"I propose we recommend to the Neurocrine Biosciences Board of Directors that they implement a 25% cut in the salaries of all the Officers and a $100,000 bonus for all the Officers, for every $100 million Market Cap increase of NBIX".

Supporting Material:
In America these are tough times and Accountability is very important. In any corporate environment, it is a norm now to reward/punish senior management based on their accomplishments. One of the best methods to measure the performance of the senior management of any public trading company is based on the market value of the company. The market value of NBIX dropped about 95% for the last 4 years. Thus, NBIX management has to be held accountable in bringing down the NBIX’s market capitalization from the Midcap to SmallCap group reflecting the worst performance in the history of company. NBIX management and board has taken the easy step of cutting burn by three lay offs. While this no doubt cuts the costs why should the senior management feel no consequences of the company in downhill spiral? It is very unfair and unethical for the senior management to continue with the existing salaries. It is unfortunate that lower level employees paid the price for the mistakes of the INCOMPETENT SENIOR MANAGEMENT, particularly the CEO, Dr. Gorman because when he took over as the CEO in January 2008, in his first CC, he said that he already negotiated a deal for GnRH and working on final documents with potential partners. Based on this assurance, the shareholders expected GnRH deal was going to be signed by March 2008, now we are in September 2009 and still he has not signed a deal for GnRH. In addition, in each quarter NBIX is spending about $12 million and cash reserves are going down. Therefore, my major concern is that unless we send a strong message to the management by cutting salaries, they will spend all the remaining cash and walk out leaving the shareholders with the empty “punch bowl”! The major surprise to long term Investors is that the CEO and the other Officers sold their restricted stocks around $3.5/share because they couldn’t afford to pay IRS taxes without selling the stock. For your information, the CEO earns about $400,000.00/year and he couldn’t pay IRS taxes with out selling his NBIX stock. This is a classic example, that CEO and other Officers don’t have much commitment to the company except collecting salaries until money runs out. I know, many companies implemented salary cuts to their senior management during this economic down turn, but this senior management has been enjoying by collecting restricted stocks as well as full salaries. Dear fellow shareholders, unless we act immediately and cut salaries of Officers and provide incentives based on their performance, we could all lose our hard earned money soon. Therefore, I request that every stockholder vote in favor of this proposal.


Yours truly,
Dr. Rami Mutyala