Eli Lilly 2008 Annual Report Download - page 103

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PROXY STATEMENT
101101
business trips, at no incremental cost to the company. We calculate the incremental cost to the company of any
personal use of the corporate aircraft based on the cost of fuel, trip-related maintenance, crew travel expens-
es, on-board catering, landing fees, trip-related hangar and parking costs, and smaller variable costs, offset
by any time-share lease payments by the executive. Since the company-owned aircraft are used primarily for
business travel, we do not include the fi xed costs that do not change based on usage, such as pilots’ salaries,
the purchase costs of the company-owned aircraft and the cost of maintenance not related to trips.
3 This amount includes tax payments and related reimbursements totaling $720,360 related to the FICA tax
payment made by the company for Mr. Taurel on benefi ts he accrued under the company’s nonqualifi ed pen-
sion plan. All participants in the nonqualifi ed pension plan are eligible for this one-time reimbursement upon
retirement. Payments are made directly to the IRS, not to the employee.
4 For Mr. Rice, this amount includes $13,051 in tax reimbursements in 2007 for the payment described in foot-
note 5 below.
5 Reimbursement for an over-withholding of taxes by the company in a prior year when Mr. Rice was on an
overseas assignment.
We have no employment agreements with our named executive offi cers. See, however, the description of
additional years of service that may be credited to certain named executive offi cers (page 106).
Grants of Plan-Based Awards During 2008
The compensation plans under which the grants in the following table were made are generally described in the
“Compensation Discussion and Analysis,” beginning on page 89, and include the Eli Lilly and Company Bonus Plan,
a non-equity incentive plan, and the 2002 Lilly Stock Plan, which provides for performance awards, shareholder
value awards, stock options, restricted stock grants, and stock units.
Name Grant Date
Compensation
Committee
Action Date
Estimated Possible Payouts
Under Non-Equity
Incentive Plan Awards 1
Estimated Possible and Future
Payouts Under Equity
Incentive Plan Awards 2
All Other
Option
Awards:
Number of
Securities
Underlying
Options 3
Grant Date
Fair Value
of Equity
Shares
Threshold
($)
Target
($)
Maximum
($)
Threshold
(# shares)
Target
(# shares)
Maximum
(# shares)
Mr. Taurel —
2/7/2008 4
2/7/2008 5
—
12/17/2007
12/17/2007
$226,866 $1,512,438 $3,024,875
39,047
42,542
78,094
106,355
156,189
148,897
0
$4,000,000
$4,000,000
Dr. Lechleiter —
2/7/2008 4
2/7/2008 5
—
12/17/2007
12/17/2007
$263,869 $1,759,125 $3,518,250
31,726
34,565
63,452
86,414
126,904
120,980
0
$3,250,000
$3,250,000
Dr. Paul —
2/7/2008 4
2/7/2008 5
—
12/17/2007
12/17/2007
$127,532 $850,213 $1,700,425
14,643
15,953
29,285
39,884
58,571
55,838
0
$1,500,000
$1,500,000
Mr. Carmine —
2/7/2008 4
2/7/2008 5
—
12/17/2007
12/17/2007
$98,000 $653,334 $1,306,669
14,643
15,953
29,285
39,884
58,571
55,838
0
$1,500,000
$1,500,000
Mr. Rice —
2/7/2008 4
2/7/2008 5
—
12/17/2007
12/17/2007
$100,094 $667,293 $1,334,587
11,714
12,762
23,428
31,907
46,857
44,670
0
$1,200,000
$1,200,000
Mr. Armitage —
2/7/2008 4
2/7/2008 5
—
12/17/2007
12/17/2007
$93,452 $623,013 $1,246,027
8,346
9,093
16,693
22,734
33,385
31,828
0
$855,000
$855,000
1 These columns show the threshold, target, and maximum payouts for 2008 performance under the Eli Lilly and
Company Bonus Plan. As described in the section titled “Cash Incentive Bonuses” in the “Compensation Discus-
sion and Analysis,” bonus payouts range from zero to 200 percent of target. The 2009 bonus payment for 2008
performance has been made based on the metrics described, at 154 percent of target, and is shown in the Sum-
mary Compensation Table in the column titled “Non-Equity Incentive Plan Compensation.”
2 These columns show the range of payouts targeted for 2008 performance under the 2002 Lilly Stock Plan as
described in the sections titled “Equity Incentives—Performance Awards” and “Equity Incentives—Shareholder
Value Awards” in the “Compensation Discussion and Analysis.”
3 No stock options were granted to named executive offi cers in 2008.