View Millennium letter and resolution

Comptroller William C. Thompson, Jr., on behalf of the New York City Pension Funds, announced today that Millennium Pharmaceuticals, Inc. of Cambridge, M.A. has agreed to implement a policy requiring a significant portion of future stock option grants to senior executives be performance-based.

The proposal was submitted on behalf of the New York City Employees' Retirement System (NYCERS), Teachers' Retirement System of the City of New York (TRS), New York City Police Pension Fund, New York City Fire Department Pension Fund and the New York City Board of Education Retirement System (BERS).

"I commend Millennium for taking this significant step towards improving its performance incentives," Thompson said. "Executive compensation packages must be linked to goals of long-term growth in order to improve investor confidence and trust in the management of publicly traded companies. "

In notifying the Comptroller's Office, Millennium said that beginning this year a significant portion of options granted to the company's executive officers will be performance-based. Millennium's Compensation and Talent Committee "felt the Comptroller's proposal was consistent with Millennium's pay for performance philosophy and would be harmonious with our other compensation programs," stated Laurie B. Keating, Millennium's Senior Vice President, General Counsel and Secretary.

For the purposes of this resolution performance-based stock options are defined as any of the following:

•  Performance Vesting Stock Options - grants that do not vest or become exercisable unless specific stock price or business performance goals are met.

•  Index Options - grants with a variable option exercise price geared to a relative external measure such as a comparable peer group or Standard Poor's industry index.

•  Performance Accelerated Stock Options - grants whose vesting is accelerated upon achievement of specific price or business performance goals.

The Pension Funds collectively own 856,276 shares valued at nearly $ 9 million in Millennium Pharmaceuticals, Inc.

As a result of Millennium's actions the Comptroller's Office has withdrawn the resolution.

Besides Thompson, the Pension Funds' trustees are:

Fire Department Pension Fund: Mayor Michael Bloomberg; New York City Fire Commissioner Nicholas Scoppetta (Chair); New York City Finance Commissioner Martha E. Stark; Stephen Cassidy, President, James Slevin, Vice President, Robert Straub, Treasurer, and John Kelly, Brooklyn Representative and Chair, Uniformed Firefighters Association of Greater New York; Peter Gorman, President and Captains' Rep., Nicholas J. Visconti, Chiefs' Rep., and Stephen J. Carbone, Lieutenants' Rep., Uniformed Fire Officers Association; and, Joseph Gagliardi, Marine Engineers Association.

Police Pension Fund: Mayor Michael Bloomberg; New York City Finance Commissioner Martha E. Stark; New York City Police Commissioner Raymond Kelly (Chair); Patrick Lynch, Patrolmen's Benevolent Association; Michael Palladino, Detectives Endowment Association; Edward Mullins, Sergeants Benevolent Association; Anthony Garvey, Lieutenants Benevolent Association; and, John Driscoll, Captains Endowment Association.

NYCERS: New York City Finance Commissioner Martha E. Stark (Chair); New York City Public Advocate Betsy Gotbaum; Borough Presidents Scott Stringer (Manhattan), Helen Marshall (Queens), Marty Markowitz (Brooklyn), Adolfo Carrion (Bronx), and James Molinaro (Staten Island); Lillian Roberts, Executive Director, District Council 37, AFSCME; Roger Toussaint, President Transport Workers Union Local 100; and, Carroll (Carl) Haynes, President, International Brotherhood of Teamsters, Local 237.

TRS: New York City Finance Commissioner Martha E. Stark (Chair); Deputy Chancellor Kathleen Grimm, New York City Department of Education; and, Sandra March, Melvyn Aaronson and Mona Romain, all of the United Federation of Teachers.

BERS: mayoral appointees Schools Chancellor Joel Klein, Alan Aviles, Philip Berry, David Chang, Tino Hernandez, Augusta Souza Kappner, Richard Menschel and Marita Regan; Borough President appointees Jesse Mojica (Bronx), Martine G. Guerrier (Brooklyn), Vivian Farmery (Manhattan), Michael Flowers (Queens), and Joan Correale (Staten Island); and employee members Thomas J. Malanga of the International Union of Operating Engineers, Local 891, and Milagros Rodriguez of District Council 37, Local 372.