Chair)

10
John F. Cogan, Ph.D.
, Kevin E. Lofton, Javier J. Rodriguez

Our Board has determined that all members of our Audit Committee are “independent directors” under the criteria specified by applicable laws and regulations of the SEC, the listing rules of Nasdaq and our Board Guidelines, including the heightened independence standards under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), Rule 10A-3.Guidelines. Our Board has determined that Ms. Kramer, Mr. Lofton and Mr. LoftonRodriguez each qualify as an “audit committee financial expert,” as defined in applicable SEC rules.

Our Audit Committee oversees on behalf of our Board, our corporate accounting, financial reporting process and systems of internal accounting and financial controls.

OurAmong other responsibilities, our Audit Committee:

is directly responsible for the selection, appointment, retention, compensation, oversight and, where appropriate, the replacement of the independent registered public accounting firm (the “auditors”);
  
approves the engagement of proposed audit, review and attest services, as well as permissible non-audit services by our auditors;
  
evaluates the performance, independence and qualifications of the auditors;
  
reviews periodic reports prepared by the auditors regarding their internal quality control procedures and any material issues raised by internal quality-control reviews or by inquiries or investigations by governmental or professional authorities;
  
monitors the rotation of audit partners on our engagement team and is involved in the selection of the lead audit partner;
  
meets with the auditors and our financial management to review the scope and cost of proposed audits and the audit procedures to be utilized, and, following the conclusion thereof, reviews the results of such audits, including any findings, comments or recommendations of the auditors;
  
discusses with the auditors and our financial and accounting management the scope, adequacy and effectiveness of our internal control over financial reporting, including the adequacy of the systems of reporting to our Audit Committee;
  
reviews the potential effect of regulatory and accounting developments on our consolidated financial statements;
  
reviews significant reporting issues or judgments made in connection with the preparation of our consolidated financial statements;
  
reviews and approves, in advance, or ratifies all related party transactions in accordance with applicable laws, SEC rules and Nasdaq requirements;
  
oversees the establishment and maintenance of disclosure controls and procedures;
  
reviews draft earnings releases and the financial statements to be included in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, including the results of the annual audit and the results of the auditors’ review of our quarterly condensed consolidated financial statements;
  
meets with internal audit management to review and approve the annual internal audit plan and budget and to review the results of internal audit activities;
evaluates the performance and effectiveness of our internal audit function; and
  
oversees our management of risks associated with financial and accounting systems, accounting policies, public reporting, investment strategies and cybersecurity, including the periodic review with management of our efforts to identify and mitigate such risks.

Our Audit Committee hasWe have established procedures for the confidential submission of employee concerns regarding accounting, internal accounting controls or auditing matters under theour Complaint Procedure and Non-Retaliation Policy. Our Audit Committee receives quarterly reports from management on all complaints regarding accounting, internal accounting controls or auditing matters made under our Complaint Procedure and Non-Retaliation Policy.

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Our Audit Committee regularly meets in executive session and in private sessions with each of our Chief Financial Officer, our Vice President of Internal Audit and representatives of Ernst & Young LLP, and from time to time, our Chief Compliance Officer and our Chief Accounting Officer and Corporate Controller, and our Vice President of Internal Audit, during which candid discussions regarding financial management, legal, accounting, auditing and internal control issuesmatters take place.

Compensation Committee

Compensation and
Talent Committee

2022 Meetings: 5

Current Committee MembersMembers:

2019 Meetings
Per Wold-Olsen (Chair)8
Kevin E. Lofton
Harish Manwani

Kevin E. Lofton (Chair), Jacqueline K. Barton, Ph.D., Kelly A. Kramer, Harish Manwani, Anthony Welters

Our Board has determined that all members of our Compensation and Talent Committee are independent directors under the criteria specified by applicable laws and regulations of the SEC, the listing rules of Nasdaq and our Board Guidelines. The members of our Compensation and Talent Committee are “outside directors” as determined under Section 162(m) of the Internal Revenue Code and “non-employee directors” as determined under Rule 16b-3 under the Securities Exchange Act.Act of 1934, as amended (“Exchange Act”).

Our Compensation and Talent Committee has overall responsibility for approving and evaluating our executive officer compensation plans, policies and programs.

Among other responsibilities, our Compensation and Talent Committee:

These duties include:

takingtakes any and all actions that may be taken by the Board with respect to the compensation level of our executive officers, including but not limited to the development of compensation policies and the review of compensation arrangements;
  
overseeingoversees the administration and review of our compensation plans, including our 2004 Equity Incentive Plan, Employee Stock Purchase Plan, Corporate Annual Incentive Plan, deferred compensation program and our Internal Revenue Code Section 162(m) Bonus Plan;plans;
  
evaluatingevaluates the performance of our Chief Executive Officer, and reviewingreviews and approvingapproves the Chief Executive Officer’s compensation, subject to ratification by the independent directors of the Board;
  
reviewingreviews and approvingapproves the compensation arrangements for our other executive officers;
  
establishingoversees talent management and succession planning with respect to our Chief Executive Officer and other executive officers, and recommends a succession plan for such officers on an annual basis;
establishes the stock ownership guidelines applicable to executive officers and recommendingrecommends stock ownership guidelines applicable to the non-employee Board members;
  
overseeing the Company’sassesses whether our compensation practices present risks that could have a material adverse effect upon us or could otherwise encourage unnecessary or excessive risk-taking;
oversees our strategies and policies related to human capital management, including with respect to matters such as diversityinclusion and inclusion;diversity, workplace environment and culture;culture, talent recruitment;recruitment, development and retention;retention, and employee engagement and effectiveness;
  
reviewingreviews and discussingdiscusses the “Compensation Discussion and Analysis” included in our Proxy Statement for each annual meeting;
  
reviewingreviews the results of the most recent stockholder advisory vote on executive compensation and overseeingoversees our submissions to stockholders on executive compensation matters; and
  
appointing, determiningappoints, determines the compensation of and overseeingoversees the independent compensation advisers retained by the Compensation and Talent Committee.

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Our Compensation and Talent Committee has the authority to engage the services of its own outside advisors to assist it in determining the compensation of our executive officers. OurAfter a robust evaluation process in 2021 that included the consideration of alternative candidates for the role, our Compensation and Talent Committee has retainedcontinued its engagement of Frederic W. Cook & Co. (“FW Cook”), a national compensation consulting firm, as its independent compensation consultant. FW Cook reports directly to our Compensation Committee and provides various executive compensation services to our Compensation and Talent Committee, including advising the Committee on the following matters:

the principal aspects of our Chief Executive Officer’s compensation;
  
evolving industry practices; and
  
market information and analyses regarding the competitiveness of our program design for both our executive officers and the non-employee Board members.

FW Cook provides consulting services solely to our Compensation and Talent Committee and does not provide any other services to Gilead. Where advisable, our Compensation and Talent Committee meets in executive session from time to time with FW Cook to discuss compensation-related matters.

Compensation Committee Interlocks and Insider Participation

None of the members of our Compensation and Talent Committee who served during 20192022 is currently or has been, at any time since our formation, one of our officers or employees. During 2019,2022, none of our executive officers served as a member of the board of directors or compensation committee of any entity that has one or more executive officers serving on our Board or our Compensation and Talent Committee. None of the members of our Compensation and Talent Committee who served during 20192022 currently has or has had any relationship or transaction requiring disclosure pursuant to Item 404 of Regulation S-K.

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Nominating and Corporate
Governance Committee

2022 Meetings: 4

Current Members:

Corporate Governance

Nominating and Corporate Governance Committee

Current Committee Members2019 Meetings
Gayle E. Wilson (Chair)4
Sandra J. Horning, M.D.
Richard J. Whitley, M.D.
Per Wold-Olsen

Anthony Welters (Chair), Sandra J. Horning, M.D., Kevin E. Lofton, Harish Manwani

Our Board has determined that all members of our Nominating and Corporate Governance Committee are independent directors under the criteria specified by applicable laws and regulations of the SEC, the listing rules of Nasdaq and our Board Guidelines.

Our Nominating and Corporate Governance Committee performs several functions.oversees the corporate governance policies and practices of the company, including Board and committee structure and nominations, and monitors the compliance functions managed by the Chief Compliance Officer.

Among other things,responsibilities, our Nominating and Corporate Governance Committee:

develops and periodically reviews the desired qualifications of members of the Board and its committees;
advises our Board on matters of diversity, including race, ethnicity, gender, sexual orientation, culture, thought and geography;
determines
evaluates the need for new directorsrefreshment and succession planning for the Board and, as appropriate, leads the search for diverse individuals qualified to become members of the Board;
recommends director nominees to the Board to be presented for stockholder approval at the annual meeting of stockholders;
reviews the Board’s leadership structure and recommends changes as appropriate, including a recommendation to the independent directors regarding the appointment of our Lead Independent Director;
reviews the Board’s committee structure and recommends directors to serve as members and chairpersons of each committee for the Board’s approval;
determines on an annual basis the members of the Board who meet the independence requirements and members of the Audit Committee who meet the financial expert requirements;
reviews our corporate governance policies and practices and recommends new policies and changes to existing policies for the Board’s approval;
develops an annual self-evaluation process for the Board and its committees and, as appropriate, makes recommendations to the Board regarding its findings;
monitors risks related to corporate governance matters and certain other non-financial or non-compensation-related risks;
oversees our company’s stockholder engagement program;
approves the appointment and removal of the Chief Compliance Officer and meets periodically with the Chief Compliance Officer to monitor the company’s compliance program;
oversees environmental, social and governance (ESG)ESG matters and receives periodic reports on our ESG programs;program; and
reviews our political expenditure policies and expenditures, including payments to trade associations.

Our Nominating and Corporate Governance Committee regularly meets in executive session with our Chief Compliance Officer as part of its oversight of the company’s compliance program.

ScientificWe have established procedures for the confidential submission of employee concerns under our Complaint Procedure and Non-Retaliation Policy. Our Nominating and Corporate Governance Committee receives quarterly reports from management on complaints made under our Complaint Procedure and Non-Retaliation Policy (other than those relating to accounting, internal accounting controls or auditing matters, which are reported to our Audit Committee).

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Science Committee

2022 Meetings: 5

Current Committee Members

2019 Meetings
RichardMembers:

Sandra J. Whitley,Horning, M.D. (Chair)

3
, Jacqueline K. Barton, Ph.D.,
Jeffrey A. Bluestone, Ph.D.

Our Science Committee oversees, on behalf of our Board, our research and development strategy, including with respect to our commercial portfolio and clinical programs and the capabilities of our products and product candidates. Among other responsibilities, our Science Committee:

advises our Board on the direction of and progress made towards our research and development strategy;
 
John F. Cogan, Ph.D.assesses the quality of our commercial portfolio and clinical programs, and evaluates potential opportunities to enhance our portfolio and programs through opt-in programs, collaborations and other strategic transactions;
 
Sandra J. Horning, M.D.monitors the status, progress and outcomes of our key clinical trials; and
 
Gayle E. Wilson
Per Wold-Olsenreviews the potential effect of developments in the competitive scientific landscape and emerging science trends on our commercial portfolio and clinical programs.

Our Scientific Committee advises our Board regarding our research strategies, including providing strategic advice on our current and planned research programs and emerging science and technology issues and trends.

Executive Sessions

As required by our Board Guidelines, our independent directors meet in regularly scheduled executive sessions at which only they are present. Our Lead Independent Director presides over these executive sessions. At these executive sessions, the independent directors review, among other things, Gilead’s strategy, performance, management effectiveness and succession planning.

Additionally, executive sessions may be convened by the Lead Independent Director at his discretion and will be convened if requested by any other independent director.

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Board Processes

Certain Relationships and Related Person Transactions

Indemnity Agreements

We have entered into indemnity agreements with each of our executive officers (including our Named Executive Officers) and directors that provide, among other things, that we will indemnify such officer or director, under the circumstances and to the extent provided for therein, for expenses, damages, judgments, fines and settlements he or she may be required to pay in actions or proceedings to which he or she is or may be made a party by reason of his or her position as a director, officer or other agent of us, and otherwise to the full extent permitted under Delaware law and our bylaws.

Policies and Procedures

Related Person Transactions

Our Audit Committee is responsible for reviewing and approving, in advance, all related person transactions. Related persons include any of our directors or executive officers, certain of our stockholders and their immediate family members, and transactions include any transaction or arrangement in which the amount involved exceeds $120,000 and where the company or any of its subsidiaries is a participant and a related person has a direct or indirect material interest. In reviewing and approving any such transactions, our Audit Committee considers all relevant facts and circumstances, including, but not limited to, whether the transaction is on terms comparable to those that could be obtained in an arm’s length transaction with an unrelated third party and the extent of the related person’s interest in the transaction. The responsibility for reviewing and approving such transactions is set forth in writing in the Audit Committee Charter. A copy of the Audit Committee Charter is available on our website at http://www.gilead.com on the Investors page under “Corporate Governance.“Governance.

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To identifyassist us in identifying related person transactions, each year we submit and require our directors and officers to complete Director and Officer Questionnaires identifying any transactions with us in which the executive officer or director or their immediate family members have a material interest.

Conflicts of Interest

We review related person transactions due to the potential for a conflict of interest. A conflict of interest occurs when an individual’s private interest interferes, or appears to interfere, with our interests. In addition, our Nominating and Corporate Governance Committee determines, on an annual basis, which members of our Board meet the definition of independent director under the criteria specified by applicable laws and regulations of the SEC, the listing rules of Nasdaq and our Board Guidelines. The obligation for this determination is set forth in writing in the Nominating and Corporate Governance Committee Charter. A copy of the Nominating and Corporate Governance Committee Charter is available on our website at http://www.gilead.com on the Investors page under “Corporate Governance.“Governance.” Our Nominating and Corporate Governance Committee reviews and discusses any relationships with directors that would potentially interfere with his or her exercise of independent judgment in carrying out the responsibilities of a director. Finally,

2022 Related Person Transactions and Conflicts of Interest

There were no related person transactions or conflicts of interest in 2022. Approval of any related person transaction or conflict of interest would require approval of the applicable Board committee (as described above) or the full Board.

In 2022, we hired Deborah H. Telman as our new EVP, Corporate Affairs and General Counsel. Ms. Telman’s spouse is a partner in a law firm that Gilead retained for legal matters prior to the search for or retention of Ms. Telman. While the firm continues to represent Gilead in these matters, we determined that the firm’s work does not give rise to a related person transaction because the spouse does not work on these matters and does not otherwise have a material interest in the fees paid by Gilead. In addition, in accordance with the terms of Gilead’s Code of Conduct and Conflict of Interest Policy, we established, and the Board reviewed and approved, certain procedures regarding Gilead’s work with the law firm that are designed to avoid a conflict of interest.

Code of Ethics

Our Code of Ethics establishes the corporate standards of behavior for all our employees, officers and directors and sets our expectations of contractors and agents. Our Code of Ethics supports our commitment to maintaining the highest standards of legal and ethical conduct and includes our expectations with respect to topics such as inclusion and diversity, human rights, anti-harassment and anti-bullying, international trade, intellectual property and political activity. The Code of Ethics is available on our website at http://www.gilead.com on the Investors page under “Corporate Governance.“Governance.Our Code of Ethics requires anyAny person who becomes aware of any departure from the standards inpossible non-compliance of laws, regulations, our Code of Ethics to report his or her knowledge promptly toany other Gilead policy is responsible for notifying a supervisormember of management or an attorney in the legal department.

In 2019, there were no related person transactions We have also implemented an Ethics Hotline through which concerns can be raised confidentially. We investigate all reports promptly, and we do not tolerate retaliation against anyone making reports in good faith and/or conflictsassisting in investigations of interest.possible violations.

Compensation of Non-Employee Board Members

The members of our Board play a critical role in guiding our strategic direction and overseeing our management. In recent years,light of the evolvingdemanding nature of the role and responsibilities of a public company board, have increasedincluding the time commitment required for, and risks associated with board service. As a result,service, the demandmarket for highly qualified and experienced individuals who are capable of serving as the directors of a large public company has also increased.remained highly competitive.

These dynamics make it imperative that we provide a competitive compensation program for our non-employee directors. Such directors are accordingly compensated based upon their respective levels of Board participation and responsibilities, including service on Board committees, and receive a combination of annual cash retainers and equity compensation in the form of stock options and restricted stock unit awards. In addition, our non-employee directors are also reimbursed for their business-related expenses incurred in connection with attendance at Board and committee meetings and related activities. Our employee directors do not receive additional compensation for their service on our Board.

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Our Compensation and Talent Committee reviews our non-employee director compensation program on an annual basis with its independent advisor. Any recommended changes to the program are then presented to the independent members of our Board for their consideration and approval.

Our non-employee directors are compensated through annual equity awards under a pre-established grant-date fair value formula and annual cash retainers for Board and Board committee service.

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Cash Payments and Equity Awards

The following table sets forth the compensation arrangements for our non-employee Board members during 2019:2022:

 2019 Non-Employee Board Member Compensation
   Grant-Date Value of Equity Awards(2)
 Cash Payment(1) Options(4) Restricted Stock Units(4)
All Non-Employee Board Members$75,000 retainer $150,000 $150,000
Lead Independent Director$40,000 / $75,000
additional cash retainer
(3)

None None
Audit Committee Chair$20,000
additional cash retainer
 None None
Compensation Committee Chair$15,000
additional cash retainer
 None None
Nominating and Scientific Chairs$15,000
additional cash retainer
 None None
Committee Member
(in addition to any Committee Chair fees)
$20,000
additional cash retainer
for each committee
 None None

  2022 Non-Employee Board Member Compensation
          Grant-Date Value of
Equity Awards(2)
      Cash Payment(1)   Options(4)       Restricted
Stock
Units
(4) 
All Non-Employee Board Members $75,000 retainer  $150,000  $150,000 
Lead Independent Director $40,000 / $75,000
additional cash retainer
(3)   None   None 
Audit Committee Chair $20,000
additional cash retainer
   None   None 
Compensation and Talent Committee Chair $15,000
additional cash retainer
   None   None 
Nominating and Corporate Governance Committee Chair Science Committee Chair $15,000
additional cash retainer
   None   None 
Committee Member (in addition to any Committee Chair fees) $20,000
additional cash retainer for each committee
   None   None 

(1)A non-employee Board member’s actual annual cash retainer will beis equal to the aggregate of his or her retainer fee for Board service ($75,000) plus his or her retainers for service on one or more Board committees (e.g., if the Audit Committee Chair also serves as a member on the Compensation and Talent Committee, the total dollar amount of the cash retainer will be $135,000). In addition, the cash retainer amounts presented in the table represent the annualized amounts payable to a non-employee Board member. Actual payments were made on a quarterly, pro-rated basis.
(2)The number of shares of our common stock subject to the option portion of the annual equity award will beis calculated as follows:by dividing $150,000 divided by [(closing market price per sharethe fair value of our common stockoption on the grant date) multiplied by (Black-Scholes option-valuation percentage)],date, with any fractional share rounded down to the next whole share. The fair value of option is based on Black-Scholes option valuation model. The number of shares of our common stock subject to the restricted stock unit portion of the annual equity award will beis calculated by dividing $150,000 by the closing market price per share of our common stock on the award date, with any fractional share rounded down to the next whole share.
(3)The Lead Independent Director will receivereceives an additional retainer of $75,000 should the Lead Independent Director not serve on any committees of the Board or $40,000 should the director serve on a committee (in addition to any retainer amounts for committee service).
(4)The Lead Independent Director, committee chairs and other committee members do not receive any additional equity awards for their Lead Independent Director or committee service.

Deferred Compensation Plan

Our Deferred Compensation Plan allows our non-employee directors to defer all or a portion of their cash retainer each year. The deferred amount may either be immediately converted into phantom shares of our common stock or invested in a designated group of investment funds, neither of which results in above-market interest under disclosure rules. To the extent that a non-employee director elects to defer his or her cash retainer into phantom shares, the resulting number of phantom shares of our common stock will be determined by dividing the deferred amount by the fair market value per share of our common stock on the conversion date. The resulting number of phantom shares will be paid out in actual shares of our common stock at the end of the deferral period. If the non-employee director elects to defer his or her retainer into investment funds, then he or she may select from among the investment funds available under the Deferred Compensation Plan. These investment funds are substantially the same as those available under our broad-based Section 401(k) employee savings plan.

A non-employee director may elect to receive his or her deferred account balance at a designated age that is no earlier than age 50 and no later than age 75, or on the date of his or her cessation of Board service or on the second or fifth anniversary of that cessation date, in a lump sum or in annual installments not to exceed 10 years. An early distribution is permitted in the event of a financial hardship. In the event of death, an account balance will be distributed in a lump sum to the director’s designated beneficiary.

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Stock Ownership Guidelines

We have stock ownership guidelines to encourage our non-employee directors to retain a significant portion of their shares of our common stock. These stock ownership guidelines require our non-employee directors to hold shares of our common stock with an aggregate fair market value equal to or greater than five times their annual retainer. This guideline is to be achieved over a five-year period, measured from the date the non-employee director first joins our Board. As of December 31, 2019,2022, all members of our Board were in compliance with our stock ownership guidelines.compliance.

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Terms of Equity Awards

The stock options granted to our non-employee directors have an exercise price equal to the fair market value per share of our common stock on the date of grant (based on the closing market price for our common stock on that date as reported on the Nasdaq Global Select Market). Each option has a maximum term of 10 years, subject to earlier termination three years after the non-employee director’s cessation of Board service. EachStock option vests in successive equal quarterly increments over a one-year period, measured from the date of grant. Theand restricted stock unit awards granted to our non-employee directors vest immediately upon the completion of one year of Board service measured from the date of grant. Initial equity awards for new non-employee directors are prorated based on the number of days remaining in the compensation period in which they commence Board service. The shares that vest under restricted stock unit awards may, pursuant to a director’s advance election, be subject to a deferred issuance in up to five annual installments following his or her cessation of Board service.

The table below summarizes the compensation paid by us to our non-employee Board members for the 20192022 fiscal year:

20192022 Director Compensation

The table below summarizes the compensation paid by us to non-employee Board members for the 2022 fiscal year:

 Fees Earned or Stock Option  
NamePaid in Cash(1) Awards(2)(5) Awards(3)(5) Total
Jacqueline K. Barton, Ph.D.$  95,000  $149,979 $149,998 $394,977
John F. Cogan, Ph.D.$155,000(4) $149,979 $149,998 $454,977
Kelly A. Kramer$115,000(4) $149,979 $149,998 $414,977
Kevin E. Lofton$115,000  $149,979 $149,998 $414,977
Harish Manwani$  95,000  $149,979 $149,998 $394,977
Richard J. Whitley, M.D.$130,000  $149,979 $149,998 $429,977
Gayle E. Wilson$130,000  $149,979 $149,998 $429,977
Per Wold-Olsen$150,000  $149,979 $149,998 $449,977

Name Fees Earned or
Paid in Cash
(1) Stock
Awards
(2)(3) Option
Awards
(3)(4) Total 
Jacqueline K. Barton     $114,946      $149,939      $149,993      $414,878 
Jeffrey A. Bluestone $95,000(5) $149,939  $149,993  $394,932 
Sandra J. Horning $130,000(5) $149,939  $149,993  $429,932 
Kelly A. Kramer $135,000  $149,939  $149,993  $434,932 
Kevin E. Lofton $190,000  $149,939  $149,993  $489,932 
Harish M. Manwani $115,000  $149,939  $149,993  $414,932 
Javier J. Rodriguez $95,000  $149,939  $149,993  $394,932 
Anthony Welters $130,000  $149,939  $149,993  $429,932 

(1)Represents cash retainer for serving on our Board and committees of the Board.Board for the full year ended December 31, 2022.
(2)Represents the grant-date fair valueRSU awards comprised of the RSU award2,444 shares granted under our 20042022 Equity Incentive Plan (as amended and restated, the “2004(the “2022 Plan”) covering 2,270 shares granted to each non-employee Board member on May 8, 2019. The applicable grant-date fair value of each award was determined in accordance with Accounting Standards Codification Topic 718 (“Topic 718”)5, 2022 and accordinglyvested immediately on the same date. Market values are calculated by multiplying the number of shares of our common stock subject to the award by the closing price per share of our common stock on the award date without any adjustment for estimated forfeitures related to such service vesting. No other stock awards were made to non-employee Board members during the 2019 fiscal year.of $61.35.
(3)The following table shows, for each named individual, the aggregate number of stock awards, option awards and phantom shares (under our Deferred Compensation Plan) held by that individual as of December 31, 2022:

 Name     Aggregate Stock Awards
Outstanding as of
December 31, 2022
(a)      Aggregate Option Awards
Outstanding as of
December 31, 2022
      Aggregate Phantom
Shares as of
December 31, 2022
(b) 
     Jacqueline K. Barton  4,553   61,865    
 Jeffrey A. Bluestone     36,395    
 Sandra J. Horning  5,491   42,239    
 Kelly A. Kramer  13,397   75,733    
 Kevin E. Lofton  9,830   95,920   3,103 
 Harish M. Manwani     59,746    
 Javier J. Rodriguez     39,183    
 Anthony Welters     38,234    

(a)Aggregate stock awards include vested RSUs for which receipt of the underlying shares of our common stock has been deferred. RSUs accrue forfeitable dividend equivalents that are subject to the same vesting and other terms and conditions as the corresponding RSUs. Dividend equivalents are accumulated and paid in cash when the underlying shares are issued.
(b)Dividends on phantom shares are accrued and reinvested to acquire additional phantom shares quarterly.
(4)Represents the grant-date fair value of the stock option grant covering 11,848 sharesawards comprised of 15,851 options with an exercise price of $66.07$61.35 per share made to each non-employee Board member on May 8, 2019.5, 2022 under the 2022 Plan. The applicable grant-date fair value of each award was calculated in accordance with Topic 718 and did not take into account any estimated forfeitures related to such service vesting. Assumptions used in the calculation of grant-date fair value are set forth in Note 1615 to our Consolidated Financial Statements for the year ended December 31, 2019,2022, included in our Annual Report on Form 10-K for such fiscal year filed with the SEC. No other option grants were made to non-employee Board members during the 2019 fiscal year.
(4)(5)Each of Mr. Bluestone and Dr. Cogan and Ms. KramerHorning elected to defer their entire retainer fees of $155,000$95,000 and $115,000,$130,000, respectively, as a cash deferral under our Deferred Compensation Plan.
(5)The following table shows, for each named individual, the aggregate shares under stock awards, the aggregate shares underlying option awards and the aggregate phantom shares held by that individual as of December 31, 2019:

NameAggregate Stock Awards
Outstanding as of
December 31, 2019(a)
Aggregate Option Awards
Outstanding as of
December 31, 2019
Aggregate Phantom Shares as of
December 31, 2019(b)
Jacqueline K. Barton, Ph.D.4,55323,463
John F. Cogan, Ph.D.4,553115,842
Kelly A. Kramer6,79437,331
Kevin E. Lofton10,164115,8422,738
Harish Manwani2,27021,344
Richard J. Whitley, M.D.6,29894,1226,970
Gayle E. Wilson2,270115,842
Per Wold-Olsen2,270115,842


(a)40Aggregate stock awards include both unvested RSUs and vested RSUs for which receipt of the underlying shares of our common stock has been deferred. RSU awards accrue forfeitable dividend equivalents that are subject to the same vesting and other terms and conditions as the corresponding RSU awards. Dividend equivalents are accumulated and paid in cash when the underlying shares are issued.
(b)Dividends on phantom shares are accrued and reinvested to acquire additional phantom shares quarterly.

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Audit Matters

Proposal 2Ratification of the Selection of Independent Registered Public Accounting Firm

PROPOSAL 2

Our Audit Committee has selected Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2023 and has further directed that we submit the selection of our independent registered public accounting firm for ratification by the stockholders at the Annual Meeting. Ernst & Young LLP has audited our financial statements since our inception in 1987.

Our Audit Committee has selected Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2020 and has further directed that we submit the selection of our independent registered public accounting firm for ratification by the stockholders at the Annual Meeting. Ernst & Young LLP has audited our financial statements since our inception in 1987.

Our Board unanimously recommends a vote FOR“FOR” Proposal 2.

Annual Evaluation and Selection of Independent Auditor

To help ensure continuing auditor independence, our Audit Committee annually reviews Ernst & Young LLP’s independence and performance in connection with the Committee’s determination of whether to retain Ernst & Young LLP or engage another firm as our independent auditor. In the course of these reviews, our Audit Committee considers, among other things:

Ernst & Young LLP’s historical and recent performance on the Gilead audit;
Ernst & Young LLP’s institutional knowledge and expertise regarding Gilead’s global business, accounting policies and practices and internal control over financial reporting;
the professional qualifications of Ernst & Young LLP, the lead audit partner and other key engagement partners;
Ernst & Young LLP’s disclosures related to audit quality and performance, including recent Public Company Accounting Oversight Board (the “PCAOB”) inspections;
the appropriateness of Ernst & Young LLP’s audit fees, including the fees that Ernst & Young LLP receives for non-audit services;
the quality and candor of Ernst & Young LLP’s communications with the Audit Committee and management; and
the potential impact of changing our independent registered public amounting firm.

Based on this evaluation, our Audit Committee has determined that Ernst & Young LLP is independent and that it is in the best interest of Gilead and its stockholders to continue to retain Ernst & Young LLP to serve as our independent auditors for the 20202023 fiscal year.

Rotation of Lead Audit Partner

The Audit Committee requires the lead audit partner to be rotated at least every five years. The process for selection of Gilead’s lead audit partner pursuant to this rotation involves a meeting between the Chair of our Audit Committee and the candidate for the role as well as discussion by the full Audit Committee and management. Our last rotation of lead audit partner was in 2018.2023.

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Principal Accountant Fees and Services

Our Audit Committee is responsible for audit firm compensation. The aggregate fees billed or expected to be billed by Ernst & Young LLP for the years ended December 31, 20192022 and 20182021 for the professional services described below are as follows:

  2019  2018
Audit Fees(1) $8,342,000  $8,228,000
Audit-Related Fees(2) $4,000  $105,000
Tax Fees(3) $2,092,000  $2,748,000
All Other Fees(4) $67,000  $4,000
Total $10,505,000  $11,085,000

Name     2022      2021 
Audit Fees(1) $9,903,005  $8,934,000 
Audit-Related Fees $  $ 
Tax Fees(2) $1,118,024  $1,452,000 
All Other Fees(3) $486,440  $209,000 
Total $11,507,469  $10,595,000 

(1)Represents fees incurred for the integrated audit of our consolidated financial statements and of our internal control over financial reporting and review of the interim condensed consolidated financial statements, as well as fees incurred for audit services that are normally provided by Ernst & Young LLP in connection with other statutory or regulatory filings or engagements.
(2)Represents fees incurred for assurance and related services that are traditionally performed by Ernst & Young LLP, are reasonably related to the performance of the audit or review of our consolidated financial statements and are not reported under “Audit Fees.” These fees included accounting consultation services primarily related to implementation of new accounting standards and fees incurred in connection with specified procedures performed by Ernst & Young LLP in relation to user-defined reports.
(3)Represents fees primarily incurred in connection with domestic and international tax compliance and tax consultation services.
(4)(3)Represents fees incurred in providing miscellaneous permitted advisory services, in 2019including fees related to system pre-implementation and accessing Ernst & Young LLP’s online research database in 2019 and 2018.database.

All of the services described above were pre-approved by our Audit Committee. The Committee concluded that the provision of these services by Ernst & Young LLP would not affect their independence.

Pre-Approval Policy and Procedures

To minimize relationships that could impair the objectivity of Ernst & Young LLP, our Audit Committee adopted policies and procedures for the pre-approval of audit and permissible non-audit services rendered by Ernst & Young LLP. Under this policy, our Audit Committee must pre-approve all services provided by Ernst & Young LLP, and the policy prohibits the engagement of Ernst & Young LLP for certain specified services. The policy permits the engagement of Ernst & Young LLP for services approved by our Audit Committee in defined categories such as audit services, audit-related services and tax services. The policy also permits engagement of Ernst & Young LLP for other services approved by our Audit Committee if there is a persuasive business reason for using Ernst & Young LLP over other providers. The policy provides that, as a general rule of thumb, the fees for these other services should be less than 25% of total audit fees. Pre-approval may be given as part of our Audit Committee’s approval of the scope of Ernst & Young LLP’s engagement or on an explicit case-by-case basis before Ernst & Young LLP is engaged to provide each service. The pre-approval of services may be delegated by our Audit Committee to a member of the Audit Committee. Our Audit Committee receives quarterly reports on the scope of services provided to date and planned to be provided by Ernst & Young LLP in the future.

Representatives of Ernst & Young LLP are expected to be present at our Annual Meeting, will have an opportunity to make a statement if they so desire and are expected to be available to respond to appropriate questions from stockholders.

Stockholder ratification of the selection of Ernst & Young LLP as our independent registered public accounting firm is not required by our bylaws or otherwise. However, our Board is submitting the selection of Ernst & Young LLP to the stockholders for ratification as a matter of good corporate practice. If the stockholders fail to ratify the selection, our Audit Committee will reconsider whether or not to retain Ernst & Young LLP. Even if the selection is ratified, our Audit Committee may direct the appointment of a different independent registered public accounting firm at any time during the year if they determine that such a change would be in the best interests of Gilead and our stockholders.

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Audit Committee Report

Our Audit Committee is composed of three directors and operates under a written charter adopted by the Board of Directors. Our Board has determined that all members of our Audit Committee are “independent” directors under the criteria specified by applicable laws and regulations of the SEC, the listing rules of Nasdaq and our Board Guidelines, including the heightened independence standards under Exchange Act Rule 10A-3.Guidelines.

Our Audit Committee oversees, on behalf of our Board, our corporate accounting, financial reporting process and systems of internal accounting and financial controls. Management has the primary responsibility for the financial statements, and the reporting process, includingand the system of internal controls.control over financial reporting.

Our Audit Committee is responsible for the selection, appointment, retention, compensation and oversight of theGilead’s independent registered public accounting firm, Ernst & Young LLP. Our Audit Committee reviewed and discussed with Ernst & Young LLP the auditors’ independence from Gilead and its management. As part of that review, we received the written disclosures and the letter required by applicable requirements of the PCAOBPublic Company Accounting Oversight Board (the “PCAOB”) regarding Ernst & Young LLP’s communications with the Audit Committee concerning independence, and our Audit Committee discussed Ernst & Young LLPLLP’s independence from Gilead.

We also considered whether Ernst & Young LLP’s provision of non-audit services to Gilead is compatible with the auditor’s independence. Our Audit Committee concluded that Ernst & Young LLP is independent from Gilead and its management.

We adopted auditor independence policies and procedures for the pre-approval of audit and permissible non-audit services rendered by Ernst & Young LLP. The policy permits the engagement of Ernst & Young LLP for services approved by our Audit Committee in defined categories such as audit services, audit-related services and tax services. The policy also permits engagement of Ernst & Young LLP for other services approved by our Audit Committee if there is a persuasivean appropriate business reason for using Ernst & Young LLP over other providers. Our Audit Committee receives quarterly reports on the scope of services provided to date and planned to be provided by Ernst & Young LLP in the future.

Our Audit Committee has reviewed and discussed the audited consolidated financial statements for the year ended December 31, 20192022 with management and Ernst & Young LLP. Our Audit committeeCommittee has reviewed and discussed with Ernst & Young LLP the matters required to be discussed with the Audit Committee by the applicable requirements of the PCAOB and the SEC.

Based upon these reviews and discussions, the Audit Committee recommended to our Board of Directors that the audited consolidated financial statements be included in Gilead’s Annual Report on Form 10-K for the year ended December 31, 20192022 filed with the SEC. Our Board has approved this inclusion.

Audit Committee

Kelly A. Kramer,Chair

John F. Cogan, Ph.D.


Kevin E. Lofton
Javier J. Rodriguez

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Executive Officers

The names of our executive officers who are not also directors of Gilead and certain information about each of them as of March 24, 202023, 2023 are set forth below.

See Mr. O’Day’s biography above under “Nominees” on page 19.20.

Age:50

Joined Gilead:

2016

Position:

Executive Vice
President and Chief
Financial Officer

Andrew D. Dickinson

Mr. Dickinson serves as Gilead’s Executive Vice President and Chief Financial Officer, responsible for the oversight of the company’s global finance, corporate development, information technology, operations and strategy organizations.

Mr. Dickinson joined Gilead in 2016 and prior to his current role served as head of the company’s corporate development and strategy group. In that role, Mr. Dickinson drove all of Gilead’s licensing, partnership and acquisition transactions and guided investments into new areas. Prior to his tenure at Gilead, Mr. Dickinson was the global Co-Head of Healthcare Investment Banking at Lazard. Earlier in his career, he served as General Counsel and Vice President of Corporate Development at Myogen, Inc., which was acquired by Gilead in 2006.

Mr. Dickinson received his bachelor’s degree in molecular, cellular and developmental biology from the University of Colorado at Boulder and his law degree from Loyola University of Chicago.

He currently serves on the board of directors of Sutter Health, a non-profit hospital system based in California, and previously served on the board of directors of the Fosun Pharma and Kite joint venture in China, which was established in 2017.

Age: 53

JOINED GILEAD:

2016

POSITION:

Chief Financial
Officer


    

Age:50

Joined Gilead:

2019

Position:

Chief Commercial
Officer

Johanna Mercier

Ms. Mercier leadsserves as Gilead’s Chief Commercial organizationOfficer, with responsibility for commercializing Gilead’s therapies in countries and regionsthe global commercialization of all the company’s medicines throughout the product lifecycle. Under her leadership, Gilead works to ensure that patients around the world.world have access to the company’s transformational medicines.

Prior to joiningMs. Mercier joined Gilead in July 2019 Ms. Mercier spent overafter 25 years at Bristol-Myers Squibb, where she was most recently President and Headserved in a number of U.S., France, Germany, Japan, Korea and Taiwan. In her role, she oversaw a complex organization comprising a majorityexecutive leadership positions, including head of the company’s business. Ms. Mercier was also actively engaged with the policy and advocacy community to ensure the affordability and access of prescription medicines to patients.

Ms. Mercier began her career in sales and marketing in Canada, then went on to lead worldwide early and clinical portfolios, followed by market teams across both the U.S. and Europe. She was Bristol-Myers Squibb’s General Manager of UK & Ireland and later President of Worldwide Markets for Europe, Australia and Canada. In her most recent role, which included responsibility for the U.S. business and other priority markets,head of the European region, gaining broad experience across geographies and in all aspects of the commercial business. In her time there, she successfully evolved the culture and drove strong commercial execution with double-digit growth and multiple launches that changed the standard of care in melanoma and renal cancers.

 

Ms. Mercier holds a sciencebachelor’s degree in biology from the University of Montreal and an MBA from Concordia University.

She currently serves on the board of directors of Neurocrine Biosciences, Inc. and the University of Southern California’s Leonard D. Schaeffer Center for Health Policy and Economics.

Age: 53

JOINED GILEAD:

2019

POSITION:

Chief Commercial
Officer

 


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Executive Officers

    

Age:57

Joined Gilead:

2019

Position:

Chief Medical
Officer

Merdad V. Parsey, M.D., Ph.D.

Dr. Parsey is Gilead’s Chief Medical Officer, responsible for overseeing the company’s global clinical development and medical affairs organizations. In his role, Dr. Parsey supervises all clinical trials and development operations. Together with the leadership team, he works to advance clinical development strategies and programs with the goal of changing the trajectory of disease, and transforming care for the patients of today and tomorrow.

Dr. Parsey joined Gilead in 2019, after serving as Senior Vice President of Early Clinical Development at Genentech, where he led clinical development for areas including inflammation, oncology and infectious diseases. Prior to Genentech, Dr. Parsey served as President and CEO of 3-V Biosciences (now Sagimet BioSciences), held development roles at Sepracor, Regeneron and Merck and was Assistant Professor of Medicine and Director of Critical Care Medicine at the New York University School of Medicine.

 

He completed his M.D. and Ph.D. at the University of Maryland, Baltimore, his residency in Internal Medicine at Stanford University and his fellowship in Pulmonary and Critical Care Medicine at the University of Colorado.

Dr. Parsey currently serves on the Boardboard of Directorsdirectors for Sagimet BioSciences.BioSciences and Arcus Biosciences.

Age: 60

JOINED GILEAD:

2019

POSITION:

Chief Medical
Officer

 

    

Deborah H. Telman

Age:52

Joined Gilead:

2005

Position:

Ms. Telman serves as Executive Vice
President
of Corporate Affairs
and General
Counsel,

Brett A. Pletcher with responsibility for Gilead’s Government Affairs and Policy, Public Affairs, Legal and Compliance functions.

Mr. Pletcher leadsMs. Telman joined Gilead in 2022 and prior to her current role, she served as Executive Vice President, General Counsel and Corporate Secretary at Organon, a group at Gilead that includeswomen’s healthcare company, building out the government affairsLegal, Ethics and policy, public affairs,Compliance, and legal organizations. In his role, he oversees our work to shape health policyEnvironmental Health and communicateSafety organizations following the company’s perspective across external audiences. Asseparation from Merck. Prior to joining Organon, Ms. Telman was the Senior Vice President, General Counsel he is also responsible for alland Corporate Secretary at Sorrento Therapeutics, a clinical stage biopharmaceutical company.

Over the course of the company’sher more than 25-year career, Ms. Telman has provided legal functions,counsel both in an in-house capacity and in private practice, including intellectual property, litigationexperience in global mergers and compliance efforts associated with the promotionacquisitions, governance and litigation. She received her Juris Doctor degree from Boston University School of our products.

Before joining Gilead in 2005, Mr. Pletcher wasLaw and a partner in the law firm of Gunderson Dettmer, LLP, where he provided corporate and securities services to emerging growth public and private companies as well as venture capital investors.

Mr. Pletcher received his bachelor’s degree in economics and political sciencemathematics from the University of California, RiversidePennsylvania.

Ms. Telman currently serves on the board of directors of AtriCure, Inc., a medical tech company focused on the treatment of atrial fibrillation and earned his law degree fromrelated conditions, as well as on the Universityboard of California, Berkeley’s Boalt Hall Schooldirectors of Law..Chicago Humanities Festival.

Age: 58

JOINED GILEAD:

2022

POSITION:

Executive Vice
President,
Corporate Affairs
and General
Counsel

 


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Executive Compensation

 Proposal 3Advisory Vote to Approve the Compensation of Our Named Executive Officers

PROPOSAL 3

Based upon a vote of stockholders at our 20192022 annual meeting of stockholders, and following our Board’s recommendation for an annual advisory vote to approve the compensation of the Named Executive Officers, we are providing stockholders with an advisory vote to approve the compensation of our Named Executive Officers. Although the vote is non-binding, our Board and Compensation and Talent Committee value the opinions of our stockholders and will consider the outcome of the vote when making future compensation decisions affecting our executive officers.

We encourage our stockholders to read the Compensation Discussion and Analysis, beginning on page 38,47, which describes the details of our executive compensation program and the decisions made by the Compensation and Talent Committee in 2019.2022. Our 20192022 corporate achievements are described under “Corporate Performance ObjectivesMetrics and Achievements for 2019”2022” in the Compensation Discussion and Analysis.

Our stockholders are being asked to approve by advisory vote the following resolution relating to the compensation of the Named Executive Officers in this Proxy Statement:

“RESOLVED, that Gilead’s stockholders hereby approve the compensation paid to Gilead’s executive officers named in the Summary Compensation Table of this Proxy Statement, as that compensation is disclosed pursuant to Item 402 of Regulation S-K, including the Compensation Discussion and Analysis, the various compensation tables and the accompanying narrative discussion included in this Proxy Statement.”

The vote on this resolution is not intended to address any specific element of compensation; rather the vote relates to the compensation of the Named Executive Officers, as described in this Proxy Statement in accordance with the compensation disclosure rules of the SEC.

Under our Board’s policy of providing annual advisory votes on executive compensation, subject to the Board’s consideration of the stockholder vote on Proposal 4, the next such vote will occur at the 20212024 annual meeting of stockholders.


Our Board unanimously recommends a vote FOR“FOR” Proposal 3.


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Compensation Discussion and Analysis

2019 was a pivotal year for Gilead with a strong focus on building the foundation for our next chapter. In 2019, we developed and communicated our new corporate strategy which focuses on expanding internal and external innovation, strengthening our portfolio strategy, increasing patient access and benefits, and continuing to evolve our culture, all of which we believe will be critical to our continued success. During this time, we also had a number of senior executive transitions, including the appointment of Daniel P. O’Day as Chairman and Chief Executive Officer. Following a comprehensive search, Mr. O’Day was appointed as our new Chief Executive Officer, effective March 1, 2019. Mr. O’Day brings more than 30 years of experience in executive management, strong leadership and operational excellence, having held diverse positions across North America, Asia Pacific and Europe. Most recently, Mr. O’Day served as the Chief Executive Officer of Roche Pharmaceuticals, the pharma division of Roche Group. Our Board views Mr. O’Day as a transformational leader with a track record of success in highly scientific and competitive therapeutic areas, a deep understanding of the evolving healthcare environment around the world, and an unwavering commitment to driving innovation across all aspects of a business. Our Board believes these attributes are critical to advancing our goals and driving stockholder value in the future.

38

Executive Compensation

Over the course of the year, Mr. O’Day assembled his key leadership team composed of executives who have the right combination of financial, commercial, scientific and legal expertise to drive us into the future and execute on our new strategy. Several members of the leadership team were either hired externally or recently promoted from within. Our 2019 Named Executive Officers serving as of the end of the year were as follows:

Daniel P. O’Day
Chairman and Chief
Executive Officer
(“Chief Executive Officer”)
(joined Gilead
March 1, 2019)
Andrew D. Dickinson
Executive Vice President
and Chief Financial Officer
(appointed effective
November 1, 2019)
Johanna Mercier
Chief Commercial Officer
(joined Gilead
July 1, 2019)
Merdad V. Parsey,
M.D., Ph.D.

Chief Medical Officer
(joined Gilead
November 1, 2019)
Brett A. Pletcher
Executive Vice President
Corporate Affairs and
General Counsel

We also had a number of executives discontinue employment during 2019 (our “former Named Executive Officers”). Our Named Executive Officers also include the following four individuals, who ceased to serve as Gilead executives during 2019:

Gregg H. Alton, our former interim Chief Executive Officer through February 28, 2019, and our Chief Patient Officer through October 4, 2019, resigned for Good Reason as defined under the Retention Program (as defined below) and continued to serve as a non-executive Senior Advisor until January 3, 2020;
Robin L. Washington, our former Executive Vice President and Chief Financial Officer through October 31, 2019, retired as a non-executive Senior Advisor on March 1, 2020;
Laura J. Hamill, our former Executive Vice President Worldwide Commercial Operations, was terminated without Cause as defined under the Retention Program on July 1, 2019; and
John G. McHutchison, M.D., our former Chief Scientific Officer and Head of Research and Development, resigned from the company on August 2, 2019.

2019 was an atypical year from a compensation perspective given the changes at the executive level. The 2019 compensation of the Named Executive Officers, as reflected in the Summary Compensation Table, includes new hire, promotion and ongoing annual compensation elements. This Compensation Discussion and Analysis addressesprovides an overview of the 2019 annual compensationcomponents of our 2019executive compensation program and the 2022 decisions of the Compensation and Talent Committee of our Board of Directors (our “Compensation and Talent Committee” or “Committee”) for our 2022 Named Executive Officers and separately discusses the elements of their 2019 compensation associated with their hiring or promotion that are reflected in the Summary Compensation Table on page 65.(or “NEOs”), who were:

2019 Chief Executive Officer Compensation Overview

Our Board maintains a measured approach to compensation in transition-related situations, reflected by the following compensation philosophies:

Annual pay should be targeted competitively relative to peers, with a significant emphasis on performance-based compensation.
Make-whole payments, if provided, should be carefully designed to align in form

DANIEL P. O’DAY

Chairman and timing with what the individual is forfeiting.

Consistent with the foregoing, our Board approved an ongoing pay structure for our new Chief Executive Officer, which closely aligned to the market median pay, as well as to that of our former Chief Executive Officers’ pay, and a significant portion of which is performance-based compensation. Mr. O’Day’s 2019 pay also included one-time make-whole payments, which parallel the form and timing of payments Mr. O’Day forfeited at his former employer of 30 years and offset other economic consequences of accepting employment with us. Our Compensation Committee considered Mr. O’Day’s annual pay structure separately from the one-time, make-whole payments when approving his compensation. Our Compensation Committee also determined that it was appropriate to provide one-time make-whole payments to Mr. O’Day to offset compensation and benefits he forfeited by leaving his former employer, and for other economic consequences of accepting employment with us, but our Compensation Committee did not provide any other inducement or new hire awards to Mr. O’Day.

2020 Proxy Statement39

Executive Compensation

The table below summarizes Mr. O’Day’s annual compensation, as well as the one-time make-whole payments.

CEO 2019 Annual Compensation Structure

Annual pay was targeted competitively with a significant emphasis on performance-based compensation.Chief Executive Officer
(“Chief Executive
Officer”)

    

Make-Whole Compensation for Forfeited Pay & BenefitsANDREW D.
DICKINSON

Intended to compensate Mr. O’Day for pay and benefits forfeited after leaving an employer of 30 years. The intent was to parallel the form and timing of the forfeited payments, so that Mr. O’Day was no better or worse off than if he had remained with his former employer.

Annual Base Salary

$1,600,000Chief Financial
Officer

    

Restricted Stock UnitsJOHANNA
MERCIER

Grant date fair value of $8.5M, vesting over three years. Award was intended to compensate Mr. O ‘Day for forfeited equity that would have vested during the same time period.

Annual Cash Bonus

Targeted at 150% of base salaryChief Commercial
Officer

    

One-Time Cash PaymentMERDAD V.
PARSEY,
M.D., PH.D.

$5.675M, subject to repayment if employment is terminated for Cause or without Good Reason prior to completing one year of service. Cash value was intended to compensate Mr. O ‘Day for his forfeited 2018 bonus with his former employer and other economic consequences of accepting employment with us.

Long-Term Incentive

For 2019, received an annual equity award totaling $12M (50% performance shares, 25% stock options, 25% restricted stock units)Chief Medical
Officer

    

Deferred CompensationDEBORAH H.
TELMAN

Gilead does not have a pension plan. In order to compensate for pension benefits forfeited, Gilead will credit a $750,000 employer contribution to Mr. O’Day’s individual deferred compensation account for each of the first five years of his service, starting one year after his start date.Executive
Vice President,
Corporate Affairs
and General
Counsel
(1)


(1)Ms. Telman commenced employment on July 25, 2022, and commenced service as Gilead’s Executive Vice President, Corporate Affairs and General Counsel on August 1, 2022.

2022 Business Highlights

Key AchievementsIn 2022, Gilead had a transformational year in 2019which we saw strong financial performance and consistent execution across our portfolio. In virology, we achieved a milestone with the first approvals for lenacapavir, the foundation of our long-acting HIV portfolio, and we are positioned for continued growth. Our momentum in oncology is continuing to accelerate after a year that saw strong commercial performance and clinical progress, including positive data readouts and several regulatory approvals. We continued our expansion into inflammatory disease through internal growth and the acquisition of MiroBio Ltd., a company which develops agonists targeting immune inhibitory receptors. And, for the third year, Veklury remained an important tool to combat the COVID-19 pandemic around the world. Our financial performance was robust, driven by growth in HIV and oncology, including cell therapy. We are approaching 2023 from a very strong position with a diverse and sustainable business.

Achieving Innovation and Maintaining Leadership in HIV. Our goal in partnership with the HIV community is to end the epidemic for everyone, everywhere. In 2022, we made progress in the pursuit of new options in HIV treatment and prevention and in our early HIV cure research program.

Following his appointment, Mr. O’Day immediately focused his efforts on building onIn 2022, Sunlenca (lenacapavir), a long-acting first-in-class capsid inhibitor, was approved in both the U.S. and Europe for highly treatment experienced people with multi-drug resistant HIV-1 infections. It offers a new, twice-yearly treatment option for adults with HIV who have previously had limited therapy choices. Additionally, we continue to evaluate lenacapavir for prevention, while exploring a broad range of agents that can be paired with Sunlenca for treatment.

Biktarvy, a once-a-day pill, remains the leading HIV treatment for people starting treatment in the U.S. and Europe, achieving 20% year-over-year growth and adding an additional 2-3% of market share in the U.S. and EU in 2022. Biktarvy revenue for 2022 was $10.4 billion, marking the first time that it has had full-year revenue of more than $10 billion.

There remains a significant unmet need for HIV prevention options among people who could benefit from pre-exposure prophylaxis (PrEP); only 1 in 4 people in the U.S. who could benefit currently take it. Demand for Descovy for PrEP continues to increase with demand in 2022 up more than 20% year-over-year. At the end of 2022, Descovy held a 43% market share in the U.S.

Lastly, in September we resolved litigation related to our tenofovir alafenamide (TAF) patents against the last of generic manufacturers who were seeking to market and manufacture generic versions of Descovy, Vemlidy and Odefsey. These settlement agreements demonstrate the innovativeness of our products and the strength of our intellectual property.

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Executive Compensation

Growing and Strengthening our Oncology Presence. As we continue developing our pipeline and market presence in oncology, the impact on our business is substantial. Revenues from the Gilead and Kite oncology programs increased by 71% from 2021 to more than $2.1 billion, exceeding $2 billion for the first time, with oncology now representing 8% of our full-year revenue in 2022. Oncology revenue in 2022 accounted for approximately 50% of our core business and strong cash flow to position Gilead for continued success, including rolling out a new corporate strategy to drive futureyear-over-year revenue growth. Throughout

Trodelvy, the year, Mr. O’Day made several strategic decisions and changes to drive Gilead into our next chapter. In March, we announced that Kite would become a separate operating company. In July, we announced the expansioncornerstone of our strategic collaborationsolid tumor portfolio, is reaching a growing number of patients for the treatment of second-line metastatic triple-negative breast cancer (TNBC) and metastatic urothelial (bladder) cancer. Trodelvy is now approved for second-line metastatic TNBC in more than 40 countries, and we continue to work with Galapagos that doubled Gilead’s R&D footprintregulators, payers and increasedclinicians around the world to broaden access overall. Trodelvy revenue was $680 million for 2022, a 79% increase over 2021. We also reached important milestones last year with statistically significant and clinically meaningful progression-free survival and overall survival data from the Phase 3 TROPiCS-02 study, and with the FDA granting priority review of our supplemental biologics license application (“sBLA”) submission based on these data.

Full year revenue in cell therapy was $1.5 billion, up 68% year-over-year, exceeding a billion for the first time, driven by continued demand for Yescarta in large B-cell lymphoma and follicular lymphomas, as well as Tecartus in mantle cell lymphoma and adult acute lymphoblastic leukemia. We received U.S., EU and Japan approvals for Yescarta for second-line relapsed and refractory large B-cell lymphoma, making it the first CAR T-cell therapy to be approved for use in the earlier second-line setting, and we received EU approval for Tecartus in adult acute lymphoblastic lymphoma. In addition, we greatly expanded our network of authorized treatment centers globally where Kite products are made available. From a manufacturing perspective, we activated a state-of-the-art industry leading manufacturing site in Maryland and implemented a variety of optimization efforts across Kite’s global CAR T manufacturing network, further enabling the company to increase its manufacturing network capacity to meet increasing demand. With this facility and the recently FDA-approved viral vector manufacturing facility in California, Kite remains well positioned to ensure clinical and commercial supply availability while it continues to execute on its geographic expansion.

In 2022, we made significant progress in growing the oncology pipeline, which includes the potential to deliver transformational new medicines. In September, we createdmore than 20 transformative indication approvals in solid tumors and blood cancers by 2030. Partnerships play a new external innovation function tasked with increasing the sizekey role in our pipeline and diversity of our pipeline. And by November, we had our experienced leadership team in place. With the fresh perspective of new leaderscapability build, and the deep experience of continuing leaders, we are well-positionedactively collaborating with dozens of oncology’s most promising companies. A core partnership includes our 10-year research and clinical collaboration with Arcus, and in late 2022 we jointly announced clinically meaningful data from the ARC-7 Phase 2 study in patients with first-line metastatic non-small cell lung cancer. This reinforces our confidence in the TIGIT pathway and our four Phase 3 trials in lung and upper GI cancer.

Sustaining the Fight Against COVID-19. Veklury (remdesivir) continues to play a crucial role in the COVID-19 pandemic, as it remains the antiviral standard of care for growththe treatment of people hospitalized with COVID-19. Veklury is also recommended for use in multiple therapeutic areasthose who do not require supplemental oxygen or hospitalization and are at an increased risk of progressing to severe COVID-19. In the U.S., Veklury is used in more than 50% of hospitalized patients being treated for COVID-19. Veklury and generic remdesivir have been made available to nearly 13 million patients around the world, including more than 8 million people in low- and middle-income coutnries through Gilead’s voluntary licensing program. Veklury revenue was $3.9 billion in 2022, down from 2021 as expected. In addition, in 2022 we continued to advance the development of an increasingly complex healthcare environment.oral treatment for COVID-19.

Other key accomplishments during the year include:

Biktarvy, is now the number one prescribed HIV regimen in the United States

Achieving Financial Results that Position Us for Long-Term Shareholder Growth. In 2022, we reported total product revenue of $27.0 billion, which exceeded our initial guidance of between $23.8 billion to $24.3 billion. We reported total product revenue excluding Veklury of $23.1 billion, which represented a year-over-year increase of 8% and continues to be the strongest HIV launch in the United States and multiple other countries. Biktarvy sales for 2019 increased 300% year-over-year. Our HIV franchise continues to experience robust growth with 14% Compound Annual Growth Rate growth since 2011 and 12% revenuefull-year growth in 2019.

Descovy received U.S. approval for pre-exposure prophylaxis (“PrEP”) for people at-risk for contracting HIV.~27%our core business since 2015. We returned over $5.1 billion to our shareholders through dividends and share repurchases, and we repaid $1.5 billion of individuals on PrEPdebt.

Our strong financial performance and the strength of our core business resulted in the United States are now on Descovy.

We submitted a new drug application (“NDA”) for filgotinib for rheumatoid arthritis. Launch preparations are underway in the United States, Europeone- and Japan.
We continued to expand our business in key geographies, including China. We had four products in China added to the National Reimbursement Drug List in 2019.
We significantly enhanced our research pipeline by completing 27 collaborations, partnershipsthree-year total shareholder return of 24% and strategic investments in 2019, including our collaboration with Galapagos which provides Gilead with access to Galapagos’ pioneering research capabilities and an innovative portfolio of compounds, doubling our R&D footprint.

14% respectively, as illustrated.

40

TOTAL SHAREHOLDER RETURN

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Compensation Philosophy

Our executive compensation program is built on six fundamental principles that reflect the nature of our business and industry:

Pay-for-PerformanceBalance the Short- and Long-Term PerspectiveCost-Effectiveness
Market CompetitivenessStockholder AlignmentEgalitarian Approach

We maintain “best-in-class” governance standards for the oversight of our executive compensation program. As in prior years, the following policies and practices were in effect during 2019:

What We Do

 Robust executive stock ownership guidelines

 Clawback policy covers both cash and equity and allows for recoupment of compensation if financial results are subsequently restated or for significant misconduct

 Pre-established grant date policy for executive officers’ annual equity awards

 Limited perquisites for executive officers

 Compensation Committee’s independent consultant performs no other work for Gilead

What We Do Not Do

 No repricing of stock options without stockholder approval

 No single trigger change in control severance benefits

 No change in control excise tax gross-ups

 Employees and Directors are prohibited from hedging and pledging our stock

 No dividend or dividend equivalent rights payable on unearned or unvested equity awards

Stockholder Engagement and 20192022 Vote on Named Executive Officer Compensation

At the 2019 annual meeting2022 Annual Meeting of stockholders, approximately 91%Stockholders (the “2022 Annual Meeting”), 92% of the votes were cast voted in favor of the compensation of our named executive officers, atwhich reflects an increase from 87% in the time.prior year. Our Compensation and Talent Committee carefully reviews voting results and feedback from our stockholder engagement activities when making executive compensation decisions. During 2019,decisions and remains committed to open and ongoing stockholder engagement. The insights we contacted stockholders representing approximately 51% ofhave gained from our outstanding shares, comparedstockholder engagement over the years have been helpful to 38%management and the prior year, to gain valuable insights.Board in guiding our corporate policies and practices.

     During these meetings,In Fall 2022, we discussed key corporate governance topics and askedcontacted stockholders representing approximately 57% of our stockholders whetheroutstanding shares to gain valuable insights into the issues they had any concerns or feedback about our current executive compensation program, including one-time make-whole awards provided to our new executives in connection with their recruitment to Gilead. Our Lead Independent Director alsocare most about. Of those we contacted, we met with stockholders representing approximately 27%47% of our outstanding shares andas well as the two largest proxy advisory firms. OfDuring these meetings, we discussed Gilead’s response to the stockholder proposals at the 2022 Annual Meeting, our continued efforts on diversity and inclusion, key environmental, social and governance topics, board oversight, leadership structure and human capital management, and asked our stockholders wefor their perspectives and feedback on our executive compensation program. Throughout these engagements, our Lead Independent Director met none expressed significant concerns about the design or amounts paid pursuant towith stockholders representing approximately 33% of our compensation programs, including our one-time make-whole payments.

2020 Proxy Statementoutstanding shares.41

Executive Compensation

Based onOur stockholders expressed general satisfaction and did not raise any material concerns regarding our executive compensation programs. After taking this feedback received from our investors and in order to align with our new strategy,into account, our Compensation and Talent Committee approved certaindetermined that no changes to our annual bonus structure for 2020, including introducing non-GAAP operating income as a metric. Consistent with prior years, we continued to establish rigorous financial, research and development, and strategic goals for earning performance-based incentives. Changesexecutive compensation programs were necessary in response to the 2020 annual bonus structure are discussed in greater detail on page 50. voting results at our 2022 Annual Meeting.

Stockholders may express their views directly to our Compensation and Talent Committee as described in our “Stockholder Communications with the Board” policy, available on our website at http://www.gilead.com on the Investors page under “Corporate Governance.“Governance.

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Compensation Philosophy

At Gilead, our mission is to discover, develop and deliver innovative therapeutics for people with life-threatening diseases. To succeed, we must attract, engage and retain highly talented individuals who are committed to our mission and core values of integrity, inclusion, teamwork, accountability and excellence. Our executive compensation program is built on the following six fundamental principles that we believe are imperative to achieving our mission while also balancing the long-term interests of our stockholders:

Pay-for-PerformanceShort- and Long-Term BalanceCost-Effectiveness
Market CompetitivenessStockholder AlignmentEgalitarian Approach

We maintain “best-in-class” governance standards for the oversight of our executive compensation program, as evidenced by the following policies and practices in effect during 2022:

WHAT WE DOWHAT WE DO NOT DO

  Ongoing outreach and engagement with major stockholders on executive compensation governance

  Rigorous annual incentive performance metrics with financial goals weighted at 50% of the total award opportunity and product, pipeline and people goals weighted at 50%, and with an individual performance modifier applicable to all NEOs other than our CEO

  Clawback policy covers both cash and equity and allows for clawback for misconduct that results in the restatement of financial results or significant misconduct, including a failure to supervise a subordinate, that otherwise causes financial, operational or reputational harm

  Cap annual cash incentive and long-term performance share award payouts at reasonable levels

  Set pre-established grant dates for executive officers’ annual equity awards

  Compensation and Talent Committee’s independent consultant performs no other work for Gilead

  Conduct annual assessments to identify and mitigate risk in our compensation programs

  Robust executive stock ownership guidelines

  No repricing of stock options without stockholder approval

  No single trigger change in control severance benefits

  No change in control excise tax gross-ups

  Employees and directors are prohibited from hedging and pledging our stock

  No dividend or dividend equivalent rights payable on unearned or unvested equity awards


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Compensation Overview

Elements of Annual Compensation

Our Compensation and Talent Committee annually reviews our Named Executive Officers’ compensation, payment criteria, goals and pay outcomes and goals.outcomes. Based on this review, our Compensationthe Committee believes our executive compensation program is fair and delivers pay that is aligned with execution against financial and strategic goals and long-term stockholder returnsvalue..

A summary of our Named Executive Officers’ annual compensation awarded or earned during 20192022 is set forth below (excluding one-time make-whole payments that were part of our leadership transition and described in more detail on page 53):below:

Compensation Component(1)Components

Base Salary     Long-Term Incentive (“LTI”) Compensation
Base SalaryAnnual BonusEquity Compensation

Payment Criteria

Payment CriteriaPayment Criteria

Fixed annual compensation reviewed annually with any increases generally effective March 1

Chief Executive Officer:

   100% corporate performance

•   Target = 150% of base salary

•   Maximum = 150% of target

Other Named Executive Officers:

•   75% corporate/25% individual performance

•   Target = 100% of base salary

•   Maximum = 150% of target

Corporate performance assessed on:

•   Product pipeline development: 40%

•   Launch and support products: 20%

•   Financial results: 30%

•   Organizational achievements: 10%

20192022 Compensation Summary

   Annual bonus earned at 130% of target for our Chief Executive Officer, based on short-term financial and strategic business achievements

   Annual bonus earned at 123% to 130% of target for other  Our Named Executive Officers received base salary increases ranging from 3% to 5% over 2021 base salaries, consistent with increases given to salaried employees company-wide

Payment Criteria

50% delivered in performance share units “performance shares”shares earned over three years based on relative Total Shareholder Return (“TSR”) and annual revenue targets

There is no payout if performance falls below a minimum threshold

Relative TSR awards are capped at target if absolute TSR is negative, regardless of relative performance

25% delivered in stock options that vest over four years beginning one year after grant, with quarterly vesting after year one

25% delivered in restricted stock units that vest over four years beginning one year after grant, with quarterly vesting after year one

20192022 Compensation Summary

   20172020 performance shares paid out at 83.7% of target with an actual value delivered at 73% of the original target grant date due to the ending share pricewere earned as follows:

Relative TSR tranche of performance shares for 2017-2019were earned at 4.0%168.5% of target shares

Absolute revenue tranche ofRevenue performance shares for 2017-2019were earned at 163.4%200% of target shares

Annual Cash Incentive 

Payment Criteria

Corporate performance assessed on:

Financial results: 50%

Pipeline, Product and People results: 50%

Individual performance modifier applies for all Named Executive Officers other than the CEO

Maximum payout = 200% of target

2022 Compensation Summary

Annual incentive earned at 185% of target for our Chief Executive Officer, based on corporate performance against pre-set rigorous metrics

Annual incentive earned at 136% to 184% of target for other Named Executive Officers, based on corporate and individual performance

 


(1)2023 Proxy StatementDr. Parsey was not eligible for a 2019 bonus due to his November 2019 hire date.

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Pay and Performance Alignment

Our industry’s business model is characterized by significant capital investment, long lead times for discovery and development and unpredictable outcomes due to the nature of developing medicines for human use.

Our business involves multi-year development cycles, in which the return on investments in our product pipeline may take up to 12 years or more. Thus, our compensation programs establish goals and metrics to measure performance over the short- and long-term. Our executive compensation programs focusprogram focuses not only on the successful progression of research programs, clinical trials and the launch of new products, but also on performance across a range of shorter-term goals and milestonesmetrics that advance our long-term strategy and longer-term value creation for our stockholders. As a result of long development cycles, success in the early phases of development, while critical to achieving our long-term strategy and short-term goals, may not be reflected in our operating performance and share price until several years in the future.

Our long-termLong-term equity incentives, awarded in the form of performance shares, stock options and restricted stock units, alignmake up the single biggest component of our executives’ compensation directly with TSR performance.annual pay opportunity. As a result, a substantial portion of the target total direct compensation (“TDC”) for each Named Executive Officer is at-risk and tied directly to Gilead’s performance with an appropriate balance between the short- and long-term, corporate goals, as shown below. Target TDC is comprised of annual base salary, target annual bonus,incentive, and target annual long-term equity incentives based on their grant date fair values, and excludes any one-time make-whole awards or payments that were part of our leadership transition.incentives.

Chief Executive OfficerCHIEF EXECUTIVE OFFICER     Other Named Executive OfficersOTHER NAMED EXECUTIVE OFFICERS (AVERAGE)(1)
  

(1)Ms. Telman is excluded from this chart as she did not participate in the 2022 annual cycle due to her start date of July 25, 2022.

In aggregate,target TDC for our Named Executive Officers approximatedOur programs are structured so that the median compared to our peers.However, target pay opportunity is not representative of actual realized pay unless we perform. For example:

As of December 31, 2019, all the stock options granted to our Named Executive Officers over the past four years were underwater, or “out of the money.”
In addition, our performance share awards that vested over the same period, have paid out below target.

To illustrateexample, our performance share awards are directly impacted by our revenue achievement, relative TSR performance and stock price. When actual revenue and relative TSR performance is below target, the alignmentnumber of shares earned is also below the target number granted. This realizable value is then further impacted when the stock price declines below grant value. In addition, our restricted stock units decrease in value when our stock price declines, and our stock options have no value unless and until the stock price exceeds the grant date exercise price.

Named Executive Officers’ 2022 Annual Compensation

Base Salaries

Our Compensation and Talent Committee reviews and approves our Chief Executive Officer’s base salary, subject to ratification by the independent members of our annual compensation program with stockholder value,Board of Directors. For 2022, the following table compares the average 2017 long-term equity incentive (“LTI”) target value to the average actual payoutCompensation and Talent Committee approved, and our Board ratified, a 3% increase for Mr. O’Day.

Mr. O’Day presented his recommendations for base salary increases for our other Named Executive Officers (other than Ms. Telman, who received a 2017 award(1)and shows that only 37% of the target value was delivered.

(1)Brett A. Pletcher, Gregg H. Alton and Robin L. Washington received a 2017 LTI award. The chart excludes John G. McHutchison, M.D., due to his being equity retirement eligible and receiving a pro-rated vesting.
(2)Target performance share value is based on grant-date fair value of the 2017 performance shares at 100% target level attainment.
(3)Actual performance share award value is based on 4% payout for the TSR tranche and 163.4% for the absolute revenue tranches, valued at the $64.30 share price as of the release date of January 29, 2020.
(4)Target stock option value is based on the 2017 stock option grant, valued at the grant date fair value. Stock options have no value as of December 31, 2019.

2020 Proxy Statement43

Executive Compensation

Leadership Changes

Chief Executive Officer Succession

Following a comprehensive search, Mr. O’Day was appointed as our new Chairman and Chief Executive Officer, effective March 1, 2019. Mr. O’Day brings more than 30 years of experiencecommenced employment in executive management, strong leadership and operational excellence, having held diverse leadership roles across North America, Asia Pacific and Europe. Most recently, Mr. O’Day served as the Chief Executive Officer of Roche Pharmaceuticals, the pharma division of Roche Group. Our Board views Mr. O’Day as a transformational leader with a track record of success in highly scientific and competitive therapeutic areas, a deep understanding of the evolving healthcare environment around the world, and an unwavering commitment to driving innovation across all aspects of a business. Our Board believes these attributes are critical to advancing our goals and driving stockholder value in the future.

Appointment of Mr. Dickinson to Executive Vice President, Chief Financial Officer

Mr. Dickinson was appointed to Executive Vice President, Chief Financial Officer, effective November 1, 2019, following an extensive search. Mr. Dickinson joined Gilead in 2016 as Senior Vice President, Corporate Development and was named Executive Vice President, Corporate Development and Strategy in 2018. In his prior role at the company, Mr. Dickinson transformed the way we approach corporate development, expanding the types of transactions executed and implementing a broader strategic approach to deal-making. He led the work of the company’s 2017 acquisition of Kite and the 10-year, global research collaboration with Galapagos.

Hiring of Ms. Mercier, Chief Commercial Officer

After considering several exceptional candidates, we announced that Ms. Mercier would join the company as Chief Commercial Officer, effective July 1, 2019. Ms. Mercier brings to Gilead deep experience in senior commercial operational roles in geographies around the globe. She has held leadership positions in therapeutic areas, including oncology, inflammation and neuroscience. She joined Gilead from Bristol-Myers Squibb, where she most recently served as President and Head of the company’s Large Markets division, which includes the United States, France, Germany and Japan. Over the course of her career, she has helped drive growth across key markets, pioneered innovative access strategies in the United States and Europe, and helped establish new standards of care for people with cancer.

Hiring of Dr. Parsey, Chief Medical Officer

Dr. Parsey joined the company as Chief Medical Officer, effective November 1, 2019. We considered many high caliber candidates for this role and Dr. Parsey brings deep scientific expertise, extensive experience and outstanding leadership skills. Dr. Parsey joined Gilead from Genentech, Inc., a member of the Roche Group, where he held the position of Senior Vice President, Early Clinical Development in the Genentech Research and Early Development group. In this role, he led clinical development, quality, compliance, informatics and clinical operations functions. He brings to Gilead significant clinical expertise across a broad array of therapeutic areas, including inflammation, oncology and infectious diseases.

See “One-Time Pay Actions Related to Leadership Changes” on page 53 for additional details related2022) to our senior leadership changes.

Named Executive Officers’ 2019 Annual Compensation

Base Salaries

and Talent Committee. The salaries for Mr. O’Day, Ms. Mercier and Dr. Parsey were established as part of the negotiations for them to join the company. In approving their salaries, our Compensation Committee considered the compensation of their predecessors, prevailing market rates, advice from the Committee’s independent consultant and internal pay equity. The salary for our Chief Executive Officer was also approved by our Board. Base salariesrecommendations for our other Named Executive Officers were based on individual achievements during 20182021 and future expectations for their roles moving forward, as well as competitive market positioning. Annualpositioning, with the approved increases aligning with increases given to salaried employees company-wide. Named Executive Officer’s 2022 base salary increases were effective as of March 1, 2019. In addition, in recognition of their new roles, each of Mr. Dickinson and Mr. Pletcher received a salary increase, effective November 1.2022.

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The 20192022 base salaries for our Named Executive Officers were as follows:

Serving Named Executive Officer 2019 Base Salary(1) 
Mr. O’Day              $1,600,000 
Mr. Dickinson $950,000 
Ms. Mercier $1,000,000 
Dr. Parsey $1,000,000 
Mr. Pletcher $950,000 

Named Executive Officer     2022 Base Salary
(Annualized)
      % Base Salary
Increase
 
Mr. O’Day             $1,700,000   3.0% 
Mr. Dickinson $1,027,000   5.0% 
Ms. Mercier $1,087,000   3.0% 
Dr. Parsey $1,082,000   5.0% 
Ms. Telman(1) $900,000   N/A% 

(1)Base salaries as of December 31, 2019.Ms. Telman commenced employment on July 25, 2022.

Former Named Executive Officer 2019 Base Salary 
Mr. Alton(1)           $1,065,000 
Ms. Washington $1,075,000 
Ms. Hamill $965,000 
Dr. McHutchison $1,025,000 

(1)Mr. Alton’s base salary was reduced to $532,500 following his transition to a Senior Advisor on October 4, 2019.

Annual BonusesIncentive

Our annual bonusincentive plan is designed to reward the achievement of keyperformance that supports our corporate strategy and to drive desired leadership behaviors. The annual incentive plan aligns with our corporate strategy by focusing on short-term corporate objectives to recognize our commercialfinancial, pipeline, product and research and development performance as well as achievement of strategic goalspeople metrics that serve as building blocks for our future product development and operational goals. Due to the nature of our business, our Compensation Committee evaluates performance in a number of pre-established categories that include granular pipeline and product objectives, in addition to near-term financial criteria and organizational goals. Given the long-term nature of our industry, our bonus plan focuses on shorter term strategic initiatives that position us to deliver longer term value to stockholders.

The annual bonus ofIn 2022, our Chief Executive OfficerOfficer’s annual incentive was tied solely to our achievement of corporate financial and operational performance, objectives based onwith our 2019 annual operating plan. The annual bonuses forChief Executive Officer’s individual performance goals being the same as our corporate performance metrics. Our other Named Executive Officers were weighted 75%Officers’ annual incentive was based on the achievement of the same corporate financial and operational performance objectivesmetrics that applied to our Chief Executive Officer, and 25% on each Named Executive Officer’s achievement ofas well as individual performance objectives,goals, with award amounts determined by the following formula:

Base

Salary

x

Target

Incentive

x

Corporate

Performance

Factor

0% – 150%

x

Individual

Performance

Factor

0% – 150%

=

Actual

Incentive

Award

0% – 200%

Target Bonus Opportunities

The 2019 target bonus opportunities for our Named Executive Officers were established as a percentage of their base salaries. Actual earned amounts couldBoth the Company Performance Factor and Individual Performance Factor can range from 0% to 150% achievement, with the maximum cash incentive payout capped at 200% of the target opportunity, based on achievement of the relevant performance objectives as follows:

Serving Named Executive Officer(1)2019 Target Bonus Opportunity
(as a percentage of base salary)
Mr. O’Day150%
Mr. Dickinson(2)100%
Ms. Mercier(3)100%
Mr. Pletcher100%

(1)Dr. Parsey commenced employment on November 1, 2019 and therefore was not eligible for a bonus for 2019. His 2020 target bonus opportunity as a % of base is 100%.
(2)Mr. Dickinson was appointed Chief Financial Officer on November 1, 2019 and was eligible for a pro-rated bonus based on time served in his current and prior role.
(3)Ms. Mercier commenced employment on July 1, 2019 and was eligible for a pro-rated bonus for 2019.

2020 Proxy Statement45

Executive Compensation

Former Named Executive Officer(1)2019 Target Bonus Opportunity
(as a percentage of base salary)
Mr. Alton100%
Ms. Washington100%
Ms. Hamill100%
Dr. McHutchison100%

(1)Ms. Hamill and Dr. McHutchison were not eligible to receive a 2019 bonus.

Corporate Performance Objectives and Achievements for 2019

Our Compensation Committee considered our performance in 2019 against the foregoing pre-established annual objectives, the degree of difficulty in achieving the objectives and relevant events and circumstances that affected our performance. Based on these assessments, our Compensation Committee determined a corporate performance factor between 0% and 150% for each category, as shown below. The chart below illustrates our performance targets for each performance category as well as the key achievements considered in determining our performance level.

Our Compensation Committee can add or subtract an additional 10% to recognize unanticipated factors, provided that the total amount payable does not exceed the maximum bonus opportunity for the year.. If our Compensation Committee determines that the overall corporate performance factor for the year was less than 50%, no bonus is payableaward would have been earned.

Target Annual Incentive Opportunities.

Consistent with past years, the Compensation and Talent Committee set the 2022 target annual incentive opportunity at 150% of salary for our CEO and 100% of salary for our other Named Executive Officers. Actual earned amounts could range from 0% to 200% of the target opportunity, based on achievement of the relevant corporate and individual performance objectives.

Corporate Performance Metrics and Achievements for 2022

Our Compensation and Talent Committee established performance metrics, weighted 50% financial and 50% strategic, under the annual incentive plan in January 2022 after careful consideration of key short-term financial, pipeline, product and people goals. Each of our financial goals and many of our strategic goals are quantitative and tied to pre-established targets. The Committee then reviewed our performance against these metrics after the end of the year. Based on our performance, the Committee calculated a corporate performance factor between 0% and 150% achievement for each of the metrics, as shown below.

Net product revenue and non-GAAP operating income goals comprise 50% of the corporate performance factor because they drive our ability to invest in and advance our pipeline which in turn positions us to deliver longer term value to stockholders. For purposes of the 2022 annual incentive plan, the Committee approved net product revenue and non-GAAP operating income performance goals that were achieved aboveexcluded Veklury revenue, as it did previously for the 2021 annual incentive plan. At that same time, the Committee approved a process to separately assess Veklury performance when determining incentive plan results by applying a .75x to 1.25x modifier to the corporate performance factor which the Committee determined was an appropriate modifier to reflect the potential impact of Veklury performance while maintaining focus on other parts of the business. This was done in light of the highly unpredictable nature of COVID-19 infection rates (and resulting Veklury revenues), changing treatment dynamics and the Committee’s desire to incentivize performance around our core businesses which are vital to our longer-term performance. In addition, the Committee approved a

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non-GAAP operating income target, are notedexcluding Veklury revenue, below the 2021 actuals due to the expected increased investments in Oncology for 2022.

Veklury 2022 revenue exceeded our guidance but as expected decreased year-over-year. After considering Gilead’s strong 2022 financial performance within our core businesses, which was consistent with our strong Veklury revenue, the Committee approved a 1.00x modifier to the corporate performance factor for Veklury performance, resulting in no change to otherwise earned annual incentive payouts.

boldBased on this assessment and the achievements described below, our Compensation and Talent Committee certified an overall corporate performance factor of 136% of target for our Named Executive Officersbelow..

Performance TargetFINANCIAL METRICS

Metric Weighting Threshold Target Maximum Actual Performance
Factor
 Resulting
Payout
Percentage
 
Net Product Revenue(1)     30%     $21,100M     $22,211M     $22,766M     $23,077M     150%     45%
Non-GAAP Operating Income(2) 20% $8,159M $9,065M $9,292M $9,430M 150% 30%
                Financial Results 75% 

(1)2019 ResultsNet product revenue excludes all revenue received from Veklury sales. Actual net product revenue for 2022 including Veklury sales was $26,982M.
(2)This financial metric and actual non-GAAP operating income excludes Veklury sales and upfront payments related to collaboration agreements. The actual achievement reflects further adjustments for other items that are considered unusual or not representative of underlying trends of Gilead’s business. Actual non-GAAP operating income including Veklury sales, upfront payments related to collaboration agreements, and the aforementioned adjustments was $12,180M.

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PIPELINE, PRODUCT AND PEOPLE METRICS
          
     Metric    Overall
Weighting
    Actual    Performance
Factor
    Resulting
Payout
Percentage
 Introduce five (5) new molecular entities into the Development portfolio 10% 

  Introduced a total of nine (9) new molecular entities (“NMEs”) into the Development portfolio as of year-end:

  6 Internal NMEs

  3 External NMEs

 150% 15%
Achieve key pipeline milestones 15% 

  Submitted TROPiCS-02 sBLA in August 2022

  Received ZUMA-7 second line DLBCL (Diffuse large B-cell lymphoma) approval in the U.S., ahead of schedule; EU approval received in October 2022

  Exceeded Trodelvy Phase 3 initiation goal with four site activations: ASCENT-03, ASCENT-04, ASCENT-05, and EVOKE-03

  Completed Bictegravir/Lenacapavir (ARTISTRY-1 study) initiation in August 2022

  Achieved the initiation of Yescarta in first line treatment for high-risk patients in DLBCL study in November 2022

 130% 20%

Achieve commercialization milestones

  Achieve Biktarvy U.S. exit share of 46.3%

  Achieve Trodelvy 2L U.S. patient share of 26%

  Achieve Veklury U.S. hospitalized exit share of 52.5%

  Achieve Yescarta & Tecartus patient delivery of 3,892

 15% 

  Achieved Biktarvy U.S. exit share of 45.2%

  Achieved Trodelvy 2L U.S. patient share of 25%

  Achieved Veklury U.S. hospitalized exit share of 39%; achieved U.S. hospitalized and treated exit share of 58%

  Exceeded Yescarta and Tecartus total patient delivery with 4,640 patients delivered

 95% 14%
Increase employee engagement & advance inclusion & diversity 10% 

  Conducted an employee survey which showed an increase in overall employee approval in Gilead

  Achieved one-year representation goals by maintaining more than 50% female global representation, increased Hispanic/ Latino (U.S.) representation to 12.8% but slightly missed the Black (U.S.) representation target by ending the year at 7.7%

  Exceeded diverse supplier and Black-owned supplier spend targets by achieving 119% and 129% of target respectively

  Advanced efforts to increase diversity in clinical trials through a comprehensive program that included the training of 10 diverse physicians

 120% 12%
     Pipeline, Product and People Results 61%
     Overall Corporate Performance Factor 136%
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Individual Performance

    
     Build Pipeline For the Future

 

 Performance Factor:
120%Other than with respect to our Chief Executive Officer, whose annual incentive opportunity was based entirely on corporate performance, our Compensation and Talent Committee also considered the individual contributions of Target
Results: 48%
CORPORATEDEVELOPMENT•  Expand our pipelineNamed Executive Officers to the achievement of pre-clinical and clinical programs through partnerships and acquisitions.•  We completed 27 partnership and investment transactionsto enhance thekey research and development, pipeline acrosstherapeutic areas.
RESEARCH•  Recommend seven compoundscommercial, financial and operational objectives that supported our corporate goals, with a focus on both the results and the officer’s demonstration of our Core Values – Accountability, Excellence, Inclusion, Integrity and Teamwork and our Leadership Commitments, as described in the box to the left.

Individual performance objectives were determined and communicated to executives at the beginning of the year (or, with respect to Ms. Telman, at the time of her hiring). The individual performance factors could range from 0% to 150% and reflect the extent to which each Named Executive Officer’s personal contributions were determined to benefit our overall corporate performance, to exceed or fall short of the officer’s individual objectives
for development.
•  We recommended seven compounds for development across multiple therapeutic areas.
HIV

•  File supplemental New Drug Application (“sNDA”) for Descovy PrEP by Q2 2019.

•  Initiate Phase 1a studies for TAF long acting drugs.

•  Submitted sNDAthe year and took into account the executives demonstration and role in Q2 2019 with final approval received in Q4 2019.

•  We initiated Phase 1a study with TAF external program in September 2019; received “Safe to Proceed” notification from FDA and initiated Phase 1a study with TAF internal program in October 2019.

LIVER DISEASES

•  Complete selonsertib Phase 3 data read out.

•  Complete Phase 2 NASH combination study for ATLAS and make Phase 3 initiation decision in Q4 2019.

•  Selonsertib Phase 3 data read out did not support project continuation.

•  Received topline results from the Phase 2 ATLAS. Final determination for Phase 3 NASH initiation to be completed in 2020, behind schedule.

INFLAMMATION/RESPIRATORY•  Advance the filgotinib program for rheumatoid arthritis.•  We received 24-week data readout for filgotinib. SubmittedNDA ahead of schedule. NDA is under priority review withthe FDA.
HEMATOLOGY/ONCOLOGY

•  File Investigational New Drug (“IND”) application for Oral PD-L1 in Q2 2019.

•  First subject screened Phase 1 dose by Q3 2019.

•  We submitted an IND application for Oral PD-L1 in May 2019 with safe to proceed notification received in June 2019.

•  First patient screened in August 2019 and dosed in September 2019.

CELL THERAPY

•  Complete enrollment in Phase 3 study for Yescarta (ZUMA-7).

•  Complete enrollment in Phase 2 study for Yescarta (ZUMA-5) by Q4 2019.

•  File biologics license application (BLA) for KTE-X19 by Q4 2019.

•  We completed enrollment for ZUMA-7, ahead of schedule.

•  We completed enrollment for ZUMA-5, ahead of schedule.

•  We completed BLA submission for KTE-X19 in Q4 2019.

46

Executive Compensation

Performance Target2019 Resultsmodeling our Leadership Commitments.
   

I AM BOLD in aspiration and AGILE in execution.

I CARE and make time for people.

I LISTEN, speak openly and explain the “why.”

I TRUST others and myself to make sound decisions.

I OWN the impact of my words and actions.

 
     Launch and Support ProductsPerformance Factor:
130% of Target
Results: 26%
HIV•  Deliver on Biktarvy uptake.•  Biktarvy is the most successful launch in the U.S. and is the number one prescribed regimen in both treatment-naïve and switch patients in the U.S.
CELL THERAPY

•  Enhance reimbursement for CAR T treatment.

•  Maintain current patient dose rate for Yescarta; file cell therapy marketing authorization application (MAA) in Q4 2019 and finalize design of viral vector manufacturing infrastructure in Q3 2019.

•  Medicare coverage of CAR T therapy confirmed by Centers for Medicare Services (CMS) in the final national drug code issued in August 2019.

•  We maintained patient dose rate for Yescarta. Filed MAA in October 2019 and finalized design of viral vector manufacturing infrastructure on schedule.

HCV

•  Launch authorized generics of Epclusa and Harvoni through Gilead’s separate subsidiary, Asegua in Q1 2019.

•  Ensure broad access to Gilead HCV products; regain and grow patient share in the U.S.

•  Asegua launched successfully with generic versions launched in Q1 2019.

•  U.S. market share exceeded expectations, while EU5 and Japan were in line with budget.

INFLAMMATION•  Increase awareness of filgotinib as a JAK-1 isoform.

•  We successfully increased awareness of the association of filgotinib with JAK-1 through our outreach programs.

•  Filgotinib launch preparations underway in the U.S., Europeand Japan.

     Develop Organizational CapacityPerformance Factor:
140% of Target
Results: 14%
EMPLOYEES AND CULTURE

•  Through hiring and succession planning, ensure a strong, diverse talent pipeline is in place for critical roles.

•  Deliver against Gilead’s diversity and inclusion goals.

•  Identified and hired key roles to ensure a strong talent pipeline for critical roles.

•  Achieved internal diversity and inclusion goals, including appointing or hiring four diverse Executive Vice Presidents.

CORPORATE EFFICIENCY•  Establish and enhance corporate efficiency for key business areas.•  Identified and enhanced several infrastructure improvements that increased company-wide efficiency. Enhancements include the introduction of further collaboration infrastructure which reduced the need for travel and other sustainable improvements to the Foster City campus.
     Drive Financial ResultsPerformance Factor:
120% of Target
Results: 36%

Meet the 2019 financial performance targets as approved by the Board of Directors at the January 24, 2019 meeting:

•  Net product revenues

•  Total expenses

•  Free Cash Flow

•  Achieved net product revenues of $22.1 billion, whichexceeded the budget and hit the higher end of guidance(which was raised in July 2019).

•  Expenses were approximately 3% over budget.

•  Free cash flow was 7.5% higher than budget.

+/-10% UNPLANNED ACHIEVEMENTSResults: 6%

2020 Proxy Statement47

Executive Compensation

Performance Target2019 Results
Completed leadership team buildout, including several external hires and internal appointments, which resulted in a new set of Named Executive Officers. Although periodic executive refreshment is to be expected, building out a new leadership team resulting in all new Named Executive Officers is a significant accomplishment.
Developed and communicated our new corporate strategy which focuses on expanding internal and external innovation, strengthening our portfolio strategy, increasing patient access and benefits and evolving our culture.
Expanded our collaboration with Galapagos which provides Gilead with access to Galapagos’ pioneering research capabilities and an innovative portfolio of compounds, doubling our R&D footprint.
Launched RADIAN Initiative to meaningfully address new HIV infections and deaths from AIDS-related illnesses in Eastern Europe and Central Asia, in collaboration with the Elton John AIDS Foundation.
Descovy received U.S. approval for pre-exposure prophylaxis (PrEP) for people at-risk for contracting HIV. At the end of 2019, approximately 27% of individuals on PrEP in the U.S. were receiving Descovy.
Overall 2019 Corporate Performance Factor130%

Based on the achievements described above, our Compensation Committee certified an overall corporate performance achievement of 130% of target. Our Board believes that our achievements in 2019 positioned us for future long-term growth. We are confident in the strong fundamentals in the HIV business and the potential growth of inflammation, both of which are long-term growth areas for us. We have strong operating margins, resulting in strong cash flows. Our solid cash flow has given us the financial strength to continue to build our pipeline, not only internally but through mergers and acquisitions and external partnerships. We have a strong foundation for future products and growth in multiple therapeutic areas through the 27 partnerships, collaborations and investments in 2019.

Individual Performance Objectives

Our Compensation Committee also considered the individual contributions of our Named Executive Officers (other than our Chief Executive Officer, whose annual bonus opportunity was based entirely on corporate performance) to the achievement of the research and development, commercial, financial and operational objectives that supported our corporate objectives. The assigned individual performance factors reflect the extent to which each Named Executive Officer’s personal contributions were determined to benefit our overall performance and to exceed or fall short of his or her individual objectives, which are determined and communicated to executives at the beginning of the year. In considering the annual bonus attributable to individual performance, our Chief Executive Officer and Compensation Committee considered the accomplishments of each Named Executive Officer. The table below summarizes select 2019 achievements for each Named Executive Officer, who was eligible to receive a payout.other than our Chief Executive Officer.

48Executive OfficerSelect 2022 Achievements

Mr. Dickinson

►  In 2022, Mr. Dickinson led the execution of 25 transactions, including strategic collaborations with Dragonfly and MacroGenics, the acquisition of rights to Trodelvy from Everest in China and certain other Asian countries, and the acquisition of MiroBio.
Under Mr. Dickinson’s leadership, in 2022, we generated $9.1 billion in operating cash flow, returned over $5.1 billion to our shareholders through dividends and share repurchases and repaid $1.5 billion of debt.
Through Mr. Dickinson’s leadership, Corporate Operations delivered multiple transformational initiatives, including the opening of a park and wellbeing center in Foster City, and new facilities in Munich and Singapore while being recognized as an industry leader in sustainability.
Additionally, Mr. Dickinson continued to cultivate long-term efficiencies and cost savings for Gilead and has made significant progress on a multi-year SAP implementation while achieving all-time Gilead records on small business, diverse, and Black-owned supplier spend. Mr. Dickinson is an Executive Sponsor to the Pride Alliance Employee Resource Group which is focused on ensuring LGBTQ+ employees and allies can be their authentic selves while also celebrating diverse identities.

Ms. Mercier

In 2022, Ms. Mercier was instrumental in ensuring access, affordability and sustainability of our HIV and HCV medicines through patient access programs, contract pharmacy initiative and community partnerships.
Ms. Mercier’s focus in 2022 was on ensuring that Biktarvy became the standard of care worldwide, which resulted in an increase of over 3% market share both in the U.S. and the EU. In addition, Ms. Mercier focused on ensuring that Trodelvy becomes the #1 choice for physicians and patients in 2LTNBC. Under Ms. Mercier’s leadership, Trodelvy’s 2022 revenue increased 79% over 2021.
Since the start of the pandemic, under her leadership, Veklury was made available in more than 60 countries with generic remdesivir supplied to other countries in the world by licensed generic partners. Veklury or generic remdesivir have been made available to nearly 13 million patients worldwide.
As an Executive Sponsor to the Women at Gilead Employee Resource Group, Ms. Mercier continued her concentration on ensuring that every woman at Gilead feels empowered and is given ample opportunities to thrive within our organization.

Executive Compensation

Serving Executive OfficerSelect 2019 Achievements
Mr. DickinsonMr. Dickinson’s award reflects his leadership accomplishments across key business initiatives.
  
•  Under his leadership, as head of corporate development, we completed 27 partnerships and investment transactions in 2019, including a new strategic collaboration with Galapagos that expanded our global research base.56

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Executive OfficerSelect 2022 Achievements

Dr. Parsey

►  Under Dr. Parsey’s leadership, Gilead’s clinical portfolio continued to expand significantly in Oncology and HIV, including the positive results and filing of TROPiCS-02 and the U.S. approval of Sunleca. Dr. Parsey was instrumental in moving 9 programs from Gilead Research or external partners into Development. In addition, as of the end of 2022, 59 clinical stage programs are underway under Dr. Parsey’s leadership.
Dr. Parsey managed the Medical Affairs organization that helped to launch Trodelvy and provide medical information across our therapeutic areas to practicing caregivers around the world for all of Gilead’s therapies, including Biktarvy.
In addition, Dr. Parsey is an Executive Sponsor to the Gilead Veterans Engagement Team (GVET) Employee Resources Group, which focuses on supporting veterans, active duty military and their families by providing employment opportunities, professional development, team-building and joint service to our communities.

Ms. MercierTelman

Ms. Mercier’s awardTelman’s individual performance modifier reflects her impact on the organizationGilead since her appointment as Chief Commercial Officer.Executive Vice President, Corporate Affairs and General Counsel. During this time, Ms. Telman was able to drive efficiency and leverage her expertise across the Corporate Affairs and Legal Organization.
•  During her short tenure, we expanded our market share leadership with~60% U.S. market share in HCV and leading worldwide market share in HIV with Biktarvy. We also successfully launched Descovy for PrEP.
•  In addition, Ms. Mercier leveraged her expertiseTelman successfully oversaw the company’s efforts in resolving litigation related to implement key organizational changes for our Commercial organization, including a new geographic structure, a global-to-local governance modeltenofovir alafenamide (TAF) patents against generic manufacturers who were seeking to market and the strengtheningmanufacture generic versions of our medicalDescovy, Vemlidy and commercial partnership.Odefsey.
Mr. PletcherMr. Pletcher’s award reflects his impact and leadership accomplishments across the organization.
•  Under his leadership, our legal and compliance team was able to deliver on key legal and compliance initiatives, including declination of multiple department of justice investigations.
•  In addition, Mr. Pletcher was instrumental in helping our new leaders understand and integrate into our operations.
Former Executive Officer
Mr. AltonMr. Alton’s award reflects his accomplishments during his time as our Chief Patient Officer.
•  Mr. Alton drove the expansion of Gilead’s HIV patient access through our COMPASS and FOCUS programs.
•  In addition, under Mr. Alton’s leadership, Gilead achieved a perfect scoring for our third consecutive year on the Human Rights Campaign’s Corporate Equality Index.
Ms. WashingtonMs. Washington’s award reflectsTelman quickly showed her contributions as our former Chief Financial Officer as well ascommitment to promoting an inclusive and productive work environment by becoming an Executive Sponsor to the Gilead Leadership Organization of Black Employees (GLOBE) Employee Resource Group. Upon stepping into her contributions asnew role, Ms. Telman made it a Senior Advisor.
•  Under her leadership as our former Chief Financial Officer, we generated $6.564 billion in operating cash flow.
•  In addition, she successfully assisted withpriority to support the smooth transitiondevelopment of Chief Financial Officer duties to Mr. Dickinson.Black leaders within the company.

Annual BonusIncentive Decisions

Our CompensationThe Committee approved the bonusfinal annual incentive awards based on our corporate performance and the evaluation of individual performance objectives for our Named Executive Officers other than our Chief Executive Officer. Based on our corporate performance, our Compensationthe Committee recommended, and the independent members of our Board ratified, the bonusincentive award for our Chief Executive Officer. As a result, the following bonus payments were approved for 2019:2022:

            Company Performance  Individual Performance     Total
Serving Named
Executive
Officer(1)
 Base
Salary
 Target Bonus
Opportunity
(as % of
Salary)
 Target
Bonus
Opportunity
 Corporate
Performance
Factor
  Factor
Weighting
 Individual
Performance
Factor
  Factor
Weighting
 Total
Bonus
Payment
 Bonus
Payment
as % of
Target
Mr. O’Day   $1,600,000  150%     $2,400,000  130%  100%     —     —   $3,120,000        130%
Mr. Dickinson(2) $836,000  100% $836,000  130%  75%  130%  25% $1,086,800  130%
Ms. Mercier(3) $500,000  100% $500,000  130%  75%  130%  25% $650,000  130%
Mr. Pletcher $950,000  100% $950,000  130%  75%  130%  25% $1,235,000  130%
Named Executive Officer      Base
Salary
     Target Incentive
Opportunity
(as % of Salary)
    Target
Incentive
Opportunity
     Corporate
Performance Factor
    Individual
Performance
Factor
     Total
Award
Value
 
Mr. O’Day     $1,700,000                  150%       $2,550,000                 136%             136%(1)  $4,716,480 
Mr. Dickinson $1,027,000   100% $1,027,000   136%  135% $1,885,572 
Ms. Mercier $1,087,000   100% $1,087,000   136%  135% $1,995,732 
Dr. Parsey $1,082,000   100% $1,082,000   136%  135% $1,986,552 
Ms. Telman(2)  $900,000   44% $396,000   136%  100% $536,548 

(1)Dr. Parsey commenced employment on November 1, 2019 and therefore was not eligible for a bonus for 2019.CEO performance is tied 100% to corporate performance. For purposes of calculating the CEO award the individual performance factor is set equal to the corporate performance factor.
(2)Mr. Dickinson’s bonus is pro-rated based on time served in his current and prior roles.
(3)Ms. Mercier’sTelman’s bonus isopportunity was pro-rated based on her July 1, 201925, 2022 start date.

2020 Proxy Statement49

ExecutiveLong-Term Equity Compensation

        Company Performance  Individual Performance     Total
Former Named
Executive
Officer(1)
  Base
Salary
  Target Bonus
Opportunity
(as % of
Salary)
  Target
Bonus

Opportunity
  Corporate
Performance
Factor
  Factor
Weighting
 Individual
Performance
Factor
  Factor
Weighting
 Total
Bonus
Payment
 Bonus
Payment
as % of
Target
Mr. Alton   $1,065,000  100%     $1,065,000  130%  75%  100%  25%   $1,304,625       123%
Ms. Washington $1,075,000  100% $1,075,000  130%  75%  120%  25% $1,370,630  128%
(1)Ms. Hamill and Dr. McHutchison are not included in the table above because they were not eligible for a 2019 bonus due to their departure dates.

Changes to Annual Bonus Program for 2020

In January 2020, our Compensation Committee approved a new annual incentive plan design and performance metrics for the 2020 plan year to align with our new strategy. Key elements of the 2020 annual incentive plan are as follows:

Increased focus on financial successAlignment with our new strategyEnhanced risk mitigation

•  Increased the weighting for financial metrics from 30% to 50%

•  Established threshold, target and maximum achievement levels for our financial metrics, which will be disclosed in next year’s proxy

•  Introduced Non-GAAP Operating Income as a financial metric to address stockholder feedback

•  The remaining half of the award will be tied to rigorous, pre-established product, pipeline and people goals

•  Removed +/-10% factor for unplanned accomplishments

•  Plan expressly makes awards subject to clawback/recoupment for significant misconduct

•  Plan expressly authorizes our Compensation Committee to exercise negative discretion with respect to all participants, including for lapses in compliance

2018 Payments under the Retention Program

As reflected in the Summary Compensation Table, Mr. Dickinson received a $1,000,000 cash payout under the Gilead Sciences, Inc. Retention Program for Executive Officers (the “Retention Program”), which was granted to him before becoming an executive officer.

Equity Compensation: Performance Shares, Stock Options and Restricted Stock Units

Our long-term equity compensation program is designed to link our Named Executive Officers’ pay delivery with the long-term interests of our stockholders, as well as Gilead’s performance over the same time horizon. To ensure we arehelp competitively positioningposition target compensation opportunities for our executives, and are providingprovide meaningful retentive value, as supported by a thorough analysis of peer practices, for the 2019 Named Executive Officer annual equity awards,value. Consistent with last year, our Compensation and Talent Committee introducedgranted performance shares, stock options and restricted stock units, and also grantedwith performance shares and stock options,emphasized, as shown below:

 

Equity Awards

 

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20192022 Annual Long-Term Equity Award Decisions

Our Compensation and Talent Committee approved equity awards in the amounts set forth below. Ourbelow, which reflect approved grant-date values and not actual delivered or realized compensation. When setting target long-term equity award values, our Compensation and Talent Committee evaluated each Named Executive Officer’s performance during the prior year, as applicable, his or her expected future contributions and our performance compared to the competitive market.

The following table sets forth the value of the equity awards approved by our Compensation and Talent Committee and, for our Chief Executive Officer, ratified by the independent members of our Board of Directors. The table does not include new hire make-whole awards granted in 2019 which are not considered part of our annual ongoing program and are discussed in more detail below under, “One-Time Pay Actions Related to Leadership Changes”:

  Equity Award Value
Approved By
The Compensation
Committee
Serving Named Executive(1) 2019 
Mr. O’Day(2)     $12,000,000 
Mr. Dickinson(3) $3,000,000 
Mr. Pletcher $3,000,000 

  Total Equity Award Value Approved by the
Compensation and Talent Committee
Named Executive(1)   2022
Mr. O’Day                                                         $15,000,000
Mr. Dickinson  $5,900,000
Ms. Mercier  $6,450,000
Dr. Parsey  $6,450,000

(1)Ms. Mercier and Dr. ParseyTelman is excluded from this table as she did not receive annual equity awards for 2019in March due to theirher start datesdate of July 1, 2019 and November 1, 2019, respectively.
(2)Mr. O’Day was eligible for an annual grant as part of his new hire compensation package. His grant was approved and awarded25, 2022. For more information on March 1, 2019, the date he commenced as our Chief Executive Officer.
(3)Value includes a one-time promotion award, in the form of restricted stock units and stock options, with a grant date value of $1,000,000 vesting annually over a four-year period.

  Equity Award Value
Approved By
The Compensation
Committee
Former Named Executive(1) 2019 
Mr. Alton(2)               $4,250,000 
Ms. Washington $4,000,000 
Ms. Hamill $3,750,000 
Dr. McHutchison $4,000,000 

(1)The 2019Ms. Telman’s 2022 equity awards, granted to Ms. Hamill and Dr. McHutchison were forfeited due to their departure from the company.
(2)Value includes a $500,000 award, in the form of 50% performance shares, 25% restricted stock units and 25% stock options, granted on March 1, 2019 in recognition of Mr. Alton’s role as interim CEO.see “New Hire Arrangements” below.

20192022 Performance Share Awards

Consistent with prior years, the performance share awards granted by our Compensation and Talent Committee in 20192022 were divided into two equally weighted tranches: one subject to three-year relative TSR performance conditions and one subject to three annual revenue-based performance goals. Our Compensation and Talent Committee selected relative TSR and revenue as our performance measures because theyin order to drive the key behaviors that itthe Committee wants to reinforce and ensure alignment ofalign pay delivery with stockholder returns. Our Compensation and Talent Committee conducts a thorough review of the performance measures and associated payout levels, the rigor of the performance goals and thetheir alignment with performance at the time of grant.performance.

Relative TSR Portion. The performance-based vesting requirement for the relative TSR performance shares is tied to the percentile level of our TSR for the three-year performance period from FebruaryMarch 1, 20192022 through December 31, 2021,2024, relative to the companies comprising the S&P Healthcare Sub-Index (consisting of 37 companies at the time of grant).Sub-Index. The S&P Healthcare Sub-Index was selected for comparison because it enables our Compensation and Talent Committee to assess our performance against an objective peer group.group of industry relevant competitors. The Committee evaluated relative TSR performance against the same comparator group in prior years.

TSR Percentile vs. Comparator Group % of Target Paid  
81stor above  200%
50th  100%
20thor below  0%

If our absolute TSR is negative, the vesting opportunity is capped at 100% of target, regardless of our relative performance.performance. To receive the earned shares, an executive officer must generally remain employed with us through the date following the end of the performance period when our Compensation and Talent Committee certifies performance achievement.


2020 Proxy Statement51

Executive Compensation

Absolute Revenue Portion. One-third of the revenue-based performance shares aregranted in 2022 is tied to achievement of our 20192022 net product revenue goal, one-third areis tied to a 20202023 net product revenue goal and one-third areis tied to a 20212024 net product revenue goal. Each year’s net product revenue goal is established by our Compensation and Talent Committee in the first quarter of that year,

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and the payout level can range from 0% to 200% of the target allocated to each year’s goal. Revenue is a key objective used in both our short- and long-term incentive plans due to our historically high margin commercialized products and the strategic importance of investments within research and development. Revenue supports investment in research and development investment that could be compromised by overemphasis on profitability.which is necessary for long-term growth. The uncertainty of many external factors that influence our business and industry, such as unanticipated pricing pressures, product-approval timing and volatility in the foreign currency exchange rates, make it difficult to forecast net product revenue beyond a one-year period. As a result, our Compensation and Talent Committee has determined that the current design appropriately measures performance over the long-term, as it provides line of sight for our executive officers while making the final value of awards earned contingent on net product revenue performance over a three-year absolute TSR performance. period.

In February 2019,2022, our Compensation and Talent Committee established the net product revenue performance goal for 2022 of $21.8$24.2 billion (at target) for 2019., which included Veklury revenue. The same 20192022 net product revenue performance goal also applies to one-third of the revenue-based performance shares granted in 20182021 and 2017.

2020. In contrast to the separate revenue assessments established under the annual incentive plan, the Compensation and Talent Committee included revenue from Veklury in setting the performance share program revenue target. The Committee made the decision to differentiate its evaluation of the revenue measures under the annual and long-term incentive programs given the unusual circumstances of the pandemic; the short-term incentive was intended to focus executives on the drivers of core business, with a separate modifier to incentivize and reward Veklury performance, while the long-term incentive is designed to incentivize holistic long-term performance achievement, including the importance of revenue in supporting research and development, as discussed above.

The 2019 and 20182022 net product revenue goals represented a decrease from 2017 due to the dynamics of the HCV cure market. Specifically, we created a cure for HCV— the more patients who are cured, the more the pool of HCV patients shrinks, resulting in lower revenues each year after an initial increase. This impact is illustrated by the chart on page 7. The 2019 revenue goal which was aligned with our forecast for the 2022 fiscal year. While total product revenue excluding Veklury was set higher than our 2018 target and actualforecasted to grow year-over-year, the 2022 net product revenue goal represented a slight decrease from the 2021 goal due to the anticipated decrease in Veklury revenue due to uncertainty on the frequency and severity of COVID-19 surges and projected decreases in part, to continued robust HIV product growth.hospitalizations.

For purposes of determining the achievement level, any product revenue realized during the fiscal year by any entity that we acquired during that year and the effect of any accounting change is excluded. Awards doThe 2022 performance share awards will not become vested until the final performance results are certified in early 2022.2025. To receive the earned shares, an executive officer must generally remain employed with us through the date when our Compensation and Talent Committee certifies performance achievement.

      Annual Revenue Goal(1) 
Year of Grant  2020      2021     2022      2023      2024     
2020 Performance Share Award            
Absolute Revenue Tranche $22.1B Target $24.4B Target $24.2B Target      
2021 Performance Share Award            
Absolute Revenue Tranche   $24.4B Target $24.2B Target TBD    
2022 Performance Share Award            
Absolute Revenue Tranche     $24.2B Target TBD  TBD 

(1)Threshold and maximum performance levels for each tranche are disclosed in the table below.

   Annual Revenue Goal
Year of Grant  2017   2018   2019   2020   2021 
2017 Performance Share Award                    
Absolute Revenue Tranche  $24.3B Target   $21.0B Target   $21.8B Target         
2018 Performance Share Award                    
Absolute Revenue Tranche      $21.0B Target   $21.8B Target   TBD     
2019 Performance Share Award                    
Absolute Revenue Tranche          $21.8B Target   TBD   TBD 

20192022 Stock Options

Our Compensation and Talent Committee believes that stock options provide an appropriate incentive for our executives because they will realize value only if our stock price appreciates from the date of grant, which benefits all stockholders. Stock options granted to our Named Executive Officers vest over a four-year service period. One-quarter of the shares of our common stock subject to these options vest one year from the grant date and the remaining options vest in equal quarterly installments thereafter (assuming the continued service of the executive officer over the next three years).

2022 Restricted Stock Units

Our Compensation and Talent Committee believes that restricted stock units promote long-term retention and alignment with stockholders. Restricted stock units granted to our Named Executive Officers vest over a four-year service period. One-quarter of these awards vest one year from the grant date and the remaining shares vest in equal quarterly installments thereafter (assuming the continued service of the executive officer over the next three years).

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2019 Restricted Stock UnitsExecutive Compensation

2020 Performance Share Awards Earned

Our Compensation Committee believes that restricted stock units promote long-term retention and alignmentAs with shareholders. Restricted stock unitsthe performance shares granted toin 2022, awards approved for our then-serving Named Executive Officers vest over a four-year service period. One-quarter of the shares subject to these awards vest one year from the grant date and the remaining shares vest in equal annual installments thereafter (assuming the continued service of the executive officer over the next three years).

2017 Performance Share Awards Earned

In February 2017, our Compensation Committee granted to our then-current Named Executive Officers performance share awards, that2020 were subject to aan approximate three-year performance period and continued employment through certification of performance achievement:

The vesting requirement for the first tranche was tied to our relative TSR for the performance period from FebruaryMarch 1, 20172020 through December 31, 2019,2022, compared to the TSR of the companies comprising the S&P Healthcare Sub-Index;Sub-Index over such period; and
The vesting requirement for the second tranche was based on net product revenue goals established for each of 2017, 20182020, 2021 and 20192022 (one-third each year).
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Executive Compensation

In January 2020,2023, our Compensation and Talent Committee certified final performance achievements for the 20172020 performance share awards. Our three-year relative TSR was at the 21.8077.4thpercentile, resulting in a payout of 4%168.50% of target for the TSR-based awards. Our net product revenue exceeded the target revenue goal in 2017, 20182020, 2021 and 2019,2022, resulting in a payout of 163.4%200% of target for the revenue-based awards. Based on our TSR and three-year revenue achievements the 2017 performance awards paid out at 83.7% of target. This was the fourth year in a row that our performance share awards paid out below target. To see the alignment of these awards with stockholder value, please see chart on page 43.

Performance Share AwardsWeightingThresholdTargetMaximumPercentage
Earned
Relative TSR Tranche168.50%
Net Product Revenue Tranche:
2020 Net Product Revenue
200.00%
2021 Net Product Revenue(1)200.00%
2022 Net Product Revenue(1)200.00%

(1)Also included as a sub-tranche of the 20162021 and 20172022 performance share awards.
(2)Also included as a sub-tranche of the 2017 and 2018 performance share awards.

2020 Performance Share Award

2017 Performance Share Award
Serving Named Executive Officer(1)Total Target
Grant Value
 Actual Value
Delivered
 % of Target
Value
Delivered
 Target
Number of
TSR Shares
 Earned
TSR Shares
 Target
Number of
Revenue
Shares
 Earned
Revenue
Shares
 
Mr. Pletcher $ 1,323,567 $966,300 73% 8,080 323 9,000 14,705 
Named Executive Officer     Target Number of
TSR Shares
     Earned
TSR Shares
     Target Number of
Revenue Shares
     Earned  Revenue
Shares
Mr. O’Day 29,820 50,247 43,200 86,400
Mr. Dickinson 8,350 14,070 12,100 24,200
Ms. Mercier 8,350 14,070 12,100 24,200
Dr. Parsey 9,540 16,075 13,820 27,640

New Hire Arrangements

(1) Mr. O’Day, Ms. Mercier and Dr. Parsey were not employed by the company and Mr. Dickinson was not eligible when these awards were granted and therefore did not receive such an award.

2017 Performance Share Award
Former Named Executive Officer Total Target
Grant Value
 Actual Value
Delivered
 % of Target
Value
Delivered
 Target
Number of
TSR Shares
 Earned
TSR Shares
 Target
Number of
Revenue
Shares
 Earned
Revenue
Shares
 
Mr. Alton(1) $1,628,117 $ 1,188,521 73% 9,940 398 11,070 18,086 
Ms. Washington(2) $1,832,700 $ 1,337,826 73% 11,190 448 12,460 20,358 
Dr. McHutchison(3) $1,145,330 $    642,486 56% 6,990 240 7,790 9,752 

(1)Mr. Alton received continued vestingMs. Telman did not participate in accordance with the terms of the Retention Program.
(2)Ms. Washington received full vesting due to being employed on vesting date.
(3)Dr. McHutchison received a pro-rated vesting in accordance with the terms of our Equity Incentive Plan.

One-Time Pay Actions Related to Leadership Changes

As discussed above, 2019 was a transition year for our senior leadership as Mr. O’Day assembled his key leadership team. A number of pay actions occurred throughout 2019 as a result of2022 annual long-term equity program. However, in connection with her hiring, our leadership transition. The table below summarizes our newly hired or appointed Named Executive Officers’ target annual payCompensation and Talent Committee approved the following one-time make-whole payments.payments:

  Annual Compensation Structure  One-Time Make-Whole Payments 
Named Executive Officer Base Salary  Annual
Bonus Target
  Long-Term
Incentive Target
  Long-Term
Incentive
  Cash Payment 
Mr. O’Day $1,600,000   150%          $12,000,000   $8,500,000   $5,675,000 
Ms. Mercier $1,000,000   100%  $3,500,000   $5,500,000   $2,500,000 
Dr. Parsey $1,000,000   100%  $4,000,000   $2,000,000   $2,000,000 

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Executive Compensation

Mr. O’Day

Mr. O’Day joined Gilead on March 1, 2019. As shown above, his 2019 compensation included the following make-whole payments, which are intendedRSUs to compensate Mr. O’Day for compensation and other benefits forfeited when he left his employer of 30 years and offset other economic consequences of accepting employment with us. He received no additional inducement awards. Our intent was to parallel the form (cash or equity) and timing of the forfeited payments so that Mr. O’Day was no better or worse off than if he had remained with his former employer:

Restricted Stock Units: To compensate Ms. Telman for the value of certain equity awards that Mr. O’Day forfeited upon separating from hisgranted by her former employer we granted him restricted stock unitsthat she forfeited as of his employment start date with a grant date fair value of $8,500,000, which will vest annually over a three-year period. If Mr. O’Day terminates with Cause, as defined in his grant agreement, he will forfeit any unvested shares.
One-Time Cash Payment: To compensate for the forfeiture of Mr. O’Day’s 2018 annual bonus with his former employer and for other economic consequencesresult of accepting employment with us, we provided Mr. O’Day aGilead. The one-time cash paymentmake-whole RSUs, which parallel the form, value and timing of $5,675,000, which will be subject to repayment if his employment is terminated for Cause or if he resigns without Good Reason prior to completing one year of service.

In addition, to compensate for pension benefits that Mr. O’Day forfeited, Gilead will credit a $750,000equity awards granted by her former employer, contribution to Mr. O’Day’s individual deferred compensation account for each of the first five years of his service, starting one year after his start date. The employer contributions are contingent upon Mr. O’Day’s continued employment.

As reflected in the Summary Compensation Table and discussed above, Mr. O’Day’s agreement also provided that his 2019 base salary would be $1,600,000 per year, that his annual cash bonus opportunity would have a target value of 150% of his base salary, with a maximum opportunity equal to 150% of target, and that he would receive 2019 annual equity awards comprised of (i) stock options with a grant date value of $3,000,000; (ii) restricted stock units with a grant date value of $3,000,000; and (iii) performance shares with a target grant date value of $6,000,000.

Ms. Mercier

Ms. Mercier joined Gilead on July 1, 2019. As shown above, her 2019 compensation included make-whole equity grants with an aggregate value of approximately $5,500,000, which are intended to compensate Ms. Mercier for compensation and other benefits forfeited when she left her prior employer and for other economic consequences of accepting employment with us. Our intent was to parallel the form and timing of the forfeited payments so that Ms. Mercier was no better or worse off than if she had remained with her former employer. These grants were in the form of:

$1,750,000 in performance-based restricted stock units, which will be earned and vest subject to her achievement of certain individual performance goals, including the assessment of the company’s worldwide commercial and therapeutics structure, and evaluation of market and launch readiness initiatives in connection with anticipated commercial launches;
$1,750,000 in stock options, one-quarter of which vest one year from the grant date with the remainder vesting in equal quarterly increments over the subsequent three years; and
$2,000,000 in restricted stock units, which vest in three annual installments over four years from the date of grant.grant, subject to Ms. Telman’s continued service.

In addition, to offset the value of the annual bonus and unvested equity awards forfeited from her prior employer and to compensate for other economic consequences of accepting our offer, Ms. Mercier is eligible to receive a $2,500,000 cash payment, fifty percent of which was paid in July of 2019 and is reflected in the Summary Compensation Table. The remainder will be paid on the first anniversary of her employment start date. Ms. Mercier is obligated to return the full amount previously paid to her of this one-time bonus if her employment is terminated for Cause or she resigns without Good Reason prior to completing one full year of service. In the event of the termination of her employment without Cause or her resignation for Good Reason, Ms. Mercier will be entitled to receive any unpaid portion of this bonus.

Ms. Mercier’s agreement also provided that her 2019 base salary would be $1,000,000 per year, that her annual cash bonus opportunity would have a target value of 100% of her base salary, with a maximum opportunity equal to 150% of target, to be pro-rated for 2019, and that she will receive 2020 annual equity awards with an aggregate target grant date value of $3,500,000.

  
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A $1,200,00 sign-on bonus, to offset the value of her annual bonus and certain unvested equity awards forfeited from her prior employer which were scheduled to vest shortly after starting Gilead and other economic implications of Ms. Telman’s joining Gilead. A pro-rata portion of the sign-on bonus is subject to repayment should Ms. Telman terminate her employment without good reason (as defined in her offer letter with Gilead) or be terminated for Cause (as defined in Gilead’s 2022 Equity Incentive Plan) on or prior to July 25, 2024.

Executive Compensation

Dr. Parsey

Dr. Parsey joined Gilead on November 1, 2019. As shown above, his 2019 compensation included make-whole equity grants with an aggregate value of approximately $2,000,000, which are intended to compensate Dr. Parsey for compensation and other benefits forfeited when he left his employer to accept our offer. Our intent was to parallel the form and timing of the forfeited payments so that Dr. Parsey was no better or worse off than if he had remained with his former employer. These grants were in the form of:

$1,000,000 in stock options, one-quarter of which vest one year from the grant date with the remainder vesting in equal quarterly increments over the subsequent three years; and
$1,000,000 in restricted stock units, which vest in annual installments over four years from the date of grant.

In addition to offset the value of his annual bonus and unvestedabove make-whole payments, the Committee approved new hire equity awards forfeitedcomposed of $500,000 in stock options and $500,000 in RSUs. Like our 2022 annual equity awards, one-quarter of each of these awards vests one year from his prior employer, Dr. Parsey is eligible to receivethe grant date and the remaining portion vests in equal quarterly installments thereafter (assuming the continued service of Ms. Telman over the next three years).

Consistent with our executive mobility program, Ms. Telman also received a one-time bonusrelocation allowance of $20,000, as well as certain other relocation benefits as part of her offer, which are described further in the aggregate amount of $2,000,000. Fifty percent of this cash bonus was paid in November of 2019 andfootnotes to the remainder willSummary Compensation Table below. Should her employment be paid on the first anniversary of his employment start date. Dr. Parsey is obligated to return a pro-rated amount of the amount previously paid to him of this one-time bonus if his employment is terminated for Cause or he resignsshe resign without Good Reasongood reason on or prior to completing oneJuly 25, 2024, the full yearcash amount of service. In the event of the termination of his employment without Cause or his resignation for Good Reason, Dr. Parseysuch relocation benefits will be entitledsubject to receive any unpaid portion of this bonus.

Dr. Parsey’s agreement also provided that his 2019 base salary would be $1,000,000 per year, that his 2020 annual cash bonus opportunity will have a target value of 100% of his base salary, with a maximum opportunity equalrepayment to 150% of target, and that he will receive 2020 annual equity awards with an aggregate target grant date value of $4,000,000.Gilead.

Other Executive Compensation Policies and Practices

Role of Chief Executive Officer

Our Chief Executive Officer makes recommendations to our Compensation and Talent Committee with respect to the compensation for our Named Executive Officers other than himself. In formulating his recommendations, our Chief Executive Officer reviews internal base salary data and external compensation data provided by our Human Resources Department. The Human Resources Department has engaged Compensia Inc. (“Compensia”), a national compensation consulting firm, to provide comparable market data, including tally sheets, financial performance reports, market compensation reviews and other analyses to aid our Chief Executive Officer in developing his recommendations. During 2019,2022, Compensia served solely as a consultant to management in the compensation decision-making process. When setting 20192022 compensation levels, our Compensation and Talent Committee placed considerable weight on our Chief Executive Officer’s compensation recommendations because of his direct knowledge of each Named Executive Officer’s performance and contributions.

Role of Compensation Consultant

Our Compensation and Talent Committee has retained Frederic W. Cook & Co., Inc. (“FW Cook”), a national compensation consulting firm, as its independent compensation consultant. FW Cook reports directly to our Compensation and Talent Committee, which has the direct authority to appoint, compensate, oversee the work of and dismiss its compensation consultant. George Paulin, Chairman of FW Cook, attends meetings of our Compensation and Talent Committee, as requested. FW Cook provides various executive compensation services to our Compensation and Talent Committee, including advising our Compensation and Talent Committee on the principal aspects of our Chief Executive Officer’s compensation and evolving industry practices, and providing market information and analyses regarding the competitiveness of our program design for both our executive officers and the non-employee members of our Board. During 2019,2022, FW Cook served solely as a consultant to our Compensation and Talent Committee and did not provide any other services to Gilead.

Our Compensation and Talent Committee has determined that FW Cook is independent and the work of FW Cook on behalf of our Compensation and Talent Committee did not raise any conflict of interest based on the six factors for assessing independence and identifying potential conflicts of interest as set forth in Exchange Act Rule 10C-1(b)(4), the listing standards of Nasdaq and such other factors as were deemed relevant under the circumstances.


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Use of Market Data

Individual compensation levels and opportunities for our Named Executive Officers are compared to a peer group of biopharmaceutical and pharmaceutical companies headquartered in the United States that are most similar to us in terms of business strategy, labor market competition, market capitalization, revenue and number of employees. Our compensation peer group for 2019,2022, which was identified based on these objective selection criteria, and remained unchanged from our compensation peer group for 2018, comprised these 10 companies:

Compensation Peer Group
                  
AbbVie Inc.Biogen Inc.Eli Lilly and CompanyPfizer Inc.
Allergan plcBristol-MyersBristol Myers Squibb CompanyJohnson & Johnson
Amgen Inc.Celgene CorporationMerck & Co., Inc. Vertex
Amgen Inc.Eli Lilly and CompanyPfizer Inc.  
Biogen Inc. Johnson & JohnsonRegeneron  

The following chart represents our position relative to our peer group on threetwo key selection criteria at the time the 20192022 compensation peer group was approved in September 2018July 2021 (based on publicly available information as of June 2018)2021).

 Revenue in
$ Millions
(as of June 10, 2021)
      Market Capitalization
in $ Millions
(as of June 10, 2021)
Peer Group Median                          $34,148                          $163,367
Gilead Sciences, Inc.$25,564 $84,139

  Revenue in $ millions
(as of June 28, 2018)
  Market Capitalization
in $ millions
(as of June 28, 2018)
 
Peer Group Median $23,141           $107,049 
Gilead Sciences, Inc. $24,690  $90,854 

Our compensation peer group includes companiesindustry competitors we believe are most similar tolike us in terms of business complexity and product life cycle. We also include companies that fall within specified revenue and market capitalization ranges. These ranges are broad enough to ensure we can maintain a sufficient number of peer companies. This is especially important as our industry experiences a number of mergers and acquisitions each year, thereby reducing the number of relevant peer company choices. Our Compensation and Talent Committee reviews the companies in our compensation peer group annually and makes adjustments as necessary to ensureso that the comparator companies properly reflect the market in which we compete for executive talent. We also review the executive pay practices of similarly situated companies as reported in industry surveys and reports. In practice, our Compensation and Talent Committee has not targeted a specific percentile relative to our compensation peer group for individual components of our total compensation. Instead, we take a holistic perspective in establishing total compensation for our executive officers, taking into accountconsidering internal pay equity that recognizes theofficers’ relative experience, responsibilities and individual capabilities in addition to external market compensation practices.

Use of Tally Sheets

Our Compensation and Talent Committee annually reviews tally sheets in its evaluation of the total compensation provided to each Named Executive Officer. These tally sheets estimate dollar amounts for each compensation component, including current cash compensation (base salary and annual bonus)incentive), outstanding vested and unvested equity awards, employee benefits, perquisites and other personal benefits and potential severance payments and benefits.

Nonqualified Deferred Compensation

Eligible employees (including our executive officers) can enroll in our Deferred Compensation Plan and defer a portion of their base salaries and part or all their annual bonusesincentives and commissions. Gilead generally does not provide any matching contributions to the Deferred Compensation Plan; however, certain employees, including our Chief Executive Officer are entitled to certain company contributionscompensate for pension benefits Mr. O’Day forfeited with his previous employer when he joined Gilead, we agreed as part of the negotiations over his offer letter to credit a $750,000 employer contribution to Mr. O’Day’s individual deferred compensation account for each of the Deferred Compensation Plan pursuant to the termsfirst five years of their negotiated offer letters, which contributions replace certain forfeited retirement benefits with former employers.his service. Each participant may direct the investment of his or her deferred compensation account balance into investment choices that mirror substantially all the investment funds available under the Sectionour 401(k) savings plan. None of these investment alternatives result in “above-market” interest for disclosure purposes. For further information on the deferred compensation arrangements of our Named Executive Officers, see the 20192022 Nonqualified Deferred Compensation table on page 74.76.

In addition, our executive officers may defer receipt of the shares of our common stock that they earn under their performance share awards.

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Benefits and Perquisites

We provide medical and other benefits to our executive officers that are generally available to other full-time employees, including participation in our employee stock purchase plan, a group term life insurance plan and a Sectionsection 401(k) savings plan. Under the Section 401(k) plan, we make matching contributions on behalf of each participant equal to 100% of his or her contributions to the plan, up to an annual maximum matching contribution of $12,000 (increased to $15,000 for 2020). Mr. O’Day, Mr. Dickinson, Mr. Pletcher, Mr. Alton, Ms. Washington, Ms. Hamill and Dr. McHutchison$15,000. All our 2022 Named Executive Officers participated in the Section 401(k) plan during 20192022 and received matching contributions.

We do not provide defined benefit retirement plans, post-retirement health coverage or any other supplemental retiree benefits for our executive officers or employees.officers.

Our Named Executive Officers are permitted limited use of the company-provided aircraft and company car and driver for personal travel, which allow for enhanced security, efficiency and availability, contributing to the amount of time they can spend on company business. We generally do not provide other perquisites or other personal benefits to our executive officers.

For further information on the perquisites and other personal benefits provided to our Named Executive Officers during 2019,2022, see the Summary Compensation Table on page 65.69.

Stock Ownership Guidelines

We have stock ownership guidelines that require each of our Named Executive Officers to hold a meaningful amount of our common stock, further promoting a long-term perspective, aligning the interests of our Named Executive Officers and stockholders and helping to mitigate potential compensation related risk. Our stock ownership guidelines require each Named Executive Officer to maintain a stock ownership level equal to a specified multiple of his or her annual base salary, as set forth in the table below:below.

STOCK OWNERSHIP GUIDELINES (AS MULTIPLE OF BASE SALARY)

Stock Ownership Guideline (as multiple of base salary)

6xChief Executive Officer

3xAll other Named Executive Officers

Individuals newly hired or promotedappointed are allowed a specified number of years to comply with their ownership guidelines. Named Executive Officers who are not in compliance with their guidelines following the specified number of years, are required to hold all shares until the guidelines are met. Shares owned outright, including those acquired from company equity awards, unvested restricted stock units and unvested but earned performance share units count toward meeting the guidelines; however, stock options and unvested and unearned performance shares do not count toward meeting the guidelines. As of December 31, 2019,2022, all of our Named Executive Officers were in compliance or were within the grace period for compliance with their applicable stock ownership guidelines.compliance.

Clawback Policy

We maintain a compensation recovery orOur Board believes our executives should be financially responsible for misconduct covered by our “clawback” policy, under which our Boardthe Compensation and Talent Committee has the authority to recoup any bonus or other cash orincentive payments, performance-based equity compensation based on restated financial resultsand certain proceeds realized from other equity-based compensation from an executive officer whose misconduct contributed to anGilead’s obligation to file thea financial restatement.

In March 2020, our Board amended our clawback policy The Committee also has authority to (1) expand its scoperecoup all or any portion of the amounts or shares of stock (including proceeds realized on a sale of such shares) attributable to covercash or equity-based incentive compensation from any executive officers’officer whose significant misconduct resultingresults in a violation of significant company policy, law or regulation that caused material financial, operational or reputational harm to Gilead, including the failure to appropriately supervise a subordinate employee thatwho engaged in misconduct, and (2) expressly commitmisconduct.

Our policy requires the company to publicly disclose recoupment ofactions taken to recoup compensation wherefrom an executive so long as the underlying facts arehave been previously disclosed, subject to certain legal and privacy rights considerations.

The Board has multiple mechanisms to enforce the clawback policy, including:

1.Withholding or recouping cash incentive payments under our annual incentive plan;
2.Cancelling outstanding unvested performance shares, which would otherwise vest at the end of the applicable performance period;
3.Cancelling outstanding unvested stock options or restricted stock units which would otherwise generally vest over four years; and
4.Recovering the proceeds realized from the sale of shares of Company stock issued under any equity-based incentive during or with respect to the period during which the misconduct occurred.
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In addition, as discussed below, forfeiture provisions in our equity award agreements apply in the event of a termination for cause. We intend to adopt a clawback policy consistent with the requirements of Exchange Act Rule 10D-1 following the release and effectiveness of Nasdaq listing standards in accordance with such rule.

Hedging and Pledging Prohibitions

We maintain an insider trading policy which, among other provisions, prohibits our directors and all employees, including our Named Executive Officers, from engaging in transactions that hedge Gilead securities, including through the use of financial instruments such as prepaid variable forwards, equity swaps, collars and exchange funds, and that prohibits derivative securities transactions related to Gilead securities, including put or call options. In addition, the policy prohibits directors and executive officers from pledging Gilead securities.

Severance Benefits

We maintain the Gilead Sciences, Inc. Severance Plan, as amended and restated effective July 24, 2019May 5, 2020 (the “Severance Plan”) that offers severance payments and benefits to all our employees, including our executive officers, upon certain involuntary terminations of employment. The intent of our Severance Plan is to serve the following purposes:to:

Enable us to provide a standard set of payments and benefits to new and current executive officers and employees.
Align the interests of our executive officers with those of our stockholders by enabling our executive officers to consider corporate transactions that are in the best interests of our stockholders and other stakeholders without undue concern over whether a transaction may jeopardize their employment.
Assure our executive officers of fair treatment in connection with a change in control of Gilead by providing for payments and benefits under the Severance Plan subject to a “double trigger,” which means that an executive officer will be eligible to receive payments and benefits under the planSeverance Plan in connection with a change in control of Gilead only if he or she incurs a qualifying termination of employment.

In addition, the Severance Plan prohibitsdoes not provide “gross-up” payments on any excise tax imposed on any change in control benefits for all executive officers.benefits.

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Separation Arrangements Related to Leadership Transition

Ms. Hamill’s Severance and General Release Agreement

In June 2019, in connection with Ms. Hamill’s termination by the company without Cause, we entered into a Severance and General Release Agreement (the “Hamill Separation Agreement”) with Ms. Hamill, which provides for certain severance payments and benefits in accordance with the terms of her August 8, 2018 letter agreement with the company, her equity award agreements and generally consistent with severance payments offered under the Severance Plan. In particular, the Hamill Separation Agreement provides for:

Pursuant with her offer letter, payment of the final $1,500,000 installment of her sign-on bonus;
Pursuant with her offer letter, accelerated vesting of the 87,680 stock options, 32,795 restricted stock units and 42,630 performance-based restricted stock units granted to Ms. Hamill on October 7, 2018
Consistent with the Severance Plan, cash severance payments, payable in the form of salary continuation payments over 18 months following her separation date, in an aggregate amount of $1,447,500;
Consistent with the Severance Plan, a lump sum cash payment of $45,076.86, intended to offset costs of Ms. Hamill’s health care continuation coverage for 18 months; and
Consistent with the Severance Plan, a lump sum cash payment of $10,000, intended to offset costs for professional transition services.

In addition, we negotiated the following payments as part of her termination:

Reimbursement of relocation expenses in connection with Ms. Hamill’s relocation from northern California back to southern California; and
A lump sum cash payment of $1,750,000 in lieu of any annual bonus payment for 2019 and to compensate Ms. Hamill for the forfeiture of certain 2019 equity awards.

Ms. Hamill provided the company with a release of claims as a condition to receipt of these payments and benefits.

Mr. Alton’s Transition Services and General Release Agreement

In July 2019, in connection with Mr. Alton’s resignation for Good Reason, we entered into a Transition Services and General Release Agreement (the “Alton Separation Agreement”) with Mr. Alton that provides for specified payments and benefits in accordance with the terms of the Retention Program and in connection with Mr. Alton’s agreement to stay with Gilead and serve as a non-executive senior advisor through January 3, 2020. In particular, the Alton Separation Agreement provides for:

In accordance with the Retention Program, continued vesting of all outstanding stock option awards granted prior to January 1, 2019 that would have vested on or prior to January 3, 2021, continued vesting of all 2017 and 2018 performance share awards and a pro-rata portion (based on the months Mr. Alton was employed during the performance period plus an additional 12 months) of 2019 performance share awards, in each case, based on the actual level at which the applicable performance metrics are attained in accordance with the vesting provision of such grants;
In accordance with the Retention Program, outplacement services through a Gilead-contracted provider for a period of 6 months following his separation date;
In accordance with the retirement eligibility criteria provisions pursuant to the terms of the grant agreement, continued vesting of all outstanding stock option awards granted on or after January 1, 2019 and continued vesting of all outstanding restricted stock units;
In accordance with the Retention Program, cash severance payments, payable in the form of salary continuation payments over 24 months following his separation date, in an aggregate amount of $3,345,685, reflecting 24 months’ base salary and 1.0 times Mr. Alton’s average bonus over the prior three fiscal years; and
Consistent with the Severance Plan, a lump sum cash payment of $49,519 intended to offset costs of Mr. Alton’s health care continuation coverage for 18 months.

In addition, in recognition for his services as a non-executive senior advisor through January 3, 2020, Mr. Alton received a 2019 annual bonus based on actual performance and paid at the time such bonuses were paid to other Company executives.

Mr. Alton provided the company with a release of claims as a condition to receipt of these payments and benefits.

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Dr. McHutchison’s Transition Services and General Release Agreement

In July 2019, in connection with Dr. McHutchison’s decision to step down, we entered into a Transition Services and General Release Agreement (the “McHutchison Separation Agreement”) that provides for specified payments and benefits in consideration for his agreement to provide transitional services to the company. In particular, the McHutchison Separation Agreement provided a lump sum cash benefit equal to $1,100,000, which is subject to repayment in the event that Dr. McHutchison fails to comply with employee non-solicitation, ongoing cooperation and non-disparagement agreements contained in the McHutchison Separation Agreement. Dr. McHutchison provided the company with a release of claims as a condition to receipt of these payments and benefits.

Compensation-Related Risk

Our Compensation and Talent Committee and its independent consultant, with input from our Human Resources Department, annually reviews the compensation program to determine whether it encourages excessive risk-taking that would create a material risk to the company’s economic viability. As part of this review, our Compensation and Talent Committee specifically considers (i) the balance of the program, including the appropriate mix of short- and long-term goals and incentives; (ii) whether the appropriate controls and governance policies are in place to manage risk; and (iii) whether broad-based employee incentive plans (including sales plans) have appropriate leverage and do not drivepromote undue risk taking.

Based on this annual review, our Compensation and Talent Committee concluded it was not reasonably likely that any of our compensation policies and practices in place during 2019,2022, whether individually or in aggregate, would have a material adverse effect upon Gilead. As discussed in prior years, our Compensation and Talent Committee considered the following factors:

Our overall compensation structure is applied uniformly throughout the organization, with the only major exception relating to the form in which equity compensation is awarded.
For our broad-based employee population with a title of Senior Director or higher, a significant component of compensation is in the form of equity awards tied to the value of our common stock.
The vesting of performance share awards is tied to our relative TSR and revenue achievement over prescribed performance periods.
Our overall compensation structure is not excessively oriented toward short-term incentives, which are less leveraged than plans used by our peers.incentives.
The performance goals for our 20192022 annual bonusincentive program were based on both financial and non-financial corporate measures as well as individual performance (except with respect to our Chief Executive Officer, whose performance is evaluated solely on corporate measures).
Our stock ownership guidelines require our executive officers to maintain a substantial ownership interest in Gilead.
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Our compensation recoverycurrent clawback policy permits us to recoup any compensationcash incentives and equity awards paid to our executive officers if financial results have to be subsequently restated as a result of their misconduct or our executive officers engage in significant misconduct resulting in a violation of significant company policy, law or regulation that caused material financial, operational or reputational harm to Gilead, including the failure to appropriately supervise a subordinate employee who engaged in misconduct.
Hedging transactions in our common stock, such as put and call options or pre-paid forward sale contracts by executive officers, employees and directors, as well as pledging of our securities, are not allowed under our insider trading policy.

For the foregoing reasons, our Compensation and Talent Committee has concluded that it was not reasonably likely that our overall employee compensation structure, when analyzed either in terms of its company-wide application or its specific application to our various major business units, would have a material adverse effect upon Gilead.

Tax Deductibility of Compensation

Section 162(m) of the Internal Revenue Code disallows a tax deduction to public companies for compensation in excess of $1 million that is paid to certain executive officers (historically there was an exception to this $1 million limitation for performance-based compensation if certain requirements set forth in Section 162(m) and the applicable regulations were met). Therefore, we expect that compensation paid to our Named Executives Officers in excess of $1,000,000 generally will not be deductible, subject to limited exceptions. Changes in applicable tax laws and regulations and other factors outside of the control of our Compensation Committee can affect deductibility of compensation, and there can be no assurance that compensation paid to our executive officers will be tax deductible. We have in prior years considered the tax implications (including the potential lack of deductibility under Section 162(m)) when making compensation decisions but we reserve the right to make future compensation decisions based on other factors. Our Compensation Committee also reserves the right to make changes or amendments to existing compensation programs and arrangements, including changes or amendments that may result in the loss of tax deductions, if our Compensation Committee believes it is in the best interests of Gilead and its stockholders to do so.

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CompensationTalent Committee Report(1)

Our Compensation and Talent Committee has reviewed and discussed the Compensation Discussion and Analysis required by Item 402(b) of Regulation S-K and contained within this Proxy Statement with management and, based on such review and discussions, our Compensation and Talent Committee recommended to our Board of Directors that the Compensation Discussion and Analysis be included in this Proxy Statement.

Compensation and Talent Committee

Per Wold-Olsen,Chair

Kevin E. Lofton,Chair
Jacqueline K. Barton
Kelly A. Kramer

Harish Manwani

Anthony Welters

(1)The material in this report is not “soliciting material,” is not deemed “filed” with the SEC and is not to be incorporated by reference into any of our filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

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Executive Compensation

Severance and Change in Control Arrangements with Named Executive Officers

Although the employment of the Named Executive Officers is “at will,” they are eligible to receive certain severance payments and benefits upon their termination of employment under certain defined circumstances. There are four general categories of termination:

Voluntary Termination/For Cause Termination: includes a voluntary termination of employment by the Named Executive Officer (other than in connection with a resignation for Good Reason) prior to reaching applicable retirement age and a termination of the Named Executive Officer’s employment by us for Cause.
Retirement: includes a termination of employment by the Named Executive Officer after reaching the applicable retirement age, other than a termination of the Named Executive Officer’s employment by us for Cause.
Involuntary Termination Without Cause/Good Reason Resignation: includes a termination of the Named Executive Officer’s employment by us for reasons not constituting Cause, suchincluding a resignation as due to a company-wide or departmental reorganization, or the resignationresult of the Named Executive Officer in connection with a significant restructuring of his or her individual job duties, a material reduction in compensation, or a change in his or herthe executive’s work location by more than a specified distance.
Change in Control Termination: includes a termination of the Named Executive Officer’s employment by us without Cause, or the resignation of the Named Executive Officer for Good Reason, within the applicable change in control protection period following a change in control of Gilead (i.e., “double trigger”).

For purposes of determining a Named Executive Officer’s eligibility for the various severance payments and benefits available under the Severance Plan, the Retention Program, individual offer letters, and our equity plan, the following definitions are relevant:

A “change in control of Gilead” will be deemed to occur upon:

a merger, consolidation or other reorganization approved by our stockholders, unless our stockholders continue to own more than 50% of the total combined voting power of the voting securities of the successor corporation;
a sale of all or substantially all our assets; or
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the acquisition by any person or related group of persons of more than 50% of the total combined voting power of our outstanding securities, or a change in the majority of the members of our Board over a 12-month or shorter period by reason of one or more contested elections for Board membership.

Under the Severance Plan and our equity plan, a “resignationresignation for Good Reason”Reason is defined as “Constructive Termination” and generally will be deemed to occur should a Named Executive Officer resign from his or her employment with us for any of the following reasons during the applicable change in control protection period:

an adverse change in his or her title, position or responsibilities (including reporting responsibilities) or the assignment to him or her of any duties or responsibilities which are inconsistent with his or her title, position or responsibilities;
a reduction in his or her annual base compensation;
his or her permanent relocation to any place outside a 50 mile50-mile radius of the location serving as his or her existing principal work site;
the failure by the new company to continue in effect any material compensation or employee benefit plan in which he or she was participating or to provide him or her with an aggregate level of compensation and benefits comparable to that in effect for him or her prior to the change; or
any material breach by the new company of any provision of any agreement we have with the Named Executive Officer.

Under the Retention Program, a “resignation for Good Reason” will be deemed to occur should a Named Executive Officer resign from his or her employment with us upon the occurrence of:

a material diminution in the scope of his or her duties or responsibilities from those held as of September 12, 2018; or 
a greater than 15% decrease in his or her annual target cash compensation as of September 12, 2018, other than as a result of a company-wide change to compensation programs generally applicable to similarly situated officers.

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Executive CompensationIn addition, a resignation following a required relocation, without consent, to a new work location that is more than 50 miles from the executive’s previous work location is also a Good Reason trigger under our Severance Plan outside the context of a change in control.

Mr. O’Day and Ms. Mercier and Dr. ParseyTelman also have definitions of “Good Reason” under their individual offer letters with us, which generally allow for a “Good Reason” resignation, after a notice and cure period, upon:

an adverse change in employment status, title, position or responsibilities (including reporting responsibilities);
a reduction in annual base compensation or, for Ms. Mercier and Dr. Parsey, any reduction in target bonus or annual equity award opportunity prior to the first anniversary of the executive’s start date;
a required relocation to any place outside a specified radius of the greater Foster City, California area; or
for Mr. O’Day, a material breach by the Companycompany or any subsidiary of the terms of his offer letter or of any written equity award agreement between him and the Company.company.

A Named Executive Officer’s employment will be deemed to have been terminated for “Cause”“for Cause” if such termination occurs by reason of:

any act or omission in bad faith and to our detriment;
dishonesty, intentional misconduct, material violation of any company policy or material breach of any agreement with us; or
commission of any crime involving dishonesty, breach of trust or physical or emotional harm to any person.person; or
poor performance, nonperformance or neglect of duties owed to us or insubordination.
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For further information about the Severance Plan and the Retention Program, see “Separation Arrangements Related to Leadership Transition” on page 58.Executive Compensation

The following table summarizes the payments and benefits that each currently employed Named Executive Officer is eligible to receive on various termination of employment scenarios.

Type of TerminationMr. Dickinson and Mr. Pletcher (Severance
Plan and Enhanced Severance under
Retention Program)
All Other Named Executive Officers Severance Plan
Voluntary or “For Cause” Termination

No severance payments.

   No severance payments.

Accrued base salary and vacation pay.

   Accrued base salary and vacation pay.

Vested but unpaid benefits.

   Vested but unpaid benefits.

Retirement(1)

  Three-year post retirement exercise period for vested stock options granted in or prior to 2018; To the extent retirement occurs at least 12 months after grant date, continued vesting of and five-year post retirement exercise period (subject to existing expiration date) for stock options granted in or after 2019.

  Pro-rata vesting of any performance shares Three-year post retirement exercise period for vested stock options granted in or prior to 2019 for which performance goals are attained subsequent to retirement; 2018.

Continued vesting of 100% of performance shares granted in or after 2019 for which performance goals are attained, subsequent to retirement, provided retirement occurs at least 12 months after grant date.

Continued vesting of 100% of restricted stock units granted in or after 2019 in accordance with the standard vesting schedule, provided retirement occurs at least 12 months after grant date.

Death or Disability

  To the extent retirement occurs at least 12 months after grant date, continuedAccelerated vesting of equity awards (based on actual performance for completed performance periods) and five-year post retirement exercise periodtarget performance for stock options grantedopen performance periods).

For Mr. O’Day, crediting of $1,500,000 in or after 2019.

  Continued vesting of 100% of performance shares for which performance goals are attained subsequentunpaid deferred compensation plan company contributions to retirement granted in or after 2019, provided retirement occurs at least 12 months after grant date.his plan account.

  Continued vesting of 100% restricted stock units granted in or after 2019 in accordance with the standard vesting schedule, provided retirement occurs at least 12 months after grant date.

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Type of TerminationMr. Dickinson and Mr. Pletcher (Severance
Plan and Enhanced Severance under
Retention Program)
All Other Named Executive Officers Severance Plan

Involuntary Termination

Without without “Cause” or for

“Good “Good Reason”

  Cash severance equal to 2.0 times base salary + 1.0 times average bonus for prior three fiscal years (or such fewer number of complete fiscal years of employment).

  Lump-sum payment to cover the estimated cost of COBRA premiums for 18 months.

  Outplacement services for 6 months.

  Continued vesting of unvested stock options for additional 12 months and extension of post-termination exercise period by 12 additional months.

  Continued vesting of unvested restricted stock units for 12 months.

  Pro-rata vesting of any performance shares held by the executive for which performance goals are attained subsequent to termination based on period of service plus an additional 12 months (up to the full performance period).

*  Retirement-eligible executives would be entitled to “Retirement” treatment described above, if such results in additional vesting.

Cash severance equal to 1.5 times (2.0 times for Mr. O’Day) base salary + 1.0 times (2.0 times for Mr. O’Day) average bonuscash incentive for prior three fiscal years (or such fewer number of complete fiscal years of employment).

Pro-rata annual cash incentive for year of termination based on actual results attained.

Lump-sum payment to cover the estimated cost of COBRA premiums for 18 months (or 24 months for Mr. O’Day).

Outplacement services for 6 months (12 months for Mr. O’Day).

For Mr. O’Day, crediting of $3,750,000$1,500,000 in unpaid deferred compensation plan company contributioncontributions to his plan account(3).account.

For Mr. O’Day,Ms. Telman, if termination occurs on or before July 25, 2024, accelerated vesting of make whole and new hire equity awards and 2019 grants of stock options, time-based restricted stock units, and performance shares (based on actual performance for completed performance periods and target for any uncompleted performance periods)(3).

  For Ms. Mercier and Dr. Parsey, provided that termination occurs within the first two years of employment, accelerated vesting of make whole equity awards and full payment of any unpaid portion of their respective sign-on bonuses.awards.

Change in Control Termination (involuntary termination(Involuntary Termination without “Cause” or resignationResignation for “Good Reason” within changeChange in control protection periodControl Protection Period(2))

Cash severance equal to 2.5 times (3.0 times for Mr. O’Day) base salary + 2.5 times (3.0 times for Mr. O’Day) average bonusincentive for prior three fiscal years (or such fewer number of complete fiscal years of employment).

Pro-rata annual incentive for year of termination based on average incentive paid over the prior three years (or such fewer number of complete fiscal years of employment).

Lump-sum payment to cover the estimated cost of COBRA premiums for 30 months.months (36 months for Mr. O’Day).

Outplacement services for 6 months.months (12 months for Mr. O’Day).

For Mr. O’Day, crediting of $1,500,000 in unpaid deferred compensation plan company contributions to his plan account.

100% acceleration of stock option and restricted stock unit awards.

Acceleration of unvested performance shares as follows:

  acceleratesAccelerates at target if the change in control occurs within first 12 months of the performance period.

If the change in control occurs following that 12-month period, then accelerates at greater of (i) target or (ii) actual performance through the end of the fiscal quarter prior to the change in control date.

  Cash severance equal to 2.5 times (3.0 times for Mr. O’Day) base salary + 2.5 times (3.0 times for Mr. O’Day) average bonus for prior three fiscal years (or such fewer number of complete fiscal years of employment).

  Lump-sum payment to cover the estimated cost of COBRA premiums for 30 months (36 months for Mr. O’Day).

  Outplacement services for 6 months (12 months for Mr. O’Day).

  For Mr. O’Day, crediting of $3,750,000 in unpaid deferred compensation plan company contribution to his plan account.

  100% acceleration of stock option and restricted stock unit awards.

  Acceleration of unvested performance shares as follows:

  accelerates at target if change in control occurs within first 12 months of performance period.

  If the change in control occurs following that 12-month period, then accelerates at greater of (i) target or (ii) actual performance through the end of the fiscal quarter prior to the change in control date.


(1)For equity awards granted in 2018 and prior years, retirement is defined as the termination of a Named Executive Officer’s employment with a combined age and years of service of not less than 70 years. For awards granted in and after 2019, retirement is defined as termination of employment after the Named Executive Officer (i) attains age 55 and has completed at least ten (10) years of continuous service or (ii) attains age 65. Such awards also include a grandfathering provision, under which executives who were retirement eligible under the former definition of retirement will remain eligible for retirement under the new grants. As of December 31, 2019, Mr. Alton and Dr. McHutchison were retirement eligible under the prior definition of retirement and2022, no Named Executive Officers were retirement eligible under the current definition.eligible.

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(2)The change in control protection period would begin withsix months prior to the executionconsummation of the definitive agreement for thea change in control transaction and continue for a specified period following the effective date of the change in control transaction (24 months for Mr. O’Day and 18 months for the other Named Executive Officers).
(3)Mr. O’Day is also entitled to these benefits upon termination as a result of death or disability.

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A Named Executive Officer must deliver a general release of claims against Gilead as a condition of his or her receipt of payments and benefits under his or her offer letter or the Severance Plan or the Retention Program.Plan. The cash severance component of those arrangements will be paid in a series of equal periodic installments in accordance with our normal payroll practices over a period of years corresponding to the applicable multiple of base salary indicated above for the Named Executive Officer. However, a portion of those installments may be subject to a six-month holdback to the extent required under applicable tax laws.

The estimated severance payments and benefits for which a Named Executive Officer would have become eligible if his or her employment terminated under these various scenarios are set forth in the table below. The estimated amounts assume:

that the covered termination of employment occurred on December 31, 2019;2022; and
the value of any equity vesting is based on the closing market price of our common stock on December 31, 2019.2022.

The table below does not include accrued wages, vacation pay,accrual, vested deferred compensation or the intrinsic value (as of December 31, 2019)2022) of any outstanding stock options or other stock awards held by the Named Executive Officer that were vested on that date. Due to the number of different factors that affect the nature and amount of any benefits provided in connection with these events, actual amounts payable to any of the Named Executive Officers should a separation from service or change in control occur during the year will likely differ, perhaps significantly, from the amounts reported below. Factors that could affect such amounts include the timing during the year of the event, our stock price, target amounts payable under annual and long-term incentive arrangements that are in place at the time of the event, and the executive’s age and prevailing tax rates.

For information about the individual separation agreements entered into with Ms. Hamill, Mr. Alton and Dr. McHutchison, and the actual amounts paid or payable thereunder, see “Separation Arrangements Related to Leadership Transition” on page 58. Ms. Washington did not receive any separation payments or benefits.

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Summary Compensation Table

The following table shows, for the fiscal years 2019, 20182022, 2021 and 2017,2020, compensation awarded to, paid to, or earned by, our Named Executive Officers:Officers (“NEOs”). Ms. Telman commenced employment with us in 2022 and was not an NEO prior to 2022.

Name and Principal Position Year  Salary(1)  Bonus Stock Awards(2)  Option Awards(2) Non-Equity
Incentive Plan
Compensation(1)(3)
  All Other
Compensation
 Total 
Daniel P. O’Day(4)  2019    $1,267,692    $5,675,000(4)      $15,500,541(4)     $3,000,002(4)           $3,120,000    $544,619(4)(5)  $29,107,854 
Chairman and Chief
Executive Officer
                               
Andrew D. Dickinson(6)  2019  $802,308  $1,000,000(6) $1,708,267(6) $1,000,096(6) $1,086,800  $12,000(5) $5,609,471 
Executive Vice President,
Chief Financial Officer
                               
Johanna Mercier(7)  2019  $461,538  $1,250,000(7) $3,751,166(7) $1,750,097(7) $650,000  $186,585(7) $8,049,386 
Chief Commercial Officer                               
Merdad V. Parsey, M.D.,  2019  $119,231  $1,000,000(8) $1,000,314(8) $1,000,008(8) $  $  $3,119,553 
Ph.D.(8)                               
Chief Medical Officer                               
Brett A. Pletcher  2019  $891,000  $  $2,144,734  $749,946 $1,235,000  $12,000(5) $5,032,680 
Executive Vice President,                               
Corporate Affairs and                               
General Counsel                               
Gregg H. Alton(9)  2019  $952,627  $  $4,244,989(9) $1,329,547(9) $1,304,625  $12,000(5) $7,843,788 
Former Interim Chief  2018  $1,005,381  $  $1,431,174  $1,250,078 $1,210,230  $10,000  $4,906,863 
Executive Officer and Chief  2017  $956,308  $  $1,518,203  $1,599,915 $1,132,000  $10,000  $5,216,426 
Patient Officer                               
Robin L. Washington(10)  2019  $1,064,615  $  $2,893,782  $999,978 $1,370,630  $12,000(5) $6,341,005 
Former Executive  2018  $1,011,750  $  $1,945,494  $2,000,006 $1,375,421  $10,000  $6,342,671 
Vice President, Chief  2017  $953,231  $  $1,613,500  $1,800,015 $1,152,600  $10,000  $5,529,346 
Financial Officer                               
Laura J. Hamill(11)  2019  $520,211  $  $2,188,001(11) $937,433(11) $  $4,026,797(5)(11) $7,672,442 
Former Executive Vice  2018  $292,308  $1,500,000  $6,500,604  $1,500,003 $431,778  $113,133  $10,337,826 
President Worldwide                               
Commercial Operations                               
John G. McHutchison,
M.D.(12)
Former Chief Scientific
Officer, Head of Research
and Development
  2019  $640,096  $  $2,683,888  $999,978 $  $1,112,000(5)(12) $5,435,962 
  2018  $940,038  $  $2,528,070  $2,500,114 $1,296,750  $10,000  $7,274,972 

Name and Principal
Position
     Year     Salary(1)      Bonus      Stock
Awards(2)
       Option
Awards(2)
      Non-Equity
Incentive Plan
Compensation(1)(3)
      All Other
Compensation
 Total 
Daniel P. O’Day
Chairman and Chief Executive Officer
 2022   $1,691,154    $    $10,603,901(4)  $3,750,014            $4,716,480    $859,704(5)(6)(7)(8)        $21,621,253 
 2021 $1,650,000  $  $9,764,060   $3,375,004  $3,446,190  $994,212   $19,229,466 
 2020 $1,702,885  $  $8,388,056   $3,125,041  $4,713,390  $1,068,723   $18,998,095 
Andrew D. Dickinson
Chief Financial Officer
 2022 $1,018,419  $  $3,992,603(4)  $1,474,983  $1,885,572  $31,121(5)(7)  $8,402,698 
 2021 $973,567  $  $2,862,493   $1,049,984  $1,558,751  $15,000   $6,459,795 
 2020 $986,538  $  $2,260,949   $874,968  $1,704,300  $15,000   $5,841,755 
Johanna Mercier
Chief Commercial Officer
 2022 $1,081,471  $  $4,301,757(4)  $1,612,496  $1,995,732  $244,997(5)(6)(7)(9)  $9,236,453 
 2021 $1,050,428  $  $2,620,663   $1,012,485  $1,557,231  $311,790   $6,552,597 
 2020 $1,059,135  $1,600,000  $2,042,265   $874,968  $1,980,300  $220,243   $7,776,911 
Merdad V. Parsey, M.D., Ph.D.
Chief Medical Officer
 2022 $1,072,800  $  $4,350,004(4)  $1,612,496  $1,986,552  $15,362(5)  $9,037,214 
 2021 $1,024,808  $  $2,773,579   $1,062,502  $1,640,790  $15,000   $6,516,679 
 2020 $1,038,462  $1,000,000  $2,332,860   $1,000,033  $1,794,000  $15,000   $7,180,355 
Deborah H. Telman
Executive Vice President, Corporate Affairs and General Counsel
 2022 $380,769  $1,200,000(10)  $1,999,890(4)  $499,979  $536,548  $205,763(5)(6)(7)(10)  $4,822,949 
                              

(1)Includes amounts earned but deferred for income tax purpose at the election of the NEOsNEO pursuant to our Section 401(k) savings plan and our non-qualified deferred compensation plan.
(2)Represents the aggregate grant-date fair value of the equity-based awards, including restricted stock units (RSUs)(“RSUs”), performance shares performance-based RSUs and stock options granted to the NEOs for the applicable year under our 2022 Equity Incentive Plan (the “2022 Plan”), or our 2004 Equity Incentive Plan (the “2004 Plan,” collectively the “Equity Incentive Plans”), as applicable, calculated in accordance with FASB ASC Topic 718 (“Topic 718”), and does not take into account estimated forfeitures. Assumptions used in the calculation of such grant-date fair values are set forth in Note 1615 to our Consolidated Financial Statements for the year ended December 31, 2019,2022, included in our Annual Report on Form 10-K filed with the SEC for such fiscal year. Also, see the 20192022 Grants of Plan-Based Awards table on page 6770 for additional information.
(3)For 2019,2022, represents amounts paid in early 2020March 2023 based on our Compensation & Talent Committee’s review and certification of corporate performance for Mr. O’Day and certification of corporate performance and individual achievements for all other NEOs in 2019.2022 pursuant to our annual bonus plan.
(4)Mr. O’Day began his employmentIncludes the aggregate grant-date fair value of the performance shares determined in accordance with us effective March 1, 2019. Mr. O’Day’s equity compensation includes (i) $8,500,108Topic 718. Performance objectives have been set for only certain tranches of make-whole RSUsthe awards granted per his offer letter toin each year and the associated grant-date fair values of those tranches have been incorporated in the table above. Tranches for which performance objectives have not been set do not have a reportable grant-date fair value under Topic 718 and therefore, are not included in the table above. Accordingly, amounts reported for 2022 reflect the grant-date fair value of forfeited equity awards with his prior employergranted in 2022 that are subject to a three-year Relative TSR performance condition and other economic consequencesthe portions of accepting employment with us,the 2020, 2021 and (ii) $3,000,1542022 awards that are subject to the 2022 revenue goal. The aggregate grant-date fair values of RSUs, $4,000,279the awards reported for 2022 (the Relative TSR tranche of the 2022 performance shares and $3,000,002the 2022 revenue subtranches of stock options grantedthe 2020, 2021 and 2022 performance shares, as applicable), assuming maximum attainment of the applicable performance goals in connection with his 2019 annual equity awards.effect for those tranches and subtranches, are as follows: $13,707,741 for Mr. O’Day’s cash compensation includesO’Day, $5,035,341 for Mr. Dickinson, $5,378,528 for Ms. Mercier and $5,475,023 for Dr. Parsey. As described in the Compensation Discussion and Analysis, the revenue subtranches of the 2021 and 2022 performance shares for which performance objectives have not yet been set do not at present have a make-whole cash paymentreportable grant-date fair value under Topic 718. Assumptions used in the calculation of $5,675,000such grant-date fair values are set forth in Note 15 to our Consolidated Financial Statements for the year ended December 31, 2022, included in our Annual Report on Form 10-K for such fiscal year.
See footnotes 4, 5, 6, and 7 to the 2022 Grants of Plan-Based Awards table on page 70 for a relocation subsidy reimbursementdetailed description of $532,619, which included tax reimbursementsthe terms of $275,833.the 2022 performance shares.
(5)Includes matching contributions of $12,000$15,000 made by us on such individual’s behalf in connection with2022 under our Section 401(k) plan.
(6)Includes (i) $94,698 for Mr. DickinsonO’Day; (ii) $68,545 for Ms. Mercier; (iii) $24,346 for Ms. Telman, which reflect the aggregate incremental cost incurred by us for the personal use of our corporate aircraft. The amounts are calculated based on the variable operating costs including fuel, landing fees, parking costs, crew travel expenses, on-board catering, and other trip-related maintenance costs. Because our aircraft is used primarily for business travel, this amount does not include any fixed costs that do not change based on usage, such as pilots’ salaries or general maintenance costs.
(7)Includes the aggregate incremental cost incurred by Gilead for the personal use of our corporate automobiles, which allows for enhanced security, efficiency and availability, contributing to the amount of time each NEO can spend on company business.
(8)Includes $750,000 in company contributions to Mr. O’Day’s deferred compensation plan account, which was appointed as Executive Vice President, Chief Financial Officer, effective Novembercredited in the first quarter of 2022. Generally subject to his continued employment, Mr. O’ Day’s deferred compensation plan account will be credited with $750,000 on each of the next two anniversaries of March 1, 2019. Mr. Dickinson’s equity compensation includes (i) $500,1572020, for an aggregate contribution of RSUs and $500,033 of stock options granted in connection with$3,750,000. These contributions were provided to compensate him for the appointment and (ii) $708,297 of performance shares (including the 2019 revenue trancheforfeiture of his 2018 performance shares), $499,813 of RSUs and $500,063 of stock options granted in connectionpension benefits with his 2019 annual equity awards (including the 2019 revenue trancheformer employer.
(9)Includes $152,799 of his 2018 performance shares). Mr. Dickinson’s cash compensationrelocation subsidy reimbursement to Ms. Mercier, which includes a retention bonustax reimbursements of $1,000,000 paid in accordance$12,729. The relocation support given to Ms. Mercier is consistent with our Retention Program.Gilead’s standard practice for all employees eligible under Gilead’s mobility program.

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(7)(10)Ms. MercierTelman began her employment with us effectiveon July 1, 2019.25, 2022. The “Bonus” column reflects $1,200,000 of Ms. Mercier’s equity compensation includes $5,501,263Telman’s sign-on bonus, which was paid in August 2022 and intended to offset the value of equity grants granted per her offer letter in lieu of annual bonus and certain unvested equity awards for 2019 consistingforfeited from her former employer which were scheduled to vest shortly after commencing employment with Gilead and other economic implications of $1,750,097 of stock options, $2,000,533 of RSUs and $1,750,633 of performance-based RSUs with specified performance objectives. Ms. Mercier’s cash compensation includes a cash payment of $1,250,000, representing fifty percent of a sign-on bonus, and a relocation subsidy of $186,585, which included tax reimbursements of $93,989. The remainderTelman’s accepting our offer. A pro-rata portion of the sign-on bonus will be paid on the first anniversary ofis subject to repayment should Ms. Telman terminate her employment start date. She is obligated to return the full amount previously paid towithout good reason (as defined in her of this sign-on bonus if her employment isoffer letter with Gilead) or be terminated for Cause or she resigns without Good Reason prior to completing one full year of service. The relocation subsidy is repayable if her employment terminates within two years of her start date.
(8)Dr. Parsey began his employment with us effective November 1, 2019. Dr. Parsey’s equity compensation includes $2,000,322 of new hire equity grantscause (as defined in lieu of any 2019 equity awards, consisting of $1,000,008 of stock options and $1,000,314 of RSUs. Dr. Parsey’s cash compensation includes a cash payment of $1,000,000, representing fifty percent of a sign-on bonus and the remainder will be paid on the first anniversary of his employment start date. He is obligated to return a pro-rated amount of the amount previously paid to him of this sign-on bonus if his employment is terminated for Cause or he resigns without Good Reason prior to completing one full year of service.
(9)Mr. Alton, our former interim Chief Executive Officer through February 28, 2019, and our Chief Patient Officer through October 4, 2019, resigned for Good Reason and continued to serve as a non-executive Senior Advisor until January 3, 2020. Under the Transition Services and General Release Agreement we entered into with Mr. Alton in July 2019 (the “Alton Separation Agreement”), we provided for continued vesting of all of his outstanding stock options granted prior to January 1, 2019 that would have vestedGilead’s 2022 Equity Incentive Plan) on or prior to January 3, 2021 (per the termsJuly 25, 2024. The “All Other Compensation” column amount includes $156,609 of the Retention Program) and continued vesting of all of his outstanding stock awards granted on or after January 1, 2019 (in accordance with the retirement-eligibility vesting provision of such grants). On the date of the Alton Separation Agreement, the incremental fair values of Mr. Alton’s modified stock awards and option awards determined in accordance with Topic 718 were $1,340,304 and $267,071, respectively, which amounts are included in the above table.
Pursuant to the Alton Separation Agreement, Mr. Alton will receive cash severance payment totaling $3,345,685 (payable in twenty-four monthly installments) which started in February 2020, a lump sum cash payment of $49,519 intended to offset costs of his health care continuation coverage for 18 months and reasonable professional outplacement services for a period of six consecutive months. These separation payments were excluded from the table above since the amounts had not been paid as of December 31, 2019 and remained subject to Mr. Alton’s compliance with various covenants under the Alton Separation Agreement as of such date.
(10)Ms. Washington, our former Executive Vice President and Chief Financial Officer through October 31, 2019 retired as a non-executive Senior Advisor on March 1, 2020.
(11)Ms. Hamill’s employment was terminated without Cause effective July 1, 2019. Ms. Hamill’s cash compensation includes payments made under the Severance and General Release Agreement we entered into with her in June 2019 (the “Hamill Separation Agreement”), which consisted of a cash payment of $1,500,000 for the final installment of her sign-on bonus, a lump sum cash payment of $1,750,000 in lieu of any annual bonus payment and to compensate her for the forfeiture of the 2019 equity awards, a lump sum cash payment of $45,077 intended to offset costs of her health care continuation coverage for 18 months, a relocation subsidy, reimbursement of $264,335, which includedincluding tax reimbursements of $136,529,$57,321. As part of her offer package, Ms. Telman was provided with a $20,000 relocation allowance and a lump sum payment of $10,000certain other relocation benefits which are repayable if Ms. Telman’s employment terminates for professional transition services. Ms. Hamill will also receive a cash severance payment of $1,447,500 (payable in eighteen monthly installments), of which $445,385 was paid in 2019 and is included in the table above.cause or she resign without good reason on or prior to July 25, 2024. The remainder of $1,002,115 was excluded from the table above since it had not been paid as of December 31, 2019 and remained subjectrelocation support given to Ms. Hamill’s complianceTelman is consistent with various covenantsGilead’s standard practice for all employees eligible under the Hamill Separation Agreement as of such date.
Pursuant to Ms. Hamill’s offer letter, we accelerated vesting of her 87,680 stock options, 32,795 RSUs, and 42,630 performance shares granted in 2018.
(12)Dr. McHutchison resigned from the company effective August 2, 2019. Dr. McHutchison’s cash compensation includes a lump sum payment of $1,100,000 made under the Transition Services and General Release Agreement we entered into with Dr. McHutchison in July 2019.
66Gilead’s mobility program.

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Executive Compensation

2019

2022 Grants of Plan-Based Awards

The following table sets forth certain additional information regarding grants of plan-based awards to our Named Executive Officers for the 20192022 fiscal year:

                          All Other
Option
Awards:
Number of
Securities
Underlying
Options
 Exercise
or Base
Price of
Option
Award
 Grant-Date Fair
Value of Stock and
Option Award(3)
        
Estimated Future Payouts Under
Non-Equity Incentive Plan Awards(1)
  Estimated Future Payouts Under
Equity Incentive Plan Awards(2)
    
Name Award Type Grant Date Approval
Date
 Threshold  Target  Maximum  Threshold  Target   Maximum     
Daniel P. O’Day 2019 performance shares 3/1/2019 2/6/2019           3,041   61,000(4)(5)  122,000               $4,000,279(4)(5)
  2019 option awards 3/1/2019 2/6/2019                    231,280   66.01  $3,000,002(6)
  2019 restricted stock unit awards 3/1/2019 2/6/2019              45,450(7)          $3,000,154(7)
  Make-whole restricted stock unit awards 3/1/2019 2/6/2019              128,770(8)          $8,500,108(8)
  Corporate bonus N/A NA   

 

 

  $2,400,000    $3,600,000                   
Andrew D. Dickinson 2018 performance shares 2/6/2019 2/6/2019           120   600(4)(9)  1,200        $41,250(4)(9)
  2019 performance shares 2/6/2019 2/6/2019           486   8,684(4)(5)  17,368        $667,047(4)(5)
  2019 option awards 2/6/2019 2/6/2019                    33,660   68.75  $500,063(6)
  2019 restricted stock unit awards 2/6/2019 2/6/2019              7,270(7)          $499,813(7)
  2019 option awards 11/10/2019 10/10/2019                    44,160   65.38  $500,033(6)
  2019 restricted stock unit awards 11/10/2019 10/10/2019              7,650(7)          $500,157(7)
  Corporate bonus N/A NA    $836,000  $1,254,000                   
Johanna Mercier 2019 performance- based restricted stock units 7/24/2019 5/24/2019              26,270(10)          $1,750,633(10)
  2019 option awards 7/24/2019 5/24/2019                    148,110   66.64  $1,750,097(6)
  2019 restricted stock unit awards 7/24/2019 5/24/2019              30,020(7)          $2,000,533(7)
  Corporate bonus N/A NA   $500,000  $750,000                   
Merdad V. Parsey, M.D., Ph.D. 2019 option awards 11/10/2019 9/30/2019                    88,315   65.38  $1,000,008(6)
 2019 restricted stock unit awards 11/10/2019 9/30/2019              15,300(7)          $1,000,314(7)
  Corporate bonus N/A NA                           
Brett A. Pletcher 2017 performance shares 2/6/2019 2/6/2019           600   3,000(4)(11)  6,000        $206,250(4)(11)
  2018 performance shares 2/6/2019 2/6/2019           549   2,743(4)(9)  5,486        $188,581(4)(9)
  2019 performance shares 2/6/2019 2/6/2019           730   13,017(4)(5)  26,034        $999,840(4)(5)
  2019 option awards 2/6/2019 2/6/2019                    50,480   68.75  $749,946(6)
  2019 restricted stock unit awards 2/6/2019 2/6/2019              10,910(7)          $750,063(7)
  Corporate bonus N/A NA   $950,000  $1,425,000                   

2020 Proxy Statement67
          Grant
Date
    Approval
Date
    Estimated Future Payouts
Under Non-Equity Incentive Plan
Awards(1)
     Estimated Future Payouts
Under Equity Incentive Plan
Awards(2)
     All Other
Stock
Awards:
Number
of Shares
of Stock
      All Other
Option
Awards:
Number of
Securities
Underlying
      Exercise
or Base
Price of
Option
     Grant-Date
Fair Value
of Stock
and Option
 
Name Award Type   Threshold  Target  Maximum  Threshold  Target   Maximum  or Units(2)   Options   Award  Award(3) 
Daniel P. O’Day 2020 performance shares 3/10/2022 1/26/2022           2,880   14,400(4)(5)   28,800             $834,048 
 2021 performance shares 3/10/2022 1/26/2022           3,521   17,603(4)(6)   35,206             $1,019,566 
 2022 performance shares 3/10/2022 1/26/2022           4,332   84,782(4)(7)   169,564             $5,000,257 
 2022 option awards 3/10/2022 1/26/2022                         399,235(8)  $57.92  $3,750,014 
 2022 restricted stock unit awards 3/10/2022 1/26/2022                     64,745(9)         $3,750,030 
 Corporate bonus N/A NA    $2,550,000  $5,100,000                         
Andrew D. Dickinson 2020 performance shares 3/10/2022 1/26/2022          ��807   4,033(4)(5)   8,066             $233,591 
 2021 performance shares 3/10/2022 1/26/2022           1,095   5,477(4)(6)   10,954             $317,228 
 2022 performance shares 3/10/2022 1/26/2022           1,704   33,349(4)(7)   66,698             $1,966,851 
 2022 option awards 3/10/2022 1/26/2022                         157,030(8)  $57.92  $1,474,983 
 2022 restricted stock unit awards 3/10/2022 1/26/2022                     25,465(9)         $1,474,933 
 Corporate bonus N/A NA    $1,027,000  $2,054,000                         
Johanna Mercier 2020 performance shares 3/10/2022 1/26/2022           807   4,033(4)(5)   8,066             $233,591 
 2021 performance shares 3/10/2022 1/26/2022           1,056   5,282(4)(6)   10,564             $305,933 
 2022 performance shares 3/10/2022 1/26/2022           1,863   36,450(4)(7)   72,900             $2,149,739 
 2022 option awards 3/10/2022 1/26/2022                         171,670(8)  $57.92  $1,612,496 
 2022 restricted stock unit awards 3/10/2022 1/26/2022                     27,840(9)          1,612,493 
 Corporate bonus N/A NA    $1,087,000  $2,174,000                         
Merdad V. Parsey, M.D., Ph.D. 2020 performance shares 3/10/2022 1/26/2022           921   4,606(4)(5)   9,212             $266,780 
 2021 performance shares 3/10/2022 1/26/2022           1,108   5,542(4)(6)   11,084             $320,993 
 2022 performance shares 3/10/2022 1/26/2022           1,863   36,450(4)(7)   72,900             $2,149,739 
 2022 option awards 3/10/2022 1/26/2022                         171,670(8)  $57.92  $1,612,496 
 2022 restricted stock unit awards 3/10/2022 1/26/2022                     27,840(9)         $1,612,493 
 Corporate bonus N/A NA    $1,082,000  $2,164,000                         
Deborah H. Telman 2022 option awards 7/25/2022 5/26/2022                         48,620(8)  $60.75  $499,979 
 2022 restricted stock unit awards 7/25/2022 5/26/2022                     8,230(9)         $499,973 
 2022 restricted stock unit awards 7/25/2022 5/26/2022                     24,690(10)         $1,499,918 
 Corporate bonus N/A NA    $396,000  $792,000                         

Executive Compensation

                          All Other
Option
Awards:
Number of
Securities
Underlying
Options
 Exercise
or Base
Price of
Option
Award
 Grant-Date Fair
Value of Stock and
Option Award(3)
        
Estimated Future Payouts Under
Non-Equity Incentive Plan Awards(1)
  Estimated Future Payouts Under
Equity Incentive Plan Awards(2)
    
Name Award Type Grant Date Approval
Date
 Threshold  Target  Maximum  Threshold  Target   Maximum    
Gregg H. Alton(12) 2017 performance shares 2/6/2019 2/6/2019           738   3,690(4)(11)  7,380        $253,687(4)(11)
  2018 performance shares 2/6/2019 2/6/2019           499   2,497(4)(9)  4,994        $171,669(4)(9)
  2019 performance shares 2/6/2019 2/6/2019           912   16,277(4)(5)  32,554        $1,250,251(4)(5)
  2019 performance shares 3/1/2019 2/13/2019           126   2,540(4)(5)(13)  5,080        $166,569(4)(5)(13)
  2019 option awards 2/6/2019 2/6/2019                    63,100   68.75  $937,433(6)
  2019 restricted stock unit awards 2/6/2019 2/6/2019              13,640(7)          $937,750(7)
  2019 option awards 3/1/2019 2/13/2019                    9,640   66.01  $125,043(6)(13)
  2019 restricted stock unit awards 3/1/2019 2/13/2019              1,890(7)(13)          $124,759(7)(13)
  Corporate bonus N/A NA    $1,065,000  $1,597,500                   
  Performance shares- modified N/A NA                         $1,340,304(14)
  Options awards- modified N/A NA                         $267,071(14)
Robin L. Washington 2017 performance shares 2/6/2019 2/6/2019           831   4,153(4)(11)  8,306        $285,519(4)(11)
  2018 performance shares 2/6/2019 2/6/2019           799   3,993(4)(9)  7,986        $274,519(4)(9)
  2019 performance shares 2/6/2019 2/6/2019           973   17,360(4)(5)  34,720        $1,333,432(4)(5)
  2019 option awards 2/6/2019 2/6/2019                    67,310   68.75  $999,978(6)
  2019 restricted stock unit awards 2/6/2019 2/6/2019              14,550(7)           1,000,312(7)
  Corporate bonus N/A NA    $1,075,000  $1,612,500                   
Laura J. Hamill(15) 2019 performance shares 2/6/2019 2/6/2019           912   16,277(4)  32,554        $1,250,251(4)
  2019 option awards 2/6/2019 2/6/2019                    63,100   68.75  $937,433(6)
  2019 restricted stock unit awards 2/6/2019 2/6/2019              13,640(7)          $937,750(7)
  Corporate bonus N/A NA   $965,000(16) $1,447,500(16)                  
John G. McHutchison, M.D. 2017 performance shares 2/6/2019 2/6/2019           519   2,596(4)(11)  5,192        $178,475(4)(11)
  2018 performance shares 2/6/2019 2/6/2019           499   2,497(4)(9)  4,994        $171,669(4)(9)
  2019 performance shares 2/6/2019 2/6/2019           973   17,360(4)(5)(17)  34,720        $1,333,432(4)(5)(17)
  2019 option awards 2/6/2019 2/6/2019                    67,310   68.75  $999,978(6)(17)
  2019 restricted stock unit awards 2/6/2019 2/6/2019              14,550(7)(17)          $1,000,312(7)(17)
  Corporate bonus N/A NA    $1,025,000(16) $1,537,500(16)                  
68

Executive Compensation

(1)Actual amounts paid in early 20202023 were based on our Compensation & Talent Committee’s review and certification of corporate performance and individual achievements in 20192022 under our annual bonus program and are included in the “Non-Equity Incentive Plan Compensation” column of the Summary Compensation Table on page 65.69.
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Executive Compensation

(2)Performance shares and RSU awards (both time-based and performance-based) granted under the 2004 PlanEquity Incentive Plans accrue forfeitable dividend equivalents that are subject to the same vesting and other terms and conditions as the corresponding performance shares and RSU awards. Dividend equivalents are accumulated and paid in cash when and to the extent the underlying shares are issued. Amounts in the “Threshold” column represent the number of shares of our common stock issuable (e.g., 20% of the target number of performance shares allotted to the revenue subtranche and 0.025% of the target number of performance shares allotted to the Total Shareholder Return (TSR)(Relative TSR) tranche) upon threshold-level achievement of the performance goals described in footnotes 5, 96 and 117 below. If threshold level performance is not achieved, no shares are issuable.
(3)Represents the grant-date fair value of each equity award, calculated in accordance with Topic 718, and does not take into account estimated forfeitures. The grant-date fair value of the performance shares awarded is based on the probable outcome at 100% target level attainment of one or morethe pre-established performance objectives and the assumptions used in the calculation of the grant-date fair value of options are set forth in Note 1615 to our Consolidated Financial Statements for the year ended December 31, 2019,2022, included in our Annual Report on Form 10-K filed with the SEC for such fiscal year.
(4)Performance objectives were set for certain tranches of performance shares which were approved in prior years by our compensation committeeCompensation & Talent Committee and the associated grant-date fair value of those tranches has been incorporated in the table above (i.e., the performance objectives for the third subtranche of the revenue tranche of the 20172020 revenue-based performance shares and the second subtranche of the revenue tranche of the 20182021 revenue-based performance shares)shares, for Mr. O’Day, Mr. Dickinson, Ms. Mercier and Dr. Parsey). Performance shares that currently havehad no grant date as the performance objectives havehad not yet been defined as of the close of the 20192022 fiscal year, and therefore, do not have a reportable 2022 grant-date fair value under Topic 718 are excluded from the Summary Compensation Table and the table above (i.e., the performance objectives for the third subtranche of the revenue tranche of the 20182021 revenue-based performance shares and the second and third subtranches of the revenue tranche of the 20192022 revenue-based performance shares). See footnotes 5, 9shares, for Mr. O’Day, Mr. Dickinson, Ms. Mercier and 11 below for a detailed description of the terms of the related performance shares.Dr. Parsey).
 Because of changes in our stock price between the date of the approval by our Compensation & Talent Committee and the time when the performance objectives are established, the reported grant-date fair value of the performance shares differs from the award value approved by our Compensation & Talent Committee. As a result,In addition, because the second and third subtranches of the 2022 revenue-based performance shares are excluded from the Summary Compensation Table and the table above, only approximately two-thirds of the value of performance shares awarded in 20192022 is included in the Summary Compensation Table and the table above.two tables. The value of the relevant performance shares awarded to our serving NEOs as of December 31, 2019 is as set forth below:

 PSU Award Value Approved By
Our Compensation Committee
 Performance shares at Target based
on Compensation Committee
Approval (# of Shares)
Executive Officer  TSR Revenue
Mr. O’Day $6,000,000 45,850 45,450
Mr. Dickinson $1,000,000 6,260 7,270
Mr. Pletcher $1,500,000 9,380 10,910


  Performance
Share Award Value
Approved By Our
Compensation &
  Performance shares at Target
based on Compensation &
Talent Committee Approval
(# of Shares)
 
Executive Officer     Talent Committee      Relative TSR    Revenue 
Daniel P. O’Day               $7,500,000   63,200   64,745 
Andrew D. Dickinson $2,950,000   24,860   25,465 
Johanna Mercier $3,225,000   27,170   27,840 
Merdad V. Parsey, M.D., Ph.D. $3,225,000   27,170   27,840 

(5)Represents the 2022 revenue subtranche of performance shares awarded in 2020 under the 2004 Plan, as that value was measured on March 10, 2022, the date on which the revenue target for that particular subtranche was first communicated to the NEOs (following approval by our Compensation & Talent Committee). Although such subtranche was part of the performance share awards originally made on March 10, 2020, no grant-date fair value of the 2019 performance shares awarded on February 6, 2019.could be determined for that subtranche under Topic 718 until March 10, 2022.

 The 20192020 performance shares were divided into two equally-weighted Relative TSR and revenue tranches based on award value approved by the Compensation & Talent Committee similar to the description of the 2022 performance shares in footnote 7 below. Based on the terms of the awards, any shares accrued on the basis of the applicable level of Relative TSR goal attainment are also subject to a service-vesting condition that generally requires continued service with us through the date following the completion of the performance period on which our Compensation & Talent Committee certifies the Relative TSR level attained (the “Relative TSR-based Awards Certification Date”). The Relative TSR’s three-year performance period is from March 1, 2020 through December 31, 2022. Based on the terms of the awards, any shares accrued on the basis of the applicable level of revenue goal attainment are also subject to a service-vesting condition that requires continued service with us through the date following the completion of the third subtranche performance period on which our Compensation & Talent Committee certifies the attained level of the consolidated net product revenue goal applicable to the third subtranche (the “Revenue-based Awards Certification Date”), subject to certain accelerated vesting provisions in the event of death, disability or a qualifying retirement before that date.
(6)Represents the 2022 revenue subtranche of performance shares awarded in 2021 under the 2004 Plan, as that value was measured on March 10, 2022, the date on which the revenue target for that particular subtranche was first communicated to the NEOs (following approval by our Compensation & Talent Committee). Although such subtranche was part of the performance share awards originally made on March 10, 2021, no grant-date fair value could be determined for that subtranche under Topic 718 until March 10, 2022.
The 2021 performance shares were divided into two equally-weighted Relative TSR and revenue tranches based on award value approved by the Compensation & Talent Committee similar to the description of the 2022 performance shares in footnote 7 below. Based on the terms of the awards, any shares accrued on the basis of the applicable level of Relative TSR goal attainment are also subject to a service-vesting condition that generally requires continued service with us through the Relative TSR-based Awards Certification Date. The Relative TSR’s three-year performance period is from March 1, 2021 through December 31, 2023. Based on the terms of the awards, any shares accrued on the basis of the applicable level of revenue goal attainment are also subject to a service-vesting condition that requires continued service with us through the Revenue-based Awards Certification Date, subject to certain accelerated vesting provisions in the event of death, disability or a qualifying retirement before that date.
Since the revenue goal for the third subtranche of the 2021 performance share award had not been set by our Compensation & Talent Committee as of the close of the 2022 fiscal year, that subtranche does not have a determinable grant-date fair value under Topic 718 for the 2022 fiscal year.
(7)Represents 2022 performance shares awarded on March 10, 2022 under the 2004 Plan.
The 2022 performance shares were divided into two equally-weighted Relative TSR and revenue tranches based on award value approved by the Compensation & Talent Committee. The performance-based vesting requirement for the Relative TSR tranche was set by our Compensation & Talent Committee on February 6, 2019January 26, 2022 and is tied to the percentile level of our TSR for the three-year performance period from FebruaryMarch 1, 20192022 through December 31, 20212024 relative to the TSR realized for that same period by the companies comprising three subsets of the S&P HealthHealthcare Sub-Index. Based on the terms of the awards, to receive any shares of our common stock accrued pursuant to this Relative TSR tranche, an executive officer must remain employed with us through the date following the completion of the performance period on which our Compensation Committee certifies the TSR level attained (the “TSR-basedRelative TSR-based Awards Certification Date”),Date, subject to pro-ratacertain accelerated vesting provisions in the event of death, disability or a qualifying retirement before that date.
 The performance-based vesting requirement for the revenue tranche of each performance award is divided into three equal subtranches, each with its own one-year performance period and applicable service period of one or more specified years, as follows:
 The performance-based vesting requirement for the first subtranche was the achievement of the target level of consolidated net product revenue for the 20192022 fiscal year as set by our Compensation & Talent Committee. The grant-date fair value of that particular subtranche was measured on February 6, 2019,March 10, 2022, in accordance with Topic 718. Based on the terms of the awards, any shares accrued on the basis of revenue goal attainment for this subtranche are also subject to a service-vesting condition that requires continued service through the date following the completion of the third subtranche performance period on which our Compensation Committee certifies the attained level of the consolidated net product revenue goal applicable to the third subtranche (the “Revenue-basedRevenue-based Awards Certification Date”).Date.
 Since the revenue goals for the second and third subtranches of the revenue tranche of the 20192022 performance shares had not been set by our Compensation & Talent Committee as of the close of the 20192022 fiscal year, those subtranches do not have a determinable grant-date fair value under Topic 718 for the 20192022 fiscal year.

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Executive Compensation

(6)(8)Reflects option awards granted under our 2004 Plan (or the 2022 Plan for Ms. Telman), the terms of which are consistent with those of options granted to other employees under the 2004 Plan.Equity Incentive Plans. The options vest at the rate of 25% on the first anniversary of the grant date and 6.25% each quarter thereafter during the optionee’s employment over the next 36 months thereafter.months. Subject to earlier forfeiture, the maximum term of such options granted under the 2004 Plan is 10 years. The exercise price per share of each option granted was equal to the closing market price of our common stock on the grant date or the closing market price on the day before the grant date if the grant date is not on a business day.
(7)(9)Represents time-based RSU awards under the 2004 Plan (or the 2022 Plan for Ms. Telman) that vest in a seriesat the rate of four successive annual installments upon completion of each year of continued service over the four-year period measured from the grant date.
(8)Represents make-whole RSUs that vest annually over three years, commencing25% on the first anniversary of the grant date subject to continued service.
(9)Representsand 6.25% each quarter thereafter during the grant-date fair value ofawardee’s employment over the 2019 revenue subtranche of performance shares awarded in 2018 under the 2004 Plan, as that value was measured on February 6, 2019, the date on which the revenue target for that particular subtranche was first communicated to the NEOs (following approval by our Compensation Committee). Although such subtranche was part of the performance share award originally made on February 1, 2018, no grant-date fair value could be determined for that subtranche under Topic 718 until February 6, 2019.

2020 Proxy Statement69

Executive Compensation

The 2018 performance shares were divided into two equally-weighted TSR and revenue tranches based on award value approved by the Compensation Committee similar to the description of the 2019 performance shares in footnote 5 above. Based on the terms of the awards, any shares accrued on the basis of the applicable level of TSR goal attainment are also subject to a service-vesting condition that generally requires continued service with us through the TSR-based Awards Certification Date. The TSR three-year performance period is from February 1, 2018 through December 31, 2020. Based on the terms of the awards, any shares accrued on the basis of the applicable level of revenue goal attainment are also subject to a service-vesting condition that requires continued service with us through the Revenue-based Awards Certification Date, subject to pro-rata vesting in the event of death, disability or retirement before that date.
Since the revenue goal for the third subtranche of the 2018 performance share award had not been set by our Compensation Committee as of the close of the 2019 fiscal year, that subtranche does not have a determinable grant-date fair value under Topic 718 for the 2019 fiscal year.next 36 months.
(10)Represents performance-based RSUstime-based RSU awards under the 2022 Plan that were granted to Ms. Mercier underTelman to compensate her for the 2004 Plan in connection with her appointment as Chief Commercial Officer, divided equally into two tranches with the vesting of each tranche tied to the attainment of specified individual performance objectives to be completed by September 30, 2020 and December 31, 2020, respectively.
(11)Represents the grant-date fair value of certain equity awards granted by her former employer that she forfeited as a result of accepting employment with Gilead. These one-time make-whole RSUs, which parallel the 2019 revenue subtrancheform, value and timing of performance shares awardedequity awards granted by her former employer, vest in 2017 under our 2004 Plan, as that value was measured on February 6, 2019, the date on which the revenue target for that particular subtranche was first communicated to the NEOs (following approval by our Compensation Committee). Although such subtranche was part of the PSU award originally made on February 2, 2017, no grant-date fair value could be determined for that subtranche under Topic 718 until February 6, 2019.
The 2017 performance shares were divided into two equally-weighted TSR and revenue tranches based on award value approved by the Compensation Committee similar to the description of the 2019 performance shares in footnote 5 above. Based on the terms of the awards, any shares accrued on the basis of the applicable level of TSR and revenue goal attainment are also subject to a service-vesting condition that requires continued service with us through the awards certification date, subject to pro-rata vesting in the event of death, disability or retirement before that date.
(12)See footnote 16 of the 2019 Outstanding Equity Awards at Fiscal Year-End table on page 71 for vesting terms of stock options, RSUs and performance shares in the light of Mr. Alton’s separation.
(13)Represents option awards, performance shares and RSUs granted for Mr. Alton’s service as interim Chief Executive Officer.
(14)As described in footnote 9 of the Summary Compensation Table on page 65, we modified the fair value of Mr. Alton’s stock and option awards. These amounts represent the incremental fair value determined as ofthree annual installments from the date of grant during Ms. Telman’s employment over the Separation Agreement in accordance with Topic 718.
(15)These 2019 RSUs, performance shares and options were canceled upon Ms. Hamill’s separation on July 1, 2019.
(16)These bonus opportunities were forfeited and did not result in any payout as these NEOs departed prior to the payout date.
(17)These 2019 RSUs, performance shares and options were canceled upon Dr. McHutchison’s separation on August 2, 2019.next 3 years.
  
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20192022 Outstanding Equity Awards at Fiscal Year-End

The following table sets forth information regarding each unexercised option award and unvested stock award held by each of our Named Executive OfficersNEOs as of December 31, 2019.2022. Market values are based on our closing stock price on December 31, 201930, 2022, the last trading day of $64.98:2022, of $85.85:

  Option Awards(1) Stock Awards(3)
Name    Number of
Securities
Underlying
Unexercised
Options
Exercisable
     Number of
Securities
Underlying
Unexercised
Options
Unexercisable
     Option
Exercise
Price(2)
     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
     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
 
Daniel P. O’Day  216,825   14,455       $66.01    3/1/2029              
                                  
  176,426   80,194  $72.34    3/10/2030              
  134,468   172,887  $63.91    3/10/2031              
     399,235  $57.92    3/10/2032              
              28,800(4)        $2,472,480        
              50,247(5)  $4,313,705        
              28,800(6)  $2,472,480        
              28,800(7)  $2,472,480        
              35,208(8)  $3,022,607   42,730(9)             $3,668,371 
              35,206(10)  $3,022,435        
              43,164(11)  $3,705,629                    63,200(12)  $5,425,720 
              11,362(13)  $975,428        
              21,600(13)  $1,854,360        
              29,706(14)  $2,550,260        
              64,745(14)  $5,558,358        
Andrew D. Dickinson  65,960     $72.70    12/10/2026              
                                  
  43,340     $72.70    8/10/2027              
  18,630     $73.77    11/10/2027              
  18,210     $83.49    2/1/2028              
  15,600     $80.72    3/10/2028              
  60,885     $71.91    6/10/2028              
  31,556   2,104  $68.75    2/6/2029              
  33,120   11,040  $65.38    11/10/2029              
  49,397   22,453  $72.34    3/10/2030              
  41,833   53,787  $63.91    3/10/2031              
     157,030  $57.92    3/10/2032              
              8,068(4)  $692,638        
              14,070(5)  $1,207,910        
              8,066(6)  $692,466        
              8,066(7)  $692,466        
              10,954(8)  $940,401   13,290(9)  $1,140,947 
              10,954(10)  $940,401        
              16,978(11)  $1,457,561   24,860(12)  $2,134,231 
              1,817(13)  $155,989        
              1,912(13)  $164,145        
              6,050(13)  $519,393        
              9,242(14)  $793,426        
              25,465(14)  $2,186,170        

2023 Proxy Statement     73

  Option Awards(1)  Stock Awards(3) 
  Number of
Securities
Underlying
Unexercised
Options
    Number of
Securities
Underlying
Unexercised
Options
  Option
Exercise
  Option
Expiration
  Number of
Shares or
Units of Stock
That Have
 Market Value
of Shares or
Units of Stock
That Have
    Equity Incentive
Plan Awards:
Number of
Unearned Shares,
Units or Other
Rights That Have
 Equity Incentive
Plan Awards:
Market or Payout
Value of Unearned
Shares, Units or
Other Rights That
 
Name Exercisable  Unexercisable  Price(2)  Date  Not Vested Not Vested  Not Vested Have Not Vested 
Daniel P. O’Day     231,280(4)   $66.01   3/1/2029             
                  19,204(5)       $1,247,876   45,850(6)              $2,979,333 
                     45,450(7) $2,953,341 
                     128,770(7) $8,367,475 
Andrew D. Dickinson  49,470   16,490  $72.70   12/10/2026             
   32,615   10,725  $72.70   8/10/2027             
   12,483   6,147  $73.77   11/10/2027             
   7,967   10,243  $83.49   2/1/2028             
   6,825   8,775  $80.72   3/10/2028             
   22,832   38,053  $71.91   6/10/2028             
      33,660(4) $68.75   2/6/2029             
      44,160(4) $65.38   11/10/2029             
               980(8) $63,680   1,350(9) $87,723 
               761(10) $49,450       
               3,073(5) $199,684   6,260(6) $406,775 
                     2,306  $149,844 
                     1,133  $73,622 
                     2,306  $149,844 
                     10,938  $710,751 
                     7,270(7) $472,405 
                     7,650(7) $497,097 
Johanna Mercier     148,110(4) $66.64   7/24/2029             
                     26,270(11) $1,707,025 
                     30,020(7) $1,950,700 
Merdad V. Parsey, M.D.,     88,315(4) $65.38   11/10/2029             
Ph.D.                    15,300(7) $994,194 
Brett A. Pletcher  9,500     $24.30   1/26/2022             
   17,560     $40.56   2/1/2023             
   25,780     $80.65   2/1/2024             
   23,460     $104.83   2/1/2025             
   14,830     $116.58   8/10/2025             
   50,240   3,350  $84.05   2/1/2026             
   50,517   22,963  $72.25   2/2/2027             
   30,275   38,925  $83.49   2/1/2028             
      50,480(4) $68.75   2/6/2029             
               323(12) $20,989       
               6,000(13) $389,880       
               4,902(14) $318,532       
               3,803(15) $247,119       
               4,483(8) $291,305   6,170(9) $400,927 
               3,477(10) $225,935       
               4,610(5) $299,558   9,380(6) $609,512 
                     10,910(7) $708,932 
Gregg H. Alton  108,742     $24.30   1/26/2022(16)            
   55,596     $40.56   2/1/2023(16)            
   52,540     $80.65   1/3/2024(16)            
   51,690     $104.83   1/3/2024(16)            
   70,340   4,690  $84.05   1/3/2024(16)            
   62,170   28,260  $72.25   1/3/2024(16)            
   27,523   35,387  $83.49   1/3/2024(16)            
      63,100(4) $68.75   1/3/2025(16)            
      9,640(4) $66.01   1/3/2025(16)            
               398(12) $25,862       
               7,380(13) $479,552       
               6,029(14) $391,764       
               4,677(15) $303,911       
               4,080(8)(16) $265,118   5,610(9)(16) $364,538 
               3,165(10)(16) $205,662       
                   6,562(5)(16) $426,399   13,640(6)(16) $886,327 
                     13,640(7)(16) $886,327 
                     1,890(7)(16) $122,812 

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  Option Awards(1)  Stock Awards(3)
    Number of
Securities
Underlying
Unexercised
Options
  Number of
Securities
Underlying
Unexercised
Options
  Option
Exercise
  Option
Expiration
  Number of
Shares or
Units of Stock
That Have
 Market Value
of Shares or
Units of Stock
That Have
     Equity Incentive
Plan Awards:
Number of
Unearned Shares,
Units or Other
Rights That Have
 Equity Incentive
Plan Awards:
Market or Payout
Value of Unearned
Shares, Units or
Other Rights That
 
Name Exercisable  Unexercisable  Price(2)  Date  Not Vested Not Vested  Not Vested Have Not Vested 
Robin L. Washington(17)  39,158       $40.56   6/1/2020(17)            
   44,820     $80.65   6/1/2020(17)            
   15,460     $80.65   6/1/2020(17)                
   47,260     $104.83   6/1/2020(17)            
   64,312   4,288  $84.05   6/1/2020(17)            
   69,946   31,794  $72.25   6/1/2020(17)            
   44,034   56,616  $83.49   6/1/2020(17)            
      67,310(4) $68.75   3/1/2025(17)            
               448(12)       $29,111       
                  8,308(13) $539,854       
               6,786(14) $440,954       
               5,264(15) $342,055       
               6,526(8) $424,059   8,980(9)(17)              $583,520 
               5,062(10) $328,929       
               6,148(5)(18) $399,497   12,510(6)(18) $812,900 
                     14,550(7)(18) $945,459 
Laura J. Hamill  87,680(19)    $76.24   7/1/2020(19)            
John G. McHutchison, M.D.  19,950     $16.89   7/22/2020(20)            
   16,850     $24.30   1/26/2022(20)            
   29,710     $40.56   8/2/2022(20)            
   21,660     $80.65   8/2/2022(20)            
   20,630     $80.65   8/2/2022(20)                
   51,690     $104.83   8/2/2022(20)            
   51,581     $84.05   8/2/2022(20)            
   39,744     $72.25   8/2/2022(20)            
   23,591     $83.49   8/2/2022(20)            
   19,928     $65.22   8/2/2022(20)            
               240(21) $15,595       
               4,473(21) $290,656       
               3,359(21) $218,268       
               1,920(21) $124,762       
               4,080(8)(20) $265,118   5,610(9)(20) $364,538 
               3,165(10)(20) $205,662       

  Option Awards(1) Stock Awards(3) 
Name    Number of
Securities
Underlying
Unexercised
Options
Exercisable
     Number of
Securities
Underlying
Unexercised
Options
Unexercisable
     Option
Exercise
Price(2)
     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
     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
 
Johanna Mercier  120,339   27,771      $66.64  7/24/2029            
                              
  49,397   22,453  $72.34  3/10/2030            
  40,340   51,865  $63.91  3/10/2031            
     171,670  $57.92  3/10/2032            
            8,068(4)         $692,638       
            14,070(5)  $1,207,910       
            8,066(6)  $692,466       
            8,066(7)  $692,466       
            10,564(8) $906,919   12,820(9)             $1,100,597 
            10,564(10) $906,919       
            18,560(11) $1,593,376               27,170(12)  $2,332,545 
            7,505(13) $644,304       
            6,050(13) $519,393       
            8,913(14) $765,181       
             27,840(14) $2,390,064       
Merdad V. Parsey M.D., Ph.D.  66,236   22,079  $65.38  11/10/2029            
                              
  56,457   25,663  $72.34  3/10/2030            
  42,332   54,428  $63.91  3/10/2031            
     171,670  $57.92  3/10/2032            
            9,214(4)  $791,022       
            16,075(5)  $1,380,039       
            9,214(6)  $791,022       
            9,212(7)  $790,850       
            11,084(8)  $951,561   13,450(9)  $1,154,683 
            11,084(10)  $951,561       
            18,560(11)  $1,593,376   27,170(12)  $2,332,545 
            6,910(13)  $593,224       
            9,351(14)  $802,783       
            27,840(14)  $2,390,064       
Deborah H. Telman     48,620  $60.75  7/25/2032            
            8,230(15)  $706,546       
            24,690(16)  $2,119,637       

(1)The options granted under the 2004 PlanEquity Incentive Plans vest over a four-year period at the rate of 25% on the first anniversary of the grant date and 6.25% each quarter thereafter during the optionee’s employment. Each option is exercisable over a period not to exceed the contractual term of ten years from the date the stock options are issued.grant date.
(2)The exercise price per share of each option granted was equal to the closing market price of our common stock on the grant date or the closing market price on the day before the grant date if the grant date iswas not on a businesstrading day.
(3)Stock awards granted under the 2004 PlanEquity Incentive Plans accrue forfeitable dividend equivalents that are subject to the same vesting and other terms and conditions as the corresponding stock awards. Dividend equivalents are accumulated and paid in cash when and to the extent that the underlying shares vest.
(4)This particular stock option award for each of the NEOs is also included in the 2019 Grants of Plan-Based Awards table on page 67.
(5)Represents the number of shares of our common stock that have accrued under the first revenue subtranche of the 20192020 performance shares, as described in footnote 5 to the 20192022 Grants of Plan-Based Awards table on page 67,70, based on attainment of the applicable revenue goal at the 126.7%200% of the target level. The shares were released on January 24, 2023.
(5)Represents the number of shares of our common stock that will vest and become issuable pursuant to the Relative TSR tranche of the 2020 performance shares, as described in footnote 5 to the 2022 Grants of Plan-Based Awards table on page 70, based on attainment of the relative TSR goal at 168.5% of the target level. The shares were released on January 24, 2023.
(6)Represents the number of shares of our common stock that have accrued under the second revenue subtranche of the 2020 performance shares, as described in footnote 5 to the 2022 Grants of Plan-Based Awards table on page 70, based on attainment of the applicable revenue goal at the 200% of the target level. The shares were released on January 24, 2023.
(7)Represents the number of shares of our common stock that have accrued under the third revenue subtranche of the 2020 performance shares, as described in footnote 5 to the 2022 Grants of Plan-Based Awards table on page 70, based on attainment of the applicable revenue goal at the 200% of the target level. The shares were released on January 24, 2023.
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(8)Represents the number of shares of our common stock that have accrued under the first revenue subtranche of the 2021 performance shares, as described in footnote 6 to the 2022 Grants of Plan-Based Awards table on page 70, based on attainment of the applicable revenue goal at the 200% of the target level. The shares are now subject only to a service-vesting condition that requires continued service through certification by our Compensation & Talent Committee, subject to pro-ratacertain accelerated vesting provisions in the event of death, disability or a qualifying retirement before that date.
(6)(9)Represents the number of shares of our common stock that will vest and become issuable pursuant to the Relative TSR tranche of the 20192021 performance shares, as described in footnote 56 to the 20192022 Grants of Plan-Based Awards table on page 67,70, assuming the established performance goal is attained at the target level.
(7)(10)This particular grant of RSUs for each NEO is also included in the 2019 Grants of Plan-Based Awards table on page 67.
(8)Represents the number of shares of our common stock that have accrued under the firstsecond revenue subtranche of the 20182021 performance shares, as described in footnote 96 to the 20192022 Grants of Plan-Based Awards table on page 67,70, based on attainment of the applicable revenue goal at the 163.4%200% of the target level. The shares are now subject only to a service-vesting condition that requires continued service through certification by our Compensation & Talent Committee, subject to pro-ratacertain accelerated vesting provisions in the event of death, disability or a qualifying retirement before that date.
(9)(11)Represents the number of shares of our common stock that will vest and become issuable pursuant to the TSR tranche of the 2018 performance shares, as described in footnote 9 to the 2019 Grants of Plan-Based Awards table on page 67, assuming the established performance goal is attained at the target level.
(10)Represents the number of shares of our common stock that have accrued under the secondfirst revenue subtranche of the 20182022 performance shares, as described in footnote 97 to the 20192022 Grants of Plan-Based Awards table on page 67,70, based on attainment of the applicable revenue goal at the 126.7%200% of the target level. The shares are now subject only to a service-vesting condition that requires continued service through certification by our Compensation & Talent Committee, subject to pro-ratacertain accelerated vesting provisions in the event of death, disability or a qualifying retirement before that date.

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Executive Compensation

(11)Represents performance-based RSUs granted to Ms. Mercier under the 2004 Plan, tied to specified individual performance objectives as described in footnote 10 to the 2019 Grants of Plan-Based Awards table on page 67.
(12)Represents the number of shares of our common stock that have accruedwill vest and become issuable pursuant to the Relative TSR tranche of the 20172022 performance shares, as described in footnote 117 to the 20192022 Grants of Plan-Based Awards table on page 67, based on attainment of70, assuming the applicable TSRestablished performance goal is attained at 4% of the target level as certified by our Compensation Committee on January 29, 2020. The shares were released on January 29, 2020.level.
(13)Represents the number of shares of our common stock that have accruedtime-based RSU awards under the 2004 Plan that vest at the rate of 25% on the first revenue subtrancheanniversary of the 2017 performance shares, as described in footnote 11 togrant date and 25% on each subsequent anniversary during the 2019 Grants of Plan-Based Awards table on page 67, based on attainment ofawardee’s employment over the applicable revenue goal at the 200% of the target level. The shares were released on January 29, 2020.next 3 years.
(14)Represents the number of shares of our common stock that have accruedtime-based RSU awards under the second revenue subtranche2004 Plan that vest at the rate of 25% on the first anniversary of the 2017 performance shares, as described in footnote 11 togrant date and 6.25% each quarter thereafter during the 2019 Grants of Plan-Based Awards table on page 67, based on attainment ofawardee’s employment over the applicable revenue goal at the 163.4% of the target level. The shares were released on January 29, 2020.next 36 months.
(15)Represents the number of shares of our common stock that have accruedtime-based RSU awards under the third revenue subtranche2022 Plan that vest at the rate of 25% on the first anniversary of the 2017 performance shares, as described in footnote 11 togrant date and 6.25% each quarter thereafter during the 2019 Grants of Plan-Based Awards table on page 67, based on attainment ofawardee’s employment over the applicable revenue goal at the 126.7% of the target level. The shares were released on January 29, 2020.next 36 months.
(16)Pursuant toRepresents time-based RSU awards under the Retention Program, (i) unvested stock options granted prior to January 1, 2019 will continue to2022 Plan that vest through January 3, 2021 and will remain exercisable untilat the earlierrate of ten years from33% on the first anniversary of the grant date or January 3, 2024, (ii) 2018 performance shares will continue to vest until fully vested; and (iii) 2019 performance shares will continue to vest in a pro-rated portion of the performance shares earned33% on each subsequent anniversary during the performance period plus an additional twelve months based onawardee’s employment over the actual level at which the applicable performance metrics are attained.
Pursuant to the retirement-eligibility vesting provisions, unvested stock awards and options granted on or after January 1, 2019 will continue to vest until fully vested. Stock options will remain exercisable until January 3, 2025..
(17)As described in footnote 10 of the Summary Compensation Table on page 65, Ms. Washington stepped down from her position as Executive Vice President, Chief Financial Officer and remained as a Sr. Advisor until March 1, 2020. Her vested options will expire on June 1, 2020 and her unvested stock awards granted prior to January 1, 2019 will be canceled.
(18)Ms. Washington’s 2019 stock awards will continue to vest based on the retirement-eligibility provisions of such grants. Her 2019 performance shares will vest based on attainment of the applicable performance goals. As described in footnote 5 to the 2019 Grants of Plan-Based Awards table on page 67, since the revenue goals for the second and third subtranches of the revenue tranche of the 2019 performance shares had not been set by our Compensation Committee as of the close of the 2019 fiscal year, those substranches do not have a determinable grant-date fair value under Topic 718 for the 2019 fiscal year and excluded from the table above.
(19)Pursuant to the terms of Ms. Hamill’s offer letter, these unvested stock options vested in full.
(20)Dr. McHutchison’s vested options remain exercisable until the earlier of 10 years from grant date or Augustnext 2 2022, three years from his separation date of August 2, 2019, under the retirement vesting provisions of these grants. The 2018 performance shares will continue to vest based on attainment of the applicable performance goals, with final awards prorated for his period of service in accordance with the retirement-eligibility vesting provisions of such awards.
(21)Represents the number of shares of our common stock that accrued under the 2017 performance shares based on attainment of the applicable performance goals, prorated for his service period to the separation date on August 2, 2019. The shares were released on January 29, 2020.years.

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2019Executive Compensation

2022 Option Exercises and Stock Vested

The following table shows the number of shares acquired upon exercise of stock options andthe vesting of restricted stock units orRSUs and performance shares or both for each of our Named Executive OfficersNEOs during the year ended December 31, 2019:2022. None of our NEOs exercised any stock options during the year ended December 31, 2022.

  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)
 
Daniel P. O’Day    $     $ 
Andrew D. Dickinson    $   7,856  $514,348 
Johanna Mercier    $     $ 
Merdad V. Parsey, M.D., Ph.D.    $     $ 
Brett A. Pletcher  50,500  $1,844,277   14,452  $989,819 
Gregg H. Alton    $   18,723  $1,287,206 
Robin L. Washington    $   17,123  $1,177,206 
Laura J. Hamill    $   85,265  $5,766,207 
John G. McHutchison, M.D.    $   14,712  $1,011,450 

  Stock Awards 
Name Number of Shares
Acquired on Vesting
  Value Realized
on Vesting(1)
 
Daniel P. O’Day      170,858              $10,934,638 
Andrew D. Dickinson  31,512  $2,058,753 
Johanna Mercier  17,462  $1,072,841 
Merdad V. Parsey, M.D., Ph.D.  15,828  $1,084,400 
Deborah H. Telman    $ 

(1)Option awards value realized is determined by multiplying (i) the amount by which the market price of our common stock at the time of exercise exceeded the exercise price by (ii) the number of shares of common stock for which the options were exercised.
(2)Stock awards value realized is determined by multiplying (i) the closing market price of our common stock on the vesting date by (ii) the number of shares of common stock that vested on that date.

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20192022 Nonqualified Deferred Compensation

The following table shows the contributions, earnings and account balances as of 2022 fiscal year end for our Named Executive OfficersNEOs under our Deferred Compensation Plan:

Name Executive
Contributions
in Last
Fiscal Year
  Company
Contributions
in Last
Fiscal Year
  Aggregate
Earnings in
Last Fiscal
Year(1)(2)
  Aggregate
Withdrawals/
Distributions
  Aggregate
Balance at Last
Fiscal Year-End
 
Daniel P. O’Day       $  $  $  $       $ 
Andrew D. Dickinson $  $  $  $  $ 
Johanna Mercier $  $  $  $  $ 
Merdad V. Parsey, M.D., Ph.D. $  $  $  $  $ 
Brett A. Pletcher $  $  $723,209  $  $4,993,355 
Gregg H. Alton $1,848,628(3) $  $3,174,096  $  $15,289,833(3)
Robin L. Washington $  $  $286,961  $  $1,535,347(4)
Laura J. Hamill $  $  $  $  $ 
John G. McHutchison, M.D. $  $  $  $  $ 
Name     Executive
Contributions
in Last
Fiscal Year
     Company
Contributions
in Last
Fiscal Year
     Aggregate
Earnings in
Last Fiscal
Year(1)
      Aggregate
Withdrawals/
Distributions
      Aggregate
Balance at
Last Fiscal
Year-End
Daniel P. O’Day            $861,548(2)             $750,000(2)      $(474,727)  $    $3,046,134(2) 
Andrew D. Dickinson $   $   $  $  $  
Johanna Mercier $   $   $  $  $  
Merdad V. Parsey, M.D., Ph.D. $599,517(3)  $   $(211,377)  $  $1,590,059(3) 
Deborah H. Telman $   $   $  $  $  

(1)The reported amount corresponds to a composite of the actual market earnings on a group of investment funds selected by the applicable NEOs for purposes of tracking the notional investment return on his or her balance for the 20192022 fiscal year.
(2)Although 27 investment funds are available for selection under our Deferred Compensation Plan, the investment selections for the 2019 fiscal year were concentrated primarily in the 10 investment funds named below. The rate of return for each such fund for the 2019 fiscal year was as follows:

Name of Fund% Rate of Return
Vanguard Institutional Index - Instl Shares31.46%
Fidelity Growth Company - Class K38.52%
T. Rowe Price Blue Chip Growth29.97%
Vanguard Total Bond Market Index - Instl Shares8.68%
Fidelity Diversified International - Class K29.81%
Fidelity Government Money Market1.80%
Fidelity Low Priced Stock - Class K25.81%
Vanguard Equity Income - Admiral Shares25.35%
Fidelity Freedom 2025 - Class K19.57%
Fidelity Freedom 2020 - Class K18.14%

(3)Includes $666,839$861,548 of deferred salary in the last fiscal yearannual incentive plan amount reported for such individual in the 20192021 Summary Compensation Table, $750,000 of deferred other compensation reported as “All Other Compensation” in the 2022 Summary Compensation Table, and aggregate deferred salary and non-equity incentive plan compensation of $7,290,922$1,500,000 reported as “All Other Compensation” in previousprior year Summary Compensation Tables.
(4)(3)Includes $666,508$107,280 of aggregate deferred non-equity incentive plan compensationsalary reported for such individual in the previous2022 Summary Compensation Table, $492,237 of deferred annual incentive plan amount reported in the 2021 Summary Compensation Table, and deferred salary and annual incentive plan amounts of $1,157,181 reported in prior year Summary Compensation Tables.

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20192022 Potential Payments uponUpon Involuntary Termination or Change in Control Termination(1)

Executive Benefits and Payments Upon Separation Involuntary Termination
Without Cause or
Resignation for Good
Reason(2) Without a
Change in Control
  Involuntary Termination
Without Cause or
Resignation For Good
Reason Within Change in
Control Protection Period
  Death/
Disability
 
Daniel P. O’Day         
Cash severance                      $8,000,000                           $12,000,000        $ 
Equity award vesting acceleration $17,516,918(3) $17,516,918(3) $17,516,918(3)
Benefits and perquisites:            
Lump sum to cover COBRA costs $43,032  $64,548  $ 
Outplacement services $14,500  $14,500  $ 
Deferred Compensation Plan contribution $3,750,000  $3,750,000  $3,750,000 
Total $29,324,450  $33,345,966  $21,266,918 
Andrew D. Dickinson            
Cash severance $2,554,609  $4,011,523  $ 
Equity award vesting acceleration $1,299,332(3) $2,818,767(3) $325,036(3)
Benefits and perquisites:            
Lump sum to cover COBRA costs $45,077  $75,128  $ 
Outplacement services $10,500  $10,500  $ 
Total $3,909,518  $6,915,918  $325,036 
Johanna Mercier            
Cash severance $2,500,000  $5,000,000  $ 
Equity award vesting acceleration $3,657,724(3) $3,657,724(3) $ 
Benefits and perquisites:            
Lump sum to cover COBRA costs $260  $433  $ 
Outplacement services $10,500  $10,500  $ 
Sign-On bonus installment $1,250,000  $1,250,000  $ 
Total $7,418,484  $9,918,657  $ 
Merdad V. Parsey, M.D., Ph.D.            
Cash severance $2,500,000  $5,000,000  $ 
Equity award vesting acceleration $994,194(3) $994,194(3) $ 
Benefits and perquisites:            
Lump sum to cover COBRA costs $36,929  $61,548  $ 
Outplacement services $10,500  $10,500  $ 
Sign-On bonus installment $1,000,000  $1,000,000  $ 
Total $4,541,623  $7,066,242  $ 
Brett A. Pletcher            
Cash severance $2,763,721  $4,534,301  $ 
Equity award vesting acceleration $2,672,162(3) $3,953,513(3) $1,855,151(3)
Benefits and perquisites:            
Lump sum to cover COBRA costs $40,149  $66,916  $ 
Outplacement services $10,500  $10,500  $ 
Total $5,486,532  $8,565,230  $1,855,151 

Executive Benefits and Payments Upon Separation     Involuntary
Termination
Without Cause or
Resignation for
Good Reason(1)
Without a
Change in Control
       Involuntary
Termination
Without Cause or
Resignation For
Good Reason
Within Change in
Control
Protection
Period
      Death/Disability
Daniel P. O’Day           
Cash severance          $10,919,720          $16,379,580        $  
Pro-rata bonus $4,716,480(2)  $3,759,860(2)  $  
Equity award vesting acceleration $1,262,215(3)  $63,044,866(3)  $63,044,866(3) 
Benefits and perquisites:              
Lump sum to cover COBRA costs $51,076   $76,614  $  
Outplacement services $10,950   $10,950  $  
Deferred Compensation Plan contribution $1,500,000   $1,500,000  $1,500,000  
Total $18,460,441   $84,771,870  $64,544,866  
Andrew D. Dickinson              
Cash severance $2,990,450   $6,192,376  $  
Pro-rata bonus $1,885,572(2)  $1,449,950(2)  $  
Equity award vesting acceleration $(3)  $21,776,174(3)  $21,776,174(3) 
Benefits and perquisites:              
Lump sum to cover COBRA costs $53,863   $89,772  $  
Outplacement services $3,975   $3,975  $  
Total $4,933,860   $29,512,247  $21,776,174  
Johanna Mercier              
Cash severance $3,026,344   $6,207,109  $  
Pro-rata bonus $1,995,732(2)  $1,395,844(2)  $  
Equity award vesting acceleration $(3)  $23,261,010(3)  $23,261,010(3) 
Benefits and perquisites:              
Lump sum to cover COBRA costs $43,424   $72,373  $  
Outplacement services $3,975   $3,975  $  
Total $5,069,475   $30,940,311  $23,261,010  
Merdad V. Parsey, M.D., Ph.D.              
Cash severance $3,340,395   $6,998,488  $  
Pro-rata bonus $1,986,552(2)  $1,082,000(2)  $  
Equity award vesting acceleration $(3)  $23,379,358(3)  $23,379,358(3) 
Benefits and perquisites:              
Lump sum to cover COBRA costs $43,867   $73,112  $  
Outplacement services $3,975   $3,975  $  
Total $5,374,789   $31,536,933  $23,379,358  
Deborah H. Telman              
Cash severance $2,250,000   $4,500,000  $  
Pro-rata bonus $536,548(2)  $900,000(2)  $  
Equity award vesting acceleration $4,046,544(3)  $4,046,544(3)  $4,046,544(3) 
Benefits and perquisites:              
Lump sum to cover COBRA costs $33,741   $56,235  $  
Outplacement services $3,975   $3,975  $  
Total $6,870,808   $9,506,754  $4,046,544  

(1)See “Separation Arrangements Related to Leadership Transition” on page 58 for information regarding the payments and benefits provided to Ms. Hamill, Mr. Alton, and Dr. McHutchison in connection with their respective departures. Ms. Washington did not receive any payments or benefits in connection with her retirement, and was not eligible for the enhanced “retirement” vesting provisions under her outstanding equity awards.
(2)Per the terms of their applicablehis offer letters,letter, all such amounts are also payable to Mr. O’Day in the event of his resignation for Good Reason andReason. The other named executive officers are also entitled to all listed amounts other than the Equity award vesting acceleration on a resignation following a required relocation, without consent, to a new work location that is more than 50 miles from the executive’s previous work location under the Severance Plan.

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(2)Amount reflects the pro-rated amount of the bonus payable for the year of termination based on 2022 actual performance pursuant to the Severance Plan (as amended and sign-on bonus installments are payable to Ms. Mercier and Dr. Parseyrestated May 5, 2020) in the event of a resignationtermination outside the context of a change in control, and a pro-rated annual bonus for Good Reason.year of termination based on the average bonus paid over the prior three years (or such fewer number of complete fiscal years of employment or target bonus if employment is less than one fiscal year) in the context of a termination within the change in control protection period.

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(3)Amount reflects $64.98$85.85 (our closing stock price on December 31, 2019)30, 2022, the last trading day of 2022) multiplied by the number of shares covered by each accelerating award. All unvestedaward and for stock options, that would accelerate were out-of-the money on December 31, 2019, and thus are not reflected. 2017less the applicable exercise price. The 2020 relative TSR performance awards tied to TSRshares reflect payout at 4%168.5% of target. 2017The 2020 revenue-based performance awards tied to revenueshares reflect payout at 163.4%200% of target (200% for first subtranche, 163.4%200% for second subtranche, 126.7%200% for third subtranche). 2018The 2021 relative TSR performance awards tied to TSRshares assume payout at 100% of target. 2018The 2021 revenue-based performance awards tied to revenue assume onlyshares reflect payout at 167% of target (200% for the first subtranche, and200% for the second subtranche, are outstanding at time of change of control (per award agreement terms) with payout at 163.4% of target100% for first subtranche and 126.7% of target for second subtranche. 2019the third subtranche). The 2022 relative TSR performance awards tied to TSRshares assume payout at 100% of target. 2019The 2022 revenue-based performance awards tied to revenue assume only first subtranche is outstanding at time of change of control (per award agreement terms) withshares reflect payout at 126.7%133% of target. For Mr. O’Day, 2019 performance awards tied to revenue assume 126.7% of target (200% for the first subtranche, and target performance100% for the second andsubtranche, 100% for the third subtranches.subtranche).

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CEO Pay Ratio

We present below the ratio of annual total compensation of our median compensated employee to the annualizedannual total compensation of Mr. O’Day.

The ratio presented below is a reasonable estimate calculated in a manner consistent with Item 402(u) of Regulation S-K. The SEC’s rules for identifying the median compensated employee and calculating the pay ratio based on that employee’s annual total compensation allow companies to adopt a variety of methodologies, to apply certain exclusions and to make reasonable estimates and assumptions that reflect their employee populations and compensation practices. As a result, the pay ratio reported by other companies may not be comparable to the pay ratio reported below, as other companies have different employee populations and compensation practices and may utilize different methodologies, exclusions, estimates and assumptions in calculating their own pay ratios.

For 2022, we used the same median employee identified for purposes of calculating our 2021 pay ratio because we believe there has been no change in our employee population or employee compensation arrangements that would significantly impact the pay ratio disclosure. In identifying oursuch median paidcompensated employee, we applied the following steps:

We identified our median compensated employee from the 11,48613,857 full-time and part-time workers who were included as employees on our payroll records as of October 1, 20192021 based on year-to-date base salary, bonus,incentive, commissions and equity, with conforming adjustments for employees who were hired during that period but did not work the full nine months.
We then excludeddisregarded employees at the median who had anomalous compensation characteristics to determineselect the median compensated employee.
Due to the Chief Executive Officer transition that occurred in 2019, as permitted by SEC rules, we elected to annualize the Chief Executive Officer compensation for purposes of the pay ratio based on compensation for Mr. O’Day’s appointment as Chairman and Chief Executive Officer effective March 1, 2019.

The 2019 annualized2022 total compensation for Mr. O’Day was $29,361,393, which reflects his annualized base salary for the year, as well as all other elements of his compensation as determined under Item 402 of Regulation S-K.$21,621,253. The 20192022 annual total compensation as determined under Item 402 of Regulation S-K for our median compensated employee was $173,264.$242,033. The ratio of Mr. O’Day’s annualized total compensation to our median compensated employee’s total annual compensation for fiscal year 20192022 is 16989 to 1.

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Pay versus Performance

As discussed inrequired by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Item 402(v) of Regulation S-K, we are providing the following information about the relationship between executive “compensation actually paid” and certain financial performance of the company. For further information regarding our Compensationpay for performance philosophy and how we align executive compensation with corporate performance, refer to the “Compensation Discussion and Analysis, Mr. O’Day’sAnalysis” on page 47.

              Value of Initial Fixed $100
Investment Based on:
       
Year     Summary
Compensation
Table Total for
Mr. O’Day(1)
      Compensation
Actually Paid to
Mr. O’Day(2)
      Average
Summary
Compensation
Table Total for
Other NEOs(3)
      Average
Compensation
Actually Paid to
Other NEOs(4)
      Total
Shareholder
Return(5)
      Peer Group
Total
Shareholder
Return(6)
      Net Income
(in millions)(7)
      Net Product
Revenue
(in millions)(8)
 
2022      $21,621,253         $54,965,255         $7,874,828         $18,182,586              $150              $114               $4,566             $26,982 
2021 $19,229,466  $31,485,348  $6,279,776  $9,693,178  $121  $126  $6,201  $27,008 
2020 $18,998,095  $16,117,322  $6,616,768  $6,126,435  $93  $126  $89  $24,355 

(1)The dollar amounts reported are the amounts reported in the “Total” column of the Summary Compensation Table for our Chairman and Chief Executive Officer, Mr. O’Day.
(2)The dollar amounts reported represent the amount of “compensation actually paid”, as computed in accordance with SEC rules, for Mr. O’Day. The dollar amounts do not reflect the actual amount of compensation earned by or paid during the applicable year. In accordance with SEC rules, the following adjustments were made to total compensation to determine the compensation actually paid:
               
 Year     Summary
Compensation Table
Total for Mr. O’Day
      Less: Summary
Compensation
Table Reported
Value of Equity
Awards(a)
      Plus: Equity Award
Adjustments(b)
      Equals: Compensation
Actually Paid to Mr. O’Day
 
 2022                   $21,621,253           $14,353,915                $47,697,917                            $54,965,255 
 2021 $19,229,466  $13,139,064  $25,394,946  $31,485,348 
 2020 $18,998,095  $11,513,097  $8,632,324  $16,117,322 

(a)Represents the aggregate grant-date fair value of equity awards as reported in the “Stock Awards” and “Option Awards” columns in the Summary Compensation Table for the applicable year.
(b)The equity award adjustments for each applicable year were as set forth in the table below. The valuation assumptions used to calculate fair values did not materially differ from those disclosed at the time of grant. The amounts deducted or added in calculating the equity award adjustments are as follows:
                 
  Year     Year End
Fair Value of
Equity Awards
Granted during
the Year
      Year over Year
Change in Fair Value
of Outstanding and
Unvested Equity Awards
Granted in Prior Years
      Year over Year Change
in Fair Value of Equity
Awards Granted
in Prior Years that
Vested in the Year
      Value of Dividend
Equivalents Accrued
or other Earnings Paid
on Stock Awards not
Otherwise Reflected
in Fair Value
      Total Equity
Award
Adjustments
 
 2022         $34,153,918                            $14,183,571                          $(1,966,582)                          $1,327,010      $47,697,917 
 2021 $17,162,219  $6,011,125  $707,262  $1,514,340  $25,394,946 
 2020 $8,885,442  $(1,693,496)  $409,911  $1,030,467  $8,632,324 

(3)The dollar amounts reported represent the average of the amounts reported for our NEOs as a group (excluding our CEO) in the “Total” column of the Summary Compensation Table in each applicable year. The NEOs included for purposes of calculating the average amounts in each applicable year are as follows: (i) for 2022, Andrew D. Dickinson, Johanna Mercier, Merdad V. Parsey and Deborah H. Telman; and (ii) for 2021 and 2020, Andrew D. Dickinson, Johanna Mercier, Merdad V. Parsey and Brett A. Pletcher.
(4)The dollar amounts reported represent the average amount of “compensation actually paid” to the NEOs identified in footnote 3, as computed in accordance with SEC rules. The dollar amounts do not reflect the actual amount of compensation earned by or paid to the any NEO during the applicable year. In accordance with the SEC rules, the following adjustments were made to average total compensation for the NEOs for each year to determine the compensation actually paid:
              
  Year Average
Reported Summary
Compensation Table
Total for Other NEOs
  Less: Summary
Compensation Table
Average Reported
Value of Equity Awards
  Plus: Average
Equity Award
Adjustments(a)
  Equals: Average
Compensation Actually
Paid to Other NEOs
 
 2022                      $7,874,828                            $4,961,052          $15,268,810                         $18,182,586 
 2021 $6,279,776  $3,625,534  $7,038,936  $9,693,178 
 2020 $6,616,768  $3,087,064  $2,596,731  $6,126,435 

(a)The amounts deducted or added in calculating the total average equity award adjustments are as follows:

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  Year     Average Year End
Fair Value of Equity
Awards Granted
during the Year
      Year over Year Average
Change in Fair Value
of Outstanding and
Unvested Equity Awards
Granted in Prior Years
      Year over Year
Average Change in
Fair Value of Equity
Awards Granted
in Prior Years that
Vested in the Year
      Average Value of
Dividend Equivalents
Accrued or other
Earnings Paid on Stock
Awards not Otherwise
Reflected in Fair Value
      Total Average
Equity Award
Adjustments
 
 2022                  $11,751,514                              $3,365,229                     $(289,102)                              $441,169         $15,268,810 
 2021 $4,989,853  $1,461,574  $271,571  $315,938  $7,038,936 
 2020 $2,488,166  $(365,446) $269,145  $204,866  $2,596,731 

(5)Cumulative TSR is calculated by dividing the sum of the cumulative amount of dividends for the measurement period, assuming dividend reinvestment, and the difference between our share price at the end of each year shown and the beginning of the measurement period by our share price at the beginning of the measurement period. The beginning of the measurement period for each year in the table is December 31, 2019.
(6)The peer group used for this purpose is Nasdaq Biotechnology Index.
(7)The dollar amounts reported represent the amount of net income reflected in our Consolidated Statements of Income included in our Annual Report on Form 10-K for the applicable year. Included in our net income for 2020 was a $4.5 billion charge to acquired in-process research and development (“IPR&D”) expense recorded in connection with our acquisition of Forty Seven, Inc. Our 2022 net income included a $2.7 billion partial impairment charge related to certain IPR&D assets acquired from Immunomedics, Inc.
(8)The dollar amounts reported represent the amount of net product sales revenue reflected in our Consolidated Statements of Income included in our Annual Report on Form 10-K for the applicable year. Our product revenue excluding Veklury (remdesivir) increased by $1.6 billion from 2021 to 2022 primarily due to increased sales in HIV and Oncology, whereas Veklury revenue decreased by $1.7 billion over the same period, as expected, primarily driven by lower rates of COVID-19 related hospitalizations.

Financial Performance Measures

As described in greater detail in the “Compensation Discussion and Analysis” on page 47, our executive compensation includes make-whole payments agreed to when he left his employerprogram reflects a pay-for-performance philosophy, with a focus not only on the successful progression of 30 years to accept our offer. Excluding these payments, the 2019 annualized total compensation for Mr. O’Day was $15,186,285research programs, clinical trials and the ratio between this amountlaunch of new products but also on performance across a range of shorter-term metrics that advance our long-term strategy and longer-term value creation for our median employee’s 2019 annual totalstockholders. The metrics that we use for both our long-term and short-term incentive awards are selected based on an objective of incentivizing our NEOs to increase the value of our company for our stockholders. As required by Item 402(v), the most important financial performance measures used by our company to link executive compensation is 88actually paid to 1. We believe this supplemental ratio reflects a more representative comparison of Mr. O’Day’s paythe NEOs, for the most recently completed fiscal year, to our median employee’s pay.the company’s performance are as follows:

76a.Net Product Revenue
b.Relative TSR
c.Non-GAAP Operating Income

Analysis of the Information Presented in the Pay versus Performance Table

While we utilize several performance measures to align executive compensation with company performance, all of those company measures are not presented in the Pay versus Performance table on page 80. Moreover, we generally seek to incentivize long-term performance, and therefore we do not specifically align the company’s performance measures with compensation that is actually paid (as computed in accordance with SEC rules) for a particular year. In accordance with SEC rules, we are providing the following descriptions of the relationships between information presented in the Pay versus Performance table.

Compensation Actually Paid Versus TSR 2020 – 2022

 

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Compensation Actually Paid Versus Net Income 2020 – 2022

Compensation Actually Paid Versus Net Revenue 2020 – 2022

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PROPOSAL 4Advisory Vote to Approve the Frequency
of Future Advisory Stockholder Votes on
Executive Compensation


Table

Pursuant to Section 14A of Contents

Stockholder Proposals

the Exchange Act, we are asking our stockholders to vote on how frequently we should seek an advisory vote on the compensation of our named executive officers. By voting on this proposal, stockholders may indicate whether they prefer an advisory vote on named executive officer compensation every 1 year, 2 years or 3 years. Stockholders also will have the option to abstain from voting on the matter.

Proposal 4Stockholder Proposal Requesting

After careful consideration of this proposal, our Board has determined that an advisory vote on executive compensation that occurs every year is the most appropriate alternative for Gilead, and therefore our Board recommends that you vote for a one-year interval for future advisory stockholder votes on executive compensation.

Our Board believes an annual advisory vote on executive compensation will allow our stockholders to provide us with their direct input on our compensation philosophy, policies and practices on a more consistent basis. Additionally, an annual advisory vote on executive compensation is consistent with our policy of seeking input from, and engaging in discussions with, our stockholders on corporate governance matters and our executive compensation philosophy, policies and practices. We understand that our stockholders may have different views as to what is the best approach for Gilead, and we look forward to hearing from our stockholders on this proposal.

The stockholder vote on this proposal is advisory and not binding on our Board or Gilead. The particular frequency that receives the highest number of votes cast by stockholders will be the recommendation to the Board Adoptfor the frequency for future advisory stockholder votes on executive compensation. Stockholders will be asked to vote on the frequency of an advisory vote on executive compensation at least once every six years. A vote was last held at the company’s 2017 annual meeting of stockholders, at which our stockholders voted for a Policy that the Chairpersonfrequency of theevery year.

Our Board of Directors be an Independent Directorunanimously recommends “1 YEAR” for Proposal 4.
  
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PROPOSAL 5Approval of the Amended and Restated
Gilead Sciences, Inc. Employee Stock
Purchase Plan and International
Employee Stock Purchase Plan

We are asking stockholders to approve an amendment and restatement of the Gilead Sciences, Inc. Employee Stock Purchase Plan (the “Purchase Plan”) and an amendment and restatement of the Gilead Sciences, Inc. International Employee Stock Purchase Plan (the “International Plan”), collectively, the “Plans”. The Purchase Plan originally was adopted in 1991. In November 2009, our Board separated the International Plan from the Purchase Plan in order to provide greater administrative flexibility for non-U.S. employees. Although the Purchase Plan and the International Plan are separate plans, their terms are substantially similar and they share the same pool of authorized shares of our common stock (meaning that when a share of common stock is issued to an employee under one of the Plans, it reduces the number of shares available for issuance under either of the Plans).

On January 25, 2023, our Board approved an amendment and restatement of each of the Plans, subject to stockholder approval, which will:

increase the number of shares of common stock authorized and reserved for issuance under the Plans by an additional 25,000,000 shares;
extend the term of each of the Plans for an additional ten years from the date the Board approved the changes to the Plans, until January 25, 2033; and
make certain other administrative changes (collectively, the “2023 Amendments”).

The Plans, as amended and restated, are attached hereto as Appendix A and Appendix B.

An aggregate of 1,946,000 shares remained available as of March 15, 2023 for purchase under the Plans, and the Plans were scheduled to expire on January 22, 2025, prior to giving effect to the foregoing amendments. Our Board believes that these amendments to the Plans are in the best interests of our company and our stockholders as they would enable employees to continue to purchase shares of our company, and thereby align our employees’ interests with those of our stockholders.

The affirmative vote of the holders of a majority of the shares present in person or represented by proxy and entitled to vote at the Annual Meeting will be required to approve the Plans. Abstentions will be counted towards the tabulation of votes cast and will have the same effect as negative votes. Broker non-votes are counted towards a quorum, but are not counted for any purpose in determining whether this proposal has been approved.

Key Provisions

Purpose

The purpose of the Plans is to provide a means by which our employees and employees of any of our affiliates designated by our Board to participate in the Plans (and with respect to the International Plan, employees of designated affiliates and related entities in which our company has any kind of ownership interest who reside outside of the United States) may be given an opportunity to purchase our common stock, and to assist us in:

securing and retaining the services of new employees;
retaining the services of existing employees; and 
providing incentives for such persons to exert maximum efforts for our success.
  
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The rights to purchase common stock granted under the Purchase Plan are intended to qualify as options issued under an “employee stock purchase plan” as that term is defined in Section 423(b) of the Internal Revenue Code (the “Code”). The International Plan is not maintained under Section 423(b) of the Code, and therefore, the rights to purchase common stock granted under the International Plan are not intended to qualify under Section 423(b) of the Code.

Administration

The Plans are administered by our Board, which has the final power to construe and interpret the Plans and the rights granted under them. Our Board has the power, subject to the provisions of the Plans, to determine when and how rights to purchase our common stock will be granted, the provisions of each offering of such rights (which need not be identical), and whether employees of any affiliate (defined in the Purchase Plan as any parent or subsidiary of the company and in the International Plan as any entity directly or indirectly controlled by or under common control with the company) or related entities (only for purposes of the International Plan) shall be eligible to participate in the Plans. Our Board has the power to delegate administration of the Plans to a committee of two or more Board members. Our Board may abolish any such committee at any time and revest in the Board the administration of the Plans. As used herein with respect to the Plans, “Board” refers to such committee as well as to our Board itself.

Offerings

The Plans are implemented by offerings of rights to all eligible employees from time to time by our Board. Such offerings have a duration not exceeding 27 months and may contain multiple purchase periods. Our offering period is currently 6 months.

Shares Subject to the Plans

After giving effect to the 2023 Amendments, an aggregate of 26,946,000 shares of common stock is authorized for issuance under the Plans, of which 25,000,000 shares had been issued under the Plans as of January 25, 2023. If rights granted under the Plans expire, lapse or otherwise terminate without being exercised, the shares of common stock not purchased under such rights again become available for issuance under the Plans. As the Plans each use a common share pool, shares issued under the International Plan reduce the shares available for issuance under the Purchase Plan and shares issued under the Purchase Plan reduce the shares available for issuance under the International Plan.

As of March 15, 2023, we have outstanding 1,248,816,053 shares of our common stock. The additional 25,000,000 shares requested for the Plans represents approximately 2% of these outstanding shares. As of March 15, 2023, approximately 10,990 employees were eligible to participate in the Purchase Plan and 5,859 employees were eligible to participate in the International Plan. The closing price of a share of the company’s common stock as of March 15, 2023 was $79.65 per share.

Eligibility

Generally, any person who is customarily employed at least 20 hours per week and five months per calendar year by us (or by any affiliate designated from time to time by our Board) on the first day of an offering period is eligible to participate in that offering under the Purchase Plan. Rights under the International Plan may be granted only to an employee of an affiliate or related entity designated by the Board who resides outside the United States. For both Plans, employees must have been continuously employed for such period of time preceding the first day of the offering period as determined by our Board, which period must be in all cases less than two years. If, during the course of an offering, an employee satisfies the foregoing eligibility requirements, our Board may provide that such employee may participate in that offering.

Notwithstanding the foregoing, no employee is eligible for the grant of any rights under the Plans if, immediately after such grant, the employee would own, directly or indirectly, stock possessing 5% or more of the total combined voting power or value of all classes of stock of us or of any affiliate (including any stock which such employee may purchase under all outstanding rights and options), nor will any employee be granted rights to buy more than $25,000 worth of stock (determined at the fair market value of the shares at the time such rights are granted) under all our employee stock purchase plans in any calendar year.

Participation in the Plans

An eligible employee becomes a participant in the relevant Plan by submitting an enrollment form to the company, in a form approved by the company, or if available in the employees’ jurisdiction, by accessing the third party administrator’s website and electronically enrolling within the time set forth in the offering. During such enrollment process, the employee shall authorize payroll deductions of up to 20% (or such other percentage as our Board may determine for a particular offering) of such employee’s earnings (as defined in the relevant Plan) during the offering. To the extent required by applicable law, eligible employees may be permitted to contribute to the International Plan by means other than, or in addition to, payroll deductions.

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Purchase Price

The purchase price per share at which shares are sold in offerings under the Plans cannot be less than the lower of (i) 85% of the fair market value of a share of common stock on the date of commencement of the offering period, or (ii) 85% of the fair market value of a share of common stock on the date of purchase.

Payment of Purchase Price; Payroll Deductions & Contributions

The purchase price of the shares is accumulated by payroll deductions (or contributions to the extent required for International Plan participants) over the purchase period. A participant may increase, reduce, or commence such payroll deductions or contributions after the beginning of any purchase period only as provided for in the offering. All payroll deductions or contributions made for a participant are credited to his or her account under the relevant Plan and deposited with our general funds, unless otherwise required by applicable foreign law. A participant may make additional payments into such account only if specifically provided for in the offering, and only if the participant has not had the maximum allowable amount withheld during the offering.

Purchase of Stock

By enrolling in the Purchase Plan or the International Plan, an employee is entitled to purchase shares under the relevant Plan. In connection with offerings made under the Plans, our Board may specify a maximum number of shares that may be purchased by any employee as well as a maximum aggregate number of shares that may be purchased by all eligible employees pursuant to such offering. If the aggregate number of shares to be purchased upon exercise of rights granted in the offering were to exceed the maximum aggregate number, our Board would make a pro rata allocation of shares available in as nearly a uniform manner as equitable and practicable under the circumstances. Unless the employee’s participation is discontinued, his or her right to purchase shares is exercised automatically at the end of the purchase period at the applicable price. See “Withdrawal” below.

The Board may require the shares purchased under the Plans to be held in a brokerage account designated by the company for a designated period of time.

Withdrawal

A participant may withdraw from a given offering and terminate his or her payroll deductions by submitting a withdrawal notice to the company or, if made available by the company to employees in a particular jurisdiction, by accessing the third party administrator’s website and electronically electing to withdraw. Such withdrawal may be elected at any time prior to the end of the applicable purchase period. Upon any withdrawal from an offering by the employee, we will distribute to the employee his or her accumulated payroll deductions or contributions (for employees under the International Plan) without interest (unless the terms of the offering specifically so provide), and such employee’s interest in the offering will be automatically terminated. An employee’s withdrawal from an offering will not have any effect upon such employee’s eligibility to participate in subsequent offerings under the Purchase Plan, but the employee will be required to re-enroll in order to participate in subsequent offerings.

Transfers or Termination of Employment

Rights granted pursuant to any offering under the Plans terminate immediately upon cessation of an employee’s employment for any reason, and we will distribute to the employee all of his or her accumulated payroll deductions or contributions (for employees under the International Plan) under the offering, without interest unless the terms of the offering specifically so provide.

A participating employee who transfers employment from the company or any affiliate participating in the Purchase Plan to an affiliate or related entity participating in the International Plan will immediately cease to participate in the Purchase Plan. However, his or her accumulated payroll deductions for the purchase period in which such transfer occurs will be transferred to the International Plan, and such individual will immediately join the then current offering under the International Plan on the same terms and conditions in effect for his or her participation in the Purchase Plan, except for modifications required by applicable law. A participating employee who transfers employment from an affiliate or related entity participating in a current offering under the International Plan to the company or any other affiliate participating in the Purchase Plan will remain a participant of the International Plan until the earlier of (i) the end of the current offering period under the International Plan or (ii) the start date of the first offering under the Purchase Plan in which he or she participates following such transfer.

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Restrictions on Transfer

Rights granted under the Purchase Plan are not transferable by a participant other than by will and the laws of descent and distribution, or for Purchase Plan participants by a beneficiary designation, and may be exercised only by the person to whom such rights are granted.

Duration, Amendment and Termination

Our Board may suspend or terminate the Plans at any time. Unless terminated earlier, each of the Plans, as amended, will terminate on January 25, 2033. Prior to giving effect to the 2023 Amendments, the Plans were scheduled to expire on January 22, 2025.

Our Board may amend the Plans at any time. Any amendment of either Plan must be approved by the stockholders within 12 months of its adoption by our Board to the extent such amendment requires stockholder approval in order to (i) increase the total number of shares reserved for issuance and sale in the aggregate under the Plans, (ii) modify the provisions as to eligibility for participation in the Plan (to the extent such modification requires stockholder approval in order for the Plan to maintain employee stock purchase plan treatment under Section 423 of the Code (for the Purchase Plan) or to comply with applicable Nasdaq or securities exchange listing requirements), or (iii) modify the Plan in any other way if such modification requires stockholder approval in order for the Plan to maintain employee stock purchase plan treatment under Section 423 of the Code (for the Purchase Plan) or to comply with any applicable Nasdaq or securities listing requirements. Subject to the foregoing limitations, our Board retains the authority to re-combine the Plans into a single plan.

Rights granted before amendment or termination of the Plans will not be materially and adversely altered or impaired by any amendment or termination of the Plans without consent of the person to whom such rights were granted except as necessary to comply with applicable laws or governmental regulations, or to ensure that the rights granted comply with the requirements of Section 423 of the Code (for purposes of the Purchase Plan only).

Adjustments upon Changes in Stock

In the event of a change in control (as such term is defined in our 2022 Equity Incentive Plan or any successor omnibus equity plan), then, as determined by our Board in its sole discretion (i) any surviving corporation may assume outstanding rights or substitute similar rights for those outstanding under the Plans, (ii) such rights may continue in full force and effect, (iii) participants’ accumulated payroll deductions or contributions (for employees under the International Plan) may be used to purchase common stock immediately prior to the transaction described above and the participants’ rights under the ongoing offering terminated, or (iv) the ongoing offering may be terminated and participants’ accumulated payroll deductions or contributions be returned to such participants.

Plan Benefits

Future benefits under the Plans are not currently determinable, as they will depend on the actual purchase price of our shares of common stock in future offering periods, the market value of the our common stock on various future dates, the amount of contributions eligible employees elect to make under the Plans, and similar factors.

Pursuant to SEC rules, the following table sets forth the number of shares purchased under the Plans through February 15, 2023 (the most recent purchase date).

Name and PositionNumber of
Shares(1)
Daniel P. O’Day, Chairman and Chief Executive Officer0
Andrew D. Dickinson, Chief Financial Officer2,123
Johanna Mercier, Chief Commercial Officer0
Merdad V. Parsey, M.D., Ph.D., Chief Medical Officer1,271
Deborah H. Telman, Executive Vice President, Corporate Affairs and General Counsel376
All current executive officers as a group3,770
All non-employee directors as a group0
All employees as a group (excluding executive officers)76,614,000

(1)The share amounts so indicated have been adjusted to reflect the five (5) two-for-one stock splits of the Common Stock effected in February 2001, March 2002, September 2004, June 2007 and January 2013.
  
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Federal Income Tax Information

The following summary briefly describes U.S. federal income tax consequences of rights under the Purchase Plan, but is not a detailed or complete description of all U.S. federal tax laws or regulations that may apply, and does not address any local, state or other country laws. Therefore, no one should rely on this summary for individual tax compliance, planning or decisions. Participants in the Plans should consult their own professional tax advisors concerning tax aspects of rights under the Plans. Nothing in this proxy statement is written or intended to be used, and cannot be used, for the purposes of avoiding taxpayer penalties. The discussion below concerning tax deductions that may become available to us under U.S. federal tax law is not intended to imply that we will necessarily obtain a tax benefit or asset from those deductions. Taxation of equity-based payments in other countries is complex, does not generally correspond to federal tax laws, and is not covered by the summary below. Accordingly, this summary does not describe any tax consequences of rights under the International Plan.

Rights granted under the Purchase Plan are intended to qualify for favorable federal income tax treatment associated with rights granted under an employee stock purchase plan which qualifies under the provisions of Section 423 of the Code.

A participant will be taxed on amounts withheld for the purchase of shares as if such amounts were actually received. No other income will be taxable to a participant until disposition of the shares acquired, and the method of taxation will depend upon the holding period of the purchased shares.

If the stock purchased in an offering is sold (or otherwise disposed of) more than two years after the beginning of the offering and more than one year after the stock is transferred to the participant, then the lesser of (i) the excess of the fair market value of the stock at the time of such disposition over the purchase price and (ii) the excess of the fair market value of the stock as of the beginning of the offering over the purchase price (determined as of the beginning of the offering) will be treated as ordinary income. Any further gain or any loss will be taxed as a long-term capital gain or loss.

If the stock is sold or disposed of before the expiration of either of the holding periods described above, then the excess of the fair market value of the stock on the purchase date over the purchase price will be treated as ordinary income at the time of such disposition. The balance of any gain will be treated as capital gain. Even if the stock is later disposed of for less than its fair market value on the purchase date, the same amount of ordinary income is attributed to the participant, and a capital loss is recognized equal to the difference between the sales price and the fair market value of the stock on such purchase date. Any capital gain or loss will be long-term or short-term depending on how long the stock has been held.

There are no U.S. federal income tax consequences to us by reason of the grant or exercise of rights under the Purchase Plan. We are entitled to a deduction to the extent amounts realized from a disposition of stock are taxed as ordinary income to a participant, subject to the requirement of reasonableness and the satisfaction of any tax reporting obligation.

Friends Fiduciary Corporation and co-filers have submitted

Our Board unanimously recommends a stockholder proposal for consideration at the Annual Meeting. Friends Fiduciary Corporation’s address is 1700 Market Street, Suite 1535, Philadelphia, Pennsylvania 19103. We have been notified that Friends Fiduciary Corporation has continuously held shares our common stock worth at least $2,000 since November 22, 2018. We will provide the name, address and known share holdings of the co-filers of this proposal upon written or oral request to the Corporate Secretary at the address set forth in question 15 in “Questions and Answers.”

vote “FOR” Proposal 5.
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PROPOSAL 6Stockholder Proposal Requesting a Policy
Requiring More Director Candidates than
Board Seats

Jing Zhao has submitted a stockholder proposal for consideration at the Annual Meeting. Mr. Zhao’s address is 1745 Copperleaf Ct, Concord, California 94519. We have been notified that Mr. Zhao has continuously held 60 shares of our common stock since at least March 6, 2019.

If properly presented at the Annual Meeting, our Board unanimously recommends a vote “AGAINST” the following proposal. The resolution being submitted by Mr. Zhao to the stockholders for approval is as follows:

Stockholder Proposal

Resolved: stockholders recommend that Gilead Sciences, Inc. (the Company) reform the election of the board to list more candidates than the number of directors of the board to be elected.

Supporting Statement

“Director compensation has now soared to a level that inevitably makes pay a subconscious factor affecting the behavior of many non-wealthy members. . . . Frequently, the possession of one such directorship bestows on its holder three to four times the annual [originally emphasized] median income of U.S. households. . . . If the NWD [non-wealthy director] has seriously challenged his/her present CEO’s compensation or acquisition dreams, his or her candidacy will silently die. When seeking directors, CEOs don’t look for pit bulls. It’s the cocker spaniel that gets taken home.” –Warren E. Buffett, Chairman of the Board of Berkshire Hathaway, February 22, 2020.

Shareholders in JPMorgan Chase & Co., Intel, and other big companies voted in 2022 against their companies’ compensation for their top executives.

The American corporate boards and executives have become a class of oligarchy, as defined by Aristotle, according to his _Politics_. In this great classic, Aristotle demonstrated that in a stable polis, the ratio of the rich citizen’s land to the poor citizen’s land should not be over 5 to 1.

One of the main problems is that corporate boards are not democratically elected. The board needs democratic reform to elect members from more diversified candidates. Shareholders should have the right to choose from more candidates than the number of the board of directors to be elected.

This democratic reform proposal should be implemented as not to violate any contractual obligations, with amendments to the Company’s governing documents as needed. The board has the flexibility to implement this proposal to design the criteria and process to nominate at least one more candidate than the number of directors of the board to be elected.

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Our Board Recommends a Vote AGAINST This Proposal

Our Current Director Nominating and Evaluation Process Results in Highly Qualified Candidates being Nominated for Election to the Board

Our Board believes in the importance of sound processes for identifying and nominating director candidates, and that our current process is preferable to the unusual approach requested by this proposal. We do not believe the nomination of more candidates than available directorships would better ensure qualified candidates are elected to our Board because we strongly believe our current process effectively identifies and recruits qualified and diverse directors with a broad range of experience, backgrounds, and interests who are able to effectively oversee our business strategy and risks. Our Nominating and Corporate Governance Committee establishes, and regularly reviews with the Board, the skills and experience that it believes are desirable to be represented on our Board to meet the needs of our business and align with our long-term strategy.

As described in the “Evaluating Director Candidates” section of this Proxy Statement, the Board considers a number of factors when evaluating director candidates, including experience, the number and nature of other board memberships held and possible conflicts of interest. Our Board also has a strong commitment to inclusion and diversity, which is formally reflected in our Board Guidelines and our Nominating and Corporate Governance Committee Charter. In evaluating candidates for membership on the Board, our Nominating and Corporate Governance Committee considers matters of diversity, including race, ethnicity, gender, sexual orientation, culture, thought and geography, and seeks to nominate director candidates that will contribute to the overall effectiveness and diversity of the Board. We believe effective oversight starts with a board of directors representing a diverse range of experience and perspectives, which provides the collective skills, qualifications, backgrounds and experience necessary for sound governance.

The Proposal Could Disrupt Our Board Planning and Effectiveness

Adoption of this proposal, which would be highly unusual, could result in a board composition that fails to represent the diverse range of experiences and perspectives most appropriate to meet the needs of overseeing our business and aligning with our long-term strategy. The proposal also could result in significant director turnover in any given year, which would be detrimental to the effective functioning of our Board, and could impede the Nominating and Corporate Governance Committee’s ability to ensure appropriate board composition that serves the long-term interest of our stockholders.

In addition, competing nominees for election to the Board could result in less collaboration and more divisiveness among directors, and ultimately undermine the effectiveness of our Board. Moreover, nominating competing candidates would create a contested director election process and likely deter many talented candidates who would prefer being considered for election in an uncontested process.

Finally, the proposed increase in candidates would be burdensome and inefficient, as the Board and Nominating and Corporate Governance Committee already devote significant time and attention to identifying and recruiting each candidate, which includes a lengthy review of qualifications, experience and expertise. Recruiting additional candidates to stand for election in a process designed so that some candidates will not be elected would not be a good use of Board and Nominating and Corporate Governance Committee resources, and could ultimately result in a Board that does not have the optimal balance of skills and experiences to meet the needs of our business and align with our long-term strategy.

Gilead Already Provides Stockholders Effective Input Regarding Our Director Nomination and Election Process

Gilead already offers several methods for stockholders to voice their views concerning our Board composition. First, we maintain a strong engagement program with our stockholders. Each year, we meet with stockholders who collectively own a significant percentage of Gilead’s outstanding common stock, along with the two largest proxy advisory firms, to solicit feedback on our Board and our corporate governance practices. For instance, during our Fall 2022 engagement program, we met with stockholders collectively holding 47% of Gilead’s outstanding common stock. Stockholders also have the ability to communicate directly with our Board throughout the year by sending a letter to our Corporate Secretary.

In addition, stockholders may recommend director candidates by sending such recommendations to our Corporate Secretary. Our Nominating and Corporate Governance Committee reviews all candidates in the same manner regardless of the source of the recommendation.

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Finally, our director nominees are elected annually by majority voting in uncontested elections. Our Board Guidelines provide that any director who fails to receive at least a majority of the votes cast in an uncontested election must tender his or her resignation to our Board, and our Nominating and Corporate Governance Committee would then evaluate the tendered resignation and make a recommendation to our Board to accept or reject the resignation or to take other action.

Gilead’s Stockholders Already Have Nomination Rights That, if Exercised, Could Result in More Candidates Than Available Directors

Our stockholders have two means of nominating candidates for election to our Board under our bylaws, either of which would achieve the goal sought by this proposal (i.e., the nomination of more candidates than available directorships). Under the proxy access provisions of our bylaws, a stockholder, or a group of up to 20 stockholders, owning 3% or more of Gilead’s outstanding common stock continuously for at least three years, may nominate and include director nominees constituting up to 20% of the Board (or at least two directors) in Gilead’s proxy materials. Under our advance notice bylaws, stockholders may nominate director nominees constituting up to 100% of the Board if the advance notice bylaw procedures are followed, and unlike the proxy access provisions, there are no minimum ownership or holding requirements.

Conclusion

We believe Gilead stockholders have ample opportunity to communicate with the company and the Board regarding our Board composition and to recommend or directly nominate candidates for election. Modifying our nomination and election framework in the manner requested by the proposal is unnecessary and would not be in the best interests of stockholders.

Our Board unanimously recommends a vote “AGAINST” the following proposal. The resolution being submitted by Friends Fiduciary Corporation and co-filers to the stockholders for approval is as follows:

Stockholder Proposal

RESOLVED: Gilead Sciences (“Gilead” or the “Company”) shareholders request the Board of Directors adopt as policy (the “Policy”), and amend the bylaws as necessary, to require henceforth that the Chair of the Board of Directors, whenever possible, be an independent member of the board. The Policy shall apply prospectively so as not to violate any contractual obligations. If the board determines that a Chair who was independent when selected is no longer independent, the board shall select a new Chair who satisfies the requirements of the policy within a reasonable amount of time. Compliance with this policy is waived if no independent director is available and willing to serve as Chair.

Supporting Statement

We believe:

The role of the CEO and management is to run the company.

The role of the Board is to provide independent oversight of management and the CEO.

There is a potential conflict of interest for a CEO to have a non-independent director act as Chair.

In November 2019, the U.S. government sued Gilead for infringement of patents. The cost of PrEP treatment — Gilead’s Truvada and Descovy products taken daily — is up to $20,000 per year. PrEP is an integral part of global HIV prevention and the Company’s pricing may impede these efforts. Negative media attention surrounding this lawsuit presents challenges for the Company.

Concerns about these risks have led to growing investor interest in the Company’s governance practices. In our view, shareholders are best served by an independent board Chair who can provide a balance of power between the CEO and the board. The board is responsible for overseeing management, and conflicts of interest may arise when one person holds both the Chair and CEO positions. We believe that Gilead’s board should adopt best practice governance policies, including having an independent board chair.

As of October 2018, 50% of companies in the S&P 500 have separated the CEO and Chair roles. Numerous institutional investors recommend such a separation. For example, California’s Retirement System CalPERS’ Principles & Guidelines encourage separation, even with a lead director in place. The Council of Institutional Investors’ corporate governance policies favor independent board chairs.

In order to ensure that our board can provide rigorous oversight for our Company and management with greater independence and accountability, we urge a vote FOR this shareholder proposal.

Our Board unanimously recommends a vote “AGAINSTProposal 4.

6.
  
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PROPOSAL 7Stockholder Proposal Requesting that Shares
Held in Street Name Be Able to Call a Special
Stockholder Meeting


John Chevedden has submitted a stockholder proposal for consideration at the Annual Meeting. Mr. Chevedden’s address is 2215 Nelson Avenue, No. 205, Redondo Beach, California 90278. We have been notified that Mr. Chevedden has continuously held 50 shares of our common stock since at least November 23, 2019.

If properly presented at the Annual Meeting, our Board unanimously recommends a vote “AGAINST” the following proposal. The resolution being submitted by Mr. Chevedden to the stockholders for approval is as follows:

Stockholder Proposal

Proposal 7 – Special Shareholder Meeting Improvement

Shareholders ask our board to take the steps necessary to amend the appropriate company governing documents to give street name shares and non-street name shares an equal right to call for a special meeting.

One of the main purposes of this proposal is to give all shares, including street name shares, the right to formally participate in calling for a special shareholder meeting to the fullest extent possible and to clear up any ambiguity on whether street name shares can formally participate in calling for a special shareholder meeting without converting their shares to another class of stock.

One of the main purposes of this proposal is to make sure that all street name shares can count 100% toward the 20% of shares needed to call for a special shareholder meeting.

Currently it takes a theoretical 20% of all shares outstanding to call for a special shareholder meeting.

It then appears that all the shares that are held in street name are 100% disqualified from participating in the calling of a special shareholder meeting. It 50% of Gilead Sciences shares are held in street name then it would take 40% of non-street name shares (20% times 2) to call a special shareholder meeting.

A right for 40% of a limited class of shares to call a special shareholder meeting, and excluding all other shares, is not much of a right for the Board to brag about. Plus Gilead shareholders have a useless right to act by written consent that shareholders would avoid and instead call for a special shareholder meeting. Calling a special shareholder meeting is a less difficult method to put an important issue in front of shareholders compared attempting to acting by written consent – given the cumbersome Gilead written consent rules.

Calling for a special shareholder meeting is hardly ever used by shareholders but the main point of the right to call for a special shareholder meeting is that it gives shareholders at least significant standing to engage effectively with management.

Management will have an incentive to genuinely engage with shareholders, instead of stonewalling, if shareholders have a realistic Plan B option of calling a special shareholder meeting.

Please vote yes:

Special Shareholder Meeting Improvement - Proposal 7

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Our Board Recommends a Vote AGAINST this Proposal.This Proposal

Stockholders Currently Have a Meaningful, Balanced Right to Call a Special Meeting

Board’s View Aligns with Recent Stockholder Votes on this Issue

In 2013, 2014, 2015, 2017, 2018 and 2019,After careful consideration, effective February 6, 2023, our Board carefully considered stockholder proposalsamended our bylaws to permit record holders of shares who own 15% or more of Gilead’s outstanding common stock to call a special meeting. We believe that the right of stockholders to call a special meeting, as provided under our bylaws, strikes an appropriate balance between ensuring that stockholders have a means of calling a stockholders meeting and protecting against the risk that a small minority of stockholders could trigger a special meeting and its associated financial expense and disruption to Gilead’s business.

Requiring Special Meeting Requests to Be Submitted by Stockholders of Record Is Not Unduly Restrictive

It is critical to know with certainty that stockholders requesting a special meeting are, in fact, stockholders. The company’s stock register is the authoritative source for this information. Investors in Gilead are free to choose whether to be holders of record or to hold their Gilead shares in “street name.” The vast majority of investors choose to hold their shares of Gilead common stock in street name due to the various associated benefits, including the enhanced efficiency in the ability to promptly execute open market securities transactions. A “street name” holder who is otherwise eligible and wishes to call a special meeting can do so either by switching holding arrangements to become a holder of record or by requesting that the record holder of such “street name” holder’s shares submit a special meeting request on his or her behalf. There is no restriction on a “street name” stockholder taking either of these steps. Thus, the requirement that a special meeting be called by stockholders recorded as such in the company’s stockholder records does not impose any limitation on a stockholder’s ability to request a special meeting. Accordingly, there is no reason to modify this basic and typical requirement.

In addition, convening a meeting of stockholders imposes significant administrative and operational costs, including preparing required disclosures, printing and distributing materials, soliciting proxies and tabulating votes. A significant amount of attention by our Board, adopt a policy that the Chairpersonmanagement and employees is required to prepare for special meetings, distracting them from their primary focus of the Board be an independent director. In each of those votes, the majority of shares were voted AGAINST the proposals. Our Board continues to believe that stockholder interests are best served when the Board has the flexibility to determine the best person to serve as Chairperson,maximizing long-term financial returns and that the robust duties of our Lead Independent Director provide strong independent Board leadership, and recommends a vote AGAINST this proposal.

The Board Should Have Flexibility to Structure an Appropriate Governance Structure Tailored to the Needs of Gilead

Our Board has the flexibility to designoperating Gilead’s board leadership structure as our Board deems appropriate based on the circumstances at the time. Our Board is comprised of directors with diverse backgrounds, experiences and perspectives, as well as extensive knowledge about Gilead’s business and is best positioned to evaluate the optimal Board leadership structure. Our policy enables our Board to choose a leadership structure that can be tailored to the strengths of Gilead’s officers and directors and best addresses Gilead’s evolving and highly complex business. Departing from Gilead’s current policy would unduly impair our Board’s ability to select the director it believes is best suited to serve as Chairperson based on the circumstances at the time.

Our Board actively reviews this structure to ensure that it continues to serve the best interests of Gilead. As part of this review, the Board incorporates feedback from investors gained through our stockholder engagement efforts. In addition, our Board self-assessment process evaluates the effectiveness of the Board, the Chair’s leadership of the Board and our Lead Independent Director. Our Board has determined that it is currently in the best interests of Gileadstockholders. Because special meetings require a considerable diversion of resources, they should be limited to partnercircumstances where we can clearly identify the stockholders of record that are making the request, evidencing that our verified stockholders believe a powerful Lead Independent Director with our Chair of the Board.

Currently, Having Mr. O’Day as our Chair of the Boardmatter is in the Best Interests of Gilead and its Stockholderssufficiently urgent or extraordinary that it must be addressed between annual meetings.

Our Board believesHas Adopted Governance Structures that itCreate Accountability to Stockholders

In addition, adoption of this proposal is currentlyunnecessary because our Board has already taken significant steps to ensure accountability to stockholders. For example:

We maintain a strong engagement program with our stockholders. Each year, we meet with stockholders who collectively own a significant percentage of Gilead’s outstanding common stock, along with the two largest proxy advisory firms, to solicit their feedback on our corporate governance practices. For instance, during our Fall 2022 engagement program, we met with stockholders collectively holding 47% of Gilead’s outstanding common stock.
In February 2023, in response to requests from our stockholders, we amended our bylaws to reduce the ownership threshold required to call a special meeting of stockholders from 20% to 15% of our outstanding shares of common stock.
We adopted proxy access, which permits a stockholder, or a group of up to 20 stockholders, owning 3% or more of Gilead’s outstanding common stock continuously for at least three years, to nominate and include director nominees constituting up to 20% of the Board (or at least two directors) in Gilead’s proxy materials.
We permit stockholders to act by written consent.
A substantial majority of our directors (eight out of the nine director nominees) are independent.
Our board structure provides strong independent leadership with a Lead Independent Director, whose robust duties empower our independent directors to provide guidance and oversight of management.
We have eliminated all supermajority voting provisions in our certificate of incorporation and bylaws.
Our director nominees are elected annually by majority voting in uncontested elections, with a policy requiring any director who fails to receive at least a majority of the votes cast in an uncontested election to tender his or her resignation to our Board.
Our stockholders have equal voting rights with a single class of stock.

Gilead has consistently demonstrated and maintained strong corporate governance policies and practices. Accordingly, this proposal would not enhance stockholder value and is not in the best interests of Gilead and all of its stockholders for Mr. O’Day to serve as our Chief Executive Officer and Chairman of the Board because it best positions Mr. O’Day to effectively drive future strategy and decision-making for our organization. In addition to public, private and non-profit board experience, Mr. O’Day has a track record of success in highly scientific and competitive therapeutic areas, deep understanding of the evolving healthcare environment around the world and unwavering commitment to driving innovation across all aspects of a business.stockholders.

Our Lead Independent Director and Our Strong Governance Structures Ensure our Board’s Independent Leadership and Accountability

We believe the robust duties of our Lead Independent Director empower our independent directors to provide effective guidance and oversight of management. The role of Lead Independent Director at Gilead is modeled on the role of an independent Chairperson, ensuring a strong, independent and active Board of Directors. As set forth in the Lead Independent Charter adopted by our Board, the Lead Independent Director has clearly delineated and comprehensive duties. These duties include:

Consulting with the Chairperson as to an appropriate schedule of Board meetings, seeking to ensure that the independent directors can perform their duties responsibly while not interfering with ongoing company operations;
Consulting with the Chairperson regarding and approving the information, agenda and schedules of meetings of the Board of Directors and Board committees;
Advising the Chairperson as to the information necessary or appropriate for the independent directors to effectively and responsibly perform their duties and provide feedback on the quality, quantity and timeliness of information submitted by management;
Advising the Board of Directors and its committees on the retention of advisers and consultants who report directly to the Board of Directors;
Calling meetings of the independent directors, as appropriate;

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Serving as chairperson of meetings of the independent directors;
Serving as principal liaison between the independent directors and the Chairperson and between the independent directors and senior management;
Ensuring that independent directors have adequate opportunities to meet and discuss issues in meetings of the independent directors;
Encouraging director participation by fostering an environment of open dialogue and constructive feedback among independent directors;
Communicating to management, as appropriate, the results of private discussions among independent directors;
Chairing meetings of the Board of Directors when the Chairperson is not present;
Facilitating the effective functioning of key Board committees and providing input on functioning of the committees, when required;
Participating on ad-hoc committees established to deal with extraordinary matters, such as investigations and mergers and acquisitions;
Providing guidance on director succession and development;
Ensuring Board agendas provide the Board with the ability to periodically review and provide input on the company’s long-term strategy and to monitor management’s execution of the long term-strategy;
Unless otherwise directed by the Board, serving as the independent directors’ representative in crisis situations;
Monitoring conflicts of interest of all directors, including the Chief Executive Officer;
Participating in succession planning for the Chief Executive Officer and in talent retention and development programs for members of senior management;
Responding to major stockholder and other stakeholder questions and comments that are directed to the Lead Independent Director or to the independent directors as a group, with such consultation with the Chairperson and other directors as the Lead Independent Director may deem appropriate;
Representing independent directors in communications with other stakeholders, as required; and
Performing such other duties as the Board of Directors may from time to time delegate.

In addition, as required by our Board Guidelines, Gilead’s independent directors meet without executive management on a routine basis to review, among other things, Gilead’s strategy, performance, management effectiveness and succession planning.

Finally, Gilead’s strong corporate governance policies and practices provide our independent directors with the ability to effectively oversee our management.

Substantial majority of our directors are independent. Currently, seven out of the eight director nominees are independent.
Fully independent Board committees. All members of the key Board committees—the Audit Committee, the Compensation Committee and the Nominating and Corporate Governance Committee—are “independent” in accordance with or as defined in the rules adopted by the SEC and Nasdaq and Gilead’s own Board Guidelines. This ensures that oversight of critical matters such as the integrity of our financial statements, the compensation of our executive officers, the selection and evaluation of directors and the development of corporate governance principles is entrusted to independent directors.
Annual Board and committee evaluations.Our Lead Independent Director conducts an annual assessment of the Board, the Chair’s Board leadership and committees of the Board to evaluate their effectiveness.
Independent evaluation of Chief Executive Officer performance. Our Compensation Committee, which as previously noted is fully independent, is responsible for performing an annual evaluation of the Chief Executive Officer against his performance objectives.
Ongoing Board refreshment. Our Nominating and Corporate Governance Committee regularly evaluates the Board’s composition to ensure a diversity of perspectives and skill-sets to oversee management’s execution of our strategy.
Ability to consult with external advisers. Our Lead Independent Director has the authority to engage outside advisers and consultants as he deems appropriate to fulfill his responsibilities.
Established corporate governance guidelines. We maintain strong corporate governance policies and practices. Information regarding our corporate governance initiatives, including our Board Guidelines and the charter for each Board committee, can be found on our website at http://www.gilead.com on the Investors page under “Corporate Governance.”

We believe that the interests of our stockholders will be best served by maintaining our Board’s flexibility in determining the board leadership structure that is best suited to the needs of Gilead at any particular time.

Our Board therefore recommends a vote AGAINST this proposal.

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Stockholder Proposals

Proposal 5Stockholder Proposal Requesting that the Board Eliminate the Ownership Threshold for Stockholders to Request a Record Date to Take Action by Written Consent

John Chevedden has submitted a stockholder proposal for consideration at the Annual Meeting. Mr. Chevedden’s address is 2215 Nelson Avenue, No. 205, Redondo Beach, California 90278. We have been notified that Mr. Chevedden has continuously held 100 shares of our common stock since October 1, 2018.

If properly presented at the Annual Meeting, our Board unanimously recommends a vote “AGAINST” the following proposal. The resolution being submitted by Mr. Chevedden to the stockholders for approval is as follows:

Stockholder Proposal

Proposal 5 – Make Shareholder Written Consent a Meaningful Right

Shareholders request that our board of directors take the steps necessary to add these words to our bylaws and revise any other company governance text that is not in conformance with this text:

“Any stockholder of record, seeking to have the stockholders authorize or take corporate action by written consent without a meeting shall, by written notice delivered to the secretary of the corporation, request the board of directors to fix a record date.”

This proposal includes taking the steps necessary to make each change in our governing documents that is needed for consistency with the above quoted text in order that one shareholder can request and receive a written consent record date from the Board. The above quoted words are from the bylaws of a $60 Billion company.

When Gilead Sciences adopted a shareholder right to act by written consent in May 2019 it baked in a hurdle to make written consent not a meaningful right. Our directors made it necessary for 20% of Gilead shares to request a record date. In other words shareholders need the backing of $20 Billion of Gilead shares to simply ask for a record date. And once the owners of $20 Billion of Gilead stock provide management with their contact information then management can pressure shareholders to immediately revoke their written consents.

Thus Gilead Sciences now has a version of written consent that comes with its own poison pill. The above $60 Billion company does not ask that 20% of shares request a record date.

It makes no sense to require 20% of shares ($20 Billion of Gilead shares) to just get started to act by written consent when 3% of our shares can put a proxy access candidate on our annual meeting ballot.

Now is a good time to improve the corporate governance of Gilead after our shares fell from $95 to $65 in the year leading up to the due date of this proposal.

Please vote yes:

Make Shareholder Written Consent a Meaningful Right — Proposal 5

7.
  

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PROPOSAL 8 

OurStockholder Proposal Requesting that the Board unanimously recommends
Establish and Report on
a vote “AGAINST” Proposal 5.

Process to Consider
the Impact of Extended Patent Exclusivities on
Product Access in Deciding Whether to Apply for
Secondary and Tertiary Patents

The Adrian Dominican Sisters and co-filers have submitted a stockholder proposal for consideration at the Annual Meeting. Adrian Dominican Sisters’ address is 1257 East Siena Heights Drive, Adrian, MI 49221. We have been notified that Adrian Dominican Sisters has continuously held shares of our common stock worth at least $2,000 since at least November 16, 2019. We will provide the name, address and known share holdings of the co-filers of this proposal upon written or oral request to the Corporate Secretary at the address set forth in question 17 in “Questions and Answers.”

If properly presented at the Annual Meeting, our Board unanimously recommends a vote “AGAINST” the following proposal. The resolution being submitted by Adrian Dominican Sisters and co-filers to the stockholders for approval is as follows:

Stockholder Proposal

RESOLVED, that shareholders of the Gilead Sciences Inc. (“Gilead”) ask the Board of Directors to establish and report on a process by which the impact of extended patent exclusivities on product access would be considered in deciding whether to apply for secondary and tertiary patents. Secondary and tertiary patents are patents applied for after the main active ingredient/molecule patent(s) and which relate to the product. The report on the process should be prepared at reasonable cost, omitting confidential and proprietary information, and published on Gilead’s website.

Supporting Statement

Access to medicines, especially costly specialty drugs, is the subject of consistent and widespread public debate in the U.S. A 2021 Rand Corporation analysis concluded that U.S. prices for branded drugs were nearly 3.5 times higher than prices in 32 OECD member countries.1 The Kaiser Family Foundation has “consistently found prescription drug costs to be an important health policy area of public interest and public concern.”2

This high level of concern has driven policy responses. The Inflation Reduction Act empowers the federal government to negotiate some drug prices.3 State measures, including drug price transparency legislation, copay caps, and Medicaid purchasing programs, have also been adopted.4 The House Committee on Oversight and Reform (the “Committee”) launched a far-reaching investigation into drug pricing in January 2019.5

Intellectual property protections on branded drugs play an important role in maintaining high prices and impeding access. When a drug’s patent protection ends, generic manufacturers can enter the market, reducing prices. But branded drug manufacturers may try to delay competition by extending their exclusivity periods.

Among the abuses described by the Committee’s December 2021 report is construction of a “patent thicket,” which consists of many “secondary patents covering the formulations, dosing, or methods of using, administering, or manufacturing a drug”; they are granted after the drug’s primary patent, covering its main active ingredient or molecule, has been granted.6 In June 2022, citing the impact of patent thickets on drug prices, a bipartisan group of Senators urged the U.S. Patent and Trademark Office to “take regulatory steps to . . . eliminate large collections of patents on a single invention.”

Gilead markets hepatitis C treatments Sovaldi and Harvoni, whose costs are so high that public payors have had to limit access. Senator Elizabeth Warren publicly criticized Gilead for erecting a thicket of “questionable” patents around these drugs.7

1https://www.rand.org/news/press/2021/01/28.html
2https://www.kff.org/health-costs/poll-finding/public-opinion-on-prescription-drugs-and-their-prices/
3https://www.kff.org/medicare/issue-brief/explaining-the-prescription-drug-provisions-in-the-inflation-reduction-act/
4https://www.americanprogress.org/article/state-policies-to-address-prescription-drug-affordability-across-the-supply-chain/
5tps://oversight.house.gov/sites/democrats.oversight.house.gov/files/DRUG%20PRICING%20REPORT%20WITH%20APPENDIX%20v3.pdf, at i.
6https://oversight.house.gov/sites/democrats.oversight.house.gov/files/DRUG%20PRICING%20REPORT%20WITH%20APPENDIX%20v3.pdf, at 79.
7https://www.warren.senate.gov/imo/media/doc/2021.06.04%20Letter%20to%20CEO%20of%20Gilead%20re%20Subcommittee%20Hearing%20.pdf
  
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In our view, a process that considers the impact of extended exclusivity periods on patient access would ensure that Gilead considers not only whether it can apply for secondary and tertiary patents but also whether it should do so. Gilead’s current approach subjects the company to reputational risks and potential regulatory blowback resulting from high drug prices and perceptions regarding abusive patenting practices.

Our Board Recommends a Vote AGAINST this Proposal.This Proposal

While we share the proponents’ concern regarding the importance of maintaining patient access to medicines and the risks associated with perceived abuses of the patent system, we believe patents and patient access are not at odds with each other.

The Threshold Protects Stockholdersproposal, with its focus on patent exclusivities and Alignsdiscouraging so-called secondary or tertiary patents, would not advance the interests of Gilead or our stakeholders in the goal of providing improved patient access to medicine. Instead, it could hinder the necessary innovation behind the company’s core mission — to discover, develop and deliver innovative therapeutics for people with Stockholder Feedback

life-threatening diseases. In addition, Gilead provides stockholders withis already committed to increasing access to medicine, even for medications currently under patent exclusivity, as further described below.

Patent Protection Incentivizes Innovation and Encourages Further Research and Development of Life-Changing Medicines

We take a responsible approach to patents and intellectual property protection, and we strongly believe that the rightexclusivity protection granted by patents, which is only for a limited time, incentivizes innovation, encourages further research and development of life-changing medicines and ultimately enables our efforts to take action between annual meetings by calling a special meeting or acting by written consent. In either case, a stockholder (or a groupensure access to our medicines. We also believe that, as the innovator and patent holder, we can more easily ensure that potentially dangerous counterfeit products are kept off the market and more carefully manage the supply chain for the product.

All of stockholders) must own 20%Gilead’s patents represent innovations that advance therapies for patients and are integral to support the protection of our outstanding common stockintellectual property and long-term stockholder value. Gilead will often have multiple patents for a medicine, but these patents cover aspects of the medicine that have required separate innovation and investment. There is more to initiatea medicine than just the process. This ownership threshold protectsactive ingredient or compound. For example, there may be separate new inventions for ways to deliver the compound to a target, ways of using the compound or ways of making a compound. Any patents covering these types of inventions are sometimes referred to as secondary or tertiary patents in relation to the initial patent for the active ingredient or compound. However, these are all patents and have the same requirements for being granted. These so-called secondary or tertiary patents would not be granted unless the national patent office[s] determine[s] that they cover new and non-obvious inventions. After a patent on the active ingredient or compound in a medication expires, others would not be excluded from making or using the active ingredient or compound just because there are secondary or tertiary patents related to the medication.

Gilead Already Has Robust Board Oversight over Our Access Strategy

Access to medicine is core to our purpose and is taken very seriously by our Board and management. Our Board oversees Gilead’s research and development strategy as well as its commercial and access strategy and the related operational execution and risks of those strategies. Our Board also has direct oversight over patent- and access-related risk topics and regularly receives and reviews reports from management on risks and other aspects of our business, including potential reputational or regulatory risks from our patent practices.

Gilead Already Supports Many Programs to Increase Patient Access to Our Medications

We support programs to increase patient access even while our medicines remain under patent exclusivity. For example, our Access to Medicines programs help people overcome barriers to treatment in more than 140 low- and middle-income countries. These programs expand disease awareness, address stigma and support front-line services and care, including through tiered pricing with discounts based on disease burden and national per-capital income. In addition, we have a long track record of licensing HIV patents to companies that produce generic medicines for distribution in low-income countries. In the U.S., our patient support programs help ease the burden that a complex and difficult-to-manage healthcare landscape can place on patients and families. Our patient support programs provide improved access to medicines, such as co-pay assistance and counseling across our therapeutic areas. We have received recognition from the U.S. Patent and Trademark Office for our efforts relating to our patents and improving patient access, including receipt of a 2022 Patents for Humanity award for development of our product remdesivir to treat COVID-19 and our related expanded access efforts throughout the world that allowed companies to manufacture generic remdesivir for distribution in 127 countries.

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Conclusion

Integral to our business as a developer and manufacturer of innovative medicines and our Board’s fiduciary duties is an obligation to protect our intellectual property. The proposal would potentially work against these purposes to the detriment of the company and all of our stockholders fromstakeholders. While we share the potential for abuse, and the imposition of significant costs on Gilead, if the ownership threshold was set too low. In 2018, we engaged in substantial stockholder outreach on this question, and in 2019 our stockholders overwhelmingly approved a written consent right that includes this 20% ownership threshold. Accordingly, our Board believes that it is in the best interests of stockholders to retain the safeguard proved by the 20% threshold to initiate action by written consent.

Stockholder Engagement on Written Consent Ownership Threshold

In connection with our 2018 annual meeting, we received a stockholder proposal requesting that the Board take the necessary steps to allow stockholders to act by written consent. Of the votes cast, approximately 50.9% supported the proposal (representing approximately 37.1% of our outstanding shares). In 2018, the Board recommended voting against this stockholder proposal, as we already provided stockholders with the right to act between annual meetings through the power to call a special meeting. In addition, our Board had concernsproponents’ concern regarding the potential abuseimportance of a rightpatient access to act by written consent, since such a right could lead to significant actions being approved without giving all stockholders adequate notice and the opportunity to express their views at an open stockholder meeting. Our Board remains concerned about the disruptive effect a consent solicitation could have on the Board’s and stockholders’ ability to thoroughly consider significant corporate actions and possible alternatives.

Consistent with our commitment to soliciting and considering feedback from stockholders, in fall 2018, as part of our ongoing engagement efforts,medication, we solicited specific feedback from our stockholders related to the 2018 written consent proposal and how we could amend our Certificate of Incorporation to authorize stockholders to act by written consent in a way that protects and is in the best interest of all stockholders. We contacted stockholders representing 38% of our shares outstanding. Of those that we contacted, 19 stockholders, representing 29% of our outstanding shares met with us in person or by phone. We also met with the two largest proxy advisory firms.

Many of our large institutional stockholders with whom we engaged expressed the view that the right to act by written consent was unnecessary in light of our existing stockholder rights, including the right to call special meetings, for which some expressed a preference. Nevertheless, they encouraged us to be responsive to the majority-supported stockholder proposal by adopting a written consent right. Nearly all the stockholders expressed concerns that the written consent process could be subject to abuse absent adequate procedural safeguards, or were otherwise supportive of reasonable safeguards to prevent abuse while also making the right usable under the appropriate circumstances.

Among various procedural safeguards, the most commonly discussed safeguard during our stockholder engagement was the minimum percentage of our shares that a stockholder (or a group of stockholders) must own in order to initiate the written consent process. Stockholders were universally supportive of implementing such a threshold. Holders of approximately 90% of the shares reached through our engagement efforts supported a 20% threshold to match our existing 20% threshold for calling a special meeting. These stockholders expressed concerns about the possibility for abuse if the percentage was set too low, potentially covering agenda items relevant to particular constituencies as opposed to stockholders generally, with attendant significant cost, management distraction and diversion of management and financial resources. After careful consideration of the feedback we heard from our stockholders, our Board determined to set the threshold to request a record date for action by written consent at 20% of our outstanding shares of Common Stock to be responsive to feedback we heard from our stockholders and to match the current 20% threshold that is required for stockholders to call a special meeting.

Stockholders Supported the Ownership Threshold

Stockholders overwhelmingly approved the amendment to our Certificate of Incorporation regarding written consent, including the 20% threshold to initiate the written consent process. At the 2019 annual meeting, the amendment received the votes of approximately 98.6% of votes cast (representing approximately 73.0% of our outstanding shares).

We believe that the interestspatent system ultimately encourages the continued innovation of medications to be made available to patients, including in relation to secondary or tertiary patents. In addition, Gilead has demonstrated a strong commitment to programs designed to increase patient access to our stockholders will be best served by maintaining the 20% ownership threshold to request the setting of a record date to initiate the written consent process.medications, even while still under an exclusive patent.

Our Board therefore recommends a vote AGAINST this proposal.

2020 Proxy Statement81Our Board unanimously recommends a vote “AGAINST” Proposal 8.

 
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Stock Ownership Information

Security Ownership of Certain Beneficial Owners and Management

The following table sets forth certain information regarding the ownership of our common stock by: (i) each beneficial owner of more than 5% of our common stock known to us, as of December 31, 2019;2022; and (ii) each director and nominee for director, each of the individuals named in the Summary Compensation Table on page 6569 and all of our current executive officers and directors as a group, as of February 28, 20202023 (unless otherwise noted). The applicable percentages are based on 1,246,515,957 shares of common stock outstanding on February 28, 2023, adjusted as required by the rules promulgated by the SEC.

   Beneficial Ownership(1)
Beneficial Owner Number of Shares Percent of Total
Blackrock, Inc.  106,473,594(2)  8.45%
The Vanguard Group  103,771,848(3)  8.23%
Capital Research Global Investors  85,132,885(4)  6.75%
Gregg H. Alton  469,158(5)  * 
Jacqueline K. Barton, Ph.D.  34,241(6)  * 
John F. Cogan, Ph.D.  167,740(7)  * 
Andrew D. Dickinson  161,932(8)  * 
Laura J. Hamill  133,071(9)  * 
Sandra J. Horning, M.D.  959(10)  * 
Kelly A. Kramer  35,708(11)  * 
Kevin E. Lofton  177,739(12)  * 
Harish Manwani  20,249(13)  * 
John G. McHutchison, M.D.  319,645(14)  * 
Johanna Mercier  0   * 
Daniel P. O’Day  57,820(15)  * 
Merdad V. Parsey, M.D., Ph.D.  0   * 
Brett A. Pletcher  248,664(16)  * 
Robin L. Washington  442,223(17)  * 
Richard J. Whitley, M.D.  118,578(18)  * 
Gayle E. Wilson  417,942(19)  * 
Per Wold-Olsen  168,732(20)  * 
All current executive officers and directors as a group (14 persons)  1,610,304(21)  0.13%

Beneficial Ownership(1)
Beneficial OwnerNumber of Shares   Percent of Total
BlackRock, Inc.131,555,769(2)10.55%
The Vanguard Group112,038,324(3)8.99%
Capital World Investors68,900,998(4)5.52%
Jacqueline K. Barton, Ph.D.82,208(5)*
Jeffrey A. Bluestone, Ph.D.42,103(6)*
Andrew D. Dickinson510,271(7)*
Sandra J. Horning, M.D.43,983(8)*
Kelly A. Kramer77,072(9)*
Kevin E. Lofton191,112(10)*
Harish Manwani69,241(11)*
Johanna Mercier329,414(12)*
Daniel P. O’Day958,278(13)*
Merdad V. Parsey, M.D., Ph.D.278,484(14)*
Deborah H. Telman376     *
Javier J. Rodriguez45,688(15)*
Anthony Welters44,269(16)*
All current executive officers and directors as a group (13 persons)2,672,499(17)*

*Less than 1% of the outstanding shares of our common stock.
(1)This table is based upon information supplied by our directors and officers and a Schedule 13G/A filed with the SEC by Blackrock,BlackRock, Inc. (“Blackrock”BlackRock”), a Schedule 13G/A filed with the SEC by The Vanguard Group (“Vanguard”) and, a Schedule 13G/A filed with the SEC by Capital Research Global Investors, (“and a Schedule 13G/A filed with the SEC by Capital Group”).World Investors. Unless otherwise indicated in the footnotes to this table, and subject to community property laws where applicable, we believe each of the stockholders named in this table has sole voting and investment power with respect to the shares indicated as beneficially owned. Except with respect to the percentages listed for Blackrock, Vanguard and Capital Group, applicable percentages are based on 1,260,471,308 shares of common stock outstanding on February 28, 2020, adjusted as required by the rules promulgated by the SEC.
(2)Based solely on information set forth in a Schedule 13G/A filed with the SEC on February 5, 2020January 31, 2023 by BlackrockBlackRock reporting sole voting power over 91,797,971121,231,315 shares and sole dispositive power over 106,473,594131,555,769 shares. The address of BlackrockBlackRock is 55 East 52nd Street, New York, New York 10055.
(3)Based solely on information set forth in a Schedule 13G/A filed with the SEC on February 12, 20209, 2023 by Vanguard reporting sole voting power over 1,894,772 shares, shared voting power over 365,9171,811,013 shares, sole dispositive power over 101,623,014106,634,244 shares and shared dispositive power over 2,148,8345,404,080 shares. The address of Vanguard is 100 Vanguard Boulevard, Malvern, Pennsylvania 19355.
(4)Based solely on information set forth in a Schedule 13G/A13G filed with the SEC on February 14, 202013, 2023 by Capital GroupWorld Investors reporting sole voting power over 85,131,26868,772,576 shares and sole dispositive power over 85,132,88568,900,998 shares. The address of Capital GroupWorld Investors is 333 South Hope Street, 55th Floor, Los Angeles, California 90071.
(5)As of October 4, 2019, the date on which Mr. Alton separated as our Chief Patient Officer. Includes 428,601 shares subject to stock options exercisable within 60 days of October 4, 2019.
(6)Includes 20,50161,865 shares subject to stock options exercisable within 60 days of February 28, 2020.2023.
(7)(6)Includes 112,88036,395 shares subject to stock options exercisable within 60 days of February 28, 2020.2023.

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Stock Ownership Information

(8)(7)Includes 155,759433,120 shares subject to stock options exercisable within 60 days of February 28, 2020.
(9)As2023 and 10,419 shares issuable upon settlement of July 1, 2019, the date on which Ms. Hamill separated as our Executive Vice President Worldwide Commercial Operations. Includes 87,680 shares subject torestricted stock options exercisableunits that will vest within 60 days of July 1, 2019.February 28, 2023.
(10)(8)Includes 95942,239 shares subject to stock options exercisable within 60 days of February 28, 2020.2023.
(11)(9)Includes 34,36975,733 shares subject to stock options exercisable within 60 days of February 28, 2020.2023.
(12)(10)Includes 91,16095,920 shares subject to stock options exercisable within 60 days of February 28, 2020.2023 and 95,192 shares held in trust.
(13)(11)Includes 18,38259,746 shares subject to stock options exercisable within 60 days of February 28, 2020.2023.
(14)As of August 2, 2019, the date on which Dr. McHutchison separated as our Chief Scientific Officer and Head of Research and Development. Includes 295,334 shares subject to stock options exercisable within 60 days of August 2, 2019.
(15)(12)Includes 57,820281,761 shares subject to stock options exercisable within 60 days of February 28, 2020.2023 and 10,976 shares issuable upon settlement of restricted stock units that will vest within 60 days of February 28, 2023.
(16)(13)Includes 236,150677,231 shares subject to stock options exercisable within 60 days of February 28, 2020.
(17)As2023 and 41,650 shares issuable upon settlement of October 31, 2019, the date on which Ms. Washington separated as our Executive Vice President and Chief Financial Officer. Includes 324,900 shares subject torestricted stock options exercisableunits that will vest within 60 days of October 31, 2019 and 117,323 shares held in trust.February 28, 2023.
(18)(14)Includes 91,160224,644 shares subject to stock options exercisable within 60 days of February 28, 2020.2023 and 11,454 shares issuable upon settlement of restricted stock units that will vest within 60 days of February 28, 2023.
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Stock Ownership Information

(15)Includes 91,16039,183 shares subject to stock options exercisable within 60 days of February 28, 2020, and 200,000 shares held in trust.2023.
(20)(16)Includes 70,87838,234 shares subject to stock options exercisable within 60 days of February 28, 2020.2023.
(21)(17)Includes an aggregate of 981,1782,066,071 shares subject to stock options exercisable by directors and current executive officers and directors within 60 days of February 28, 2020.

2020 Proxy Statement832023 and 74.499 shares issuable upon settlement of restricted stock units that will vest within 60 days of February 28, 2023.

Delinquent Section 16(a) Reports

Section 16(a) of the Exchange Act requires our directors and certain officers, among others, to file forms with the SEC to report their ownership of our stock and any changes in ownership. Based on our review of reports filed with the SEC and related written representations, we believe that all of the required reports for our directors and officers were filed on a timely basis under Section 16(a) for 2022, except as follows:

On March 15, 2022, a Form 4 on behalf of Mr. Dickinson to report (1) the grant of restricted stock units and stock options and (2) the vesting and payment of tax liability of previously issued restricted stock units, was filed one day late.
 
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Other Information

Householding of Proxy Materials

The SEC has adopted rules that permit companies and intermediaries (e.g., brokers) to satisfy the delivery requirements for Notices of Internet Availability of Proxy Materials or other Annual Meeting materials with respect to two or more stockholders sharing the same address by delivering a single Notice or other Annual Meeting materials addressed to those stockholders. This process, which is commonly referred to as householding, potentially provides extra convenience for stockholders and cost savings for companies.

This year, a number of brokers with account holders who are our stockholders will be “householding” our proxy materials. A Notice will be delivered in one single envelope to multiple stockholders sharing an address unless contrary instructions have been received from the affected stockholders. Once you have received notice from your broker that they will be “householding” communications to your address, “householding” will continue until you are notified otherwise or until you revoke your consent. If you hold your shares through a broker and would prefer to receive a separate Notice, please notify your broker. If you hold your shares directly and would prefer to receive a separate Notice, please submit a written request to Gilead Sciences, Inc., Attention: Investor Relations, 333 Lakeside Drive, Foster City, California 94404 or contact Broadridge Financial Solutions, Inc. at (866) 540-7095. Stockholders who currently receive multiple copies of the Notice at their address and would like to request “householding” of their communications should contact their broker. In addition, we will promptly deliver, upon written or oral request to the address or telephone number above, a separate copy of the Notice to a stockholder at a shared address to which a single copy of the documents was delivered.

By Order of the Board of Directors,Deborah H. Telman

 

BRETT A. PLETCHER

Corporate Secretary

March 24, 202023, 2023

A copy of our Annual Report on Form 10-K for the year ended December 31, 20192022 is available without charge upon written request to Investor Relations, Gilead Sciences, Inc., 333 Lakeside Drive, Foster City, California 94404 or by accessing a copy through Gilead’s website at http://www.gilead.com on the Investors page under “SEC“Financials - SEC Filings.”

Other Legal Matters

Forward-Looking Statements

Statements included in this Proxy Statement that are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Gilead cautions readers that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are identified from time to time in Gilead’s reports filed with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. All forward-looking statements are based on information currently available to Gilead, and Gilead assumes no obligation to update or supplement any such forward-looking statements other than as required by law. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statements.

Website References

Website references are provided throughout this document for convenience. The content on the referenced websites does not constitute part of and is not incorporated by reference into this, including our inaugural ESG Report, Proxy Statement.

Use of Trademarks

We own or have rights to various trademarks, copyrights and trade names used in our business, including the following: GILEAD®, GILEAD SCIENCES®, KITE™, AMBISOME®, ATRIPLA®, BIKTARVY®, CAYSTON®, COMPLERA®, DESCOVY®, DESCOVY FOR PREP®, EMTRIVA®, EPCLUSA®, EVIPLERA®, GENVOYA®, HARVONI®, HEPCLUDEX®, HEPSERA®, JYSELECA®, LETAIRIS®, ODEFSEY®, RANEXA®, SOVALDI®, STRIBILD®, SUNLENCA®, TECARTUS®, TRODELVY®, TRUVADA®, TRUVADA FOR PREP®, TYBOST®, VEKLURY®, VEMLIDY®, VIREAD®, VOSEVI®, YESCARTA® and ZYDELIG®. This report also refers to trademarks, service marks and trade names of other companies, which are the property of their respective owners.

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Questions and Answers

1.Why did I receive a notice regarding the availability of proxy materials on the Internet?

Pursuant to rules adopted by the SEC, we have elected to provide access to our proxy materials primarily over the Internet. Accordingly, we are sending a Notice of Internet Availability of Proxy Materials (the “Notice”) to our stockholders of record. This approach conserves natural resources and reduces our costs of printing and distributing our proxy materials, while providing stockholders with a convenient way to access our proxy materials. All stockholders will have the ability to access the proxy materials on the website referred to in the Notice or to request a printed set of the proxy materials, including a proxy card. Instructions on how to access the proxy materials over the Internet or to request a printed copy may be found in the Notice.

2.How may I obtain a copy of Gilead’s Annual Report on Form 10-K and other financial information?

A copy of our 20192022 Annual Report which includes ouron Form 10-K for the year ended December 31, 2019,2022 is available at http://www.gilead.com/proxyinvestors.gilead.com/annual-meeting or may be requested from our Investor Relations department as described elsewhere in this Proxy Statement. Our 20192022 Annual Report is not incorporated into this Proxy Statement and should not be considered proxy solicitation material.

3.Who is entitled to vote at the Annual Meeting?

Only holders of our common stock at the close of business on March 13, 202015, 2023 are entitled to receive the Notice of Annual Meeting and to vote their shares at the Annual Meeting. As of that date, there were 1,259,015,1701,248,816,053 shares of common stock outstanding and entitled to vote. Each share of common stock is entitled to one vote on each matter to be voted upon at the Annual Meeting.

4.What do I need to do toWho can attend the Annual Meeting in person?Meeting?

The Annual Meeting will be held virtually by webcast. Only holders of our common stock at the close of business on March 13, 202015, 2023 or holders of a valid legal proxy for the Annual Meeting are entitled to attendvote and ask questions during the Annual Meeting. Each individualTo be admitted to the Annual Meeting at www.virtualshareholdermeeting.com/GILD2023, you must present valid government-issued photo identification, such as a driver’s license or passport, for admission.enter the 16-digit control number printed on your Notice. If you are not a beneficial stockholder, of record but hold shares in the name of ayou may contact your broker, bank or other holder of record,institution where you must provide proof of beneficial ownership as of March 13, 2020, such as a brokerage or bankhold your account statement, a copyif you have questions about obtaining your control number.

We have designed the format of the voting instruction form provided by your broker, bank, trusteeAnnual Meeting to ensure that stockholders are afforded similar rights and opportunities to participate as they would at an in-person meeting. We will also make the Annual Meeting viewable to anyone interested in a webcast at www.virtualshareholdermeeting.com/GILD2023. Interested persons who were not stockholders at the close of business on March 15, 2023 may view the webcast as guests, but will not be able to vote or nominee,ask questions during the meeting.

5.What if I need technical assistance?

Beginning 30 minutes prior to the start of and during the Annual Meeting, there will be a support team ready to assist stockholders with any technical difficulties they may have accessing or other similar evidencehearing the virtual meeting. If you encounter any difficulties accessing the virtual meeting during the check-in or meeting time, you should call the support team listed on the virtual meeting website at www.virtualshareholdermeeting.com/GILD2023.

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Questions and Answers

We are actively monitoring the public health and travel safety concerns relating to the coronavirus (COVID-19) and the advisories or mandates that federal, state and local governments, and related agencies, may issue. In the event it is not possible or advisable to hold the Annual Meeting as currently planned, we will publicly announce any additional or alternative arrangements for the meeting on our Investors page athttp://investors.gilead.com/annual-meeting, which may include a change in venue or holding the meeting solely by means of remote communication. If we decide to hold the Annual Meeting solely by means of remote communication, the meeting will occur at the date and time specified on our “Notice of Annual Meeting of Stockholders” on page 3, via live audio webcast, and you or your proxyholder will be able to participate, vote and examine our stockholder list by visitingeast.virtualshareholdermeeting.com/GILD2020 and using your 16-digit control number. If you are planning to attend the Annual Meeting, please check our Investors page the week of the meeting. As always, we encourage you to vote your shares prior to the Annual Meeting.

5.6.What items of business will be voted on at the Annual Meeting?

The items of business scheduled to be voted on at the Annual Meeting are:

toTo elect the eightnine director nominees named in this Proxy Statement to serve for the next year and until their successors are elected and qualified;
  
toTo ratify the selection of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2020;2023;
  
toTo approve, on an advisory basis, the compensation of our Named Executive Officers as presented in this Proxy Statement;
  
toTo approve, on an advisory basis, the frequency of future advisory stockholder votes on executive compensation;
To approve an amendment and restatement of the Gilead Sciences, Inc. Employee Stock Purchase Plan and the Gilead Sciences, Inc. International Employee Stock Purchase Plan;
To vote on a stockholder proposal, if properly presented at the meeting, requesting that the Board adoptimplement a policy thatprocess to nominate at least one more candidate than the Chairpersonnumber of the Board of Directorsdirectors to be an independent director; andelected;
  
toTo vote on a stockholder proposal, if properly presented at the meeting, requesting that the Board eliminateamend the ownership thresholdcompany governing documents to give street name shares and non-street name shares an equal right to call a special stockholder meeting; and
To vote on a stockholder proposal, if properly presented at the meeting, requesting a report on a process by which the impact of extended patent exclusivities on product access would be considered in deciding whether to apply for stockholders to request a record date to take action by written consent.

2020 Proxy Statement85secondary and tertiary patents.

Questions and Answers

We also will consider any other business that properly comes before the Annual Meeting. See question 11,12, “Could other matters be decided at the Annual Meeting?” below.on page 104.

6.7.How does the Board recommend that I vote?

Our Board recommends that you vote your shares:

“FOR” each of the eightnine director nominees named in this Proxy Statement;
  
“FOR” the ratification of the selection of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2020;2023;
  
“FOR” the approval, on an advisory basis, of the compensation of our Named Executive Officers as presented in this Proxy Statement;
  
“1 YEAR,” on an advisory basis, for the frequency of future advisory stockholder votes on executive compensation;
“FOR” the approval of amendment and restatement of the Gilead Sciences, Inc. Employee Stock Purchase Plan and the Gilead Sciences, Inc. International Employee Stock Purchase Plan;
“AGAINST” the stockholder proposal requesting that the Board adoptimplement a policy thatprocess to nominate at least one more candidate than the Chairpersonnumber of directors to be elected;
“AGAINST” the stockholder proposal requesting the Board of Directors beamend the company governing documents to give street name shares and non-street name shares an independent director;equal right to call a special stockholder meeting; and
  
“AGAINST” the stockholder proposal requesting thata report on a process by which the Board eliminate the ownership thresholdimpact of extended patent exclusivities on product access would be considered in deciding whether to apply for stockholders to request a record date to take action by written consent.secondary and tertiary patents.


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8.What are the voting requirements to elect the directors and to approve each of the proposals discussed in this Proxy Statement?

A quorum of stockholders is necessary to hold a valid meeting. A quorum will be present if a majority of the outstanding shares is represented by votes present at the meeting in person or by proxy. Shares represented by proxies marked “abstain” and “broker non-votes” are counted in determining whether a quorum is present.

Proposal     Vote Required
Proposal 1 – Election of the eightnine director nominees named in this Proxy Statement to serve for the next year and until their successors are elected and qualified. Majority of votes cast (number of shares voted “for” a director must exceed the number of shares voted “against” that director).
Proposal 2 – Ratification of the selection of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2020.2023. Majority of the shares entitled to vote on the proposal and present in person or represented by proxy.
Proposal 3 – Approval, on an advisory basis, of the compensation of our Named Executive Officers as presented in this Proxy Statement. Majority of the shares entitled to vote on the proposal and present in person or represented by proxy.
Proposal 4 – VoteApproval, on a stockholder proposal, if properly presented at the meeting, requesting that the Board adopt a policy that the Chairpersonan advisory basis, of the Boardfrequency of Directors be an independent director.future advisory stockholder votes on executive compensation. Majority of the shares entitled to vote on the proposal and present in person or represented by proxy.
Proposal 5 – Approval of the Gilead Sciences, Inc. Employee Stock Purchase Plan and the Gilead Sciences, Inc. International Employee Stock Purchase PlanThe frequency receiving the most votes will be considered the recommendation of stockholders.
Proposal 6 – Vote on a stockholder proposal, if properly presented at the meeting, requesting that the Board eliminateimplement a process to nominate at least one more candidate than the ownership thresholdnumber of directors to be elected.Majority of the shares entitled to vote on the proposal and present in person or represented by proxy.
Proposal 7 – Vote on a stockholder proposal, if properly presented at the meeting, requesting the Board amend the company governing documents to give street name shares and non-street name shares an equal right to call a special stockholder meetingMajority of the shares entitled to vote on the proposal and present in person or represented by proxy.
Proposal 8 – Vote on a stockholder proposal, if properly presented at the meeting, requesting a report on a process by which the impact of extended patent exclusivities on product access would be considered in deciding whether to apply for stockholders to request a record date to take action by written consent.secondary and tertiary patents Majority of the shares entitled to vote on the proposal and present in person or represented by proxy.

If your shares are held by a broker and you do not indicate how you wish to vote, your broker is permitted to exercise its discretion to vote your shares only on certain “routine” matters. Proposal 2 is a “routine” matter. As a result, your broker is permitted to exercise discretionary voting authority to vote your shares for this proposal. Your broker may not exercise discretionary voting authority and may not vote your shares with respect to the other proposals unless you provide your broker with voting instructions. This is known as a “broker non-vote.”

With respect to ProposalProposals 1 and 4, abstentions will have no effect on the outcome of the vote. With respect to Proposals 2, 3 4 and 5,5-8, abstentions will have the same effect as an “against” vote. “Broker non-votes” will have no effect on the outcome of the vote for Proposals 1-5.1-8.

9.
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Questions and Answers

8.How do I Vote?vote?

You may vote in person by attending the meeting or by completing and returning a proxy by mail or voting your shares by Internet or telephone or electronically usingby 11:59 p.m., Eastern Daylight Time, on May 2, 2023. You may also vote by Internet during the Internet. Annual Meeting.

If your shares are registered directly in your name with Gilead’s transfer agent, Computershare, you are considered a “stockholder of record.” If your shares are held in a stock brokerage account or by a bank or other nominee, you are considered the beneficial owner of shares held in “street name.” Most beneficial owners whose stock is held in the name of a bank, broker or other nominee receive instructions for how to vote their shares from their banks, brokers or other nominees, rather than our proxy card. You can vote your shares held through a bank, broker or other nominee by following the voting instructions sent to you by that institution.

By mail before the Annual Meeting

To vote your proxy by mail, be sure to complete, sign and date the proxy card (if you request one) or voting instruction card that may be delivered to you and return it in the envelope provided. We will vote your shares as directed. However, if you return your signed proxy card but do not indicate your voting preferences, the persons named on the proxy card will vote the shares represented by that proxy as recommended by our Board.

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By Internet or telephone before the Annual Meeting

Stockholders may vote their shares using theby Internet or telephone.telephone before the Annual Meeting. The law of the State of Delaware, under which we are incorporated, specifically permits electronically transmitted proxies so long as each such proxy contains or is submitted with information from which the inspector of election can determine that such proxy was authorized by the stockholder. The Internet and telephone voting procedures below are designed to authenticate stockholders’ identities to allow stockholders to vote their shares and to confirm that stockholders’ instructions have been recorded properly. Stockholders voting shares via the Internet should understand that there may be costs associated with electronic access, such as usage charges from Internet access providers and telephone companies, which must be borne by the stockholder.

Stockholders of record may go to http://www.proxyvote.com to vote their shares. You will be required to provide the control number printed on your Notice. The votes represented by such proxy will be generated on the computer screen and the voter will be prompted to submit or revise them as desired. Stockholders of record who requested paper copies of the proxy materials and are using a touch-tone telephone may vote their shares by calling (800) 690-6903 and following the recorded instructions.

A number of brokers and banks are participating in a program that offers the ability to vote shares over the telephone and Internet. Street name holders may vote on the Internet by accessing http://www.proxyvote.com. You will be required to provide the control number printed on your Notice. Street name holders who requested paper copies of the proxy materials and are using a touch-tone telephone may vote their shares by calling (800) 454-8683 and following the recorded instructions.

Internet and telephone voting for stockholders of record and street name holders will be available 24 hours a day, and will close at 11:59 p.m., Eastern Daylight Time, on May 5, 2020.2, 2023. Submitting your proxy via the Internet or by telephone will not affect your right to vote in person should you decide to attend the Annual Meeting.

In person atBy Internet during the Annual Meeting*Meeting

Stockholders may vote in person attheir shares by Internet during the Annual Meeting. WhetherPlease follow the instructions at www.virtualshareholdermeeting. com/GILD2023 to vote or not a stockholder planssubmit questions during the meeting. You will be required to provide the control number printed on your Notice to enter the virtual meeting. The Internet voting procedures are designed to authenticate stockholders’ identities to allow stockholders to vote their shares and to confirm that stockholders’ instructions have been recorded properly.

Even if you plan to attend the meeting, the stockholder shouldAnnual Meeting, we encourage you to vote your shares promptly by mail, Internet or telephone to ensure his or her vote is counted.in advance of the Annual Meeting. A stockholder may still attend the meeting and vote in personduring the meeting if he or she has already voted by one of these methods. ToAny vote in person, a stockholder may come to the Annual Meeting and we will provide the stockholder with a ballot when he or she arrives. The ballot submitted atduring the meeting would supersede any prior vote.

If you are a beneficial owner of shares, you must also obtain a legal proxy from your bank, broker or other nominee and present it to the inspector of election with your ballot to be able to vote at the Annual Meeting.

*Please also see the notice relating to coronavirus (COVID-19) under question 4, “What do I need to do to attend the Annual Meeting in person?” on page 85.

Your vote is important. You can save us the expense of a second mailing of proxy materials by voting promptly.


2020 Proxy Statement10.87Is there a list of registered stockholders entitled to vote at the Annual Meeting?

As required by Delaware law, the names of registered stockholders entitled to vote at the Annual Meeting (the “list”) will be available for 10 days prior to the meeting for any purpose germane to the meeting, between the hours of 10:00 a.m. and 4:00 p.m., Pacific Daylight Time, at our principal executive offices at 333 Lakeside Drive, Foster City, CA 94404 by contacting our Corporate Secretary. Registered stockholders must make an appointment and must comply with the company’s visitation protocols.

The list will be available during the meeting, and through the conclusion of the meeting, on the virtual meeting website at www.virtualshareholdermeeting.com/GILD2023. Only those persons logging into the meeting as a registered stockholder will be able to access the list.

Questions and Answers

9.What can I do if I change my mind after I vote my shares?

Any stockholder giving a proxy pursuant to this solicitation has the power to revoke it at any time before the shares are voted.

If you are a stockholder of record, you can revoke your proxy before it is exercised by:

submitting a written notice to our Corporate Secretary at our principal executive offices, 333 Lakeside Drive, Foster City, California 94404;
  
submitting a valid, later-dated proxy or a later-dated vote by Internet or telephone orby 11:59 p.m., Eastern Daylight Time, on the Internet;May 2, 2023; or
  
voting by ballot atduring the Annual Meeting.

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If you are a beneficial owner of shares, you may revoke your proxy or submit new voting instructions by contacting your bank, broker or other holder of record.

You may also vote in person atduring the Annual Meeting as described in the answer to the preceding question. Attendance at the meeting will not, by itself, revoke a proxy. All shares for which proxies have been properly submitted and not revoked will be voted at the Annual Meeting.

10.12.What is the deadline for voting my shares by proxy, via the Internet or by telephone?

Votes by proxy must be received before the polls close at the Annual Meeting. Votes submitted via the Internet or by telephone must be received by 11:59 p.m., Eastern Daylight Time, on May 5, 2020.

11.Could other matters be decided at the Annual Meeting?

On the date this Proxy Statement went to press, we did not know of any matters to be raised at the Annual Meeting other than those referred to in this Proxy Statement. If other matters are properly presented at the Annual Meeting for consideration and you execute and deliver a proxy, then Daniel P. O’Day and Brett A. Pletcher,Deborah H. Telman, the persons named on your proxy card, will have the discretion to vote on those matters for you.

12.13.Is my vote confidential?

Yes. Proxy cards ballots and voting tabulations that identify stockholders by name are kept confidential. There are exceptions for contested proxy solicitations or when necessary to meet legal requirements. Veaco Group, the independent proxy tabulator that we have engaged, will count the votes and act as the inspector of election for the meeting.

13.14.How can I ask questions at the Annual Meeting?

The Annual Meeting will include a question and answer session to address questions submitted in writing in advance of and during the Annual Meeting that comply with our Rules of Conduct and Procedures and as time permits. Questions may be submitted within the 48-hour period preceding the start of the Annual Meeting at www.proxyvote.com or during the Annual Meeting at www.virtualshareholdermeeting.com/GILD2023. If you wish to submit a question during the Annual Meeting, log in to the virtual meeting website using the control number that appears on your Notice of Internet Availability of Proxy Materials, type your question into the “Ask a Question” field and click “Submit”. Questions and Answers may be grouped by topic and substantially similar questions may be grouped and answered once. You may view the Rules of Conduct and Procedures prior to the meeting at our Investors page at investors.gilead.com/annual-meeting or during the meeting at the Annual Meeting website.

15.Where can I find the voting results of the Annual Meeting?

We will announce preliminary voting results at the Annual Meeting and publish final results in a Current Report on Form 8-K within four business days after the Annual Meeting.

14.16.Who will pay for the cost of this proxy solicitation?

We will pay the cost of soliciting proxies, including preparation, assembly, printing and mailing of the Notice and this Proxy Statement and any additional information furnished to stockholders. Copies of solicitation materials will be furnished to banks, brokerage houses, fiduciaries and custodians holding in their names shares of our common stock beneficially owned by others to forward to such beneficial owners. We may reimburse persons representing beneficial owners of common stock for their out-of-pocket expenses for forwarding solicitation materials to such beneficial owners. We have hired Innisfree M&A Incorporated to act as our proxy solicitor in conjunction with the Annual Meeting. We will pay Innisfree M&A Incorporated a fee of $25,000, plus reasonable out-of-pocket expenses, for these services. Our solicitation of proxies by mail may be supplemented by telephone, facsimile, electronic mail or personal solicitation by directors, officers or other of our employees. No additional compensation will be paid to directors, officers or other employees for such solicitation services performed by them.

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15.17.When are the stockholder proposals or nominations for Gilead’s 20212024 annual meeting of stockholders due?

You may submit proposals for consideration at future stockholder meetings. For a stockholder proposal to be considered for inclusion in our Proxy Statement for the 20212024 annual meeting of stockholders pursuant to SEC Rule 14a-8, the Corporate Secretary must receive the written proposal at our principal executive offices no later than November 24, 2020.2023. Such proposals also must comply with SEC regulations under Rule 14a-8 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), regarding the inclusion of stockholder proposals in company proxy materials. Proposals should be addressed to:

to the Corporate Secretary and sent by mail or email to:

Gilead Sciences, Inc.


Attention: Corporate Secretary
333 Lakeside Drive


Foster City, California 94404
Email: generalcounsel@gilead.com

We will acknowledge receipt of proposals on a timely basis. If you do not receive an acknowledgement, you are encouraged to confirm receipt.

A stockholder (or a group of up to 20 stockholders) who has owned at least three percent of our shares continuously for at least three years and has complied with the other requirements in our bylaws may nominate and include in our proxy materials director nominees constituting up to 20% of our Board or two persons, whichever is greater. Written notice of a proxy access nomination for inclusion in our Proxy Statement for the 20212024 annual meeting of stockholders must be received by the Corporate Secretary at the address above:Secretary:

not earlier than the open of business on October 25, 2020;2023; and
  
not later than the close of business on November 24, 2020.2023.

Stockholders wishing to submit proposals that are not to be included in our Proxy Statement pursuant to Rule 14a-8 or to nominate director candidates who are not included in our Proxy Statement pursuant to the “proxy access” provisions in our bylaws must give timely written notice of such proposals or nominations to the Corporate Secretary at the address above in accordance with our bylaws. To be “timely” under our bylaws, written notice must be received by the Corporate Secretary:

not earlier than the open of business on January 6, 2021;4, 2024; and
  
not later than the close of business on February 5, 2021.3, 2024.

In addition to satisfying the provisions in our bylaws relating to nominations of director candidates, including the deadline for written notices, to comply with the SEC’s universal proxy rule, stockholders who intend to solicit proxies in support of director nominees other than the company’s nominees must provide a written notice that sets forth the information required by SEC Rule 14a-19 no later than March 4, 2024.

The chairperson of our annual meeting has the sole authority to determine whether any nomination or other business has been properly brought before the meeting in accordance with our bylaws and to declare that any such nomination or other business not properly brought before our annual meeting shall not be transacted, and we may exercise discretionary voting authority to vote any shares for which we receive proxies as we determine appropriate.

16.18.Where can I get information related to future stockholder meetings of Gilead?

To request a copy of the Proxy Statement, annual report and form of proxy related to our future stockholder meetings where you are a stockholder on the relevant record date, you may log on to http://www.proxyvote.com or contact Investor Relations at:

Gilead Sciences, Inc.

Attention: Investor Relations

333 Lakeside Drive

Foster City, California 94404

(650) 574-3000
Email:investor_relations@gilead.com

Email: investor_relations@gilead.com

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17.19.I want to attend the Annual Meeting and vote in person. From whom can I obtain directions to the Annual Meeting?

You may contact Investor Relations at (650) 574-3000 or investor_relations@gilead.com to obtain directions to the Annual Meeting.

18.If I have additional questions, whom can I contact?

If you have any questions about the Annual Meeting or how to vote or revoke your proxy, you should contact our proxy solicitor:

Innisfree M&A Incorporated


501 Madison Avenue, 20th floor


New York, New York 10022


Stockholders may call toll free: (888) 750-5834


Banks and Brokers may call collect: (212) 750-5833

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Appendix A

GILEAD SCIENCES, INC.

EMPLOYEE STOCK PURCHASE PLAN

(as Amended and Restated January 25, 2023)

Termination Date: January 25, 2033

1. Purpose.

(a) The purpose of the Employee Stock Purchase Plan (the “Plan”) is to provide a means by which employees of Gilead Sciences, Inc., a Delaware corporation (the “Company”), and its participating Affiliates (as defined in subparagraph 1(c)) may be given an opportunity to purchase stock of the Company pursuant to a plan that qualifies as an employee stock purchase plan under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”).

(b) The Plan initially was adopted on November 15, 1991. The Plan has been amended and restated on several subsequent occasions, and each offering under the Plan has been subject to the terms and provisions of the Plan in force and effect on the start date of that offering. Effective November 3, 2009, the Plan was amended and restated in its entirety, and subsequent to such date the maximum number of shares of the Company’s common stock reserved for issuance under the Plan, as so amended and restated, are reduced, on a one-for-one basis, by the number of shares of the Company’s common stock issued under the Company’s International Employee Stock Purchase Plan (the “International Plan”). The Plan has been most recently amended and restated in its entirety effective as of January 25, 2023.

(c) The term “Affiliate” as used in the Plan means any parent corporation or subsidiary corporation of the Company, as those terms are defined in Sections 424(e) and (f), respectively, of the Code.

(d) The Company, by means of the Plan, seeks to retain the services of its employees and employees of its Affiliates, to secure and retain the services of new employees, and to provide incentives for such persons to exert maximum efforts for the success of the Company.

(e) The Company intends that the rights to purchase stock of the Company granted under the Plan be considered options issued under an “employee stock purchase plan” as that term is defined in Section 423(b) of the Code, although the Company makes no undertaking or representation to maintain such qualification. The provisions of the Plan shall be construed, administered and enforced in accordance with Section 423(b) of the Code. The Company may also grant rights to purchase stock under the International Plan that are not intended to meet the requirements of Section 423(b) of the Code, pursuant to rules, procedures or sub-plans adopted by the Company under such plan and designed to achieve tax, securities law or other objectives in one or more jurisdictions outside the United States, provided that (i) eligible employees (as that term is described in paragraph 5) who reside in the United States and are employed by the Company or an Affiliate located in the United States will not be granted rights to purchase stock under the International Plan and (ii) eligible employees of Related Entities (as such term is defined in the International Plan), whether or not located in the United States, will not be granted rights to purchase stock under the Plan. Except to the limited extent otherwise provided in the International Plan, the purchase rights granted under that plan will be subject to the same terms, provisions and restrictions as in effect for the purchase rights granted under the Plan.

2. Administration.

(a) The Plan shall be administered by the Board of Directors (the “Board”) of the Company unless and until the Board delegates administration to a Committee, as provided in subparagraph 2(c). Whether or not the Board has delegated administration, the Board shall have the final power to determine all questions of policy and expediency that may arise in the administration of the Plan. All determinations of the Board or the Committee shall be final, conclusive and binding on all persons and otherwise accorded the maximum deference permitted by law.

(b) The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan:

(i) To determine when and how rights to purchase stock of the Company shall be granted and the provisions to be in effect for each offering of such rights (with no need for the provisions of each offering to be identical).

(ii) To designate from time to time which Affiliates shall be eligible to participate in the Plan.

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(iii) To construe and interpret the Plan and rights granted under it, and to establish, amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective.

(iv) To amend the Plan as provided in paragraph 13.

(v) Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company.

(c) The Board may delegate administration of the Plan to a committee composed of not fewer than two (2) members of the Board (the “Committee”). If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board, subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan.

(d) The Board (or the Committee, as appropriate) may, from time to time, employ an entity unrelated to the Company to assist with administration, recordkeeping and other ministerial duties in connection with the Plan (a “Third Party Administrator”).

3. Shares Subject To The Plan.

Subject to the provisions of paragraph 12 relating to adjustments upon changes in stock, the total number of shares that may be sold pursuant to rights granted under the Plan shall not exceed in the aggregate the 103,560,0001 shares of the Company’s $0.001 par value common stock (the “Common Stock”) that the Company’s stockholders have approved for issuance under the Plan. Shares of Common Stock sold pursuant to rights granted under the Plan shall reduce, on a one-for-one basis, the number of shares remaining available for sale and issuance under the Plan. In addition, any shares of Common Stock sold pursuant to rights granted under the International Plan shall also reduce, on a one-for-one basis, the number of shares available for sale and issuance under the Plan. If any right granted under the Plan shall for any reason terminate without having been exercised, the Common Stock not purchased under such right shall again become available for issuance under the Plan, unless otherwise issued under the International Plan. The Common Stock issuable under the Plan may be unissued shares or reacquired shares, bought on the market or otherwise.

4. Grant Of Rights; Offering.

The Board or the Committee may from time to time grant or provide for the grant of rights to purchase Common Stock under the Plan to eligible employees (an “Offering”) on a date or dates (the “Offering Date(s)”) selected by the Board or the Committee. Each Offering shall be in such form and shall contain such terms and conditions as the Board or the Committee shall deem appropriate. The provisions of separate Offerings need not be identical, but each Offering shall include (through incorporation of the provisions of the Plan by reference in the Offering or otherwise) the substance of the provisions contained in paragraphs 5 through 8, inclusive.

5. Eligibility.

(a) Rights may be granted only to employees of the Company or, to employees of any Affiliate designated by the Board or the Committee as provided in subparagraph 2(b). Except as provided in subparagraph 5(b), an employee of the Company or any designated Affiliate shall not be eligible to be granted rights under the Plan, unless, on the Offering Date, such employee has been in the employ of the Company or one or more Affiliates for such continuous period preceding the grant date as the Board or the Committee may require, but in no event shall the required period of continuous employment be equal to or greater than two (2) years. In addition, unless otherwise determined by the Board or the Committee and set forth in the terms of the applicable Offering, no employee of the Company or any designated Affiliate shall be eligible to be granted rights under the Plan, unless, on the Offering Date, such employee’s customary employment with the Company or such designated Affiliate is at least twenty (20) hours per week and at least five (5) months per calendar year.

(b) The Board or the Committee may provide that, each person who, during the course of an Offering, first becomes an eligible employee of the Company or of any designated Affiliate will, on a date or dates specified in the Offering which coincides with the day on which such person becomes an eligible employee or occurs thereafter, receive a right under that Offering, which right shall thereafter be deemed to be a part of that Offering. Such right shall have the same characteristics as any rights originally granted under that Offering, as described herein, except that:

1Share reserve consists of 4,000,000 shares authorized in November 15, 1991, when the Plan was originally adopted, an additional 8,000,000 shares authorized on May 24, 1994, an additional 8,000,000 authorized on May 27, 1998, an additional 5,280,000 shares authorized on July 29, 1999, an additional 8,000,000 shares authorized on May 9, 2007, an additional 33,280,000 shares authorized on November 3, 2009, an additional 12,000,000 shares authorized on May 6, 2015, and an additional 25,000,000 shares to be submitted for stockholder approval and authorized at the Company’s 2023 annual meeting of stockholders. The share amounts so indicated have been adjusted to reflect the five (5) two-for-one stock splits of the Common Stock effected in February 2001, March 2002, September 2004, June 2007 and January 2013, respectively.

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(i) the date on which such right is granted shall be the “Offering Date” of such right for all purposes, including determination of the exercise price of such right;

(ii) the Offering Period (as defined in subparagraph 6(a)) for such right shall begin on its Offering Date and end coincident with the end of such Offering;

(iii) the Offering Date shall constitute the beginning of a Purchase Period; and

(iv) the Board or the Committee may provide that if such person first becomes an eligible employee within a specified period of time before the end of the Offering Period (as defined in subparagraph 6(a)) for such Offering, he or she will not receive any right under that Offering.

(c) No employee shall be eligible for the grant of any rights under the Plan if, immediately after any such rights are granted, such employee owns stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any Affiliate. For purposes of this subparagraph 5(c), the rules of Section 424(d) of the Code shall apply in determining the stock ownership of any employee, and stock which such employee may purchase under all outstanding rights and options shall be treated as stock owned by such employee.

(d) An eligible employee may be granted rights under the Plan only if such rights, together with any other rights granted to such employee under “employee stock purchase plans” of the Company and any Affiliate, as specified by Section 423(b)(8) of the Code, do not permit such employee’s rights to purchase Common Stock of the Company or any Affiliate to accrue at a rate which exceeds U.S. twenty-five thousand dollars (U.S. $25,000) of fair market value of such Common Stock (determined at the time such rights are granted) for each calendar year in which such rights are outstanding at any time.

(e) Officers of the Company and any designated Affiliate shall be eligible to participate in Offerings under the Plan, provided, however, that the Board may provide in an Offering that all or certain employees who are highly compensated employees within the meaning of Section 423(b)(4)(D) of the Code shall not be eligible to participate.

6. Rights; Purchase Price.

(a) On each Offering Date, each eligible employee, pursuant to an Offering made under the Plan, shall be granted the right to purchase the number of shares of Common Stock purchasable with up to twenty percent (20%) (or such other percentage as the Board or the Committee determines for a particular Offering) of such employee’s Earnings (as defined in subparagraph 7(b)) during the period which begins on the Offering Date (or such later date as the Board or the Committee determines for a particular Offering) and ends on the date stated in the Offering, which date shall be no more than twenty-seven (27) months after the Offering Date (the “Offering Period”). In connection with each Offering made under the Plan, the Board or the Committee shall specify a maximum number of shares which may be purchased by any employee and a maximum aggregate number of shares which may be purchased by all eligible employees pursuant to such Offering. Each Offering Period may contain more than one exercise date, as defined in the relevant Offering (the “Exercise Date”), in which case there will be multiple “Purchase Periods,” the first commencing with the Offering Date and ending with the first Exercise Date of that Offering and subsequent ones commencing with the first day following the immediately preceding Exercise Date and ending with the next Exercise Date of that Offering. Where an Offering contains more than one Exercise Date, the Board or the Committee may, prior to the start of that Offering, specify a maximum number of shares which may be purchased by any employee on each such Exercise Date within such Offering and a maximum aggregate number of shares which may be purchased by all eligible employees on such Exercise Date. If the aggregate purchase of shares upon exercise of rights granted under the Offering would exceed any such maximum aggregate number, the Board or the Committee shall make a pro rata allocation of the shares available in as nearly a uniform manner as shall be equitable and practicable under the circumstances.

(b) The purchase price of Common Stock acquired pursuant to rights granted under the Plan shall be equal to eighty-five percent (85%) of the lower of:

(i) the Fair Market Value per share of Common Stock on the start of the Offering Period; or

(ii) the Fair Market Value per share of Common Stock on the Exercise Date.

(c) As of any date, “Fair Market Value” is defined as the closing sales price for the Common Stock (or the closing bid, if no sales were reported) on such day as quoted on The Nasdaq Global Select Market or as reported by such other source as the Board deems reliable. If there are no quotations for the relevant day, “Fair Market Value” is defined with reference to the most recent preceding date on which there are quotations.

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7.Participation; Withdrawal; Termination.

(a) An eligible employee may become a participant in an Offering by submitting an enrollment form to the Company, in a form approved by the Company, or by accessing the Third Party Administrator’s website and electronically enrolling within the Offering on or before his or her applicable Offering Date for that Offering (or any earlier enrollment deadline specified by the Company). During such enrollment process, the employee shall authorize payroll deductions of up to twenty percent (20%) (or such other percentage as the Board or the Committee determines for a particular Offering) of such employee’s Earnings (as defined in subparagraph 7(b)) during the Offering Period. The payroll deductions made for each participant shall be credited to an account for such participant under the Plan and shall be deposited with the general funds of the Company. A participant may reduce, increase or begin payroll deductions after the beginning of any Offering Period only as provided for in that Offering. A participant may make additional payments into his or her account only if specifically provided for in the Offering and only if the participant has not had the maximum amount withheld during the Offering Period.

(b) Earnings” is defined as an employee’s total compensation, including (i) all salary, wages and other remuneration paid to the employee (including amounts elected to be deferred or contributed under any cash or deferred arrangement or cafeteria benefit plan maintained by the Company (or any participating Affiliate) pursuant to Sections 401(k) and 125, respectively, of the Code) and (ii) overtime pay, commissions, bonuses, profit sharing and any special payments for extraordinary services. However, “Earnings” shall not include the cost of employee benefits paid by the Company or any Affiliate, education or tuition fee reimbursements, imputed income arising under any group insurance or other employee benefit program, reimbursement of traveling, business or moving expenses, income realized in connection with stock options or other equity awards, amounts elected to be deferred under any nonqualified deferred compensation plan established by the Company or any Affiliate and referral pay which is paid in recognition of referring an employee candidate.

(c) At any time during an Offering Period a participant may terminate his or her payroll deductions under the Plan and withdraw from the Offering by submitting a withdrawal notice to the Company or by accessing the Third Party Administrator’s website and electronically electing to withdraw. Such withdrawal may be elected at any time prior to the end of the Purchase Period (or any earlier withdrawal deadline specified by the Company). Upon such withdrawal from the Offering by a participant, the Company shall distribute to such participant all of his or her accumulated payroll deductions (reduced to the extent, if any, such deductions have been used to acquire shares for the participant) under the Offering, without interest unless the terms of the Offering specifically so provide, and such participant’s interest in that Offering shall be automatically terminated. A participant’s withdrawal from an Offering will have no effect upon such participant’s eligibility to participate in any other future Offerings under the Plan but such participant will be required to re-enroll in order to participate in subsequent Offerings under the Plan.

(d) Except as provided in Section 7(f) below, rights granted pursuant to any Offering under the Plan shall terminate immediately upon cessation of any participating employee’s employment with the Company or any participating Affiliates for any reason, and the Company shall distribute to such terminated employee all of his or her accumulated payroll deductions (reduced to the extent, if any, such deductions have been used to acquire shares for the terminated employee) under the Offering, without interest unless the terms of the Offering specifically so provide.

(e) Should a participating employee cease to remain in active service by reason of an approved unpaid leave of absence, then such employee shall have the right, exercisable up until the last business day of the Purchase Period (or any earlier deadline specified by the Company) in which such leave commences, to (a) withdraw all the payroll deductions collected to date on his or her behalf for that Purchase Period or (b) have such funds held for the purchase of shares on his or her behalf on the next scheduled Exercise Date. If the participating employee fails to make a timely election, the accumulated payroll deductions will automatically be applied to the purchase of shares on his or her behalf on the next scheduled Exercise Date. In no event, however, shall any further payroll deductions be collected on the employee’s behalf during such leave. Upon the participating employee’s return to active service (i) within three (3) months following the commencement of such leave or (ii) prior to the expiration of any longer period for which such employee had reemployment rights with the Company or any participating Affiliate provided by either statute or contract, his or her payroll deductions under the Plan shall automatically resume at the rate in effect at the time the leave began, unless the employee withdraws from the Plan prior to his or her return. An employee who returns to active employment following a leave of absence that exceeds in duration the applicable time period set forth in (i) or (ii) above shall be treated as a new employee for purposes of subsequent participation in the Plan and must accordingly re-enroll in the Plan in order to participate in subsequent Offerings under the Plan.

(f) Notwithstanding anything to the contrary contained herein, a participating employee who transfers employment from the Company or any Affiliate participating in the Plan to an Affiliate or Related Entity participating in the International Plan shall immediately cease to participate in the Plan. However, his or her accumulated payroll deductions for the Purchase Period in which such transfer occurs shall be transferred to the International Plan, and such individual shall immediately join the then current Offering under the International Plan upon the same terms and conditions in effect for his or her participation in the Plan, except for such modifications as may be required by applicable local law. A participating employee who transfers employment from an Affiliate or Related Entity

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participating in a current Offering under the International Plan to the Company or any other Affiliate participating in the Plan shall remain a participant in the International Plan until the earlier of (i) the end of the current Offering Period under the International Plan or (ii) the start date of the first Offering under the Plan in which he or she participates following such transfer.

(g) Rights granted under the Plan shall not be transferable by a participant otherwise than by will or the laws of descent and distribution, or by a beneficiary designation as provided in paragraph 14 and, otherwise during his or her lifetime, shall be exercisable only by the person to whom such rights are granted.

8. Exercise and Delivery.

(a) On each Exercise Date, each participant’s accumulated contributions (without any increase for interest unless the terms of the Offering specifically so provide) will be applied to the purchase of shares of Common Stock of the Company, up to the maximum number of shares permitted pursuant to the terms of the Plan and the applicable Offering, at the purchase price specified in the Offering. No fractional shares shall be issued upon the exercise of rights granted under the Plan unless otherwise determined by the Board or the Committee. The amount, if any, of remaining accumulated contributions after the purchase of shares which is less than the amount required to purchase one share of Common Stock on any current Exercise Date within an Offering shall be refunded to such participant as soon as administratively practicable following such Exercise Date, without interest unless the terms of the Offering specifically so provide.

(b) No rights granted under the Plan may be exercised to any extent unless the Plan (including rights granted thereunder) is covered by an effective registration statement pursuant to the U.S. Securities Act of 1933, as amended. If on an Exercise Date of any Offering hereunder the Plan (and all rights granted thereunder) is not so registered, no rights granted under the Plan or any Offering shall be exercised on such Exercise Date, and all payroll deductions accumulated during the Purchase Period ending on such Exercise Date (reduced to the extent, if any, such deductions have been used to acquire shares) shall be distributed to the participants, without interest, unless the terms of the Offering specifically so provide.

(c) As soon as administratively practicable following the Exercise Date, the Company shall deliver to each participant the shares of Common Stock purchased with such participant’s accumulated contributions in a form determined by the Board or the Committee, in its discretion, including, without limitation, through the transfer of the shares to the participant in book-entry form or through an alternative arrangement to a recordkeeping service (and the Board or the Committee may either require or permit participants to elect that certificates representing such shares be delivered to such recordkeeping service). The Board or the Committee, in its discretion, may either require or permit that shares of Common Stock purchased with each participant’s accumulated contributions be deposited directly with a broker designated by the Board or the Committee (or its delegate) and may either require or permit that such shares be retained with such broker for a designated period of time.

(d) The Company or its designee may make such provisions and take such action as it deems necessary or appropriate for the withholding of taxes or other amounts which the Company is required to withhold by applicable law. Each Participant, however, shall be responsible for payment of all individual tax liabilities arising under the Plan.

9. Covenants of the Company.

(a) While rights granted under the Plan remain outstanding, the Company shall keep available at all times the number of shares of Common Stock required to satisfy such rights.

(b) The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to issue and sell shares of Common Stock upon exercise of the rights granted under the Plan. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful issuance and sale of shares under the Plan, the Company shall be relieved from any liability for failure to issue and sell shares upon exercise of such rights unless and until such authority is obtained.

10. Accumulated Payroll Deductions.

A participant’s accumulated payroll deductions are part of the general funds of the Company and do not earn interest, unless the terms of the Offering specifically so provide.

11. Rights As A Stockholder.

A participant shall not be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares subject to rights granted under the Plan unless and until certificates representing such shares shall have been issued or recorded in the books of the Company (or its transfer agent).

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12. Adjustments Upon Changes In Stock.

(a) If any change is made in the securities subject to the Plan, or subject to any rights granted under the Plan (through merger, consolidation, reorganization, recapitalization, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or otherwise), the Plan and the outstanding rights thereunder will be appropriately adjusted as to the class(es) and maximum number of securities subject to the Plan and the class(es) and number of securities and price per share subject to each outstanding purchase right.

(b) In the event of a Change in Control (as such term is defined in the Gilead Sciences, Inc. 2022 Equity Incentive Plan or any successor plan thereto), then, as determined by the Board in its sole discretion (i) any surviving corporation may assume outstanding rights or substitute similar rights for those under the Plan, (ii) such rights may continue in full force and effect, (iii) the accumulated payroll deductions may be used to purchase shares of Common Stock immediately prior to the transaction described above and the rights of participants under the ongoing Offering shall be terminated, or (iv) all outstanding Offering Periods may be terminated immediately as of such date specified by the Board and all participants’ accumulated contributions that have not been used to purchase shares of Common Stock be returned to the participants (without interest unless the terms of the Offering specifically so provide) as soon as administratively practicable thereafter.

13. Amendment Of The Plan.

(a) The Board at any time, and from time to time, may amend the Plan, including to re-combine the International Plan with the Plan. However, except as provided in paragraph 12 relating to adjustments upon certain changes to the Common Stock, no amendment shall be effective unless approved by the stockholders of the Company within twelve (12) months before or after the adoption of the amendment, where the amendment will:

(i) Increase the total number of shares reserved for issuance and sale in the aggregate under the Plan and the International Plan;

(ii) Modify the provisions as to eligibility for participation in the Plan (to the extent such modification requires stockholder approval in order for the Plan to maintain employee stock purchase plan treatment under Section 423 of the Code or to comply with any applicable Nasdaq or securities exchange listing requirements); or

(iii) Modify the Plan in any other way if such modification requires stockholder approval in order for the Plan to maintain employee stock purchase plan treatment under Section 423 of the Code or to comply with any applicable Nasdaq or securities exchange listing requirements.

The Board may, in its sole discretion, submit any other amendment to the Plan for stockholder approval. It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or advisable to provide eligible employees with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to employee stock purchase plans and/or to bring the Plan and/or rights granted under it into compliance therewith.

(b) Rights and obligations under any rights granted before amendment of the Plan shall not be materially and adversely altered or impaired by any amendment of the Plan, except with the consent of the person to whom such rights were granted or except as necessary to comply with applicable laws or governmental regulations or to ensure that the Plan and/or rights granted thereunder comply with the requirements of Section 423 of the Code.

14. Designation Of Beneficiary.

(a) A participant may file (i) with the Company on a form provided by the Company, a written designation of a beneficiary who is to receive any accumulated payroll deductions (reduced to the extent, if any, such deductions have been used to acquire shares for the deceased employee), without interest unless the terms of the Offering specifically so provide, in the event of such participant’s death during an Offering, and (ii) with a broker designated by the Board or the Committee on a form provided by such broker, a written designation of a beneficiary who is to receive any shares of Common Stock purchased under the Plan and held by such broker on participant’s behalf.

(b) The participant may change such designation of beneficiary at any time by written notice to the Company in the form provided by the Company (or to such broker in the form provided by the broker, as applicable). In the event of the death of a participant in the absence of a beneficiary validly designated under the Plan who is living at the time of such participant’s death, the Company shall deliver any accumulated payroll deductions (reduced to the extent, if any, such deductions have been used to acquire shares for the deceased employee), without interest unless the terms of the Offering specifically so provide, to the executor or administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the

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Company), the Company, in its sole discretion, may deliver such accumulated payroll deductions 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 or determine to be the appropriate recipient of such accumulated payroll deductions under applicable law. In the absence of a designated beneficiary with the broker holding any shares of Common Stock purchased under the Plan, the broker’s policies for distribution of such shares shall apply.

15. Termination Or Suspension Of The Plan.

(a) The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate ten (10) years from the date the Plan (as herein amended and restated) was adopted by the Board or approved by the stockholders of the Company, whichever was earlier. No rights may be granted under the Plan while the Plan is suspended or after it is terminated.

(b) Rights and obligations under any rights granted while the Plan is in effect shall not be impaired by suspension or termination of the Plan, except as expressly provided in the Plan or with the consent of the person to whom such rights were granted, or except as necessary to comply with applicable laws or governmental regulation or to ensure that the Plan and/or rights granted thereunder comply with the requirements of Section 423 of the Code.

16. Severability.

If any particular provision of the Plan is found to be invalid or unenforceable, such provision shall not affect the other provisions of the Plan, but the Plan shall be construed in all respects as if such invalid provision had been omitted.

17. Governing Law.

Except to the extent that provisions of the Plan are governed by applicable provisions of the Code or any other substantive provision of U.S. federal law, the Plan shall be construed in accordance with, and shall be governed by, the substantive laws of the State of Delaware without resort to Delaware’s conflict-of-laws rules.

18. Effective Date Of Plan.

The Plan (as herein amended and restated) shall become effective as determined by the Board, but no rights granted under the Plan, as amended and restated herein, shall be exercised unless and until the stockholders of the Company have approved the Plan.

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GILEAD SCIENCES, INC.

INTERNATIONAL EMPLOYEE STOCK PURCHASE PLAN

(as Amended and Restated January 25, 2023)

Termination Date: January 25, 2033

1. Purpose.

(a) The purpose of the International Employee Stock Purchase Plan (the “Plan”) is to provide a means by which employees of participating Affiliates and Related Entities (both as defined in subparagraph 1(c)), who reside in jurisdictions outside the United States may be given an opportunity to purchase stock of Gilead Sciences, Inc., a Delaware corporation (the “Company”).

(b) The Plan and the Company’s Employee Stock Purchase Plan (the “Section 423 Plan”), an employee stock purchase plan maintained under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”), share the reserve of the Company’s $0.001 par value common stock (the “Common Stock”) approved by the Company’s stockholders for issuance under the Section 423 Plan. Accordingly, the maximum number of shares of the Company’s common stock reserved for issuance under the Section 423 Plan is reduced, on a one-for-one basis, by the number of shares of the Company’s common stock issued under the Plan. The Plan was originally adopted by the Company’s Board of Directors on November 3, 2009. Both the Plan and the Section 423 Plan have been most recently amended and restated in their entirety effective as of January 25, 2023.

(c) The term “Affiliate” as used in the Plan means any entity that, directly or indirectly, is controlled by or under common control with the Company, as determined by the Board, whether now or hereafter existing. The term “Related Entity” as used in the Plan means any entity, other than an Affiliate, in which the Company has an equity or other ownership interest, as determined by the Company.

(d) The Company, by means of the Plan, seeks to retain the services of employees in jurisdictions outside the United States, to secure and retain the services of new employees in such jurisdictions, and to provide incentives for such persons to exert maximum efforts for the success of the Company.

(e) The Company does not intend for the rights to purchase shares of Common Stock granted under the Plan to qualify as options issued under an “employee stock purchase plan” as that term is defined in Section 423(b) of the Code. Accordingly, the Company will grant rights to purchase stock under the Plan that are not intended to meet the requirements of Section 423(b) of the Code, pursuant to rules, procedures or sub-plans adopted by the Company and designed to achieve tax, securities law or other objectives in one or more jurisdictions outside the United States, provided that (i) eligible employees (as that term is described in paragraph 5) who reside in the United States and are employed by the Company or an Affiliate located in the United States will not be granted rights to purchase stock under the Plan and (ii) eligible employees of Related Entities, whether or not located in the United States, will not be granted rights to purchase stock under the Section 423 Plan. Except to the limited extent otherwise provided herein, the purchase rights granted under the Plan will be subject to the same terms, provisions and restrictions as in effect for the purchase rights granted under the Section 423 Plan.

2. Administration.

(a) The Plan shall be administered by the Board of Directors (the “Board”) of the Company unless and until the Board delegates administration to a Committee, as provided in subparagraph 2(c). Whether or not the Board has delegated administration, the Board shall have the final power to determine all questions of policy and expediency that may arise in the administration of the Plan. All determinations of the Board or the Committee shall be final, conclusive and binding on all persons and otherwise accorded the maximum deference permitted by law.

(b) The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan:

(i) To determine when and how rights to purchase stock of the Company shall be granted and the provisions to be in effect for each offering of such rights (with no need for the provisions of each offering to be identical).

(ii) To designate from time to time which Affiliates and Related Entities shall be eligible to participate in the Plan.

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(iii) To construe and interpret the Plan and rights granted under it, and to establish, amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective. The Board may also authorize one or more designated officers of the Company to make such adjustments to the terms and conditions in effect under the separate Offerings made under the Plan as may be necessary or advisable to comply with applicable laws and regulations in the jurisdictions in which those Offerings are made.

(iv) To amend the Plan as provided in paragraph 13.

(v) To adopt (or to authorize one or more designated officers of the Company to adopt) rules, procedures or sub-plans relating to the operation and administration of the Plan to accommodate the specific requirements of local laws and procedures for jurisdictions outside the United States. Without limiting the generality of the foregoing, the Board (or any such designated officer) is specifically authorized to adopt rules, procedures or sub-plans regarding, but not limited to, eligibility to participate, the definition of Earnings (as defined in subparagraph 7(b)), handling of payroll deductions, making of contributions to the Plan (including, without limitation, in forms other than payroll deductions), establishment of bank or trust accounts to hold contributions, payment of interest, conversion of local currency, obligations to pay payroll tax, withholding procedures and handling of stock certificates, all of which may vary with local requirements.

(vi) Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company.

(c) The Board may delegate administration of the Plan to a committee composed of not fewer than two (2) members of the Board (the “Committee”). If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board, subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan.

(d) The Board (or the Committee, as appropriate) may, from time to time, employ an entity unrelated to the Company to assist with administration, recordkeeping and other ministerial duties in connection with the Plan (a “Third Party Administrator”).

3. Shares Subject To The Plan.

Subject to the provisions of paragraph 12 relating to adjustments upon changes in stock, the total number of shares that may be sold pursuant to rights granted under the Plan and the Section 423 Plan shall not exceed in the aggregate the 103,560,0001 shares of Common Stock that have been approved by the Company’s stockholders for issuance under the Section 423 Plan. Accordingly, any shares of Common Stock sold pursuant to rights granted under the Section 423 Plan shall reduce, on a one-for-one basis, the number of shares available for sale and issuance under the Plan. If any right granted under the Plan shall for any reason terminate without having been exercised, the Common Stock not purchased under such right shall again become available for issuance under the Plan, unless otherwise issued under the Section 423 Plan. The Common Stock issuable under the Plan may be unissued shares or reacquired shares, bought on the market or otherwise.

4. Grant Of Rights; Offering.

The Board or the Committee may from time to time grant or provide for the grant of rights to purchase Common Stock under the Plan to eligible employees (an “Offering”) on a date or dates (the “Offering Date(s)”) selected by the Board or the Committee. Each Offering shall be in such form and shall contain such terms and conditions as the Board or the Committee shall deem appropriate. The provisions of separate Offerings need not be identical, but each Offering shall include (through incorporation of the provisions of the Plan by reference in the Offering or otherwise) the substance of the provisions contained in paragraphs 5 through 8, inclusive.

5. Eligibility.

(a) Rights under the Plan may be granted only to employees of any Affiliate or Related Entity designated by the Board or the Committee as provided in subparagraph 2(b). Except as provided in subparagraph 5(b), an employee of any designated Affiliate or Related Entity shall not be eligible to be granted rights under the Plan, unless, on the Offering Date, such employee has been in the employ of one or more Affiliates or Related Entities for such continuous period preceding the grant date as the Board or the Committee may require, but in no event shall the required period of continuous employment be equal to or greater than two (2) years.

1Share reserve consists of 4,000,000 shares authorized in November 15, 1991, when the Section 423 Plan was originally adopted, an additional 8,000,000 shares authorized for the Section 423 Plan on May 24, 1994, an additional 8,000,000 authorized for the Section 423 Plan on May 27, 1998, an additional 5,280,000 shares authorized for the Section 423 Plan on July 29, 1999, an additional 8,000,000 shares authorized for the Section 423 Plan on May 9, 2007, an additional 33,280,000 shares authorized for the Section 423 Plan on November 3, 2009, an additional 12,000,000 shares authorized on May 6, 2015, and an additional 25,000,000 shares to be submitted for stockholder approval and authorized at the Company’s 2023 annual meeting of stockholders. The share amounts so indicated have been adjusted to reflect the five (5) two-for-one stock splits of the Common Stock effected in February 2001, March 2002, September 2004, June 2007 and January 2013, respectively.

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(b) The Board or the Committee may provide that, each person who, during the course of an Offering, first becomes an eligible employee of any designated Affiliate or Related Entity will, on a date or dates specified in the Offering which coincides with the day on which such person becomes an eligible employee or occurs thereafter, receive a right under that Offering, which right shall thereafter be deemed to be a part of that Offering. Such right shall have the same characteristics as any rights originally granted under that Offering, as described herein, except that:

(i) the date on which such right is granted shall be the “Offering Date” of such right for all purposes, including determination of the exercise price of such right;

(ii) the Offering Period (as defined in subparagraph 6(a)) for such right shall begin on its Offering Date and end coincident with the end of such Offering;

(iii) the Offering Date shall constitute the beginning of a Purchase Period; and

(iv) the Board or the Committee may provide that if such person first becomes an eligible employee within a specified period of time before the end of the Offering Period (as defined in subparagraph 6(a)) for such Offering, he or she will not receive any right under that Offering.

(c) No employee shall be eligible for the grant of any rights under the Plan if, immediately after any such rights are granted, such employee owns stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any Affiliate. For purposes of this subparagraph 5(c), the rules of Section 424(d) of the Code shall apply in determining the stock ownership of any employee, and stock which such employee may purchase under all outstanding rights and options shall be treated as stock owned by such employee.

(d) An eligible employee may be granted rights under the Plan only if such rights, together with any other rights granted to such employee under “employee stock purchase plans” of the Company and any Affiliate, as specified by Section 423(b)(8) of the Code, do not permit such employee’s rights to purchase Common Stock of the Company or any Affiliate to accrue at a rate which exceeds U.S. twenty-five thousand dollars (U.S. $25,000) of fair market value of such Common Stock (determined at the time such rights are granted) for each calendar year in which such rights are outstanding at any time.

(e) Officers of any designated Affiliate or Related Entity shall be eligible to participate in Offerings under the Plan, provided, however, that the Board may provide in an Offering that all or certain employees who are highly compensated employees within the meaning of Section 423(b)(4)(D) of the Code shall not be eligible to participate.

6. Rights; Purchase Price.

(a) On each Offering Date, each eligible employee, pursuant to an Offering made under the Plan, shall be granted the right to purchase the number of shares of Common Stock purchasable with up to twenty percent (20%) (or such other percentage as the Board or the Committee determines for a particular Offering) of such employee’s Earnings (as defined in subparagraph 7(b)) during the period which begins on the Offering Date (or such later date as the Board or the Committee determines for a particular Offering) and ends on the date stated in the Offering, which date shall be no more than twenty-seven (27) months after the Offering Date (the “Offering Period”). In connection with each Offering made under the Plan, the Board or the Committee shall specify a maximum number of shares which may be purchased by any employee and a maximum aggregate number of shares which may be purchased by all eligible employees pursuant to such Offering. Each Offering Period may contain more than one exercise date, as defined in the relevant Offering (the “Exercise Date”), in which case there will be multiple “Purchase Periods,” the first commencing with the Offering Date and ending with the first Exercise Date of that Offering and subsequent ones commencing with the first day following the immediately preceding Exercise Date and ending with the next Exercise Date of that Offering. Where an Offering contains more than one Exercise Date, the Board or the Committee may, prior to the start of that Offering, specify a maximum number of shares which may be purchased by any employee on each such Exercise Date within such Offering and a maximum aggregate number of shares which may be purchased by all eligible employees on such Exercise Date. If the aggregate purchase of shares upon exercise of rights granted under the Offering would exceed any such maximum aggregate number, the Board or the Committee shall make a pro rata allocation of the shares available in as nearly a uniform manner as shall be equitable and practicable under the circumstances.

(b) The purchase price of Common Stock acquired pursuant to rights granted under the Plan shall be equal to eighty-five percent (85%) of the lower of:

(i) the Fair Market Value per share of Common Stock on the start of the Offering Period; or

(ii) the Fair Market Value per share of Common Stock on the Exercise Date.

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(c) As of any date, “Fair Market Value” is defined as the closing sales price for the Common Stock (or the closing bid, if no sales were reported) on such day as quoted on The Nasdaq Global Select Market or as reported by such other source as the Board deems reliable. If there are no quotations for the relevant day, “Fair Market Value” is defined with reference to the most recent preceding date on which there are quotations.

7. Participation; Withdrawal; Termination.

(a) An eligible employee may become a participant in an Offering by submitting an enrollment form to the Company, in a form approved by the Company, or, if made available by the Company to employees in a particular jurisdiction, by accessing the Third Party Administrator’s website and electronically enrolling within the Offering on or before his or her applicable Offering Date for that Offering (or any earlier enrollment deadline specified by the Company). During such enrollment process, the employee shall authorize payroll deductions of up to twenty percent (20%) (or such other percentage as the Board or the Committee determines for a particular Offering) of such employee’s Earnings (as defined in subparagraph 7(b) below) during the Offering Period. To the extent required by applicable law, eligible employees may be permitted to contribute to the Plan by means other than, or in addition to, payroll deductions. The contributions made by each participant (whether pursuant to payroll deductions or other method of payment) shall be credited to an account for such participant under the Plan and shall be deposited with the general funds of the Company, unless otherwise required by applicable law of any jurisdiction outside the United States. A participant may reduce, increase or begin such contributions after the beginning of any Offering Period only as provided for in the Offering. A participant may make additional payments into his or her account only (i) if required by applicable law or (ii) if specifically provided for in the Offering and only if the participant has not had the maximum amount contributed during the Offering Period.

(b) “Earnings” is defined as an employee’s total compensation, including (i) all salary, wages and other remuneration paid to the employee (including amounts elected to be deferred or contributed under any retirement or welfare benefit plan maintained by the Company or any participating Affiliate or Related Entity) and (ii) overtime pay, commissions, bonuses, profit sharing and any special payments for extraordinary services. However, “Earnings” shall not include the cost of employee benefits paid by the Company or any Affiliate or Related Entity, education or tuition fee reimbursements, imputed income arising under any group insurance or other employee benefit program, reimbursement of traveling, business or moving expenses, income realized in connection with stock options or other equity awards, amounts elected to be deferred under any nonqualified deferred compensation plan established by the Company or any Affiliate or Related Entity and referral pay which is paid in recognition of referring an employee candidate. However, the Board or its delegate in its sole discretion may make one or more modifications to such definition with respect to eligible employees who participate in the Plan.

(c) At any time during an Offering Period a participant may terminate his or her contributions under the Plan and withdraw from the Offering by submitting a withdrawal notice to the Company or, if made available by the Company to employees in a particular jurisdiction, by accessing the Third Party Administrator’s website and electronically electing to withdraw. Such withdrawal may be elected at any time prior to the end of the Purchase Period (or any earlier withdrawal deadline specified by the Company). Upon such withdrawal from the Offering by a participant, the Company shall distribute to such participant all of his or her accumulated contributions (reduced to the extent, if any, such contributions have been used to acquire shares for the participant) under the Offering, without interest unless the terms of the Offering specifically so provide or if required by applicable law, and such participant’s interest in that Offering shall be automatically terminated. A participant’s withdrawal from an Offering will have no effect upon such participant’s eligibility to participate in any other future Offerings under the Plan but such participant will be required to re-enroll in order to participate in subsequent Offerings under the Plan.

(d) Except as provided in Section 7(f) below, rights granted pursuant to any Offering under the Plan shall terminate immediately upon cessation of any participating employee’s employment with the Company or any participating Affiliate or Related Entity, for any reason, and the Company shall distribute to such terminated employee all of his or her accumulated contributions (reduced to the extent, if any, such contributions have been used to acquire shares for the terminated employee) under the Offering, without interest unless the terms of the Offering specifically so provide or if required by applicable law.

(e) Should a participating employee cease to remain in active service by reason of an approved unpaid leave of absence, then such employee shall have the right, exercisable up until the last business day of the Purchase Period (or any earlier deadline specified by the Company) in which such leave commences, to (a) withdraw all the contributions collected to date on his or her behalf for that Purchase Period or (b) have such funds held for the purchase of shares on his or her behalf on the next scheduled Exercise Date. If the participating employee fails to make a timely election, such funds will automatically be applied to the purchase of shares on his or her behalf on the next scheduled Exercise Date. In no event, however, shall any further contributions be collected on the employee’s behalf during such leave, except to the extent required by applicable law. Upon the participating employee’s return to active service (i) within three (3) months following the commencement of such leave or (ii) prior to the expiration of any longer period for which such employee had reemployment rights with the Company (or any Affiliate or Related Entity) provided by either statute or contract, his or her contributions under the Plan shall automatically resume at the rate in effect at the time the leave began, unless

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the employee withdraws from the Plan prior to his or her return. An employee who returns to active employment following a leave of absence that exceeds in duration the applicable time period set forth in (i) or (ii) above shall be treated as a new employee for purposes of subsequent participation in the Plan and must accordingly re-enroll in the Plan in order to participate in subsequent Offerings under the Plan.

(f) Notwithstanding anything to the contrary contained herein, a participating employee who transfers employment from the Company or any Affiliate participating in the Section 423 Plan to an Affiliate or Related Entity participating in the Plan shall immediately cease to participate in the Section 423 Plan. However, his or her accumulated contributions for the Purchase Period in which such transfer occurs shall be transferred to the Plan, and such individual shall immediately join the then current Offering under the Plan upon the same terms and conditions in effect for his or her participation in the Section 423 Plan, except for such modifications as may be required by applicable law. A participating employee who transfers employment from an Affiliate or Related Entity participating in a current Offering under the Plan to the Company or any other Affiliate participating in the Section 423 Plan shall remain a participant in the Plan until the earlier of (i) the end of the current Offering Period under the Plan or (ii) the start date of the first Offering under the Section 423 Plan in which he or she participates following such transfer.

(g) Rights granted under the Plan shall not be transferable by a participant otherwise than by will or the laws of descent and distribution and, during his or her lifetime, shall be exercisable only by the person to whom such rights are granted.

8. Exercise and Delivery.

(a) On each Exercise Date, each participant’s accumulated contributions (without any increase for interest unless the terms of the Offering specifically so provide or if required by applicable law) will be applied to the purchase of shares of Common Stock of the Company, up to the maximum number of shares permitted pursuant to the terms of the Plan and the applicable Offering, at the purchase price specified in the Offering. No fractional shares shall be issued upon the exercise of rights granted under the Plan unless otherwise determined by the Board or the Committee. The amount, if any, of remaining accumulated contributions after the purchase of shares which is less than the amount required to purchase one share of Common Stock on any current Exercise Date within an Offering shall be refunded to such participant as soon as administratively practicable following such Exercise Date, without interest unless the terms of the Offering specifically so provide or if required by applicable law.

(b) No rights granted under the Plan may be exercised to any extent unless the Plan (including rights granted thereunder) is covered by an effective registration statement pursuant to the U.S. Securities Act of 1933, as amended. If on an Exercise Date of any Offering hereunder the Plan (and all rights granted thereunder) is not so registered, no rights granted under the Plan or any Offering shall be exercised on such Exercise Date, and all contributions accumulated during the Purchase Period ending on such Exercise Date (reduced to the extent, if any, such contributions have been used to acquire shares) shall be distributed to the participants, without interest unless the terms of the Offering specifically so provide or required by applicable law. In addition, should the Plan not be registered on any applicable Exercise Date in any jurisdiction outside the United States in which such registration is required or should the Plan or the purchase of shares thereunder otherwise not at that time comply with applicable law in a jurisdiction outside the United States, then no rights granted under the Plan to employees in that jurisdiction shall be exercised on such Exercise Date, and all contributions accumulated on behalf of such employees during the Purchase Period ending with such Exercise Date (reduced to the extent, if any, such contributions have been used to acquire shares) shall be distributed to the participating employees in that jurisdiction without interest, unless the terms of the Offering specifically so provide or if required by applicable law.

(c) As soon as administratively practicable following the Exercise Date, the Company shall deliver to each participant the shares of Common Stock purchased with such participant’s accumulated contributions in a form determined by the Board or the Committee, in its discretion, including, without limitation, through the transfer of the shares to the participant in book-entry form or through an alternative arrangement to a recordkeeping service (and the Board or the Committee may either require or permit participants to elect that certificates representing such shares be delivered to such recordkeeping service). The Board or the Committee, in its discretion, may either require or permit that shares of Common Stock purchased with each participant’s accumulated contributions be deposited directly with a broker designated by the Board or the Committee (or its delegate) and may either require or permit that such shares be retained with such broker for a designated period of time.

9. Covenants Of The Company.

(a) While rights granted under the Plan remain outstanding, the Company shall keep available at all times the number of shares of Common Stock required to satisfy such rights.

(b) The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to issue and sell shares of Common Stock upon exercise of the rights granted under the Plan. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for

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the Company deems necessary for the lawful issuance and sale of shares under the Plan, the Company shall be relieved from any liability for failure to issue and sell shares upon exercise of such rights unless and until such authority is obtained.

10. Accumulated Contributions.

A participant’s accumulated contributions shall be maintained as part of the general funds of the Company and shall not earn interest, except to the extent otherwise provided by the terms of the Offering or as otherwise required to comply with applicable law of any jurisdiction outside the United States.

11. Rights As A Stockholder.

A participant shall not be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares subject to rights granted under the Plan unless and until certificates representing such shares shall have been issued or recorded in the books of the Company (or its transfer agent).

12. Adjustments Upon Changes In Stock.

(a) If any change is made in the securities subject to the Plan, or subject to any rights granted under the Plan (through merger, consolidation, reorganization, recapitalization, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or otherwise), the Plan and the outstanding rights thereunder will be appropriately adjusted as to the class(es) and maximum number of securities subject to the Plan and the class(es) and number of securities and price per share subject to each outstanding purchase right.

(b) In the event of a Change in Control (as such term is defined in the Gilead Sciences, Inc. 2022 Equity Incentive Plan or any successor plan thereto), then, as determined by the Board in its sole discretion (i) any surviving corporation may assume outstanding rights or substitute similar rights for those under the Plan, (ii) such rights may continue in full force and effect, (iii) the accumulated contributions may be used to purchase shares of Common Stock immediately prior to the transaction described above and the rights of participants under the ongoing Offering shall be terminated, or (iv) all outstanding Offering Periods may be terminated immediately as of such date specified by the Board and all participants’ accumulated contributions that have not been used to purchase shares of Common Stock be returned to the participants (without interest unless the terms of the Offering specifically so provide) as soon as administratively practicable thereafter.

13. Amendment Of The Plan.

(a) The Board at any time, and from time to time, may amend the Plan, including to re-combine the Plan with the Section 423 Plan. However, except as provided in paragraph 12 relating to adjustments upon certain changes to the Common Stock, no amendment shall be effective unless approved by the stockholders of the Company within twelve (12) months before or after the adoption of the amendment, where the amendment will:

(i) Increase the total number of shares reserved for issuance and sale in the aggregate under the Plan and the Section 423 Plan;

(ii) Materially modify the provisions as to eligibility for participation in the Plan (to the extent such modification requires stockholder approval in order for the Plan to comply with applicable Nasdaq or securities exchange listing requirements) or otherwise materially expand the class of employees eligible to participate in the Plan; or

(iii) Modify the Plan in any other way if such modification requires stockholder approval in order to comply with any applicable Nasdaq or securities exchange listing requirements.

The Board may, in its sole discretion, submit any other amendment to the Plan for stockholder approval. It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or advisable to provide eligible employees with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to employee stock purchase plans, or under applicable laws of any jurisdiction outside the United States.

(b) Rights and obligations under any rights granted before amendment of the Plan shall not be materially adversely altered or impaired by any amendment of the Plan, except with the consent of the person to whom such rights were granted or except as necessary to comply with applicable laws or governmental regulations.

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14. Section 409A of the Code.

The Plan is intended to be exempt from Section 409A of the Code under the short-term deferral exception, and any ambiguities shall be construed and interpreted in accordance with such intent. In the case of a participant who would otherwise be subject to Section 409A of the Code, to the extent an option to purchase shares of Common Stock or the payment, settlement or deferral thereof is subject to Section 409A of the Code, the option to purchase shares of Common Stock shall be granted, paid, exercised, settled or deferred in a manner that will comply with Section 409A of the Code, including the final regulations and other guidance issued with respect thereto. Notwithstanding the foregoing, the Company shall have no liability to a participant or any other party if the option to purchase shares under the Plan that is intended to be exempt from or compliant with Section 409A of the Code is not so exempt or compliant or for any action taken by the Board or the Committee with respect thereto.

15. Tax Withholding.

The Company or any Affiliate or Related Entity shall have the authority and right to deduct and withhold, including from the participant’s regular salary, or require each such participant to remit to the Company or such Affiliate or Related Entity, an amount sufficient to satisfy U.S. federal, state and local taxes and taxes imposed by jurisdictions outside the United States (including income tax, social insurance contributions, payroll taxes and any other taxes that may be due) required by law to be withheld with respect to any taxable event concerning a participant arising as a result of his or her participation in the Plan or to take any such action as may be necessary in the opinion of the Company or any Affiliate or Related Entity, as appropriate, to satisfy withholding obligations for the payment of taxes. In no event shall any shares be issued hereunder to any participant until the participant has made arrangements acceptable to the Company for the satisfaction of any applicable tax obligations with respect to any taxable event concerning the participant’s participation in the Plan. Each Participant, however, shall be responsible for payment of all individual tax liabilities arising under the Plan.

16. Termination Or Suspension Of The Plan.

(a) The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on January 25, 2033, or, if earlier, when the Section 423 Plan is terminated. No rights may be granted under the Plan while the Plan is suspended or after it is terminated.

(b) Rights and obligations under any rights granted while the Plan is in effect shall not be impaired by suspension or termination of the Plan, except as expressly provided in the Plan or with the consent of the person to whom such rights were granted, or except as necessary to comply with applicable laws or governmental regulation.

17. Severability.

If any particular provision of the Plan is found to be invalid or unenforceable, such provision shall not affect the other provisions of the Plan, but the Plan shall be construed in all respects as if such invalid provision had been omitted.

18. Governing Law.

Except to the extent that provisions of the Plan are governed by applicable provisions of the Code or any other substantive provision of U.S. federal law, the Plan shall be construed in accordance with, and shall be governed by, the substantive laws of the State of Delaware without resort to Delaware’s conflict-of-laws rules.

19. Effective Date Of Plan.

The Plan originally became effective with the offering commencing January 1, 2010.

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Details for the Gilead Sciences, Inc. 2023 Annual Meeting of Stockholders

Participation

This year’s Annual Meeting will be held in a virtual format by live webcast.

You are entitled to participate in the Annual Meeting if you were a holder of Gilead common stock as of the close of business on the Record Date, Wednesday, March 15, 2023, or hold a valid proxy for the meeting. To participate, go to www.virtualshareholdermeeting.com/GILD2023 on the day of the Annual Meeting and log in using the 16-digit control number found on the proxy card, voting instruction form or notice of internet availability. If you are a beneficial stockholder, you may contact your broker, bank or other institution where you hold your account if you have questions about obtaining your control number. Once you are admitted to the Annual Meeting as a stockholder, you may vote by following the instructions available on the meeting website. Online check-in will be available approximately 15 minutes before the meeting starts. If you encounter any difficulties accessing or participating in the Annual Meeting through the meeting website, please call the support team at the numbers listed on the website log in screen.

Stockholders as of the close of business on the Record Date may also submit written questions for consideration during the Annual Meeting. The question and answer session will include questions submitted in advance of and during the Annual Meeting that comply with our Rules of Conduct and Procedures and as time permits. Questions may be submitted within the 48-hour period preceding the start of the Annual Meeting at www.proxyvote.com or during the Annual Meeting at www.virtualshareholdermeeting.com/GILD2023.

Additional information regarding the rules and procedures for participating in the Annual Meeting, including the question and answer session, will be set forth in our Rules of Conduct and Procedures. You may view the Rules of Conduct and Procedures prior to the meeting at our Investors page at investors.gilead.com/annual-meeting or during the Annual Meeting at www.virtualshareholdermeeting.com/GILD2023.

We will make the Annual Meeting viewable to anyone interested in a webcast at www.virtualshareholdermeeting.com/GILD2023. Interested persons who were not stockholders as of the close of business on the Record Date may view the webcast, but will not be able to vote or ask questions during the Annual Meeting.

Wednesday, May 3, 2023
10:00 a.m. Pacific Daylight Time

Via Webcast at
www.virtualshareholdermeeting.com/GILD2023

Voting

Whether or not you expect to attend the Annual Meeting, we recommend that you grant a proxy to vote by one of the following procedures as promptly as possible in order to ensure your representation at the Annual Meeting.

PRIOR TO THE MEETING:DURING THE MEETING:
BY INTERNET*BY TELEPHONE*BY MAILBY INTERNET*                   
www.proxyvote.com+1-800-690-6903
(for stockholders of record)
Complete, date, sign and return the proxy card mailed to you (if you request one) or voting instruction card (if sent by your nominee)www.virtualshareholdermeeting.com/ GILD2023
*   You will need to provide the control number that appears on your Notice of Internet Availability of Proxy Materials. Voting by telephone and internet closes on May 2, 2023 at 11:59 p.m., Eastern Daylight Time.*   You will need to provide the control number that appears on your Notice of Internet Availability of Proxy Materials.
  
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GILEAD SCIENCES, INC.

ATTN: INVESTOR RELATIONS

333 LAKESIDE DRIVE

FOSTER CITY, CA 94404

VOTE BY INTERNET
Before The Meeting - Go to www.proxyvote.com
or scan the QR Barcode above

Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.

During the Meeting - Go to www.virtualshareholdermeeting.com/GILD2023

You may attend the meeting via the Internet and vote during the meeting. Have your proxy card in hand when you access the web site and follow the instructions.

ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS

If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet before the meeting and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years.

VOTE BY PHONE - 1-800-690-6903

Use any touch-tone telephone to transmit your voting instructions up until 11:59 P.M. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you call and then follow the instructions.

VOTE BY MAIL


Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.









TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:     
    E97689-P33431V02016-P86584  KEEP THIS PORTION FOR YOUR RECORDS
        DETACH AND RETURN THIS PORTION ONLY
THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.

GILEAD SCIENCES, INC.

The Board of Directors recommends you vote FOR the
following proposals:

  

1.To elect the eightnine director nominees to be named in the Proxy Statement to serve for the next year and until their successors are elected and qualified.
Nominees:
  For  AgainstAbstain
1a.Jacqueline K. Barton, Ph.D.
1b.Sandra J. Horning, M.D.
Jeffrey A. Bluestone, Ph.D.
1c.

Kelly A. Kramer
Sandra J. Horning, M.D.

1d.Kevin E. Lofton
Kelly A. Kramer
1e.Harish Manwani
Kevin E. Lofton
1f.Daniel P. O’Day
Harish Manwani
1g.Richard J. Whitley, M.D.
Daniel P. O’Day
1h.Per Wold-Olsen
Javier J. Rodriguez
1i.Anthony Welters
 




  For  AgainstAbstain
2.To ratify the selection of Ernst & Young LLP by the Audit Committee of the Board of Directors as theour independent registered public accounting firm of Gilead for the fiscal year ending December 31, 2020.2023.
3.To approve, on an advisory basis, the compensation of our Named Executive Officers as presented in the Proxy Statement.
           



   
The Board of Directors recommends you vote AGAINST the following proposals:      
       
The Board of Directors recommends you vote 1 YEAR for the following proposal:1 Year2 Years3 YearsAbstain
4.To voteapprove, on aan advisory basis, the frequency of future advisory stockholder proposal, if properly presented at the meeting, requesting that the Board adopt a policy that the Chairperson of the Board of Directors be an independent director.votes on executive compensation.
The Board of Directors recommends you vote FOR the following proposal:  For  AgainstAbstain
5.To approve an amendment and restatement of the Gilead Sciences, Inc. Employee Stock Purchase Plan and the Gilead Sciences, Inc. International Employee Stock Purchase Plan.
The Board of Directors recommends you vote AGAINST the following proposals:  For  AgainstAbstain
6. To vote on a stockholder proposal, if properly presented at the meeting, requesting that the Board eliminateimplement a process to nominate at least one more candidate than the ownership thresholdnumber of directors to be elected.
7.To vote on a stockholder proposal, if properly presented at the meeting, requesting the Board amend the company governing documents to give street name shares and non-street name shares an equal right to call a special stockholder meeting.
8.To vote on a stockholder proposal, if properly presented at the meeting, requesting a report on a process by which the impact of extended patent exclusivities on product access would be considered in deciding whether to apply for stockholders to request a record date to take action by written consent.secondary and tertiary patents.   



Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer.

 
            
Signature [PLEASE SIGN WITHIN BOX]Date Signature (Joint Owners)Date   


Table of Contents

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:

The Notice and Proxy Statement, Form 10-K and Supplement are available at www.proxyvote.com.

www.proxyvote.com.

 
E97690-P33431V02017-P86584
 
          

GILEAD SCIENCES, INC.

Annual Meeting of Stockholders

May 6, 20203, 2023 10:00 AM Pacific Time

This proxy is solicited by the Board of Directors

The undersigned hereby appoints Daniel P. O’Day and Brett A. Pletcher,Deborah H. Telman, and each of them, with power to act without the other and with power of substitution, as proxies and attorneys-in-fact and hereby authorizes them to represent and vote, as provided on the other side, all the shares of Gilead Sciences, Inc. Common Stock, which the undersigned is entitled to vote, and, in their discretion, to vote upon such other business as may properly come before the Annual Meeting of Stockholders of the company to be held virtually on May 6, 20203, 2023, 10:00 a.m. Pacific Time, at www.virtualshareholdermeeting.com/GILD2023, or at any adjournment or postponement thereof, with all powers which the undersigned would possess if present at the Meeting.

This proxy, when properly executed, will be voted in the manner directed herein. If no such direction is made, this proxy will be voted in accordance with the Board of Directors’ recommendations.




Continued and to be signed on reverse side



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