Eli Lilly 2012 Annual Report Download - page 149

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45
Potential Payments Upon Termination of Employment (as of December 31, 2012)
Cash
Severance
Payment 1
Incremental
Pension
Benefit
(present
value)
Continuation
of Medical /
Welfare
Benefits
(present
value) 2
Value of
Acceleration
of Equity
Awards 3Excise Tax
Gross-Up 4
Total
Termination
Benefits
Dr. Lechleiter
•Voluntary retirement $0 $0 $0 $0 $0 $0
•Involuntary retirement or termination $0 $0 $0 $0 $0 $0
•Involuntary or good-reason termination
after change in control $7,200,000 $0 $15,138 $11,896,165 $0 $19,111,303
Mr. Rice
•Voluntary termination $0 $0 $0 $0 $0 $0
•Involuntary retirement or termination $0 $0 $0 $0 $0 $0
•Involuntary or good-reason termination
after change in control $3,762,000 $0 $33,319 $6,020,267 $0 $9,815,586
Dr. Lundberg
•Voluntary termination $0 $0 $0 $0 $0 $0
•Involuntary retirement or termination $0 $0 $0 $0 $0 $0
•Involuntary or good-reason termination
after change in control $3,718,300 $0 $25,224 $4,528,565 $0 $8,272,089
Mr. Armitage 5
•Voluntary retirement $0 $0 $0 $0 $0 $0
•Involuntary retirement or termination $0 $0 $0 $0 $0 $0
•Involuntary or good-reason termination
after change in control $0 $0 $0 $0 $0 $0
Mr. Conterno
•Voluntary retirement $0 $0 $0 $0 $0 $0
•Involuntary retirement or termination $0 $0 $0 $0 $0 $0
•Involuntary or good-reason termination
after change in control $2,343,250 $0 $29,436 $3,880,163 $0 $6,252,849
1 See “Change-in-Control Severance Pay Plan” below.
2 See “Accrued Pay and Regular Retirement Benefits” and “Change-in-Control Severance Pay Plan—Continuation of
medical and welfare benefits” below.
3 Beginning in 2010, equity grants included an individual performance criterion to vest. As a result, even retirement-
eligible employees have the possibility of forfeiting their grants.
4 The company eliminated excise tax gross-ups in 2012.
5 Mr. Armitage retired on December 31, 2012.
Accrued Pay and Regular Retirement Benefits. The amounts shown in the table above do not include certain
payments and benefits to the extent they are provided on a non-discriminatory basis to salaried employees
generally upon termination of employment. These include:
• accrued salary and vacation pay.
• regular pension benefits under the retirement plan and the nonqualified pension plan. See “Retirement
Benefits” above.
• welfare benefits provided to all U.S. retirees, including retiree medical and dental insurance. The amounts
shown in the table above as “Continuation of Medical / Welfare Benefits” are explained below.
• distributions of plan balances under the 401(k) plan and the nonqualified savings plan. See the narrative
following the “Nonqualified Deferred Compensation in 2012” table for information about these plans.
Deferred Compensation. The amounts shown in the table do not include distributions of plan balances under the
deferred compensation plan. Those amounts are shown in the “Nonqualified Deferred Compensation in 2012” table.
Death and Disability. A termination of employment due to death or disability does not entitle named executive
officers to any payments or benefits that are not available to salaried employees generally.