Eli Lilly 2013 Annual Report Download - page 113

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Deferred Stock Account. This account allows the director, in effect, to invest his or her deferred cash
compensation in company stock. In addition, the annual award of shares to each director as noted below is
credited to this account on a pre-set annual date. The number of shares credited is calculated by dividing the
$145,000 annual compensation figure by the closing stock price on that date. Funds in this account are
credited as hypothetical shares of company stock based on the market price of the stock at the time the
compensation would otherwise have been earned. Hypothetical dividends are “reinvested” in additional
shares based on the market price of the stock on the date dividends are paid. Actual shares are issued or
transferred after the director ends his or her service on the Board.
Deferred Compensation Account. Funds in this account earn interest each year at a rate of 120 percent of
the applicable federal long-term rate, compounded monthly, as established the preceding December by the
U.S. Treasury Department under Section 1274(d) of the Internal Revenue Code of 1986, as amended (the
Internal Revenue Code). The aggregate amount of interest that accrued in 2013 for the participating directors
was $130,990, at a rate of 2.85 percent. The rate for 2014 is 3.92 percent.
Both accounts may be paid in a lump sum or in annual installments for up to 10 years, beginning the second
January following the director’s departure from board service. Amounts in the deferred stock account are paid
in shares of company stock.
2013 Director Compensation
Name
Fees Earned
or Paid in Cash ($) Stock Awards ($) 1
All Other
Compensation
and Payments ($)2Total ($) 3
Mr. Alvarez $106,000 $145,000 $0 $251,000
Dr. Baicker $103,000 $145,000 $0 $248,000
Sir Winfried Bischoff $112,000 $145,000 $10,196 4$267,196
Mr. Eskew $121,000 $145,000 $0 $266,000
Mr. Fyrwald $115,000 $145,000 $30,000 $290,000
Dr. Gilman $118,000 $145,000 $28,576 $291,576
Mr. Hoover $106,000 $145,000 $30,000 $281,000
Ms. Horn $112,000 $145,000 $5,550 $262,550
Dr. Kaelin $103,000 $145,000 $23,700 $271,700
Ms. Marram $142,000 $145,000 $30,000 $317,000
Mr. Oberhelman $106,000 $145,000 $30,000 $281,000
Dr. Prendergast $103,000 $145,000 $0 $248,000
Dr. Runge $34,333 $48,333 $0 $82,666
Ms. Seifert $103,000 $145,000 $10,250 $258,250
Mr. Tai $17,167 $24,167 $30,000 $71,334
1 Each nonemployee director received an award of stock valued at $145,000 (approximately 2,841 shares),
except Dr. Runge and Mr. Tai, who received shares proportionately for a partial year of service. This stock
award and all prior stock awards are fully vested in that they are not subject to forfeiture; however, the
shares are not issued until the director ends his or her service on the Board, as described above under “Lilly
Directors’ Deferral Plan.” The column shows the grant date fair value for each director’s stock award.
Aggregate outstanding stock awards are shown in the “Common Stock Ownership by Directors and
Executive Officers” table in the “Stock Units Not Distributable Within 60 Days” column. Aggregate
outstanding stock options as of December 31, 2013 are shown in the table below. These options, which
were granted in 2004, expired in February 2014 with no value.