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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
(Amendment No.   )
Filed by the Registrant
Filed by a Party other than the Registrant
Check the appropriate box:

Preliminary Proxy Statement

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

Definitive Proxy Statement

Definitive Additional Materials

Soliciting Material Pursuant to § 240.14a-12
PROTHENA CORPORATION PUBLIC LIMITED COMPANY
(Name of registrant as specified in its charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
No fee required.
 
 
 
Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
 
 
 
 
(1)
Title of each class of securities to which transaction applies:
 
 
 
 
(2)
Aggregate number of securities to which transaction applies:
 
 
 
 
(3)
Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
 
 
 
 
(4)
Proposed maximum aggregate value of transaction:
 
 
 
 
(5)
Total fee paid:
 
 
 
Fee paid previously with preliminary materials.
 
 
 
 
Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
 
 
 
 
(1)
Amount Previously Paid:
 
 
 
 
(2)
Form, Schedule or Registration Statement No.:
 
 
 
 
(3)
Filing Party:
 
 
 
 
(4)
Date Filed:
 
 
 

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PROTHENA CORPORATION PLC
Registered in Ireland - No. 518146
77 Sir John Rogerson's Quay, Block C, Grand Canal Docklands, Dublin 2, D02 T804, Ireland
NOTICE OF ANNUAL GENERAL MEETING OF
SHAREHOLDERS TO BE HELD ON MAY 18, 2021
To the Shareholders of Prothena Corporation plc:
NOTICE IS HEREBY GIVEN that the Annual General Meeting of Shareholders (the “Annual Meeting”) of Prothena Corporation plc, an Irish public limited company (the “Company”), will be held on Tuesday, May 18, 2021, at 4:00 p.m. local time, at the offices of the Company’s legal counsel, A&L Goodbody, North Wall Quay, IFSC, Dublin 1, Ireland, for the following purposes:
1.
To re-elect, by separate resolutions, Richard T. Collier, Shane M. Cooke, and K. Anders O. Härfstrand, as directors, to hold office until no later than the annual general meeting of shareholders in 2024;
2.
To ratify, in a non-binding vote, the appointment of KPMG LLP as the Company's independent registered public accounting firm for its fiscal year ending December 31, 2021, and to authorize, in a binding vote, the Company's Board of Directors, acting through its Audit Committee, to approve the remuneration of that auditor;
3.
To approve, in a non-binding advisory vote, the compensation of the Company's executive officers named in the Proxy Statement accompanying this Notice;
4.
To approve an amendment to the Company's 2018 Long Term Incentive Plan to increase the number of ordinary shares available for issuance under that Plan by 1,800,000 ordinary shares;
5.
To approve a reduction of the Company's capital to create distributable reserves; and
6.
To transact such other business as properly comes before the Annual Meeting or any adjournment or postponement thereof.
The foregoing items of business are more fully described in the Proxy Statement accompanying this Notice. The Company's Irish statutory financial statements for its fiscal year 2020, including the reports of the directors and auditors thereon, will be presented at the Annual Meeting. There is no requirement under Irish law that those statutory financial statements be approved by shareholders and no such approval will be sought at the Annual Meeting. The Annual Meeting will also include a review of the Company's affairs.
Under our Constitution and Irish law, Proposal Nos. 1, 2, 3, and 4 are deemed to be ordinary resolutions requiring the approval of a simple majority of the votes cast at the Annual Meeting. Proposal No. 5 is deemed to be a special resolution requiring the approval of 75 percent of the votes cast at the Annual Meeting.
Only shareholders who owned our ordinary shares at the close of business on March 8, 2021, may vote at the Annual Meeting. Each shareholder of record will be entitled to one vote per ordinary share on each matter submitted to a vote of the shareholders, as long as those shares are represented at the Annual Meeting, either in person or by proxy. Shareholders who are entitled to attend and vote at the Annual Meeting are entitled to appoint a proxy or proxies to attend and vote on their behalf at the Annual Meeting; such proxy is not required to be a shareholder of the Company.

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Our Board of Directors unanimously recommends that you vote as follows on the matters to be presented to shareholders at the Annual Meeting:
1.
FOR the re-election of Richard T. Collier, Shane M. Cooke, and K. Anders O. Härfstrand as directors, as described in Proposal No. 1;
2.
FOR the ratification, in a non-binding vote, of the appointment of KPMG LLP as the Company's independent registered public accounting firm for its fiscal year 2021 and authorization, in a binding vote, of the Board of Directors, acting through its Audit Committee, to approve the remuneration of that auditor, as described in Proposal No. 2;
3.
FOR the approval, in a non-binding advisory vote, of the compensation of the Company's named executive officers, as described in Proposal No. 3;
4.
FOR the approval of the amendment to the Company's 2018 Long Term Incentive Plan to increase the number of ordinary shares available for issuance under that Plan by 1,800,000 ordinary shares, as described in Proposal No. 4; and
5.
FOR the approval of the reduction of the Company's capital to create distributable reserves, as described in Proposal No. 5.
For our Annual Meeting, we have elected to use the internet as the primary means of providing our proxy materials to shareholders. Consequently, some shareholders may not receive paper copies of our proxy materials. We intend to send shareholders a Notice of Internet Availability of Proxy Materials with instructions for accessing the proxy materials and for voting via the internet. The Notice of Internet Availability of Proxy Materials will also provide the date, time, and location of the Annual Meeting; the matters to be acted upon at the meeting and the Board of Directors' recommendation with regard to each matter; a toll-free number, an e-mail address, and a website where shareholders can request a paper or e-mail copy of our Proxy Statement and form of proxy card and our Annual Report on Form 10-K for fiscal year 2020; information on how to access their proxy card; and information on how to attend the meeting and vote in person.
Special Precautions Due to COVID-19 Concerns:
Based on the latest available public health guidance, we expect that the Annual Meeting will proceed under very constrained circumstances given current restrictions on public gatherings.
Shareholders are strongly encouraged to vote their shares by proxy as the preferred means of fully and safely exercising their rights. Personal attendance at the Annual Meeting may present a health risk to shareholders and others and may not be possible as a result of public health restrictions that may be in place on the date of the Annual Meeting.
The Company may adopt additional procedures or place limitations on meeting attendees, including limiting seating, requiring health screenings, and other reasonable or required measures in order to enter the building.
In the event that any alternative arrangements may be advisable or required due to public health recommendations regarding containment of COVID-19, which may include the closure of, or restrictions on, access to the meeting venue, we will promptly communicate this to shareholders by an announcement in a press release, on the investor relations page of the Company's website found at https://ir.prothena.com/investor-relations and a filing with the Securities and Exchange Commission. We advise shareholders to monitor the page regularly, as circumstances may change on short notice.
Whether or not you expect to attend in person, you are urged to complete, sign, and date your proxy card and return it by mail or follow the alternative voting procedures described in the Notice of Internet Availability of Proxy Materials or the proxy card.
By Order of the Board of Directors

Michael J. Malecek
Company Secretary
March 31, 2021

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PROTHENA CORPORATION PLC
Registered in Ireland - No. 518146
77 Sir John Rogerson's Quay, Block C, Grand Canal Docklands, Dublin 2, D02 T804, Ireland
PROXY STATEMENT
FOR THE ANNUAL GENERAL MEETING OF SHAREHOLDERS
TO BE HELD ON MAY 18, 2021
GENERAL INFORMATION
The Board of Directors of Prothena Corporation plc is soliciting your proxy to vote at the Annual General Meeting of Shareholders to be held on Tuesday, May 18, 2021, at 4:00 p.m. local time, and any adjournment or postponement of that meeting (the “Annual Meeting”). The Annual Meeting will be held at the offices of the Company’s legal counsel, A&L Goodbody, North Wall Quay, IFSC, Dublin 1, Ireland.
We have elected to use the internet as our primary means of providing our proxy materials to shareholders. Accordingly, on or about March 31, 2021, we are making this Proxy Statement and the accompanying form of proxy card, the accompanying Notice of Annual General Meeting of Shareholders, and our Annual Report on Form 10-K for our fiscal year 2020 available on the internet and mailing a Notice of Internet Availability of Proxy Materials to shareholders of record as of March 8, 2021 (the “Record Date”). Brokers and other nominees who hold shares on behalf of beneficial owners will be sending their own similar notice. All shareholders as of the Record Date will have the ability to access our proxy materials on the website referred to in the Notice of Internet Availability of Proxy Materials or request to receive a printed set of the proxy materials. Instructions on how to request a printed copy by mail or electronically may be found in the Notice of Internet Availability of Proxy Materials and on the website referred to in the notice, including an option to request paper copies on an ongoing basis. We intend to mail this Proxy Statement, together with the accompanying form of proxy card and Notice of Annual General Meeting of Shareholders, to those shareholders entitled to vote at the Annual Meeting who have properly requested paper copies of such materials within three business days of request.
The only voting securities of Prothena are ordinary shares, $0.01 par value per share (“ordinary shares”). There were 40,006,116 ordinary shares issued and outstanding as of the Record Date. A quorum of shareholders is necessary to hold a valid meeting and requires that the shareholders holding a majority of the issued and outstanding ordinary shares entitled to vote are present in person or represented by proxy at the Annual Meeting.
In this Proxy Statement, we refer to Prothena Corporation plc as the “Company,” “Prothena,” “our,” “we,” or “us” and the Board of Directors as the “Board.” When we refer to Prothena's fiscal year, we mean the 12-month period ending December 31 of the stated year.

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THE PROXY PROCESS AND SHAREHOLDER VOTING
QUESTIONS AND ANSWERS ABOUT THESE PROXY MATERIALS AND VOTING
1.
Who can vote at the Annual Meeting?
Only shareholders of record at the close of business on the Record Date will be entitled to vote at the Annual Meeting. At the close of business on the Record Date, there were 40,006,116 ordinary shares issued and outstanding and entitled to vote.
Shareholder of Record: Shares Registered in Your Name
If, on the Record Date, your shares were registered directly in your name with the transfer agent for our ordinary shares, Computershare Trust Company, N.A., then you are a shareholder of record. As a shareholder of record, you may vote in person at the Annual Meeting or vote by proxy. Whether or not you plan to attend the Annual Meeting, we urge you to fill out and return the enclosed proxy card or vote by proxy over the telephone or on the internet as instructed below to ensure your vote is counted.
Beneficial Owner: Shares Registered in the Name of a Broker, Bank, or Other Agent
If, on the Record Date, your shares were not held in your name, but rather in an account at a brokerage firm, bank, dealer, or other similar organization, who in turn hold through The Depository Trust Company (“DTC”), then you are the beneficial owner of shares held in “street name” and these proxy materials are being forwarded to you by that organization. The organization holding your account is considered the shareholder of record for purposes of voting at the Annual Meeting. As a beneficial owner, you have the right to direct your broker or other agent on how to vote the shares in your account. You are also invited to attend the Annual Meeting. However, since you are not the shareholder of record, you may not vote your shares in person at the Annual Meeting unless you request and obtain a valid proxy card from your broker or other agent who is the record holder of the shares, authorizing you to vote at the Annual Meeting.
2.
What am I being asked to vote on?
You are being asked to vote FOR:
Re-election, by separate resolutions, of Richard T. Collier, Shane M. Cooke, and K. Anders O. Härfstrand as directors, to hold office until no later than our annual general meeting of shareholders in 2024;
Ratification, in a non-binding vote, of the appointment of KPMG LLP as our independent registered public accounting firm for our fiscal year 2021 and authorization, in a binding vote, of our Board, acting through its Audit Committee, to approve the remuneration of that auditor;
Approval, in a non-binding advisory vote, of the compensation of our executive officers named in this Proxy Statement;
Approval of an amendment to our 2018 Long Term Incentive Plan to increase the number of ordinary shares available for issuance under that Plan by 1,800,000 ordinary shares; and
Approval of a reduction of the Company’s capital to create distributable reserves.
In addition, you are entitled to vote on any other matters that are properly brought before the Annual Meeting. We are not aware of any other matter that will be presented for consideration at the Annual Meeting. If any other matter is properly brought before the Annual Meeting, the Board intends that one of the individuals named in the accompanying form of proxy card will vote on such matter in accordance with his or her discretion.
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3.
How do I vote?
You may vote by mail or follow any alternative voting procedure described on the proxy card or the Notice of Internet Availability of Proxy Materials. To use an alternative voting procedure, follow the instructions on each proxy card that you receive or on the Notice of Internet Availability of Proxy Materials.
For each proposal, you may vote “FOR” or “AGAINST” or abstain from voting.
The procedures for voting are as follows:
Shareholder of Record: Shares Registered in Your Name
If you are a shareholder of record, you may vote in person at the Annual Meeting. Alternatively, you may vote by proxy by using the accompanying proxy card over the internet or by telephone. Whether or not you plan to attend the Annual Meeting, we urge you to vote by proxy to ensure your vote is counted. Even if you have submitted a proxy before the Annual Meeting, you may still attend the Annual Meeting and vote in person. In such case, your previously submitted proxy will be disregarded.
To vote in person, come to the Annual Meeting and we will give you a ballot when you arrive.
To vote using the proxy card, simply complete, sign, and date the accompanying proxy card and return it promptly in the envelope provided. If you return your signed proxy card to us before the Annual Meeting, we will vote your shares as you direct.
To vote by proxy over the internet, follow the instructions provided on the proxy card or in the Notice of Internet Availability of Proxy Materials.
To vote by telephone if you request printed copies of the proxy materials by mail, you may vote by proxy by calling the toll-free number found on the proxy card.
Beneficial Owner: Shares Registered in the Name of Broker, Bank, or Other Agent
If you are a beneficial owner of shares registered in the name of your broker, bank, or other agent, who in turn hold through DTC, you should have received a voting instruction card and voting instructions with these proxy materials from that organization rather than from us. Simply complete and mail the voting instruction card to ensure that your vote is counted, or follow such instructions to submit your vote by the internet or telephone, if the instructions provide for internet and telephone voting. To vote in person at the Annual Meeting, you must obtain a valid proxy from your broker, bank, or other agent. Follow the instructions from your broker, bank, or other agent included with these proxy materials, or contact your broker, bank, or other agent to request a proxy form.
Please bear in mind that the Company encourages shareholders to submit proxy materials, rather than attend the Annual Meeting in person. Please refer to the Section entitled “Special Precautions Due to COVID-19 Concerns” contained in the Notice of Annual General Meeting of Shareholders section of this proxy statement for more information.
4.
Who counts the votes?
Broadridge Financial Solutions, Inc. (“Broadridge”) has been engaged as our independent agent to tabulate shareholder votes. If you are a shareholder of record, and you choose to vote over the internet prior to the Annual Meeting or by telephone, Broadridge will access and tabulate your votes electronically, and if you have requested and received proxy
materials by mail or e-mail and choose to sign and mail your proxy card, your executed proxy card will be returned directly to Broadridge for tabulation. If you hold your shares through a broker, your broker (or its agent for tabulating votes of shares held in “street name”) will return one proxy card to Broadridge on behalf of all its clients.
5.
How are votes counted?
With respect to each of Proposal Nos. 1, 2, 3, and 4, an affirmative vote of a simple majority of the votes cast in person or by proxy at the Annual Meeting is required for approval. With respect to Proposal No. 5, an affirmative vote of 75 percent of the votes cast in person or by proxy at the Annual Meeting is required for approval.
If your shares are held by a broker on your behalf (that is, in “street name”), please instruct your broker on how to vote
your shares. If you do not provide voting instructions, your shares will not be voted on any proposal for which the broker does not have discretionary authority to vote. This is called a “broker non-vote.” In these cases, the broker can register your shares as being present at the Annual Meeting for purposes of determining the presence of a quorum, but will not be able to vote on those proposals for which specific authorization from you is required under applicable rules.

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Accordingly, while broker non-votes will not be counted as having been voted on a particular proposal, broker non-votes will be considered present and entitled to vote at the Annual Meeting and will be counted towards determining whether or not a quorum is present. We strongly encourage you to provide voting instructions to your broker to ensure that your vote is counted on all of the proposals.
If shareholders abstain from voting, including brokers holding their clients’ shares of record who cause abstentions to be
recorded, these shares will be considered present and entitled to vote at the Annual Meeting and will be counted towards determining whether or not a quorum is present. Abstentions will not, however, be considered votes cast at the Annual Meeting.
Because the approval of each of the proposals is based on the votes cast at the Annual Meeting, abstentions and broker non-votes will not have any effect on the outcome of voting on any of the proposals.
6.
How many votes do I have?
On each matter to be voted upon, you have one vote for each ordinary share you own as of the Record Date.
7.
Why did I receive a notice in the mail regarding the internet availability of proxy materials instead of a full set of proxy materials?
Pursuant to rules of the U.S. Securities and Exchange Commission (the “SEC”), Irish law, and our Constitution, we have elected to provide access to our proxy materials on the internet. Accordingly, we are sending a Notice of Internet Availability of Proxy Materials to our shareholders. All shareholders will have the ability to access the proxy materials on the website referred to in the Notice of Internet Availability of Proxy Materials or request to receive a printed set of the proxy materials. Instructions on how to access the proxy
materials on the internet or to request a printed copy may be found in the Notice of Internet Availability of Proxy Materials. In addition, shareholders may request to receive proxy materials in printed form by mail or electronically by email on an ongoing basis. We encourage shareholders to take advantage of the availability of the proxy materials on the internet to help reduce the environmental impact of the Annual Meeting.
8.
How do I vote via internet or telephone?
You may vote by proxy on the internet by following the instructions provided on the proxy card or in the Notice of Internet Availability of Proxy Materials. If you request printed copies of the proxy materials by mail, you may vote by proxy by calling the toll-free number found on the proxy card. Please be aware that if you vote on the internet, you may incur costs such as internet access or telephone charges for which you will be responsible. The internet and telephone voting facilities for eligible shareholders of record will close at 11:59 p.m. Eastern Time on May 17, 2021. The giving of such a proxy by internet or telephone will not affect your right to vote in person should you decide to attend the Annual Meeting.
The internet and telephone voting procedures are designed to authenticate shareholders’ identities, to allow shareholders to give their voting instructions and to confirm that shareholders’ instructions have been recorded properly. If you vote by internet or telephone, that vote authorizes your proxy in the same manner as if you signed, dated, and returned a written proxy card by mail.
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9.
What if I return a proxy card but do not make specific choices?
If we receive a signed and dated proxy card and the proxy card does not specify how your shares are to be voted, your shares will be voted as follows:
FOR the re-election, by separate resolutions, of Richard T. Collier, Shane M. Cooke, and K. Anders O. Härfstrand as directors, to hold office until no later than our annual general meeting of shareholders in 2024;
FOR the ratification, in a non-binding vote, of the appointment of KPMG LLP as our independent registered public accounting firm for our fiscal year 2021 and authorization, in a binding vote, of our Board, acting through its Audit Committee, to approve the remuneration of that auditor;
FOR the approval, in a non-binding advisory vote, of the compensation of our named executive officers;
FOR the approval of the amendment to our 2018 Long Term Incentive Plan to increase the number of ordinary shares available for issuance under that Plan by 1,800,000 ordinary shares; and
FOR the approval of the reduction of the Company’s capital to create distributable reserves.
If any other matter is properly presented at the Annual Meeting, your proxy (one of the individuals named on your proxy card) will vote your shares using his or her discretion.
10.
Who is paying for this proxy solicitation?
We will pay for the entire cost of soliciting proxies. In addition to these mailed proxy materials, our directors, officers, and employees may also solicit proxies in person, by telephone, or by other means of communication. Directors, officers, and employees will not be paid any additional compensation for soliciting proxies. We may also reimburse
brokerage firms, banks, and other agents for the cost of forwarding proxy materials to beneficial owners. In addition, we have retained Alliance Advisors, a proxy solicitation firm, to assist in the solicitation of proxies for a fee of approximately $20,000 plus reimbursement of expenses.
11.
What does it mean if I receive more than one set of materials?
If you receive more than one set of materials, your shares are registered in more than one name or are registered in different accounts. In order to vote all the shares you own, you must either sign and return all of the proxy cards or follow the
instructions for any alternative voting procedure on each of the proxy cards or Notice of Internet Availability of Proxy Materials you receive.
12.
Can I change my vote after submitting my proxy?
Yes. You may revoke your proxy at any time before commencement of the Annual Meeting. If you are the record holder of your shares, you may revoke your proxy in any one of three ways:
You may submit a new vote on the internet or by telephone or submit another properly completed proxy card with a later date than your original proxy card, but no later than 11:59 p.m. Eastern Time on May 17, 2021.
You may deliver a written notice that you are revoking your proxy to our Company Secretary at Prothena
Corporation plc, 77 Sir John Rogerson’s Quay, Block C, Grand Canal Docklands, Dublin 2, D02 T804, Ireland, which notice must be delivered before commencement of the Annual Meeting.
You may attend the Annual Meeting and either vote or revoke your proxy in person. Simply attending the Annual Meeting will not, by itself, revoke your proxy.
If your shares are held by your broker, bank, or other agent, you must contact the broker, bank, or other agent and follow the instructions provided by them.

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13.
When are shareholder proposals due for next year’s annual meeting?
In accordance with SEC rules, including Rule 14a-8 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), shareholders may submit to us proposals on matters appropriate for shareholder action at meetings of our shareholders. In order to be considered for inclusion in next year’s proxy materials, your proposal must comply with the requirements of Rule 14a-8 of the Exchange Act and other SEC rules and be submitted in writing no later than December 1, 2021, to our Company Secretary at Prothena Corporation plc, 77 Sir John Rogerson’s Quay, Block C, Grand Canal Docklands, Dublin 2, D02 T804, Ireland;
provided that if the date of next year’s annual general meeting of shareholders is greater than 30 days from May 18, 2022, the deadline is a reasonable time before we begin to print and send our proxy materials for next year’s annual general meeting. You are also advised to review our Constitution, which contains additional requirements about advance notice of director nominations. For more information, see below under the heading Corporate Governance and Board Matters - Board Committees - Nominating and Corporate Governance Committee.
14.
What is the quorum requirement?
A quorum of shareholders is necessary to hold a valid meeting. A quorum will be present if the holders of not less than one-half of the ordinary shares issued and outstanding and entitled to vote are present in person or represented by proxy at the Annual Meeting. On the Record Date, there were 40,006,116 ordinary shares issued and outstanding and entitled to vote. Accordingly, 20,003,058 ordinary shares must be represented in person or by proxy at the Annual Meeting to have a quorum.
Your shares will be counted towards the quorum if you submit a valid proxy vote or vote at the Annual Meeting. Abstentions and broker non-votes will also be counted towards the quorum requirement. If there is no quorum, either the chairperson of the Annual Meeting or a majority in voting power of the shareholders entitled to vote at the Annual Meeting, present in person or represented by proxy, may adjourn the Annual Meeting to another time or place.
15.
How can I find out the results of the voting at the Annual Meeting?
Voting results will be announced by the filing with the SEC of a Current Report on Form 8-K within four business days after the Annual Meeting. If final voting results are unavailable
at that time, we will file an amended Current Report on Form 8-K within four business days of the day the final results are available.
16.
Where can I find directions to the Annual Meeting?
To obtain directions to the Annual Meeting, which will be held at the offices of the Company’s legal counsel, A&L Goodbody, North Wall Quay, IFSC, Dublin 1, Ireland, you
may send a request to our Company Secretary at Prothena Corporation plc, 77 Sir John Rogerson’s Quay, Block C, Grand Canal Docklands, Dublin 2, D02 T804, Ireland.
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17.
What are the Irish statutory financial statements?
Since we are an Irish company, we are required to prepare Irish statutory financial statements, including the respective reports of the directors and the auditors thereon, under applicable Irish company law; to deliver those statutory financial statements to our shareholders of record prior to the Annual Meeting; and to present those statutory financial statements at the Annual Meeting. The Irish statutory financial statements cover the results of operations and financial position of the Company for our fiscal year 2020, and are prepared in accordance with generally accepted accounting principles in the United States to the extent the use of such principles does not contravene any provision of the Irish
Companies Act 2014 or any regulation thereunder. There is no requirement under Irish law that our Irish statutory financial statements be approved by our shareholders. and no such approval will be sought at the Annual Meeting. Our Irish statutory financial statements are available on our website at https://ir.prothena.com/financial-information/irish. We will mail without charge, upon written request, a copy of our Irish statutory financial statements to beneficial owners of our shares. Such requests should be sent to our Company Secretary at Prothena Corporation plc, 77 Sir John Rogerson’s Quay, Block C, Grand Canal Docklands, Dublin 2, D02 T804, Ireland.

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PROPOSAL NO. 1
ELECTION OF DIRECTORS
We have nine directors serving on our Board, who are shown in the table below. The Company’s Constitution requires that at least one-third (which, if not a round number, is rounded to the number which is nearest to and less than one-third) of the directors must stand for re-election at each annual general meeting of shareholders, and that directors must stand for re-election no later than the third annual general meeting
subsequent to their election or appointment to the Board. Generally, vacancies on the Board may be filled only by ordinary resolution of the Company’s shareholders or the affirmative vote of a majority of the remaining directors. A director appointed by the Board to fill a vacancy will serve until the subsequent annual general meeting and must stand for election at that time.
Name
Position with Prothena
Lars G. Ekman, M.D., Ph.D.
Chair of the Board, Independent Director
Gene G. Kinney, Ph.D.
President and Chief Executive Officer, Director
Paula K. Cobb
Independent Director
Richard T. Collier
Independent Director
Shane M. Cooke
Independent Director
K. Anders O. Härfstrand, M.D., Ph.D.
Independent Director
Christopher S. Henney, Ph.D., D.Sc.
Independent Director
Oleg Nodelman
Independent Director
Dennis J. Selkoe, M.D.
Independent Director
Our Board currently is divided into the following groups:
Mr. Collier and Mr. Cooke, whose current terms will expire at the Annual Meeting;
Dr. Härfstrand and Dr. Henney, whose current terms will expire no later than the annual general meeting of shareholders to be held in 2022; and
Ms. Cobb, Dr. Ekman, Dr. Kinney, Mr. Nodelman, and Dr. Selkoe, whose current terms will expire no later than the annual general meeting of shareholders to be held in 2023.
Mr. Collier and Mr. Cooke have been nominated by the Board to stand for re-election because their respective three-year terms will expire at the Annual Meeting. Dr. Härfstrand has been nominated by the Board to stand for re-election, even though his three-year term will not expire until 2022, because the Company’s Constitution requires that one-third of the directors (not including any director appointed to the Board since the last annual general meeting) stand for election at each annual general meeting, and that a director longest in office since being appointed or last elected must be nominated to complete such slate of directors. If re-elected by our shareholders at the Annual Meeting, Mr. Collier, Mr. Cooke, and Dr. Härfstrand will each hold office from the date of their
election until no later than the third subsequent annual general meeting of shareholders (i.e., in 2024), or until their earlier death, resignation, or removal.
In order to be elected as a director, each nominee must receive the affirmative vote of a majority of the votes cast in person or by proxy at the Annual Meeting; if a director nominee does not receive this majority vote, such nominee will not be elected to our Board. In the event that any nominee becomes unavailable for election as a result of an unexpected occurrence, the proxy holders may vote your shares for the election of any substitute nominee whom the Board proposes. Each person nominated for election has consented to being named as a nominee in this Proxy Statement and agreed to serve if elected, and management has no reason to believe that any nominee will be unable to serve.
Set forth below is certain biographical information for each nominee for director and each director whose term as a director will continue after the Annual Meeting. The following includes information regarding each person’s individual experience, qualifications, attributes, or skills that led the Board to conclude that such person should serve as a director, in light of our business and structure.
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PROPOSAL NO. 1 – ELECTION OF DIRECTORS
Nominees for Election to Terms Expiring No Later than the Annual General Meeting of Shareholders in 2024
Richard T. Collier is the former Executive Vice President and General Counsel of Elan Corporation, plc (a pharmaceutical company), a position he held from 2004 to 2010. Prior to that, he served as Senior Vice President and General Counsel of Rhone-Poulenc Rorer Inc., Pharmacia & Upjohn Company, and Pharmacia Corporation (all pharmaceutical companies). Mr. Collier was an Adjunct Professor of Law at the Temple University Beasley School of Law, where he taught drug and medical device law, from 2004 to 2017. He also practiced law at two leading Philadelphia-based law firms and with the U.S. Federal Trade Commission and U.S. Department of Justice. Mr. Collier earned both his B.A. and his J.D. (law degree) from Temple University. He has served on our Board since 2012. Age: 67
The Board concluded that Mr. Collier should serve as a director given his extensive legal and management experience as a senior executive with a number of global pharmaceutical companies. The Board also considered his extensive knowledge of and experience with laws and regulations applicable to the pharmaceutical industry.
Shane M. Cooke is the former President of Alkermes plc (a biopharmaceutical company), a position he held from 2011 to 2018. Prior to that, he served as Head of Elan Drug Technologies and Executive Vice President of Elan Corporation, plc (from 2007 to 2011), where he also served as Chief Financial Officer (from 2001 to 2011) and as a director (from 2005 to 2011). Mr. Cooke has also held a number of senior positions in finance in the banking and aviation industries. He is chair of the board at UDG Healthcare plc, and also a director of Alkermes plc and Endo International plc. Mr. Cooke earned his Bachelor of Commerce and Master of Accounting degrees from University College Dublin, Ireland, and is a chartered accountant. He has served on our Board since 2012. Age: 58
The Board concluded that Mr. Cooke should serve as a director given his significant operational, financial, commercial, and management experience in the biotechnology industry, as well as his qualification as a chartered accountant. The Board also considered his Irish residency and experience as a director and an executive officer of other Irish companies traded on U.S. stock exchanges.
K. Anders O. Härfstrand, M.D., Ph.D., is Chair of Härfstrand Consulting AG (a pharmaceutical/biotechnology consulting firm), which he founded in 2010. Dr. Härfstrand also served as Chief Executive Officer of BBB Therapeutics BV (a biopharmaceutical company) from 2014 to 2015. Prior to that, he was President and Chief Executive Officer, Europe of Makhteshim Agan Industries Ltd. (an agrichemicals company) from 2013 to 2014; President and Chief Executive Officer of Humabs BioMed SA (a biotechnology company) from 2011 to 2012; and Chief Executive Officer of Nitec Pharma AG (a biopharmaceutical company) from 2007 to 2010. Dr. Härfstrand is also a director of Oasmia Pharmaceutical AB, and served as a director of Karolinski Development AB (a biopharmaceutical investment company) from 2017 to 2019. He also served in various executive and management roles at Serono, Pfizer, and Pharmacia, and in non-executive roles on a number of Supervisory Boards in Europe. Dr. Härfstrand earned his M.D. and Ph.D. in neuropharmacology endocrinology from Karolinska Institute in Sweden. He has served on our Board since 2015. Age: 64
The Board concluded that Dr. Härfstrand should serve as a director given his significant management, operational, and commercial experience from serving in executive positions with a number of biopharmaceutical companies. The Board also considered his scientific background and work experience in a broad range of geographies.
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE FOR THE RE-ELECTION, BY SEPARATE RESOLUTIONS, OF MR. COLLIER, MR. COOKE, AND DR. HÄRFSTRAND AS DIRECTORS.

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PROPOSAL NO. 1 – ELECTION OF DIRECTORS
Directors Continuing in Office Until No Later than the Annual General Meeting of Shareholders in 2022
Christopher S. Henney, Ph.D., D.Sc., is Chair of the Board of Cyclacel Pharmaceuticals, Inc. From 1995 to 2004, he served as Chair of the Board and Chief Executive Officer of Dendreon Corporation, a biotechnology company that he co-founded. Dr. Henney also co-founded and served as a director and in executive positions at Immunex Corporation and ICOS Corporation (both biotechnology companies). He was Chair of the Board of Cascadian Therapeutics, Inc. (a biotechnology company) from 2006 to 2018, where he also served as interim President and Chief Executive Officer for part of 2016, and served as Chair of the Board of Anthera Pharmaceuticals, Inc. (a biopharmaceutical company) from 2008 to 2018. Dr. Henney is a 2011 inductee to The
Biotechnology Hall of Fame. He earned his B.Sc. in medical biochemistry, his Ph.D. in experimental pathology and his D.Sc. for contributions to the field of immunology from the University of Birmingham, England. Dr. Henney has served on our Board since 2013. Age: 80
The Board concluded that Dr. Henney should continue to serve as a director given his significant scientific, operational, commercial, and management experience from founding and serving in executive positions with a number of biotechnology companies. The Board also considered his experience serving on the boards of directors at a number of public and private companies in the pharmaceutical/biotechnology industry.
Directors Continuing in Office Until No Later than the Annual General Meeting of Shareholders in 2023
Paula K. Cobb is the Chief Business Officer at Affinia Therapeutics, a position she has held since 2020. From 2016 to 2019, Ms. Cobb held positions as Executive Vice President, Corporate Development, and Chief Operating Officer of Decibel Therapeutics, Inc. (a biotechnology company). From 2003 to 2016, Ms. Cobb held numerous positions with Biogen (a biopharmaceutical company), including Senior Vice President, Rare Disease Group (from 2015 to 2016), Senior Vice President, MS Franchise Strategy (from 2014 to 2015), and Vice President, Program Leadership & Management (from 2010 to 2014). She also served on the Board of Directors of Nightstar Therapeutics plc (a biotechnology company) from 2018 until it was acquired by Biogen in 2019. Ms. Cobb earned her B.A. from Amherst College and her M.B.A. from Harvard University’s Graduate School of Business Administration. She has served on our Board since 2019. Age: 48
The Board concluded that Ms. Cobb should continue to serve as a director given her significant operational, business development, and management experience from serving in a range of senior executive positions with several biotechnology/biopharmaceutical companies. The Board also considered her experience serving on the board of directors of another biotechnology company.
Lars G. Ekman, M.D., Ph.D., is Chair of our Board of Directors, a position he has held since 2012. He is an executive partner at Sofinnova Ventures, Inc. (a venture capital firm), a position he has held since 2008. Dr. Ekman is also Chair of the Board of Amarin Corporation plc, and serves as a director of Ultragenyx Pharmaceutical Inc. He also served as a director of Intermune (from 2006 to 2013), as a director of Ocera Therapeutics, Inc. (from 2009 to 2015), as
a director of Spark Therapeutics, Inc. (from 2014 to 2019), and as Chair of the Board of Sophiris Bio Inc. (from 2010 to 2020). Dr. Ekman co-founded Cebix Incorporated, where he served as Chief Executive Officer from 2009 to 2012. He was President of Research & Development at Elan Corporation, plc (from 2001 to 2007), where he also served as a director (from 2005 to 2012). From 1997 to 2001, Dr. Ekman was Executive Vice President, Research & Development, at Schwarz Pharma AG. Prior to that, he held various senior positions at Pharmacia Corporation. Dr. Ekman is a board-certified surgeon with a Ph.D. in experimental biology and has held several clinical and academic positions in both the United States and Europe. He earned his Ph.D. and M.D. from the University of Gothenburg, Sweden. Dr. Ekman has served on our Board since 2012. Age: 71
The Board concluded that Dr. Ekman should continue to serve as a director given his significant scientific, operational, and management experience gained as a research scientist and in managing research and development functions engaged in drug discovery with a number of companies in the pharmaceutical industry. The Board also considered his clinical background, his venture capital experience in the life science industry, and his experience serving on the boards of directors at a number of public and private companies in the pharmaceutical/biotechnology industry.
Gene G. Kinney, Ph.D., has served as our President and Chief Executive Officer since 2016. Prior to that, he was our Chief Operating Officer for part of 2016, and prior to that he was our Chief Scientific Officer and Head of Research and Development from 2012 to 2016. From 2009 to 2012, Dr. Kinney was Vice President, Pharmacology and then Senior Vice President of Pharmacological Sciences at Elan
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Pharmaceuticals, Inc.; while in those positions, he also served as Head of Nonclinical Research for Janssen Alzheimer Immunotherapy R&D. From 2001 to 2009, Dr. Kinney was Senior Director, Head of Central Pharmacology and acting lead for Bioanalytics & Pathology at the Merck Research Laboratories, where he contributed to the strategic direction and oversight of drug discovery activities and led a number of non-clinical discovery and clinical development programs targeted for the treatment of neurodegenerative and psychiatric conditions. Dr. Kinney also held positions at Bristol-Myers Squibb and was an Assistant Professor at the Emory University School of Medicine, Department of Psychiatry and Behavioral Sciences. He earned his B.A. from Bloomsburg University and his M.A. and Ph.D. from Florida Atlantic University. Dr. Kinney has served on our Board since 2016. Age: 52
The Board concluded that Dr. Kinney should continue to serve as a director given his role as the Company’s President and Chief Executive Officer and his extensive scientific and operational knowledge of our business and its drug discovery and development programs, from his tenure with the Prothena business when it was a part of Elan as well as since its separation from Elan. The Board also considered his significant experience in neuroscience and drug development programs encompassing immunotherapy, vaccine and small molecule approaches, as well as his experience gained from serving in key research and development leadership roles in other biotechnology companies.
Oleg Nodelman is the Founder and Portfolio Manager of EcoR1 Capital, LLC, a biotechnology-focused investment advisory firm established in 2013, which invests in companies in all stages of research and development. Mr. Nodelman also serves as a director of Nuvation Biosciences, Inc., whose Board he joined in 2021. From 2001 to 2012, he held various roles including Portfolio Manager at BVF Partners. Mr. Nodelman earned his B.S. in Foreign Service with a concentration in Science and Technology from Georgetown University. He has served on our Board since 2019. Age: 44
The Board concluded that Mr. Nodelman should continue to serve as a director given his significant experience in venture
capital investment in the life science industry. The Board also considered his experience serving on the boards of directors of public and private companies in the pharmaceutical/biotechnology industry, as well as his role as Founder and Portfolio Manager of EcoR1 Capital, LLC, a significant shareholder of the Company.
Dennis J. Selkoe, M.D., is the Vincent and Stella Coates Professor of Neurologic Diseases at Harvard Medical School and co-director of the Ann Romney Center for Neurologic Diseases at Brigham and Women’s Hospital in Boston, positions he has held since 2000 and 1985, respectively. He has served on the faculty at Harvard Medical School since 1978. Dr. Selkoe was the principal founding scientist and served as a director of Athena Neurosciences, Inc. until it was acquired by Elan Corporation, plc in 1996. He has received numerous honors, including the Mathilde Solowey Award in the Neurosciences (NIH), the Potamkin Prize (American Academy of Neurology), the A.H. Heineken Prize for Medicine (The Netherlands), the Pioneer Award and the Lifetime Achievement Award (Alzheimer’s Association), the George C. Cotzias Lecture of the American Academy of Neurology, and the Ulysses Medal of University College Dublin. Dr. Selkoe is a Fellow of the American Academy of Neurology, the American Association for the Advancement of Science and the American College of Physicians, an elected member of the National Academy of Medicine and a director of the Foundation for Neurologic Diseases. He served as a director of Elan from 1996 to 2013. Dr. Selkoe earned his B.A. from Columbia University and his M.D. from the University of Virginia. He has served on our Board since 2013. Age: 77
The Board concluded that Dr. Selkoe should continue to serve as a director given his significant experience as both a research scientist and a practicing clinician, and in particular his expertise in the preclinical and clinical features of neurodegenerative diseases, especially Parkinson’s disease and Alzheimer’s disease. The Board also considered his lengthy experience as a director of a global public company in the pharmaceutical/biotechnology industry.

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CORPORATE GOVERNANCE AND BOARD MATTERS
Overview
We are committed to exercising good corporate governance practices. In furtherance of this commitment, we regularly monitor developments in the area of corporate governance and review our processes, policies, and procedures in light of such developments. Key information regarding our corporate governance can be found on our website at http://ir.prothena.com/corporate-governance, including in our Corporate Governance Guidelines; the charters for our Audit,
Compensation, and Nominating and Corporate Governance Committees; and our Code of Conduct. We believe that our corporate governance policies and practices ensure that our independent directors effectively oversee our management - including the performance of our Chief Executive Officer and provide an effective and appropriately balanced Board governance structure.
Independence of Directors
Rules of The Nasdaq Stock Market (“Nasdaq”) require that a majority of the members of a listed company’s board of directors must qualify as “independent directors” as defined by Nasdaq rules and affirmatively determined by the board of directors.
Our Board has determined that, with the exception of Dr. Kinney, all members of our Board are “independent directors” as defined by Nasdaq rules. Dr. Kinney is not an independent director because he is our President and Chief Executive Officer.
Board Role in Risk Oversight
Our Board is responsible for the oversight of risk, while management is responsible for the day-to-day management of risk. The Board fulfills this oversight role directly and through certain of its committees. In particular, our Board reviews strategic as well as operational risks as an element of its review of strategic and operational plans and programs. The Audit Committee of the Board periodically reviews the
Company’s major risk exposures and the steps management has undertaken to control them; oversees internal controls and other activities to manage financial risks; and periodically reviews the Company’s policies, programs, and systems intended to ensure compliance with applicable laws and ethical standards.
Board Leadership Structure
Our Chair of the Board and our Chief Executive Officer are currently separate individuals. Dr. Ekman serves as Chair of the Board, and Dr. Kinney serves as our President and Chief Executive Officer. In his role as Chair, Dr. Ekman provides leadership to the Board; approves Board meeting schedules and agendas; presides over all Board meetings, including regular executive sessions of the independent directors; and
serves as the primary liaison between the independent directors and our Chief Executive Officer and other members of management. Our Board has concluded that our current leadership structure is appropriate at this time. However, our Board will continue to periodically review our leadership structure and may make changes as it deems appropriate.
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CORPORATE GOVERNANCE AND BOARD MATTERS
Board Committees
Our Board has the following standing committees: the Audit Committee, the Compensation Committee, and the Nominating and Corporate Governance Committee. The composition and responsibilities of each of these committees are described below. Members serve on these committees until their resignation or until otherwise determined by our Board.
Director
Audit
Committee
Compensation
Committee
Nominating and
Corporate Governance
Committee
Lars G. Ekman(1)
Paula K. Cobb(2)
 


Richard T. Collier


Shane M. Cooke

 
 
K. Anders O. Härfstrand

Christopher S. Henney


 
Gene G. Kinney
Oleg Nodelman(3)
 

 
Dennis J. Selkoe


Committee Chair


Member
(1)
Dr. Ekman served as the chair of the Compensation Committee until he stepped down from that Committee on February 25, 2020.
(2)
Ms. Cobb served as a member of the Compensation Committee and, commencing on February 25, 2020, as chair of that Committee.
(3)
Mr. Nodelman was appointed to the Compensation Committee on February 25, 2020.
Audit Committee
Our Audit Committee’s primary purposes are to oversee our corporate accounting and financial reporting processes and the audits and reviews of our financial statements, as well as our legal and ethical compliance activities. Among other matters, the Audit Committee is responsible for the appointment, compensation, retention, and oversight of our independent registered public accounting firm (the “auditor”); reviewing and confirming the auditor’s independence; periodically reviewing the adequacy and effectiveness of the Company’s internal control over financial reporting; reviewing with the management and the auditor the audited and reviewed financial statements to be included in the Company’s annual and quarterly reports, respectively, filed with the SEC; reviewing the Company’s major risk exposures and steps to control them; and reviewing the Company’s policies, programs, and systems intended to ensure compliance with applicable laws and ethical standards.
The current members of our Audit Committee are Mr. Collier, Mr. Cooke, and Dr. Henney. Mr. Cooke serves as chair of the Committee. Each member of the Committee is an “independent director” and meets the heightened independence requirements and also meets the financial literacy requirements under Nasdaq rules. Our Board has determined that Mr. Cooke and Dr. Henney are each an “audit committee financial expert” as defined under SEC rules and each has the requisite additional financial sophistication required under Nasdaq rules. The Audit Committee operates under a written charter, a copy of which is available on our website at http://ir.prothena.com/corporate-governance.

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CORPORATE GOVERNANCE AND BOARD MATTERS
Compensation Committee
Our Compensation Committee’s primary purposes are to consider and approve all compensation of our executive officers other than our chief executive officer (our “CEO”) and consider and recommend to the Board all compensation of our CEO; consider and recommend to the Board all director compensation; and administer or oversee our compensation plans (including equity compensation plans).
The current members of our Compensation Committee are Ms. Cobb, Dr. Henney, and Mr. Nodelman. Ms. Cobb serves as chair of the Committee. Each member of the Committee is an “independent director” and otherwise meets the independence requirements under Nasdaq rules and is a “non-employee director” as defined in Rule 16b-3 under the Exchange Act. The Committee operates under a written charter, a copy of which is available on our website at http://ir.prothena.com/corporate-governance.
Our CEO makes recommendations to the Compensation Committee on compensation to executive officers other than himself. He also makes recommendations to the Board and the Compensation Committee on what should be the Company objectives that drive annual performance-based incentive compensation (cash bonuses). Following completion of the
fiscal year, he provides his assessment of the Company’s performance relative to those objectives, as well as the individual performance of executive officers other than himself. Certain of our executive officers and other members of management provide data and other information to the Committee’s compensation consultant (discussed below), as requested by that consultant. Our executive officers do not determine or recommend the amount or form of director compensation.
The Compensation Committee utilizes a compensation consultant to provide advice and recommendations to the Committee on the amounts and forms of executive and director compensation. The Committee is directly responsible for the appointment, compensation, and oversight of its compensation consultants, and is responsible for assessing the independence of those consultants after consideration of the independence factors prescribed by Nasdaq rules.
The Compensation Committee directly engaged Radford (an Aon Company) to provide advice and recommendations on executive officer as well as non-employee director compensation for our fiscal year 2020. The Committee assessed Radford’s independence prior to that engagement.
Nominating and Corporate Governance Committee
Our Nominating and Corporate Governance Committee’s primary purposes are to identify individuals qualified to become Board members and recommend to the Board qualified individuals to be nominated for election or appointment to the Board; make recommendations to the Board regarding composition of the Board and its committees; develop and implement annual evaluations of the Board; develop and implement regular performance evaluations of our CEO; develop a succession plan for our CEO; and develop corporate governance guidelines applicable to the Company.
The current members of our Nominating and Corporate Governance Committee are Ms. Cobb, Mr. Collier, and Dr. Härfstrand. Mr. Collier serves as chair of the Committee. Each member of the Committee is an “independent director” under Nasdaq rules. The Committee operates under a written charter, a copy of which is available on our website at http://ir.prothena.com/corporate-governance.
The Nominating and Corporate Governance Committee is responsible for determining the qualifications of nominees for election and candidates for appointment as directors, and for identifying, evaluating, and then recommending to the Board such nominees or candidates. The Committee reviews periodically the composition and size of the Board and makes recommendations to the Board as it deems necessary or appropriate so that the Board has the requisite expertise and
that its membership consists of persons with sufficiently diverse and independent backgrounds. In 2020, in response to proposed actions by Nasdaq, developments in various state laws, and other attention to the issue, the Board, upon a recommendation by the Committee, adopted an amendment to the Committee’s charter that the Committee ensures that the Board’s membership consists of persons with sufficiently diverse and independent backgrounds when identifying and evaluating qualified individuals for nomination or appointment to the Board. Nominees or candidates are expected to possess and have demonstrated breadth and depth of management and leadership experience, financial and/or business acumen, and relevant industry or scientific experience, high integrity, sufficient time to devote to the Company’s business, and a demonstrated ability to think independently but work collaboratively with other members of the Board and the Company’s management. In recommending candidates for election or appointment to the Board, the Committee considers each nominee’s or candidate’s knowledge, skills, and experience, according to the foregoing criteria, as well as his or her independence under Nasdaq and SEC rules. The Committee evaluates each nominee or candidate in the context of the Board as a whole, with the objective of assembling a group that can best maximize the success of the business and represent shareholder interests through the exercise of sound judgment using its diversity of experience.
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CORPORATE GOVERNANCE AND BOARD MATTERS
To assist the Nominating and Corporate Governance Committee in identifying potential directors who meet the criteria and priorities established from time to time and facilitate the evaluation of such potential directors, the Committee may retain third-party search firms.
The Nominating and Corporate Governance Committee will consider director candidates recommended by shareholders. For a shareholder to make any nomination for election to the Board at an annual general meeting of shareholders, the shareholder must provide notice to the Company, which notice must be delivered to, or mailed and received at, the Company’s registered office (Prothena Corporation plc, 77 Sir John Rogerson’s Quay, Block C, Grand Canal Docklands, Dublin 2, D02 T804, Ireland, Attention: Company Secretary) not less than 90 days and not more than 150 days prior to the one-year anniversary of the date the Company’s proxy statement was first released in connection with the prior year’s annual general meeting; provided that, if the date of the annual general meeting is more than 30 days from the one-year anniversary of the date of the prior year’s annual general meeting, the shareholder’s notice must be delivered,
or mailed and received, not earlier than 150 days and no later than 90 days prior to the date of the annual general meeting or, if later, the 10th day following the date on which public disclosure of the date of such annual general meeting is first made. Further updates and supplements to such notice may be required at the times, and in the forms, required under our Constitution. As set forth in our Constitution, submissions must include the information regarding the proposed nominee that is required to be disclosed in a proxy statement or other filings in a contested election pursuant to Section 14(a) under the Exchange Act and written consent from the proposed nominee to being named in the proxy statement as a nominee and to serving as a director of the Company. Our Constitution also specifies further requirements as to the form and content of a shareholder’s notice. We recommend that any shareholder who wishes to make a nomination for director review our Constitution, which we have previously publicly filed with the SEC and is also available, without charge, from our Company Secretary at Prothena Corporation plc, 77 Sir John Rogerson’s Quay, Block C, Grand Canal Docklands, Dublin 2, D02 T804, Ireland.
Meetings of the Board and Committees, Meeting Attendance and Shareholder Meeting Attendance
During our fiscal year 2020, our Board met eight times, our Audit Committee met seven times, our Compensation Committee met six times, and our Nominating and Corporate Governance Committee met four times.
During our fiscal year 2020, each of our directors attended at least 75% of all meetings of the Board and committees of the Board of which the director was a member.
We encourage all of our directors and nominees for director to attend our annual general meetings of shareholders, although attendance is not mandatory. In 2020, due to travel restrictions related to the COVID-19 pandemic, all of our directors attended our annual general meeting of shareholders via videoconference and were available to answer questions.
Other Corporate Governance Matters
Corporate Governance Guidelines. As a part of our Board's commitment to enhancing shareholder value over the long term, our Board has adopted Corporate Governance Guidelines. Our Corporate Governance Guidelines cover, among other topics, board composition, director independence, new director orientation and continuing education, annual Board performance evaluations, Board and director responsibilities, director access to management and independent advisors, Board committees and director compensation. Our Corporate Governance Guidelines are available on our website at http://ir.prothena.com/corporate-governance.
Majority Voting for Election of Directors. Our directors are elected by the affirmative vote of a majority of the votes cast by our shareholders at an annual general meeting. Any nominee for director who does not receive a majority of the votes cast is not elected to our Board. Accordingly, there is no “holdover” rule under Irish law or our Constitution.
Staggered Board. Our Board is divided into three groups and our Constitution requires that at least one-third (which, if not a round number, is rounded to the number which is nearest to and less than one-third) of the directors must stand for re-election at each annual general meeting, and that directors must stand for re-election no later than the third annual general meeting subsequent to their election or appointment to the Board. However, under Irish law and our Constitution, our directors may be removed at any time with or without cause by the affirmative vote of a majority of the votes cast by shareholders. Under Irish law, shareholders holding 10% or more of the total voting rights of the Company can at any time requisition an extraordinary general meeting (i.e., a special meeting) to vote on the removal of any or all of our directors and, if desired, the appointment of replacement directors.

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CORPORATE GOVERNANCE AND BOARD MATTERS
Shareholder Ability to Call Extraordinary Meetings. As noted above, Irish law provides that shareholders holding 10% or more of the total voting rights can at any time request that the directors call an extraordinary general meeting. The shareholders who wish to request an extraordinary general meeting must deliver to our registered office (set forth above) a written notice, signed by the shareholders requesting the meeting and stating the purposes of the meeting. If the directors do not, within 21 days of the date of delivery of the request, proceed to convene a meeting to be held within two months of that date, those shareholders (or any of them representing more than half of the total voting rights of all of them) may themselves convene a meeting within a specified period, but any meeting so convened cannot be held after the expiration of three months from the date of delivery of the request.
Compensation Governance. We are committed to having strong governance standards with respect to our compensation programs, procedures, and practices. Our key compensation governance practices are described in this Proxy Statement under the heading Compensation Discussion and Analysis - Compensation Governance and Best Practices.
Code of Conduct. We have a Code of Conduct that applies to all of our directors, executive officers, and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. Our Code of Conduct is available on our website at http://ir.prothena.com/corporate-governance. We will provide to any person without charge, upon request, a copy of that Code of Conduct; such a request may be made by sending it to our Company Secretary at Prothena Corporation plc, 77 Sir John Rogerson's Quay, Block C,
Grand Canal Docklands, Dublin 2, D02 T804, Ireland. If we make any amendment to, or waiver from, a provision of our Code of Conduct that we are required to disclose under SEC rules, we intend to satisfy that disclosure requirement by posting such information on our website at http://ir.prothena.com/corporate-governance. The contents of our websites are not intended to be incorporated by reference into this Proxy Statement or in any other report or document we file with the SEC, and any references to our websites are intended to be inactive textual references only.
Anti-Hedging/Pledging Policies. Our Code of Conduct expressly prohibits our directors, executive officers, and employees from engaging in speculative transactions in Company securities, including short sales, transactions in put or call options, hedging transactions, and other inherently speculative transactions. We also have an Insider Trading Compliance Policy that further prohibits our directors, executive officers, and employees from entering into any form of hedging or monetization transaction with respect to Company securities and from pledging such securities as collateral for any loans, including purchasing any Company securities on margin.
Shareholder Communications with the Board. Any shareholder who desires to communicate with the Board or any specified individual director may do so by directing such correspondence to the attention of our Company Secretary at Prothena Corporation plc, 77 Sir John Rogerson's Quay, Block C, Grand Canal Docklands, Dublin 2, D02 T804, Ireland. The Company Secretary will forward the communication to the Board members or individual director as appropriate.
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DIRECTOR COMPENSATION
Our non-employee directors, other than the Chair of the Board, each receive an annual cash retainer fee of $60,000. Our Chair receives an annual cash retainer fee of $90,000. In addition, all of our non-employee directors who serve on or chair a Board committee receive the following annual committee fees:
Committee
Chair
Other Member
Audit Committee
$20,000
$9,000
Compensation Committee
15,000
6,000
Nominating and Corporate Governance Committee
10,000
5,000
All of these fees are paid in quarterly installments.
Unless otherwise determined by the Board, each of our non-employee directors is awarded annually, on the first business day following each annual general meeting of the shareholders, a nonqualified stock option to acquire 17,500 of the Company's ordinary shares. These options vest on the earlier of the first anniversary of the grant date or the day of the next annual general meeting of shareholders (subject to continuous service as a director until such vesting date, except in the event of certain terminations of service) and has a ten-year term.
Any new non-employee director is awarded, on the first business day following the date of initial appointment or election to the Board, a nonqualified stock option to acquire 35,000 of the Company's ordinary shares. This option vests in equal annual installments over three years following the grant date with the final year vesting date being the earlier of the third anniversary of the grant date or the day prior to the annual general meeting of shareholders for that year (subject to continuous service as a director until each such vesting date, except in the event of certain terminations of service) and has a ten-year term.
All of these options are awarded under our 2018 Long Term Incentive Plan, as amended (the “2018 LTIP”), and have a per share exercise price equal to the closing market price of our ordinary shares on the date of grant.
Mr. Nodelman, although a non-employee director, has declined to receive any cash or equity compensation for his service on our Board or its Compensation Committee.
Our sole non-independent director, Dr. Kinney (our President and Chief Executive Officer), does not receive any additional compensation for his service on our Board.
At their annual general meeting in 2020, our shareholders approved a “value-for-value” option exchange program. Pursuant to this approval, we offered the option exchange in an issuer tender offer that closed on February 12, 2021. Under the terms of the program, eligible employees and directors could surrender outstanding options for ordinary shares granted prior to April 23, 2018, and with exercise prices equal to or greater than $17.63, in exchange for a new option award. Members of the Board holding eligible grants were eligible to participate in the option exchange program.
The following table sets forth the compensation paid to our non-employee directors in our fiscal year 2020.
Name
Fees Earned or
Paid in Cash(1)
($)
Option
Awards(2)
($)
All Other
Compensation
($)(3)
Total
($)
Lars G. Ekman
92,254
133,805
226,059
Paula K. Cobb
78,648
133,805
212,453
Richard T. Collier
79,000
133,805
212,805
Shane M. Cooke
80,000
133,805
213,805
K. Anders O. Härfstrand
65,000
133,805
198,805
Christopher S. Henney
75,000
133,805
208,805
Oleg Nodelman(4)
Dennis J. Selkoe
60,000
133,805
21,625
215,430
(1)
Consists of retainer, committee chair, and committee service fees, as described in the narrative above.
(2)
Consists of nonqualified stock options awarded under the 2018 LTIP. These amounts do not reflect compensation actually received. Rather, these amounts represent the grant date fair value of the options awarded, calculated in accordance with Financial Accounting Standards Board ASC Topic 718. For a discussion of the assumptions made in calculating the values reflected, see Note 9 of the Consolidated Financial Statements included in our Annual Report on Form 10-K for our fiscal year 2020, filed with the SEC (our “Form 10-K”). The amounts reported represent the grant date fair value of options granted on May 20, 2020, to acquire 17,500 of the Company's ordinary shares, which options have an exercise price of $11.33 per share (the fair market value per share on the date of grant), vest on the earlier of the first anniversary of the grant date or the day of the next annual general meeting of shareholders (subject to continuous service as a director until such vesting date), and have a ten-year term.

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DIRECTOR COMPENSATION
(3)
Consists of consulting fees paid under (a) a Consulting Agreement entered into on July 1, 2019, between Dr. Selkoe and the Company's wholly-owned subsidiary Prothena Biosciences Inc under which Dr. Selkoe provided consulting services in connection with the Company's assessment of potential business development opportunities which agreement expired on July 1, 2020, and (b) a Consulting Agreement entered into on July 15, 2020, between Dr. Selkoe and the Company’s wholly-owned subsidiary Prothena Biosciences Inc under which Dr. Selkoe provides consulting services in connection with the Company’s assessment of potential business development opportunities and matters related to partnered collaboration programs.
(4)
Mr. Nodelman has declined to receive any cash or equity compensation for his service as a director.
As of the end of our fiscal year 2020, the total number of shares subject to outstanding option awards held by each non-employee director were as set forth in the following table. No other equity awards were held by our non-employee directors as of the end of our fiscal year 2020. Awards made prior to 2018 were made under our Amended and Restated 2012 Long Term Incentive Plan.
Name
Outstanding
Option Awards
(Shares)
Lars G. Ekman
184,000
Paula K. Cobb
52,500
Richard T. Collier
139,000
Shane M. Cooke
139,000
K. Anders O. Härfstrand
104,000
Christopher S. Henney
103,100
Oleg Nodelman
Dennis J. Selkoe
92,500
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PROPOSAL NO. 2
RATIFICATION, IN A NON-BINDING VOTE, OF THE APPOINTMENT OF KPMG LLP AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR OUR FISCAL YEAR 2021 AND AUTHORIZATION, IN A BINDING VOTE, OF OUR BOARD OF DIRECTORS, ACTING THROUGH ITS AUDIT COMMITTEE, TO APPROVE THE REMUNERATION OF THAT AUDITOR
The Audit Committee is responsible for the appointment of our independent accounting firm. The Audit Committee has appointed KPMG LLP, a registered public accounting firm, as our independent accounting firm to audit our consolidated financial statements for our fiscal year ending December 31, 2021, and our shareholders are being asked to ratify that appointment and authorize the Board of Directors, acting through its Audit Committee, to approve the remuneration of KPMG LLP as our auditor. Neither our Constitution nor Irish law requires shareholder ratification of the appointment of KPMG LLP as our independent registered public accounting firm. Our Board is nonetheless submitting the appointment of KPMG LLP to our shareholders for ratification, in a non-binding vote, as a matter of good governance. The Board is also requesting that shareholders authorize, in a binding vote, the Board, acting through its Audit Committee, to approve the remuneration of KPMG LLP as our auditor.
If our shareholders fail to ratify such appointment of KPMG LLP, the Audit Committee will reconsider whether or not to retain KPMG LLP, but may still determine to maintain its appointment of KPMG LLP as our independent registered public accounting firm for our fiscal year 2021. Even if the appointment of KPMG LLP is ratified by our shareholders, the Audit Committee may appoint a different independent registered public accounting firm at any time if the Committee determines that such a change would be in the best interests of the Company and its shareholders.
KPMG LLP has audited our financial statements since the year ended December 31, 2012. Representatives of KPMG LLP are expected to attend the Annual Meeting. They will have an opportunity to make a statement if they so desire and will be available to respond to appropriate questions.
Fees Paid to KPMG
The following table sets forth fees paid to KPMG LLP for services provided to the Company for our fiscal years ended December 31, 2020 and 2019.
Year Ended December 31,
2020
2019
Audit Fees(1)
$605,543
$638,747
Audit-Related Fees(2)
8,000
48,775
Tax Fees(3)
253,214
165,345
All Other Fees
Total Fees
$866,757
$852,867
(1)
Consists of fees and out-of-pocket expenses for services rendered for the audits for our annual financial statements, reviews of our quarterly financial statements and audits of our Irish statutory financial statements.
(2)
Consists of fees and out-of-pocket expenses for services reasonably related to the audits and reviews of our financial statements, which was comprised of consultations on new accounting standards, consents related to registration statements and, in 2019, consultations on our responses to comments from the U.S. Securities and Exchange Commission on our financial statements, and consent related to shelf registration statement.

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(3)
Consists of fees and out-of-pocket expenses incurred in connection with international tax compliance and tax consultation services.
Pre-Approval Policies and Procedures
The Audit Committee has adopted policies and procedures requiring that the Company obtain the Committee's pre-approval of all audit and permissible non-audit services to be provided by the Company's independent registered public accounting firm. Under those policies and procedures, all such services must be pre-approved by the Committee (although certain services may be pre-approved by the chair of the Committee followed by Committee ratification at the next Committee meeting). Before pre-approving services, the Committee considers the estimated fees for those services and whether those services might impair KPMG LLP's independence. Pursuant to these policies and procedures, the Audit Committee pre-approved all services provided by KPMG LLP for our fiscal years 2020 and 2019.
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE FOR RATIFICATION, IN A NON-BINDING VOTE, OF THE APPOINTMENT OF KPMG LLP AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR OUR FISCAL YEAR 2021 AND AUTHORIZATION, IN A BINDING VOTE, OF OUR BOARD OF DIRECTORS, ACTING THROUGH ITS AUDIT COMMITTEE, TO APPROVE THE REMUNERATION OF THAT AUDITOR.
REPORT OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS
The information in this report is not “soliciting material,” is not deemed “filed” with the SEC and is not to be incorporated by reference into any filing by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether before or after the date hereof and irrespective of any general incorporation language in any such filing.
The primary purpose of the Audit Committee is to oversee the Company's financial reporting processes on behalf of our Board. The Audit Committee's functions are more fully described in its charter, which is available on our website at http://ir.prothena.com/corporate-governance. Management has the primary responsibility for our financial statements and reporting processes including our systems of internal controls. In fulfilling its oversight responsibilities, the Audit Committee reviewed and discussed with management the Company's audited consolidated financial statements as of and for the year ended December 31, 2020.
The Audit Committee reviewed and discussed with KPMG LLP, the Company's independent registered public accounting firm, the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board (the “PCAOB”) and the U.S. Securities and Exchange Commission. In addition, the Audit Committee discussed with KPMG LLP their independence, and received from KPMG LLP and reviewed the written disclosures and the letter required by Ethics and Independence Rule 3526 of the PCAOB. Finally, the Audit Committee discussed with KPMG LLP, with and without management present, the scope and results of KPMG LLP's audit of such financial statements.
Based on these reviews and discussions, the Audit Committee recommended to our Board that such audited financial statements be included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, for filing with the U.S. Securities and Exchange Commission.
Shane M. Cooke (Committee Chair)
Richard T. Collier
Christopher S. Henney
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PROPOSAL NO. 3
APPROVAL, IN A NON-BINDING ADVISORY VOTE, OF THE COMPENSATION OF OUR EXECUTIVE OFFICERS NAMED IN THIS PROXY STATEMENT (“SAY-ON-PAY”)
Summary
We are providing our shareholders with the opportunity to vote on a resolution to approve, on an advisory (non-binding) basis, the compensation of our named executive officers - our Chief Executive Officer, our Chief Financial Officer, and our other three most highly compensated executive officers. This advisory shareholder vote pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 - commonly known as “Say-on-Pay” - gives our shareholders the opportunity to endorse or not endorse the named executive officer compensation as described and explained in the Compensation Discussion and Analysis, compensation tables and accompanying narrative disclosures in this Proxy Statement. We encourage you to carefully review that information.
We believe that the compensation of our named executive officers for fiscal year 2020 was aligned with the Company's performance during 2020 and its go-forward strategy. As is described in the Compensation Discussion and Analysis:
2020 Performance Highlights. We are a late-stage clinical company with expertise in protein dysregulation and a pipeline of novel investigational therapeutics with the potential to change the course of devastating neurodegenerative and rare peripheral amyloid diseases. Our executive compensation programs are designed to reward superior performance and provide consequences for under-performance. We believe that compensation of our named executive officers for fiscal year 2020 was aligned with the Company's performance during 2020 and its go-forward strategy. Highlights of that performance include:
We Made Significant Advances in our Clinical Development Pipeline. We made significant progress in advancing clinical development of three potential therapies:
Birtamimab is an investigational monoclonal antibody for the potential treatment of AL amyloidosis. Birtamimab was previously evaluated in the Phase 3 VITAL Study. Results from a post hoc analysis of that study revealed a significant survival benefit favoring birtamimab in a subset of patients categorized as Mayo Stage IV at baseline.
We announced this post-hoc analysis in April 2019. Throughout 2020, we worked with the U.S. Food and Drug Administration to reach agreement under a Special Protocol Assessment (SPA) to advance birtamimab into a confirmatory Phase 3 AFFIRM-AL study in Mayo Stage IV patients. The SPA agreement was reached on January 27, 2021.
PRX004 is our investigational monoclonal antibody for the potential treatment of ATTR amyloidosis. In December 2020, we reported positive results from the Phase 1 study. PRX004 was found to be generally safe and well tolerated across all dose levels. PRX004 also showed slowing of neuropathy progression for all seven evaluable patients at nine months, including an improvement in neuropathy in three of the seven patients. PRX004 also showed improved cardiac systolic function for all seven patients.
Prasinezumab (PRX002/RG7935) is our investigational monoclonal antibody for the potential treatment of Parkinson's disease and other related synucleinopathies. In 2020, Roche, with whom we have a worldwide collaboration for prasinezumab, presented results from the Phase 2 PASADENA study in a Top Abstract oral presentation at the International Parkinson and Movement Disorder Society’s MDS Virtual Conference. While the study did not meet the primary objective, signals of efficacy showing that prasinezumab slowed progression on measures of Parkinson’s disease were observed in both of the prasinezumab arms when compared to placebo. In October 2020, we and Roche announced that together we will advance prasinezumab into a Phase 2b study in patients with early Parkinson’s disease.
We Advanced our Discovery and Preclinical Pipeline. During fiscal year 2020, the Company advanced its early-stage pipeline of programs. The Company presented

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preclinical data from two programs in its Alzheimer’s disease portfolio at the 13th Clinical Trials on Alzheimer’s Disease Conference in November 2020. The Company presented data on next generation anti-abeta antibodies suitable for subcutaneous administration to improve patient access. The Company also presented data on a multi-immunogen vaccine that targets key abeta and tau epitopes.
We Carefully Managed Our Cash. During fiscal year 2020, we carefully managed our capital. While progressing all of our development programs described above, our cash “burn” was $81 million, in the middle of our revised guidance range of $75-85 million. We finished 2020 with $298 million in cash, cash equivalents, and restricted cash, in the middle of our revised guidance range of $294-304 million, providing a solid financial foundation for continuing to advance the Company’s discovery and clinical programs.
Board Recommendation
Our Board believes that the information provided above and in the Compensation Discussion and Analysis, compensation tables, and accompanying narrative disclosures in this Proxy Statement demonstrate that our executive compensation programs were designed appropriately and are working to ensure that our management's interests are aligned with our shareholders' interests and support long-term value creation, and that those interests were well-served in fiscal year 2020. Accordingly, we are asking shareholders to approve the following non-binding advisory resolution at the Annual Meeting:
RESOLVED, that the shareholders of Prothena Corporation plc (the “Company”) approve, on an advisory basis, the compensation of the Company's named executive officers, as disclosed in the Compensation Discussion and Analysis, compensation tables, and accompanying narrative disclosures set forth in this Proxy Statement.
The vote on this Proposal No. 3 is advisory, and, therefore, not binding on the Company, our Board, or its Compensation Committee. Although non-binding, our Board and its Compensation Committee will review and consider the voting on this Proposal No. 3 when making future decisions regarding compensation of our named executive officers. Unless our Board modifies its determination on the frequency of future “Say-on-Pay” advisory votes, the next “Say-on-Pay” advisory vote will be held at the next annual general meeting of our shareholders, to be held in 2022.
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE FOR THE NON-BINDING ADVISORY RESOLUTION APPROVING THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS.
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PROPOSAL NO. 4
APPROVAL OF AN AMENDMENT TO THE PROTHENA CORPORATION PLC 2018 LONG TERM INCENTIVE PLAN TO INCREASE THE NUMBER OF ORDINARY SHARES AVAILABLE FOR ISSUANCE UNDER THAT PLAN BY 1,800,000 ORDINARY SHARES
Summary
On February 25, 2021, our Board adopted, subject to shareholder approval, a further amendment (the “Amendment”) to the Prothena Corporation plc 2018 Long Term Incentive Plan, as amended (the “2018 LTIP” and, as proposed to be amended by the Amendment, the “Amended 2018 LTIP”). The effectiveness of the Amendment is subject to approval by our shareholders.
The 2018 LTIP was adopted by our Board on February 21, 2018, and approved by our shareholders on May 15, 2018, and amended by the Board on February 25, 2020, with approval by our shareholders on May 19, 2020. The 2018 LTIP superseded and replaced in its entirety our Amended and Restated 2012 Long Term Incentive Plan (the “2012 LTIP”). The number of our ordinary shares available for issuance under the 2018 LTIP, prior to approval of this amendment, is equal to the sum of (a) 3,300,000 shares, (b) 1,177,933 shares, which is the number of shares that were available for issuance under the 2012 LTIP as of May 15, 2018, the effective date of the 2018 LTIP, and (c) any shares subject to issued and outstanding awards under the 2012 LTIP that expired, were cancelled or otherwise terminated, or that in the future expire, are cancelled or otherwise terminate, following the effective date of the 2018 LTIP.
We are proposing the Amendment solely to increase the number of ordinary shares available for issuance under the 2018 LTIP by 1,800,000 ordinary shares, which we believe is necessary to help ensure that the Company has a sufficient reserve of ordinary shares available to attract and retain the services of key individuals essential to the Company's long-term growth and success.
Employees and consultants of the Company and its subsidiaries and affiliates, as well as members of our Board, are eligible to receive awards under the 2018 LTIP. The 2018 LTIP provides for the grant of options, including incentive stock options (“ISOs”) and nonqualified stock options (“NQSOs”), share appreciation rights (“SARs”), restricted shares, restricted share units (“RSUs”), performance bonus awards, performance share units awards, other share or cash-based awards, and dividend equivalents to eligible individuals.
If shareholders do not approve this Proposal No. 4, the Amended 2018 LTIP will not become effective, and the current 2018 LTIP, without the share increase proposed in the Amendment, will continue in full force and effect subject to the limitations set forth therein.
Key Features of the 2018 LTIP
The 2018 LTIP reflects a broad range of compensation and governance best practices, including the following:
Automatic acceleration of awards only if not assumed or substituted. The 2018 LTIP provides that awards will automatically accelerate upon a change in control only if not assumed or substituted, and further that any such performance-based awards will vest based on the higher of
(a) actual performance as of the change in control, or (b) target performance, prorated based on a shortened performance period as of the change in control.
Prohibition of liberal share recycling on all awards. The 2018 LTIP prohibits any shares withheld for taxes on all awards from being added back to the share reserve, in addition to prohibiting other practices considered to be liberal share recycling with respect to options and SARs.

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Minimum vesting requirements. Subject to limited exceptions, no awards granted under the 2018 LTIP may vest until the first anniversary of the date of grant, and awards other than options and SARs made to our employees or consultants must become vested over a period of not less than three years.
Payment of dividends only if underlying awards vest. Dividends and dividend equivalents may only be paid to the extent the underlying award vests.
No repricing or exchange of awards without shareholder approval. Awards may not be repriced, replaced, exchanged or re-granted through cancellation or modification without shareholder approval if the effect would be to reduce the exercise price for the shares under the award.
No transferability. Equity awards may only be transferred under limited circumstances and in any event without consideration.
Fungible share counting; limit on full value awards. Shares issued as full-value awards (awards other than options, SARs, or any other award for which the holder pays the intrinsic value existing as of the date of grant) will have the effect of reducing the aggregate number of shares available for issuance on a 1.5-to-1 basis. Accordingly, if shareholders approve the Amendment adding 1,800,000 ordinary shares available for issuance under the 2018 LTIP, the maximum number of those shares that may be issued as full-value awards under the Amended 2018 LTIP will be 1,200,000.
No evergreen feature/shareholder approval required for share reserve increases. The 2018 LTIP does not provide for an annual increase in the share reserve, and the 2018 LTIP may not be amended to increase the share reserve without shareholder approval.
Outstanding Awards Under our Equity Incentive Plans
As of March 8, 2021, under the 2018 LTIP and the 2012 LTIP:
8,290,092 of our ordinary shares were subject to outstanding option awards, with a weighted average exercise price of $16.64 and a weighted average remaining term of 7.25 years;
No ordinary shares were subject to any other types of outstanding awards; and
1,329,589 ordinary shares remained available for future grant under only the 2018 LTIP.
The 1,329,589 ordinary shares available for future grant under the 2018 LTIP as of March 8, 2021, includes 741,818 ordinary shares returned to the 2018 LTIP as a result of our “value-for-value” option exchange program approved by our shareholders on May 19, 2020, and implemented through a tender offer that closed on February 12, 2021.
On February 25, 2020, our Board approved our 2020 Employment Inducement Incentive Plan, and subsequently adopted a series of amendments to increase the ordinary shares available for issuance (as amended, the “2020 EIIP”). Since adoption, we have used the EIIP to induce our Chief Business Officer and thirteen other employees at the director level and above to join the Company. As of March 8, 2021, under the 2020 EIIP:
785,000 of our ordinary shares were subject to new-hire option awards, with a weighted average exercise price of $11.25, and a weighted average remaining term of 9.35 years;
No ordinary shares were subject to any other types of outstanding awards; and
No ordinary shares remained available for future grant under the 2020 EIIP, but the Board and the Compensation Committee reserve the right to further amend the 2020 EIIP from time-to-time to increase the number of ordinary shares available for issuance and to make additional awards to key new-hires.
Thus, as of March 8, 2021, under the 2018 LTIP, the 2012 LTIP, and the 2020 EIIP:
9,075,092 of our ordinary shares were subject to outstanding option awards, with a weighted average exercise price of $16.17 and a weighted average remaining term of 7.43 years;
No ordinary shares were subject to any other types of outstanding awards; and
1,329,589 ordinary shares remained available for future grant under only the 2018 LTIP.
The closing price of our ordinary shares on March 8, 2021, was $20.62 per share.
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Why You Should Vote FOR the Amendment to the 2018 LTIP
In its determination to approve the Amendment, our Board considered an analysis prepared by Radford (an Aon Company), the compensation consultant for the Compensation Committee of our Board, which included an analysis of our historical share usage, certain burn rate metrics, and the costs of the 2018 LTIP. Specifically, our Board considered the following:
We need the additional 1,800,000 shares requested in the Amendment to retain and hire the necessary talent to execute on our research and development objectives and long-term strategy. We expect that share authorization, used in conjunction with our EIIP where appropriate, to provide us with enough shares for awards for at least one year (until the annual meeting of our shareholders in 2022).
In determining the reasonableness of the Amendment, our Board considered our historic equity “burn rate.” Equity burn rate is calculated by dividing the number of shares subject to equity awards granted during the fiscal year (without adjusting for forfeitures) by the weighted average ordinary shares outstanding during the fiscal year. In 2020, 2019, and 2018, we granted stock options representing a total of 2,108,950 shares, 1,315,975 shares, and 4,140,800 shares, respectively, under the 2018 LTIP, the 2012 LTIP, and the 2020 EIIP. This level of option awards represents a three-year average burn rate of approximately 6.4% of weighted average ordinary shares outstanding.
We note that the significant reorganization we completed in 2018 resulted in significant option cancellations, which reduced our 2018 net burn rate. Moreover, excluding the one-time retention options granted in June 2018, our three-year average burn rate was 4%, which is approximately the 25th percentile of the Compensation Committee’s peer group data. Unlike over two-thirds of such peer group, we do not have an evergreen provision in our 2018 LTIP.
Our Compensation Committee considers option awards to be a particularly effective incentive and retention tool because they motivate our employees to increase shareholder value and remain with the Company. Options link compensation directly to increases in the price of our ordinary shares, which directly reflects increased shareholder value; and our options have generally required continued employment for four years in order to fully vest. All of the companies in the peer group used by the Compensation Committee used option awards for at least a portion of equity compensation.
Our use of option awards is broad-based across our organization. All of our employees participate in the 2018 LTIP and/or the 2020 EIIP and we currently expect to continue this approach.
In light of the factors described above, and that the ability to continue to grant equity compensation is vital to our ability to continue to attract and retain employees in the highly competitive labor markets in which we compete, our Board has determined that the size of the share reserve under the Amended 2018 LTIP, as proposed to be augmented pursuant to the Amendment, is reasonable and appropriate at this time.
A summary of the principal provisions of the Amended 2018 LTIP is set forth below. This summary is qualified by reference to the Amendment, which is attached as Appendix A to this Proxy Statement; the Prothena Corporation plc 2018 Long Term Incentive Plan, which is available as Exhibit 10.1 of the Company's Current Report on Form 8-K filed with the SEC on May 18, 2018; and the First Amendment to the Prothena Corporation plc 2018 Long Term Incentive Plan, which is available as Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the SEC on May 22, 2020.
Administration
The Amended 2018 LTIP may be administered by our Board, its Compensation Committee, or such other committee of the Board (the “Committee”) as is designated by the Board. To the extent required to comply with Rule 16b-3 of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), it is intended that each member of the Committee will be a “non-employee director” within the meaning of Rule 16b-3. The Committee or our Board may delegate its powers under the Amended 2018 LTIP to one or more members of the Board or one or more directors, officers, or managers of the Company or any subsidiary, provided that no officer may be delegated the authority to grant awards to or amend awards held by senior executives of the Company who are subject to
Section 16 of the Exchange Act or any officer or director to whom authority to grant or amend awards has been delegated. The Board, the Committee, or a delegate thereof, as applicable, are referred to herein as the “plan administrator.”
The plan administrator has the authority to administer the Amended 2018 LTIP, including the power to determine eligibility, the types and sizes of awards, the price and vesting schedule of awards, the methods for settling awards, the method of payment for any exercise or purchase price, any rules and regulations the plan administrator deems necessary to administer the Amended 2018 LTIP, and the acceleration or waiver of any vesting restriction.

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Eligibility
Persons eligible to participate in the Amended 2018 LTIP include all members of our Board, which as of March 8, 2021, was comprised of eight non-employee directors, and as of the same date approximately 70 employees (including
eight executive officers) and approximately 25 consultants of the Company and its subsidiaries, in each case, as determined by the plan administrator.
Limitation on Awards and Shares Available
If our shareholders approve the Amendment, the number of ordinary shares authorized for issuance under the Amended 2018 LTIP will be equal to the sum of (a) 5,100,000 shares, (b) 1,177,933 shares, which is the number of shares that were available for issuance under the 2012 LTIP as of May 15, 2018, the effective date of the 2018 LTIP, (c) 3,379,250 shares, which is the number of shares that were subject to issued and outstanding awards under the 2012 LTIP that as of March 8, 2021, had expired, been cancelled, or otherwise terminated following May 15, 2018 (the effective date of the 2018 LTIP), and (d) any shares subject to issued and outstanding awards under the 2012 LTIP that expire, are cancelled, or otherwise terminate subsequent to March 8, 2021; provided, that no more than 2,500,000 shares may be issued pursuant to the exercise of ISOs. In addition, the aggregate number of shares available for issuance under the Amended 2018 LTIP will be reduced by 1.5 shares (the “Fungible Share Counting Ratio”) for each share delivered in settlement of any awards other than an option, SAR, or any other award for which the holder pays the intrinsic value existing as of the date of grant (each, a “Full Value Award”). The ordinary shares distributed pursuant to an award under the Amended 2018 LTIP may be (a) authorized but unissued shares, (b) shares purchased by the Company on the open market, or (c) treasury shares.
If any shares subject to an award under the Amended 2018 LTIP or any award under the 2012 LTIP are forfeited, expire, or are settled for cash, any shares deemed subject to such award (taking into account the Fungible Share Counting Ratio with respect to Full Value Awards granted under the Amended 2018 LTIP) may, to the extent of such forfeiture, expiration, or cash settlement, be used again for new grants under the Amended 2018 LTIP. However, the following shares may not be used again for grant under the Amended 2018 LTIP: (1) shares tendered or withheld to satisfy the exercise price of an option; (2) shares tendered or withheld to satisfy the tax withholding obligations with respect to an
award; (3) shares subject to an SAR that are not issued in connection with the share settlement of the SAR on its exercise; and (4) shares purchased on the open market with the cash proceeds from the exercise of options. Awards granted under the Amended 2018 LTIP in connection with the assumption or substitution of outstanding equity awards previously granted by a company or other entity in the context of a corporate acquisition or merger will not reduce the shares authorized for grant under the Amended 2018 LTIP.
Under the Amended 2018 LTIP, Full Value Awards (as defined in the Amended 2018 LTIP) granted to employees or consultants of the Company, other than options and SARs, must vest over a period of not less than three years measured from the date of grant or, in the case of performance-vesting awards, a period of not less than one year measured from the beginning of the applicable performance period, provided that the award agreement may provide that such vesting restrictions may lapse or be waived upon a participant's termination of service. The Company has committed to applying this minimum vesting requirement to members of our Board if they are to receive such awards.
In addition, all awards (or any portion thereof) granted under the Amended 2018 LTIP must vest no earlier than one year measured from the date of grant and no award agreement shall reduce or eliminate such minimum vesting requirement, provided that an award may provide that such minimum vesting restrictions may lapse or be waived upon a participant's termination of service. In addition, up to an aggregate of five percent of the number of shares available for issuance under the Amended 2018 LTIP as of its effective date may be granted without regard to the foregoing minimum vesting requirement. For the purposes of awards to non-employee directors, a vesting period shall be deemed to be one year if it runs from the date of one annual meeting of our shareholders to the next annual meeting of our shareholders.
Awards
The Amended 2018 LTIP provides for the grant of ISOs, NQSOs, SARs, restricted shares, RSUs, performance bonus awards, performance share units awards, other share or cash-based awards, and dividend equivalents. All awards
under the Amended 2018 LTIP are set forth in award agreements, which detail all terms and conditions of the awards, including any applicable vesting and payment terms
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and post-termination exercise limitations. No fractional shares may be issued or delivered pursuant to the Amended 2018 LTIP or any award thereunder.
Options. Options provide for the purchase of ordinary shares in the future at an exercise price set on the grant date. ISOs, by contrast to NQSOs, may provide tax deferral beyond exercise and favorable capital gains tax treatment to their holders if certain holding period and other requirements of the U.S. Internal Revenue Code of 1986, as amended (the “Code”) are satisfied. The exercise price of an option may not be less than 100% of the fair market value of the underlying share on the date of grant (or 110% in the case of ISOs granted to certain significant shareholders), except with respect to certain substitute options granted in connection with a corporate transaction. The term of an option may not be longer than ten years (or five years in the case of ISOs granted to certain significant shareholders). Vesting conditions determined by the plan administrator may apply to options and may include continued service, performance and/or other conditions.
Share Appreciation Rights. SARs entitle their holder, upon exercise, to receive an amount equal to the appreciation of the shares subject to the award between the grant date and the exercise date. The exercise price of an SAR may not be less than 100% of the fair market value of the underlying share on the date of grant (except with respect to certain substitute SARs granted in connection with a corporate transaction) and the term of an SAR may not be longer than ten years. Vesting conditions determined by the plan administrator may apply to SARs and may include continued service, performance and/or other conditions. SARs will be settled in cash or ordinary shares, or in a combination of both, as determined by the plan administrator.
Restricted Shares. A restricted share award is an award of nontransferable ordinary shares that remain forfeitable unless and until specified vesting conditions are met. Vesting conditions applicable to restricted shares may be based on continuing service, the attainment of performance goals and/or such other conditions as the plan administrator may determine. In general, restricted shares may not be sold or otherwise transferred until restrictions are removed or expire. Participants holding restricted shares will have voting rights and will have the right to receive dividends; however, dividends may not be paid until the applicable restricted shares vests.
Restricted Share Units. RSUs are contractual promises to deliver ordinary shares (or the fair market value of such shares in cash) in the future, which may also remain forfeitable unless and until specified vesting conditions are met. RSUs generally may not be sold or transferred until vesting conditions are removed or expire. The shares underlying RSUs will not be issued until the RSUs have vested, and recipients of RSUs generally will have no voting or dividend rights prior to the time the RSUs are settled in shares. Delivery of the shares underlying RSUs may be deferred under the terms of the award or at the election of the participant, if the plan administrator permits such a deferral. On the settlement date or dates, we will issue to the participant one unrestricted, fully transferable ordinary share (or the fair market value of one such share in cash) for each vested and non-forfeited RSU.
Performance Share Units and Performance Bonus Awards. Performance share unit awards are denominated in shares or unit equivalents, and performance bonus awards are denominated in cash. Each may be linked to one or more performance or other criteria as determined by the plan administrator.
Other Share or Cash Based Awards. Other share or cash based awards are awards of cash, fully vested ordinary shares, and other awards valued wholly or partially by referring to, or otherwise based on, our ordinary shares. Other share or cash based awards may be granted to participants and may also be available as a payment form in the settlement of other awards, as standalone payments or as payment in lieu of base salary, bonus, fees, or other cash compensation otherwise payable to any individual who is eligible to receive awards. The plan administrator will determine the terms and conditions of other share or cash based awards, which may include vesting conditions based on continued service, performance, and/or other conditions.
Dividend Equivalents. Dividend equivalents represent the right to receive the equivalent value of dividends paid on our ordinary shares and may be granted alone or in tandem with awards other than options or SARs. Dividend equivalents may accrue on awards, but are not be payable unless and until the applicable award vests.
Amendment and Termination
Our Board may amend or terminate the Amended 2018 LTIP at any time; however, except in connection with certain changes in our capital structure, shareholder approval will be required for any amendment that increases the aggregate number of shares available under the Amended 2018 LTIP,
“reprices” any option or SAR, or cancels any option or SAR in exchange for cash or another award when the option or SAR price per share exceeds the fair market value of the underlying shares. In addition, no amendment, suspension, or termination of the Amended 2018 LTIP may, without the

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consent of the affected participant, materially and adversely affect the participant's rights. No award may be granted pursuant to the Amended 2018 LTIP after the tenth anniversary
of the date the 2018 LTIP was adopted by our Board (which was February 21, 2018).
Corporate Transactions
The plan administrator has broad discretion to take action under the Amended 2018 LTIP, as well as make adjustments to the terms and conditions of existing and future awards, to prevent the dilution or enlargement of intended benefits and facilitate necessary or desirable changes in the event of certain transactions and events affecting our ordinary shares, such as share dividends, share splits, mergers, acquisitions, consolidations and other corporate transactions. In addition, in the event of certain non-reciprocal transactions with our shareholders known as “equity restructurings,” the plan administrator will make equitable adjustments to the 2018 LTIP and outstanding awards.
If a “Change in Control” of the Company occurs (as defined in the Amended 2018 LTIP), all outstanding options and
SARs that are not exercised shall be assumed or substituted by the surviving corporation and other outstanding awards shall be converted into similar awards of the surviving corporation. If the surviving corporation refuses to assume or substitute for an award, the award shall accelerate and become fully vested and exercisable upon the Change in Control and all restrictions on the award shall lapse, provided that any awards subject to performance-based vesting will vest based on the greater of (a) actual performance as of the Change in Control, or (b) target performance, prorated based on a shortened performance period ending as of the Change in Control.
U.S. Federal Income Tax Consequences
With respect to NQSOs, the Company is generally entitled to deduct and the recipient of the option recognizes ordinary income in an amount equal to the difference between the option exercise price and the fair market value of the shares at the time of exercise. The gain or loss (in an amount equal to the difference between the fair market value on the date of sale and the exercise price) upon disposition of such shares will be treated as a long-term capital gain or loss, and the Company will not be entitled to any deduction.
With respect to ISOs, if applicable holding period requirements are met (i.e., the shares acquired upon exercise of an ISO is held for a minimum of two years from the date of grant and one year from the date of exercise), the participant will not recognize taxable income at the time of exercise of the ISO. However, the excess of the fair market value of the ordinary shares received over the exercise price is an item of tax preference income potentially subject to the alternative minimum tax. The gain or loss (in an amount equal to the difference between the fair market value on the date of sale and the exercise price) upon disposition of such shares will be treated as a long-term capital gain or loss, and the Company will not be entitled to any deduction. If the holding period requirements described above are not met, the ISO will be treated as one which does not meet the requirements of the
Code for ISOs and the tax consequences described for NQSOs will apply, although the amount of income recognized by the participant will be the lesser of (a) the excess of the fair market value of the shares at the time of exercise over the exercise price, or (b) the excess of the amount realized on the disposition over the exercise price.
The current federal income tax consequences of other awards authorized under the Amended 2018 LTIP generally follow certain basic patterns: SARs are taxed and deductible in substantially the same manner as NQSOs; nontransferable restricted shares subject to a substantial risk of forfeiture and RSUs will result in income recognition equal to the excess of the fair market value over the price paid, if any, only at the time the restrictions applicable to such awards lapse (unless, with respect to an award of restricted shares, the recipient elects to accelerate recognition as of the date of grant); share-based performance awards, dividend equivalents and other types of awards are generally subject to tax at ordinary income rates at the time of payment. In each of the foregoing cases, the Company will generally have a corresponding deduction at the time the participant recognizes income, subject to Section 162(m) of the Code with respect to covered employees.
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New Plan Benefits
Other than with respect to annual grants of options to our non-employee directors that will be made immediately following the date of the Annual Meeting, all future awards under the Amended 2018 LTIP (assuming the Amendment is approved by our shareholders) are subject to the discretion of the plan administrator. Therefore, it is not possible to determine the benefits that will be received in the future by other participants in the Amended 2018 LTIP (although the Grants of Plan-Based Awards - Fiscal Year 2020 table in this Proxy Statement describes all equity awards granted under the 2018 LTIP and the 2020 EIIP to our named executive officers during our fiscal year ended December 31, 2020). Therefore, the table below provides information only for our non-employee directors.
Name and Position
Dollar Value ($)
Number of
Shares
Underlying
Option Grants
(#)
Gene G. Kinney, Ph.D., President and Chief Executive Officer, Director
Tran B. Nguyen, Chief Operating Officer and Chief Financial Officer
Brandon S. Smith, Chief Business Officer
Carol D. Karp, Chief Regulatory Officer
Michael J. Malecek, Chief Legal Officer and Company Secretary
All current executive officers as a group
All current directors who are not executive officers as a group(1)
122,500
All employees, including all current officers who are not executive officers, as a group
(1)
Our non-employee director compensation policy provides that, unless otherwise determined by our Board, each non-employee director will receive an annual grant of a NQSO for 17,500 shares, which will be granted on the first business day after the Annual Meeting and vest on the earlier of the first anniversary of the grant date or the day prior to the next annual general meeting of our shareholders, subject to continuous service as a director until such vesting date, except in the event of certain terminations of service. We anticipate that such annual grants will continue to be made after each annual general meeting of our shareholders, except in the case of Mr. Nodelman, who has declined to receive such annual grants.

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Equity Award Grants Under the 2018 LTIP and the 2020 EIIP Since Inception
The following table provides summary information concerning the number of shares of our ordinary shares subject to awards granted under the 2018 LTIP and the 2020 EIIP to our named executive officers, directors, and employees since the 2018 LTIP's effective date through March 8, 2021, and also shows the impact of participation in the option exchange.
Name and Position
Number of
Shares
Underlying
Option Grants
(#)
Weighted
Average
Exercise Price of
Options ($)
Gene G. Kinney, Ph.D., President and Chief Executive Officer, Director
1,759,700
16.94
Tran B. Nguyen, Chief Operating Officer and Chief Financial Officer
723,837
17.35
Brandon S. Smith, Chief Business Officer
296,000
13.29
Carol D. Karp, Chief Regulatory Officer
422,394
17.17
Michael J. Malecek, Chief Legal Officer and Company Secretary
376,000
12.46
All current executive officers as a group
4,510,923
16.25
All current directors who are not executive officers as a group
487,834
15.16
Richard T. Collier, Director and director nominee
71,544
15.62
Shane M. Cooke, Director and director nominee
71,544
15.62
K. Anders O. Härfstrand, Director and director nominee
77,614
16.19
Each associate of any such executive officer, director or director nominee
Each other person who received or is to receive 5 percent of such options, warrants or rights
All employees, including all current officers who are not executive officers, as a group
3,889,095
15.67
Vote Required; Recommendation of the Board
The affirmative vote of a simple majority of the votes cast in person or by proxy at the Annual Meeting is required for approval of this proposal. Abstentions and broker non-votes
will not have any effect on the outcome of voting on any of this proposal.
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE FOR APPROVAL OF THE AMENDMENT TO THE COMPANY'S 2018 LONG TERM INCENTIVE PLAN TO INCREASE THE NUMBER OF ORDINARY SHARES AVAILABLE FOR ISSUANCE UNDER THAT PLAN BY 1,800,000 ORDINARY SHARES.
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PROPOSAL NO. 5
APPROVAL OF A REDUCTION OF THE COMPANY'S CAPITAL TO CREATE DISTRIBUTABLE RESERVES
Background
Under Irish law, we may repurchase or redeem our shares, pay dividends, or make other distributions to our shareholders only out of our “distributable reserves,” which generally means accumulated realized profits less accumulated realized losses. We currently have negative distributable reserves resulting from accumulated realized losses on our balance sheet ($389,129,000 as of December 31, 2020). We have accumulated significant share premium since our incorporation (approximately $841,807,000 as of December 31, 2020). Irish law permits the Company - subject to the approval of shareholders and the confirmation of the Irish High Court - to reduce all or part of its share premium account and credit the resulting sum to the Company’s profit and loss account.
In order to eliminate our accumulated realized losses and create positive distributable reserves, we are asking our
shareholders to approve the reduction of our capital up to the entire balance of our share premium account as of the passing of this resolution, or such lesser amount as our Board may determine or the Irish High Court may confirm. At the 2020 Annual General Meeting, we sought and received shareholder approval of a special resolution authorizing the Company to reduce the share capital by a lesser amount. However, we never applied to the Irish High Court for approval. Given our current balance sheet position and in order to have greater flexibility in the future to execute corporate transactions, including, if appropriate a return of capital to shareholders in the form of share redemptions, dividends, or otherwise, we are now seeking approval to reduce the capital on the terms set out below.
Why We are Proposing to Create Distributable Reserves
Our Board reviews the Company’s capital structure and balance sheet strength on a regular basis. We are seeking to eliminate historic losses and create distributable reserves, by way of the proposed reduction of our capital by up to the entire balance of our share premium account as of the passing of this resolution, or such lesser amount as our Board may determine or the Irish High Court may confirm, in order to give our Board greater flexibility with respect to allocating our capital, such as by allowing it to authorize repurchases or redemptions of our shares, payment of dividends to our shareholders, or other distributions to our shareholders.
Our Board has not made any decision to authorize any share repurchase, share redemption, dividend, or other distribution to our shareholders. Any such future share repurchase, share redemption, dividend, or other distribution will depend on prevailing market and economic conditions; our financial position, results of operations, and prospects; our available cash, cash flow, and liquidity requirements; our ordinary share price; capital and regulatory requirements; and other factors, conditions, and circumstances as may be considered by our Board. In making this proposal to reduce the Company's capital in order to eliminate losses and to create distributable reserves, our Board is merely seeking the flexibility to be able to consider and choose from a range of alternatives for
allocating the Company's capital, pursuing strategic alternatives, or undertaking other actions that the Company believes are in the best interests of our shareholders and that require distributable reserves without the cost and delay of having to seek shareholder approval and apply to the Irish High Court for each such transaction. By eliminating accumulated losses and creating positive distributable reserves now, our Board would be able to recommend returning capital to shareholders in due course when it considers appropriate without first having to make allowance for the elimination of the losses of the Company out of reserves.
As previously announced in our proxy statement for our 2020 Annual General Meeting, our Board has been considering implementing a share redemption program, including the possible repurchase of shares in the open market over a period of years, which program, if implemented, is not expected to exceed $50,000,000. However, no final decision has been made by our Board. The creation of positive distributable reserves will allow our Board to implement such a share redemption program if the Board so decides.
In order to reduce our capital to create distributable reserves, we must seek the Irish High Court's confirmation of the proposed capital reduction. If shareholders approve this

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proposal, we currently intend to seek the Irish High Court's confirmation. We expect the Irish High Court's confirmation process to take approximately six to eight weeks from the date of making an application, but it may take substantially longer depending on the Court's schedule and availability. Although we are not aware of any reason why the Irish High Court would not confirm a reduction of our capital so as to enable us to create distributable reserves, there is no guarantee of such confirmation or that the Irish High Court will confirm the amount of the capital reduction we seek.
Even if shareholders approve this proposal, our Board determines to proceed with obtaining the Irish High Court's confirmation of a reduction in our capital in order to eliminate our accumulated losses and create distributable reserves, and the Irish High Court confirms that reduction in our capital, there is no guarantee that our Board will utilize those distributable reserves by authorizing share repurchases, share redemptions, payment of dividends, or any other distribution to our shareholders.
For the reasons described above, we are asking shareholders to approve the following special resolution at the Annual Meeting:
RESOLVED, as a special resolution, that:
Subject to and with confirmation from the Irish High Court, in accordance with sections 84 and
85 of the Irish Companies Act 2014 (the “Act”), the company capital of Prothena Corporation plc (the “Company”) be reduced in the following manner:
(a)
Subject to (b) below, the entire amount standing to the credit of the share premium account of the Company immediately preceding the passing of this resolution or such lesser amount as the Irish High Court may determine, be cancelled and extinguished such that the reserve resulting from such cancellation be treated as profits available for distribution as defined by section 117 of the Act; and
(b)
The Directors of the Company (or any duly authorised committee thereof) be and they are hereby authorised to determine, on behalf of the Company, to proceed to seek confirmation from the Irish High Court of a reduction of up to the entire amount standing to the credit of the share premium account immediately preceding the passage of this resolution or such lesser amount or number as the Directors of the Company (or any duly authorised committee thereof) may approve in their absolute discretion, or to determine not to proceed to seek confirmation of the Irish High Court at all in pursuance of paragraph (a) above.
Vote Required; Recommendation of the Board
Under Irish law, this proposal to reduce the Company's capital constitutes a special resolution that requires the affirmative vote of 75% of the votes cast in person or by
proxy at the Annual Meeting in order to be approved. Abstentions and broker non-votes will not have any effect on the outcome of voting on any of this proposal.
THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT SHAREHOLDERS VOTE FOR APPROVAL OF THE REDUCTION OF THE COMPANY'S CAPITAL TO CREATE DISTRIBUTABLE RESERVES.
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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table presents information as to the beneficial ownership of our ordinary shares as of March 8, 2021 for:
each person, or group of affiliated persons, known by us to beneficially own more than 5% of our ordinary shares;
each of our directors;
each of our executive officers named in the Summary Compensation Table below; and
all of our directors and executive officers as a group.
Unless otherwise indicated, the address of each beneficial owner named below is c/o Prothena Corporation plc, 77 Sir John Rogerson's Quay, Block C, Grand Canal Docklands, Dublin 2, D02 T804, Ireland.
Name and Address of Beneficial Owner
Amount and Nature of Beneficial Ownership(1)
5% Shareholders:
Shares
Shares
Acquirable
Within 60 Days(2)
Total Shares
Deemed
Beneficially
Owned
Percent of
Outstanding
Shares(3)
Entities Associated with EcoR1 Capital, LLC(4)
357 Tehama Street,
#3 San Francisco, CA 94103, USA
10,159,280
250,000
10,409,280
25.9%
BlackRock, Inc.(5)
55 East 52nd Street
New York, NY 10055, USA
3,692,970
3,692,970
9.2%
First Light Asset Management LLC(6)
3300 Edinborough Way, Suite 201
Edina, MN 55435, USA
2,929,340
2,929,340
7.3%
FMR LLC(7)
245 Summer Street
Boston, MA 02210, USA
1,482,361
1,482,361
3.7%
Directors and Named Executive Officers:
Lars G. Ekman
243
124,500
124,743
*
Paula K. Cobb
11,667
11,667
*
Richard T. Collier
1,219
79,500
80,719
*
Shane M. Cooke
79,500
79,500
*
K. Anders O. Härfstrand
29,500
29,500
*
Christopher S. Henney
43,600
43,600
*
Oleg Nodelman(8)
10,159,280
250,000
10,409,280
25.9%
Dennis J. Selkoe(9)
4,208
33,000
37,208
*
Gene G. Kinney
12,793
874,281
887,074
2.2%
Tran B. Nguyen
3,200
454,166
457,366
1.1%
Brandon S. Smith
70,000
70,000
*
Carol D. Karp
153,749
153,749
*
Michael J. Malecek
134,999
134,999
*
All 16 directors and executive officers as a group
10,180,943
2,866,248
13,047,191
30.4%
*
Represents beneficial ownership of less than one percent of our issued and outstanding ordinary shares.
(1)
Represents ordinary shares. Beneficial ownership is determined in accordance with U.S. Securities and Exchange Commission (the “SEC”) rules and generally includes voting or investment power. Unless otherwise indicated below, to our knowledge, the persons and entities named in this table have sole voting and sole dispositive power with respect to all shares beneficially owned, subject to community property laws where applicable.
(2)
For purposes of this table, a person is deemed to have beneficial ownership of our ordinary shares which such person has the right to acquire on or within 60 days after March 8, 2021. The shares reported in this column consist of shares that may be acquired by (i) exercise of NQSOs (nonqualified stock options) granted under our Amended and Restated 2012 Long Term Incentive Plan, our 2018 Long Term Incentive Plan, as amended, or our 2020 Employment Inducement Incentive Plan, as amended, in the case of all shares reported in this column other than those set forth opposite Entities Associated with EcoR1 Capital, LLC and Oleg Nodelman; or (ii) the exercise of 2,500 call options to purchase an aggregate of 250,000 ordinary shares at an exercise price of $30.00 per share, as reported on Amendment No. 2 to Schedule 13D filed with the SEC on February 18, 2021, by EcoR1 Capital, LLC, EcoR1 Capital Fund Qualified, L.P. and Mr. Nodelman, reporting beneficial ownership as of February 17, 2021, in the case of shares reported in this column opposite Entities Associated with EcoR1 Capital, LLC and Mr. Nodelman.

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(3)
The percentage of outstanding shares is based on the 40,006,116 ordinary shares issued and outstanding on March 8, 2021. However, for purposes of computing the percentage of outstanding ordinary shares beneficially owned by each person or group of persons, any shares which such person or group of persons has a right to acquire on or within 60 days after March 8, 2021, are deemed to be outstanding, but are not deemed to be outstanding for the purpose of computing the percentage of beneficial ownership of any other person.
(4)
As reported on (i) Amendment No. 2 to Schedule 13D filed with the SEC on February 18, 2021, by EcoR1 Capital, LLC (“EcoR1”), EcoR1 Capital Fund Qualified, L.P. (“Qualified Fund”) and Oleg Nodelman, reporting beneficial ownership as of February 17, 2021 (the “Schedule 13D”); the Forms 4 filed with the SEC on February 23, 2021, and February 25, 2021, reporting beneficial ownership as of February 18, 2021, and February 24, 2021, respectively (together, the “Forms 4”). Pursuant to the Schedule 13D, EcoR1 and Mr. Nodelman have shared voting and dispositive power over 10,309,980 ordinary shares, and Qualified Fund has shared voting and dispositive power over 8,655,253 ordinary shares. Pursuant to the Forms 4, EcoR1 and Qualified Fund purchased an aggregate of 99,300 ordinary shares. Mr. Nodelman is the manager and control person of EcoR1 and a member of our Board. EcoR1 is an investment advisor to Qualified Fund. Each of EcoR1, Qualified Fund, and Mr. Nodelman disclaim beneficial ownership of the shares reported herein, except to the extent of such person’s pecuniary interest therein.
(5)
As reported on Amendment No. 6 to Schedule 13G filed with the SEC on January 29, 2021, by BlackRock, Inc., reporting beneficial ownership of December 31, 2020. BlackRock, Inc. is a parent holding company/control person that has sole voting power over 3,633,183 ordinary shares and sole dispositive power over 3,692,970 ordinary shares. Various persons have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, the shares; no one person's interest in those shares is more than five percent of our total outstanding ordinary shares. The subsidiaries holding the shares reported herein are BlackRock (Netherlands) B.V., BlackRock Advisors, LLC, BlackRock Asset Management Canada Limited, BlackRock Asset Management Ireland Limited, BlackRock Asset Management Schweiz AG, BlackRock Financial Management, Inc., BlackRock Fund Advisors, BlackRock Fund Managers Ltd, BlackRock Institutional Trust Company, National Association, BlackRock Investment Management (Australia) Limited, BlackRock Investment Management (UK) Limited, BlackRock Investment Management, LLC, and BlackRock Life Limited. We have also received a Standard Form TR-1 (Standard Form for Notification of Major Holdings, also referred to as Voting Rights Attached to Shares - Article 12(1) of Directive 2004/109/EC, Financial Instruments - Article 11(3) of the Commission Directive 2007/14/EC) pursuant to the Ireland Companies Act 2014 (“Form TR-1”) from BlackRock, Inc. reporting a change in voting rights attached to our ordinary shares. That Form TR-1 reports that, as of February 4, 2021, BlackRock, Inc. and certain of its wholly owned subsidiaries hold voting rights attached to 3,654,175 of our ordinary shares (or 9.1% of our outstanding ordinary shares as of March 8, 2021). Because the “voting rights attached to shares” reported in this Form TR-1 is not necessarily the same as “beneficial ownership” as defined under SEC rules, the table does not reflect the information reported in the Form TR-1.
(6)
As reported on the Schedule 13G filed with the SEC on February 16, 2021, by First Light Asset Management, LLC (“First Light”) and Mathew P. Arens, reporting beneficial ownership of December 31, 2020. First Light is an investment adviser that has shared voting and dispositive power over 2,929,340 ordinary shares. Mr. Arens is also deemed to be the beneficial owner of these shares because of his position as managing member and majority owner of First Light.
(7)
As reported on Amendment No. 9 to Schedule 13G filed with the SEC on February 8, 2021, by FMR LLC (“FMR”) and Abigail P. Johnson, reporting beneficial ownership of December 31, 2020. FMR has sole voting power over 354,470 ordinary shares and sole dispositive power over 1,482,361 ordinary shares. Ms. Johnson and members of the Johnson family control 49% of FMR and have shared voting and dispositive power over the shares listed herein. Various persons have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of ordinary shares. We have also received a Form TR-1 from FMR reporting a change in voting rights attached to our ordinary shares. That Form TR-1 reports that, as of February 18, 2021, FMR holds voting rights attached to 2,884,687 of our ordinary shares (or 7.2% of our outstanding ordinary shares as of March 8, 2021). Because the “voting rights attached to shares” reported in this Form TR-1 is not necessarily the same as “beneficial ownership” as defined under SEC rules, the table does not reflect the information reported in the Form TR-1.
(8)
Consists of the ordinary shares described in footnote 4 above. Mr. Nodelman disclaims beneficial ownership of such shares, except to the extent of his pecuniary interest therein.
(9)
Includes 2,845 ordinary shares held by Dr. Selkoe and 1,363 ordinary shares held by Dr. Selkoe's spouse.
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COMPENSATION DISCUSSION AND ANALYSIS*
In this section we provide an explanation and analysis of the material elements of the compensation provided to our chief executive officer, our chief financial officer (who also serves as our chief operating officer) and our other three most highly compensated executive officers who were serving as such at the end of our fiscal year 2020 (collectively referred to as our “named executive officers”). Those named executive officers were:
Gene G. Kinney, Ph.D., our President and Chief Executive Officer;
Tran B. Nguyen, our Chief Operating Officer and Chief Financial Officer;
Brandon S. Smith, our Chief Business Officer;
Carol D. Karp, our Chief Regulatory Officer; and
Michael J. Malecek, our Chief Legal Officer and Company Secretary.
Executive Summary: Fiscal Year 2020 Company Performance and Key Pay Decisions
2020 Performance Highlights. We are a late-stage clinical company with expertise in protein dysregulation and a pipeline of novel investigational therapeutics with the potential to change the course of devastating neurodegenerative and rare peripheral amyloid diseases. Our executive compensation programs are designed to reward superior performance and provide consequences for under-performance. We believe that compensation of our named executive officers for fiscal year 2020 was aligned with the Company's performance during 2020 and its go-forward strategy. Highlights of that performance include:
We Made Significant Advances in our Clinical Development Pipeline. We made significant progress in advancing clinical development of three potential therapies:
Birtamimab is an investigational monoclonal antibody for the potential treatment of AL amyloidosis. Birtamimab was previously evaluated in the Phase 3 VITAL Study. Results from a post hoc analysis of that study revealed a significant survival benefit favoring birtamimab in a subset of patients categorized as Mayo Stage IV at baseline. We announced this post-hoc analysis in April 2019. Throughout 2020, we worked with the U.S. Food and Drug Administration to reach agreement under a Special Protocol Assessment (SPA) to advance birtamimab into a confirmatory Phase 3 AFFIRM-AL study in Mayo Stage IV patients. The SPA agreement was reached on January 27, 2021.
PRX004 is our investigational monoclonal antibody for the potential treatment of ATTR amyloidosis. In December 2020, we reported positive results from the Phase 1 study. PRX004 was found to be generally safe and well tolerated across all dose levels. PRX004 also showed
slowing of neuropathy progression for all seven evaluable patients at nine months, including an improvement in neuropathy in three of the seven patients. PRX004 also showed improved cardiac systolic function for all seven patients.
Prasinezumab (PRX002/RG7935) is our investigational monoclonal antibody for the potential treatment of Parkinson's disease and other related synucleinopathies. In 2020, Roche, with whom we have a worldwide collaboration for prasinezumab, presented results from the Phase 2 PASADENA study in a Top Abstract oral presentation at the International Parkinson and Movement Disorder Society’s MDS Virtual Conference. While the study did not meet the primary objective, signals of efficacy showing that prasinezumab slowed progression on measures of Parkinson’s disease were observed in both of the prasinezumab arms when compared to placebo. In October 2020, we and Roche announced that together we will advance prasinezumab into a Phase 2b study in patients with early Parkinson’s disease.
We Advanced our Discovery and Preclinical Pipeline. During fiscal year 2020, the Company advanced its early-stage pipeline of programs. The Company presented preclinical data from two programs in its Alzheimer’s disease portfolio at the 13th Clinical Trials on Alzheimer’s Disease Conference in November 2020. The Company presented data on next generation anti-abeta antibodies suitable for subcutaneous administration to improve patient access. The Company also presented data on a multi-immunogen vaccine that targets key abeta and tau epitopes.
We Carefully Managed Our Cash. During fiscal year 2020, we carefully managed our capital. While progressing
*
Although we are a smaller reporting company and are only required to provide the scaled compensation disclosures specified under U.S. Securities and Exchange Commission rules for smaller reporting companies, we are voluntarily providing this full Compensation Discussion and Analysis.

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COMPENSATION DISCUSSION AND ANALYSIS*
all of our development programs described above, our cash “burn” was $81 million, in the middle of our revised guidance range of $75-85 million. We finished 2020 with $298 million in cash, cash equivalents, and restricted cash, in the middle of our revised guidance range of $294-304 million, providing a solid financial foundation for continuing to advance the Company’s discovery and clinical programs.
2020 Compensation Highlights. We seek to provide fair and competitive compensation for our executive officers, while emphasizing at-risk pay tied to performance in the form of annual bonuses and long-term equity incentives. Highlights of our 2020 executive compensation program reflected this and include the following:
Modest Base Salary Adjustments. In 2020, our Board approved a 3.0% increase to the base salary of Dr. Kinney, consistent with the budgeted standard merit increase for the general employee population. Our Board's Compensation Committee (the “Committee”) similarly approved 3.0% increases to the base salaries of the other named executive officers continuing from 2019 - Mr. Nguyen, Ms. Karp, and Mr. Malecek.
Annual Bonuses Reflected 2020 Company Performance. The Committee determined not to change the target bonus opportunities of our named executive officers continuing from 2019 from their respective levels in 2019. Mr. Smith’s target bonus level was set at the time of his hire at the same level as other similarly-situated officers. For fiscal year 2020, the Committee and Board established pre-determined corporate objectives that it considered critical to the near- and long-term success of the Company. Following 2020, the Committee and the Board determined that Company performance relative to the corporate objectives was 100%. Based on that corporate performance and the individual performance of each named executive officer other than
Dr. Kinney, the Committee approved payouts at 100% of the target bonuses for those named executive officers. Dr. Kinney's bonus was based solely on corporate performance, and the Board therefore approved his payout at 100% of his target bonus for 2020.
Equity as a Key Component of Compensation. We use stock options to directly link executive officer compensation to increases in the price of our ordinary shares, which directly reflects increased shareholder value. As in past years, we made annual grants of stock options to our named executive officers (other than Mr. Smith) early in 2020, which grants were around the 50th percentiles of the market data. Mr. Smith received a new-hire grant of a stock option for 240,000 shares following the Committee's review of peer data for that position and negotiations with Mr. Smith.
No Adjustments Were Made Due to the Pandemic. The Committee and Board did not modify any of the fiscal year 2020 pre-determined corporate objectives or make any adjustments to compensation based on the impact of the worldwide COVID-19 pandemic.
Commitment to Pay for Performance. Our executive compensation programs are designed to deliver pay that is tied to our corporate and individual performance. Accordingly, 84% of our CEO's and on average 73% of each of our other named executive officer’s total targeted compensation for fiscal year 2020 (based on annual base salary, target annual cash bonus and grant date fair value of stock option award granted in 2020) was in the form of cash incentives tied to actual performance against pre-determined strategic, operational, and financial objectives; and stock options, which align our named executive officers' interests with shareholders and foster long-term focus on the Company's objectives as well as retention.
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Total Target Direct Compensation Focuses on “At Risk” Compensation. The charts below show the target mix of each element of the total targeted compensation in 2020 for our CEO and for our other named executive officers in the aggregate, which show our strong emphasis on variable pay linked to actual performance.

Compensation Governance and Best Practices
We are committed to having strong governance standards with respect to our compensation programs, procedures, and practices. Our key governance practices include the following:
What We Do
What We Do Not Do

Pay for performance. A significant percentage of total target compensation is pay at-risk that is connected to performance.

No guaranteed annual salary increases or bonuses. Our named executive officers' salary increases are assessed individually, and their annual cash incentives are tied to corporate and individual performance.

Strong link between performance measures and strategic objectives. Performance measures for cash incentive compensation are linked to business priorities designed to create long-term shareholder value.

No tax gross-ups. We do not provide any tax gross-ups to our named executive officers.

Independent compensation consultant. The Committee retains an independent compensation consultant to review our executive compensation program and practices.

No perquisites. We do not provide any perquisites or personal benefits to our named executive officers.

Annual comparator peer group review. The Committee, in conjunction with our compensation consultant, determines the makeup of our comparator peer group at least annually.

No executive retirement plans. We do not maintain executive or supplemental retirement plans.

Double-trigger change-in-control severance arrangements. All of our change-in-control severance arrangements have double triggers requiring a qualifying termination.

No option exchange or repricing permitted without shareholder approval. Our equity incentive compensation plan expressly prohibits repricing of equity awards and cash-buyouts of “underwater” awards without shareholder approval.
 
 

No hedging or pledging permitted. We prohibit our executive officers from engaging in speculative transactions in our ordinary shares, including short sales, transactions in put or call options, hedging transactions and other inherently speculative transactions; from entering into any form of hedging or monetization transactions; and from pledging our ordinary shares as collateral for loans.

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Shareholder Approval of Executive Compensation
At the annual general meeting of 2020, our shareholders voted to approve the 2019 compensation of our named executive officers, with 95% of the shares represented at the meeting voting to approve that compensation. The Committee reviewed the result of this advisory vote by shareholders on our executive compensation and, in light of the approval by substantially all of our shareholders, did not implement any fundamental or significant changes to our executive
compensation programs as a result of the vote. The Committee has heard from shareholders regarding the one-time retention option awards made in June 2018 and notes that it considered those option awards to be “one-time” and has since only made and intends to make equity awards consistent with previous practice and peer data as is further described below in explaining awards made in 2020.
The Objective of Our Executive Compensation Programs
The principal objective of our executive compensation programs is to attract, retain, motivate, and reward individuals with the executive experience and skills necessary for us to achieve our ultimate goal of increasing shareholder value. In order to do this, our executive compensation programs are designed to:
Attract and retain individuals of superior ability, experience, and management talent;
Motivate and reward executives whose knowledge, skills, and performance ensure continued success;
Align compensation with corporate strategies, business and financial objectives, operational needs, and the long-term interests of our shareholders;
Ensure that elements of compensation do not encourage excessive risk-taking or otherwise create inappropriate incentives; and
Ensure that total compensation is fair, reasonable, and competitive relative to both internal and external comparison points.
How We Determine Executive Compensation
The Compensation Committee is Responsible for Executive Compensation. The Committee makes all decisions on compensation to our executive officers other than our CEO. In the case of our CEO, the Committee makes recommendations to the Board regarding his compensation, and the Board (excluding the CEO) makes all final decisions on his compensation. Information on the Committee is provided in this Proxy Statement under the heading Corporate Governance and Board Matters - Board Committees - Compensation Committee.
The Committee Utilizes a Compensation Consultant. The Committee annually retains an independent executive compensation consultant to assist the Committee in making informed decisions on executive officer compensation. The compensation consultant engaged by the Committee for the purpose of establishing fiscal year 2020 compensation was Radford. Radford was engaged directly by the Committee, after the Committee assessed Radford's independence from the Company and its management. This process is repeated annually before the Committee selects its executive compensation consultant for that year.
Radford was engaged by the Committee to prepare and present a data-based assessment of compensation programs for our executive officers, with comparisons to those of “peer” companies and input on their appropriateness in accomplishing the Committee's objectives. Radford was also asked to provide to the Committee specific recommendations on our executive compensation programs generally.
The Committee Selects a Peer Group. For purposes of their annual compensation assessments and decisions for 2020, the Committee approved a “peer group” of companies to assist the Committee in its review of executive compensation. At the Committee's instruction, Radford used criteria based on (a) industry sector, stage of development and geography (biotechnology companies in Phase 1/2 clinical development, and companies located in the San Francisco, California area or other biotechnology hub markets that reflect Prothena's talent market), (b) market capitalization between $150 million and $1.0 billion (based on the Company's then-market capitalization of approximately $334 million which was at the 40th percentile), and (c) number of employees (generally under 200 employees). These criteria were used to develop a
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recommended list of peer companies, which Radford presented to the Committee. As a result of this analysis, Alder BioPharmaceuticals, Atara Biotherapeutics, Calithera Biosciences, ChemoCentryx, and TG Therapeutics were added to our peer group; Arrowhead Pharmaceuticals, Arsanis,
Dermira, and Mirati Therapeutics were removed from our peer group. The peer group companies identified by Radford and considered, discussed, and approved by the Committee to assist the Committee in its decisions were:
Achillion Pharmaceuticals
Aduro Biotech
Adverum Biotechnologies
Alder BioPharmaceuticals
Assembly Biosciences
Atara Biotherapeutics, Inc.
Calithera Biosciences
ChemoCentryx
Corvus Pharmaceuticals
Cytokinetics
CytomX Therapeutics
Fate Therapeutics
Five Prime Therapeutics
Jounce Therapeutics
Mersana Therapeutics
Pieres Pharmaceuticals
Synlogic
Syros Pharmaceuticals
TG Therapeutics
Voyager Therapeutics
ZIOPHARM Oncology
For competitive assessment purposes, Radford used executive compensation data publicly reported by these peer group companies (i.e., proxy statement data), as well as data from Radford's Global Life Science Survey for other publicly-traded pre-commercial biotechnology companies with characteristics (e.g., market capitalization, stage of development, and number of employees) comparable to these peer group companies and the Company.
Radford's reports to the Committee included a review of our existing executive compensation programs, practices, levels, and arrangements; each executive officer's compensation relative to the market data; and our equity grant practices for all employees (not just executive officers) relative to the market data. Radford's reports also provided recommendations on changes that might be made to our executive compensation programs generally and to each executive officer's compensation. Radford provided its written report in advance of Committee meetings, at which the Radford consultant presented and responded to questions from the Committee.
The CEO Makes Recommendations. For fiscal year 2020, Dr. Kinney presented to the Committee his recommendations on compensation for the executive officers other than himself. Following completion of fiscal year 2020, Dr. Kinney provided his assessment of the performance of executive officers other than himself, both in general and with specific reference to the corporate objectives pre-established by the Committee for 2020.
The Committee or Board Makes Compensation Decisions. At the beginning of 2020, the Committee determined the structure of our executive officer compensation programs for that year, after receiving Radford's report and recommendations and receiving Dr. Kinney's recommendations on compensation for executive officers other than himself. Specifically, the Committee determined for each executive officer other than Dr. Kinney (a) any adjustment to his or her base salary, (b) his or her target annual cash bonus opportunity for 2020 and the corporate objectives for 2020, and (c) his or her annual stock option award for 2020.
In the case of Dr. Kinney, the Committee recommended to the full Board his base salary, his annual cash bonus opportunity for fiscal year 2020, and the 2020 corporate objectives upon which that bonus opportunity would be based, and his annual stock option awards including awards with both time-based and performance-based vesting for 2020. In an executive session without Dr. Kinney present, the Board considered, discussed, and approved the compensation recommended by the Committee with respect to Dr. Kinney.
In the case of Mr. Smith, his compensation was determined by the Committee in connection with his appointment as our Chief Business Officer after the Committee reviewed the market data provided by Radford, as well as Dr. Kinney's recommendations following arm's length negotiations with Mr. Smith. His compensation, including his base salary, annual cash bonus opportunity, stock option award, and retention (hire-on) bonus, was approved by the Committee.
After completion of fiscal year 2020, the Committee received Dr. Kinney's report on the Company's performance relative to the pre-established corporate objectives for 2020, as well as on the individual performance of each executive officer other than himself. The Company's Vice President, Human Resources (who is not an executive officer) participated in that Committee meeting, as did the Radford consultant. After receiving that report, the Committee determined the annual cash bonus to be paid to each executive officer other than Dr. Kinney for 2020.
After completion of fiscal year 2020, the Nominating and Corporate Governance Committee of the Board completed a review of Dr. Kinney's performance during 2020 (with input from all other independent members of the Board) and this review was reported to both the Compensation Committee and the full Board. The Compensation Committee also met in executive session with the Radford consultant to discuss Dr. Kinney's compensation. The Committee determined and recommended to the full Board (other than Dr. Kinney) Dr. Kinney's annual cash bonus for 2020 based on attainment of

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pre-established corporate objectives for 2020. In an executive session without Dr. Kinney present, the Board considered, discussed, and approved the bonus amount recommended by the Committee.
Executive Compensation for Fiscal Year 2020
The three key elements of our executive officer compensation programs for fiscal year 2020 were: base salaries, annual cash bonuses, and long-term incentive compensation in the form of stock option awards. In addition, the Committee (or the Board) has approved arrangements providing for certain payments and benefits in the event of certain terminations of employment.
Base Salaries. Base salaries are intended to compensate our executive officers for serving as the senior members of our executive team. Salaries are also considered an important element of compensation necessary to retain the Company's executive officers in a highly competitive marketplace. To accomplish these objectives, the Committee reviews and sets base salaries annually, generally - but not always - positioning around the 50th percentile of the market data specific to each executive officer's position, which the Committee considers appropriate to accomplish the purposes of this element of executive compensation.
The base salaries approved in early 2020 for our named executive officers continuing from 2019 were as follows: Dr. Kinney - $557,000; Mr. Nguyen - $445,578; Ms. Karp - $437,940; and Mr. Malecek - $412,000. Dr. Kinney's salary resulted from the Board's approval of a 3.0% increase to his base salary, after considering the market data provided by Radford and consistent with the budgeted standard merit increase for the general employee population. Based on the same considerations, the salaries of Mr. Nguyen, Ms. Karp, and Mr. Malecek reflect the Committee's approval of 3.0% increases to their base salaries. These adjustments resulted in these executive officers' base salaries being positioned between the 50th and 75th percentiles of the market data.
The Committee approved Mr. Smith’s base salary of $400,000 in connection with his appointment as the Company's Chief Business Officer in February 2020, following the Committee's review of market data for that position and negotiations with Mr. Smith.
Annual Cash Bonuses. Annual cash bonus opportunities are intended principally to motivate executive officers to achieve pre-determined annual operational and financial (“corporate”) objectives set by the Committee and the Board to promote achievement of our business strategies and drive increases in shareholder value. Following the end of each fiscal year, the Committee and the Board determine to what extent those corporate objectives were as a whole met, based on a review of the degree of achievement of each individual corporate
objective. The annual cash bonuses for our executive officers other than the CEO depend 75% on the Company's achievement of those corporate objectives and 25% on individual performance as determined by the Committee based on assessments by and a report from the CEO on each such executive officer's individual performance (relative to the pre-determined corporate objectives as well as more generally). Our CEO's annual cash bonus depends exclusively on the Company's achievement of the pre-established corporate objectives. The Committee believes that broader corporate objectives are appropriate to ensure all executive officers are working together toward those goals, and that individual performance is in some cases an appropriate additional consideration to motivate and reward individual contributions to the Company's overall success. These cash bonus awards are made under our Incentive Compensation Plan (the “ICP”) and are shown in the Grants of Plan-Based Awards - Fiscal Year 2020 table below.
In determining the targeted annual cash bonus opportunity for each named executive officer at the beginning of fiscal year 2020, the Committee considered Radford's market data on targeted annual cash bonus opportunity and total targeted annual cash compensation among our peers. The Committee also considered the experience, performance, and criticality of each executive officer. Based on these considerations, the Committee determined each executive officer's targeted annual cash bonus. The resulting total targeted annual cash compensation for each executive officer fell within the range of the 50th to 75th percentiles, although the Committee did not necessarily target that range.
Targeted annual cash bonuses are expressed as a percentage of base salary earned during the performance period. At the beginning of fiscal year 2020, the Committee determined not to change the target bonuses of our continuing named executive officers from their respective levels set in in 2019. Specifically, the Committee recommended and the Board approved setting Dr. Kinney's targeted cash bonus at 60% of his base salary earned in 2020, the Committee set Mr. Nguyen's cash bonus at 50% of his base salary earned in 2020, and the Committee set Ms. Karp's and Mr. Malecek’s targeted cash bonuses at 40% of their respective base salaries earned in 2020. In the case of Mr. Smith, his targeted cash bonus was set at 40% of his actual salaried earnings at the time of his appointment as our Chief Business Officer. The maximum cash bonus that could have been earned by the named executive officers was 150% of their respective target bonuses.
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In setting these target bonus opportunities, the Committee determined that a higher target bonus opportunity for the CEO, relative to the other executive officers, was appropriate because of the position and responsibilities. The Committee similarly determined that a higher target bonus opportunity for Mr. Nguyen, relative to other named executive officers, was appropriate given his dual positions as Chief Operating Officer and Chief Financial Officer. The Committee determined that the bonus opportunities for Ms. Karp and Mr. Malecek should be at the same level, given that the differences in their base salaries were sufficient to distinguish between their relative positions, experience, and criticality. In connection with Mr. Smith’s appointment as our Chief Business Officer in March 2020, the Committee determined to set his bonus opportunity for 2020 at 40% of his actual salaried earnings, the same as Ms. Karp, Mr. Malecek, and other similarly situated officers, after considering Radford's market data.
Dr. Kinney's annual cash bonus for fiscal year 2020 depended 100% on the Company's performance relative to pre-
established corporate objectives established by the Committee (and approved by the Board). The other named executive officers' annual cash bonuses for fiscal year 2020 depended 75% on those same corporate objectives and 25% on their respective individual performance, as determined by the Committee based on assessments by the CEO and the Committee's assessment of each executive officer's individual performance.
For fiscal year 2020, the Committee (and the Board, with respect to Dr. Kinney) established pre-determined corporate objectives that it considered critical to the near- and long-term success of the Company. No payout would be earned if achievement of these objectives in the aggregate was below 60% of target. Those objectives were as set forth below, with the weightings shown. The Committee and Board considered these objectives as constituting an appropriate balance of being realistic but challenging, and that exceeding these objectives would, as a whole, require a significant “stretch.”
Objective
Weighting
Result
Progress R&D portfolio to achieve primary 2020 milestones:
75%
For prasinezumab (PRX002/RG7935), develop optimal clinical/regulatory strategy for health authority discussions in collaboration with Roche and determine continuing program participation following feedback from health authorities
15%
Met
For PRX004, complete dose escalation phase of Phase 1 study and reach Go/No Go decision on Phase 2 and deliver Phase 2 clinical synopsis and finalize comprehensive program plan; and externally communicate additional Phase 1 results
15%
Met
For Alzheimer’s disease portfolio, advance for anti-Tau program by completing non-GLP pharmacology studies and initiating GLP studies required for IND
10%
Met
For Alzheimer’s disease portfolio, advance anti-abeta antibody program by selecting lead candidate and initiating IND-enabling studies and externally communicate preclinical data
10%
Met
For Alzheimer’s disease portfolio, advance the vaccine program by completing NHP studies with first generation combination vaccine and select optimal optimization schedule, forwarding backup peptide, initiating animal studies, and finalizing adjuvant selection
10%
Largely Met
Advance BMS collaboration programs by nominating lead clinical candidate for undisclosed target and reaching a Go/No Go decision on TDP-43
10%
Partially Met
Advance scientific dialogue by delivering five scientific communications (presentations, posters, manuscript)
5%
Exceeded
Advance Business Development:
5%
Met
Bring at least one potential transaction for Board review which adds program or technology or outlicenses/partners a pipeline program
 
 
Meet cash burn guidance range and optimize shareholder base:
15%
Meet publicly-disclosed cash burn guidance range of $75-$85 million
 
Met
Optimize shareholder base by retaining four of six top non-index institutional investors, galvanizing at least one new institutional investor to take a ≥1% ownership position, and/or galvanizing at least one existing shareholder to take a ≥5% ownership position
 
Met
Attract key talent and ensure people and culture support Prothena’s business model and goals
5%
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Actual attainment of these objectives, as determined by the Committee and the Board, is shown above. Based on this assessment and the overall performance of the Company, the Committee and the Board determined that Company performance met the pre-determined corporate objectives as a whole, resulting in achievement of 100% of target.
Based on Dr. Kinney's assessment and report to the Committee on each other named executive officer's individual performance, the Committee approved annual cash bonuses to the named executive officers (other than Dr. Kinney) at 100% of their targeted annual cash bonuses. The Committee recommended to the Board that Dr. Kinney's annual cash bonus be 100% of his targeted annual bonus opportunity - consistent with the Committee's determination described above - which recommendation was considered, discussed, and approved by the Board. The actual annual cash bonus paid to each named executive officer for fiscal year 2020 performance is set forth in the Non-Equity Incentive Plan Compensation column of the Summary Compensation Table below.
In connection with the recruitment of Mr. Smith, we agreed to pay him a $100,000 retention (hire-on) bonus. That retention bonus will be repayable by Mr. Smith on a pro-rata basis if he ceases his employment prior to the one-year anniversary of his employment start date, unless his employment ends for a reason that would make him eligible for severance benefits under our Amended and Restated Severance Plan. The Committee considered this arrangement appropriate and necessary in order to induce Mr. Smith to leave his prior employer to join the Company.
Long-Term Incentive Compensation. Long-term incentives are an important element of our executive compensation that the Committee uses primarily to motivate our executive officers to increase shareholder value and secondarily to retain executive officers. The Committee believes that long-term incentive compensation also encourages our executive officers to identify, pursue, and invest in appropriate long-term strategies for increasing shareholder value. Our long-term incentives for fiscal year 2020 were solely in the form of nonqualified stock options awarded under our 2018 Long Term Incentive Plan, as amended (the “2018 LTIP”), or our 2020 Employment Inducement Incentive Plan, as amended (the “2020 EIIP”). Awards of nonqualified stock options included both time-based vesting as well as two awards to our CEO with vesting based on performance goals as described in more detail below.
We use stock options to link executive officer compensation directly to increases in the price of our ordinary shares, which directly reflects shareholder value. All stock options are granted with an exercise price equal to the fair market value (as defined by the 2018 LTIP and the 2020 EIIP, as applicable) of our ordinary shares on the date of grant, and they require continued employment for four years in order to vest fully
(except in the case of certain terminations of employment). Stock options therefore compensate our executive officers only if our share price increases after the date of grant and the executive officer remains employed for the periods required for the stock option to become exercisable. The Committee thus considers stock options to be a particularly effective incentive and retention tool because they motivate our executive officers to increase shareholder value and remain with the Company.
In determining the annual stock option to award to each named executive officer in February 2020, the Committee considered Radford's market data, including:
The prevalence of other forms of equity-based incentive compensation used by the peer group companies;
For each executive officer, the grant date Black-Scholes values of the annual stock option awarded to the executive officer in 2019 (where such grants were awarded), and as a general reference, Radford's market data for the 50th and 75th percentiles and the number of option shares that would align with those 50th and 75th percentiles (although the Committee did not necessarily target that range);
For each executive officer (where such grants were awarded) and all executive officers as a whole, the annual stock options awarded in 2019 as a percent of the Company's outstanding shares, with comparisons to the peer group data;
For all executive officers as a whole, the grant-date values of the annual stock options awarded in 2019, with comparisons to the peer group data for that year;
Executive officers' individual and collective equity “ownership” through vested and unvested stock options relative to the peer group data, and the unvested value as a multiple of base salaries;
Other market data on equity compensation practices, including with respect to “burn rate” and dilution (“overhang”); and
Each executive officer's total targeted direct compensation relative to the peer group data.
The Committee also considered the relative position, experience, performance, and criticality of each named executive officer. The Committee considered it critical to retain these executive officers to meet 2020 and longer-term objectives and decided that stock options would best serve that retention need.
Finally, in assessing the size and value of annual equity awards to make to the named executive officers for 2020, the Committee took into consideration the one-time retention equity awards made to the named executive officers (and all of our other continuing employees) in mid-2018. Those one-time awards followed a substantial reorganization of the
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Company. The Committee had deemed those retention grants as necessary and appropriate given the destabilizing effect of our reorganization, the increasingly competitive environment for the kind of highly skilled and talented employees who are necessary for continuing our mission and achieving our goals, and the substantially reduced retention value of stock options previously granted to our continuing executives and other employees.
Based on all the above considerations, in 2020, the Committee approved annual stock option awards to each of our named executive officers continuing from 2019 other than Dr. Kinney, i.e., Mr. Nguyen, Ms. Karp, and Mr. Malecek. The grant-date Black-Scholes values of those stock options were in aggregate between the 50th and 75th percentiles as indicated by Radford's market data. Those stock options vest as to 25% of the shares subject to the option on the first anniversary of the grant date and as to 1/48th of the shares subject to the option on each monthly anniversary thereafter, subject to continued employment on each applicable vesting date.
The Committee approved an initial stock option award (for 240,000 shares) to Mr. Smith in connection with his appointment as our Chief Business Officer effective in March 2020. That stock option vests as to 25% of the shares subject to the option on the first anniversary of his date of appointment and as to 1/48th of the shares subject to the option on each monthly anniversary thereafter, subject to Mr. Smith’s continued employment on each applicable vesting date. In determining the size of that stock option award, the Committee considered the market data and negotiations with Mr. Smith.
The Committee recommended to the Board and the Board approved three stock option awards to Dr. Kinney utilizing a mixture of time-based and performance-based vesting conditions. The Committee and Board intended the single time-vesting stock option (for 200,000 shares) to serve as incentive and retention purposes over a four-year period, while the two performance-based options were intended to provide additional incentives for achievement of specified clinical development and business development objectives during 2020, which would take substantial effort to achieve. The Committee and Board determined to put one-third of Dr. Kinney’s total equity compensation “at risk” based on these performance-based goals. The grant-date Black-Scholes value of the 200,000 share stock option with time-based vesting aligned with the 25th percentile of the peer group. The Committee also awarded two separate performance-based grants of 50,000 options, each representing one-sixth of the total grant, thereby putting one-third of the total grant at risk. The grant-date Black-Scholes value of the two 50,000-share stock options with performance-based vesting (together with the 200,000 share stock option) was between the 50th and 75th percentiles. Each of the performance-based options would vest on the first anniversary of the date of each grant, subject to Dr. Kinney’s continued employment through such date and
achievement of the performance objectives. One of the grants would vest subject to either of the following happening on or before December 31, 2020, as determined by the Board: (i) the establishment of a special protocol assessment with the U.S. Food and Drug Administration (the “FDA”) for a registrational Phase 3 clinical trial for the Company’s drug candidate birtamimab; or (ii) the completion of a strategic transaction relating to a specified drug candidate. The other grant would vest subject to the Board’s determination that there had occurred a public announcement, on or before December 31, 2020, that a specified clinical trial for one of the Company’s drug candidates would proceed. In setting the performance goals, the Committee and our Board intended for the goals to require substantial effort on the part of Dr. Kinney to be achieved. Given that these performance goals are related to our business strategy and are highly confidential, we do not publicly disclose them in full detail. We believe their disclosure would provide our competitors with significant insights regarding our confidential business strategies that could cause us substantial harm. In February 2021, the Committee recommended, and the Board determined in an executive session without Dr. Kinney present, that the special protocol assessment for birtamimab with the FDA reached on January 27, 2021 - while not met by December 31, 2020 - would, in its discretion, be deemed to meet one of the two performance-based conditions in the first-described performance-based stock option. The Committee and the Board noted that the work to obtain the special protocol assessment from the FDA was substantially completed in 2020 and that the short delay of the announcement to early 2021 was not due to action or inaction by the Company nor materially impactful to the Company. The Committee further recommended and the Board determined, that the performance-based condition for the second-described performance-based stock option had not been met and thus such grant was forfeited in full.
On May 19, 2020, our shareholders approved a “value-for-value” option exchange program. Pursuant to this approval, we offered the option exchange in an issuer tender offer closing on February 12, 2021. Under the terms of the program, eligible employees and directors could surrender outstanding options for ordinary shares granted prior to April 23, 2018, and with exercise prices equal to or greater than $17.63, in exchange for a new option award. In order to promote retention, new options granted in the exchange were not vested on the date of grant regardless of whether the surrendered option was fully vested. Instead, the new options are scheduled to vest on the later of the first anniversary of their grant date or the date on which the corresponding option would have vested. Our executive officers were eligible to participate in the option exchange program. An objective of our equity incentive programs has been, and continues to be, to align the interests of equity incentive plan participants with

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those of our shareholders, and the Board and the Compensation Committee determined that the option exchange was an important component in our efforts to achieve that goal.
The stock options granted to our named executive officers in fiscal year 2020 and the grant date fair value of those options are set forth in the Summary Compensation Table and the Grants of Plan-Based Awards - Fiscal Year 2020 table below.
Deferred Compensation. Our named executive officers were eligible to participate in our tax-qualified 401(k) plan on the same terms as all other U.S. employees. The Company makes non-discretionary contributions to the accounts of all
participants in the 401(k) plan, equal to 3.0% of each participant’s eligible earnings in 2020, and may also make discretionary matching contributions to all participants' accounts (which it did for fiscal year 2020, equal to 1.5% of each participant's eligible earnings in 2020), so long as each participant had deferred an equal number of dollars into their 401(k) plan account during 2020.
Perquisites and Other Personal Benefits. No perquisites or other personal benefits are provided to our named executive officers.
Employment and Severance Arrangements
Dr. Kinney. In connection with his appointment as our CEO in September 2016, we entered into an employment agreement with Dr. Kinney that sets forth the terms and conditions of his employment as our CEO. That employment agreement provides for an annual base salary of $500,000 and a targeted annual cash bonus equal to 60% of his base salary. Dr. Kinney's employment agreement also provides for certain severance payments and benefits in the event of a qualifying termination of his employment. We have also awarded stock options to Dr. Kinney containing accelerated vesting provisions in the event of a qualifying termination of his employment. The material terms of that employment agreement and those stock options, as they relate to certain potential terminations of Dr. Kinney's employment, are described below under the heading Change in Control and Severance Arrangements - Gene G. Kinney.
The Committee and the Board considered these arrangements to be necessary in order to secure Dr. Kinney's services as our CEO, as well as generally consistent with peer group data presented to the Committee by its compensation consultant. The Committee and the Board believe that these arrangements ensure that Dr. Kinney focuses solely on the best interests of our shareholders in the event of a possible, threatened or pending change in control, despite how a change in control
might affect him personally. These change in control arrangements therefore serve as an important retention tool and ensure that personal uncertainties do not dilute his complete focus on promoting shareholder value.
Other Named Executive Officers. Each of Mr. Nguyen, Mr. Smith, Ms. Karp, and Mr. Malecek are eligible to participate in our Amended and Restated Severance Plan (the “Severance Plan”), which provides for certain severance payments and benefits in the event of a qualifying termination of employment. In addition, they have each been awarded stock options containing certain accelerated vesting provisions in the event of a qualifying termination of employment. The material terms of the Severance Plan and these option agreements, as they relate to certain potential terminations of employment, are described below under the heading Change in Control and Severance Arrangements - Other Named Executive Officers. For the same reasons described above with respect to Dr. Kinney, the Committee considered these arrangements to be necessary in order to secure the services of these named executive officers and an important retention tool that ensures that personal uncertainties do not dilute our executive officers' complete focus on promoting shareholder value.
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REPORT OF THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS
Other Compensation-Related Practices and Considerations
Stock Option Grant Practices and Procedures. All stock options awarded to our executive officers other than the CEO are approved by the Committee, and stock options awarded to our CEO are approved by our Board (based on recommendations from the Committee). Grants to other employees are made pursuant to specific delegations of authority from the Committee, which delegations include individual grant limits, aggregate grant limits, specification of grant terms and specification of grant dates.
Stock option awards approved (or delegated for approval) by the Committee and the Board have always been granted on a date not earlier than the date of approval by the Committee, Board, or delegated officer, and with an exercise price that is
not less than the fair market value (as defined by the applicable LTIP) on the date of grant.
Tax Deductibility. Section 162(m) of the U.S. Internal Revenue Code of 1986, as amended, disallows a company's tax deduction for compensation in excess of $1,000,000 paid in any single tax year to certain covered employees, which generally includes all named executive officers. While the Board and the Committee may take the deductibility of compensation into account when making compensation decisions, we believe that maintaining the discretion to provide compensation that is non-deductible allows us to provide compensation tailored to the need of our Company and benefits our shareholders.
REPORT OF THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS
The information in this report is not “soliciting material,” is not deemed “filed” with the SEC and is not to be incorporated by reference into any filing by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether before or after the date hereof and irrespective of any general incorporation language in any such filing.
The Compensation Committee reviewed and discussed with management the Compensation Discussion and Analysis included in this Proxy Statement. Based on those reviews and discussions, the Committee recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this Proxy Statement.
Paula K. Cobb (Committee Chair)
Christopher S. Henney
Oleg Nodelman

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EXECUTIVE COMPENSATION*
The following table provides certain information on compensation earned by or awarded to the named executive officers of the Company during our fiscal years 2020, 2019, and 2018.
Summary Compensation Table
Name and Principal Position
Year
Salary
($)
Bonus
($)
Option
Awards(1)
($)
Non-Equity
Incentive Plan
Compensation(2)
($)
All Other
Compensation(3)
($)
Total
($)
Gene G. Kinney, Ph.D.
President and Chief Executive Officer
2020
554,292
2,526,450
332,575
14,250
3,427,567
2019
538,125
2,338,354
322,875
14,000
3,213,354
2018
525,000
10,575,894
283,500
12,375
11,396,769
Tran B. Nguyen
Chief Operating Officer and Chief Financial Officer
2020
443,415
884,258
221,708
14,250
1,563,631
2019
430,500
906,709
215,250
14,000
1,566,459
2018
412,500
4,359,215
173,143
12,375
4,957,233
Brandon S. Smith(4)
Chief Business Officer
2020
333,333
100,000(5)
1,843,368
133,333
14,250
2,424,284
Carol D. Karp
Chief Regulatory Officer
2020
435,814
589,505
174,326
14,250
1,213,895
2019
423,120
477,215
169,248
14,000
1,083,583
2018
410,667
2,862,855
151,947
12,375
3,437,844
Michael J. Malecek
Chief Legal Officer and Company Secretary
2020
410,000
589,505
164,000
14,250
1,177,755
2019
207,692
125,000(6)
1,787,925
160,000
8,400
2,289,017
(1)
Consists of NQSOs (nonqualified stock options) awarded under our Amended and Restated 2012 Long Term Incentive Plan (the “2012 LTIP”), our 2018 Long Term Incentive Plan, as amended (the “2018 LTIP”), and our 2020 Employment Inducement Incentive Plan, as amended (the “2020 EIIP”). These amounts do not reflect compensation actually received. Rather, these amounts represent the grant date fair value of the options awarded, calculated in accordance with Financial Accounting Standards Board ASC Topic 718. For a discussion of the assumptions made in calculating the values reflected for fiscal year 2020, see Note 9 of the Consolidated Financial Statements included in our Form 10-K.
(2)
Consists of cash bonuses paid under our Incentive Compensation Plan (the “ICP”) for the fiscal year performance periods indicated (these bonuses were paid in the subsequent year, but are reported for the fiscal year for which they were earned). For more information, see the Grants of Plan Based Awards - Fiscal Year 2020 table below.
(3)
Consists only of Company contributions to the named executive officer's account under the Company's tax-qualified 401(k) defined contribution plan.
(4)
Mr. Smith commenced employment on March 2, 2020, and was appointed as our Chief Business Officer effective as of the commencement of his employment.
(5)
Consists of a retention bonus paid to Mr. Smith in connection with the commencement of his employment and appointment as our Chief Business Officer.
(6)
Consists of a retention bonus paid to Mr. Malecek in connection with the commencement of his employment and appointment as our Chief Legal Officer and Company Secretary.
*
Although we are a smaller reporting company and are only required to provide the scaled compensation disclosures specified under U.S. Securities and Exchange Commission rules for smaller reporting companies, we are voluntarily providing in this section the full disclosures required of companies that are not smaller reporting companies.
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The following table shows all plan-based awards granted to our named executive officers during our fiscal year 2020.
Grants of Plan-Based Awards
Fiscal Year 2020
Estimated Future Payouts Under
Non-Equity Incentive Plan Awards(1)
Estimated Future Payouts Under
Equity Incentive Plan Awards(2)
All Other
Option