Eli Lilly 2013 Annual Report Download - page 140

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42
5 This amount reflects shares paid to Mr. Harrington from the 2012-13 PA, which paid out at 50% of target in
January 2014. Since Mr. Harrington was not an executive officer when the award was granted, he received
freely traded shares rather than RSUs. Mr. Harrington must hold the net shares from this payout for one year as
required by the Share Ownership and Retention Guidelines.
6 The first installment of a one-time RSU awarded to Mr. Conterno in 2008 outside of the normal grant cycle.
Retirement Benefits
We provide retirement income to U.S. employees, including executive officers, through the following plans:
• The 401(k) plan, a defined contribution plan qualified under Sections 401(a) and 401(k) of the Internal
Revenue Code. Participants may elect to contribute a portion of their salary to the plan, and the company
provides matching contributions on employees’ contributions up to 6 percent of base salary. The employee
contributions, company contributions, and earnings thereon are paid out in accordance with elections made
by the participant. See the "All Other Compensation" column in the “Summary Compensation Table” for
information about company contributions for the named executive officers.
• The retirement plan, a tax-qualified defined benefit plan that provides monthly benefits to retirees. See the
“Pension Benefits in 2013” table below for additional information about the value of these pension benefits.
Sections 401 and 415 of the Internal Revenue Code generally limit the amount of annual pension that can be
paid from a tax-qualified plan ($210,000 in 2013) as well as the amount of annual earnings that can be used to
calculate a pension benefit ($260,000 in 2014). However, since 1975, the company has maintained a
nonqualified pension plan that pays retirees the difference between the amount payable under the retirement
plan and the amount they would have received without the Internal Revenue Code limits. The nonqualified
pension plan is unfunded and subject to forfeiture in the event of bankruptcy.
The following table shows benefits that the named executive officers have accrued under the retirement plan and
the nonqualified pension plan.
Pension Benefits in 2013
Name Plan
Number of Years of
Credited Service
Present Value of
Accumulated Benefit ($) 1
Payments During
Last Fiscal Year
($)
Dr. Lechleiter 2retirement plan (pre-2010) 30 $1,388,042
retirement plan (post-2009) 4 $108,207
nonqualified plan (pre-2010) 30 $25,846,526
nonqualified plan (post-2009) 4 $1,582,929
total $28,925,704 $0
Mr. Rice retirement plan (pre-2010) 20 $606,778
retirement plan (post-2009) 4 $62,281
nonqualified plan (pre-2010) 20 $4,943,284
nonqualified plan (post-2009) 4 $474,030
total $6,086,373 $0
Dr. Lundberg retirement plan (post-2009) 4 $114,124
nonqualified plan (post-2009) 4 $736,369
total $850,493 $0
Mr. Harrington retirement plan (pre-2010) 18 $579,032
retirement plan (post-2009) 4 $68,861
nonqualified plan (pre-2010) 18 $1,200,933
nonqualified plan (post-2009) 4 $135,856
total $1,984,682 $0
Mr. Conterno retirement plan (pre-2010) 17 $513,885
retirement plan (post-2009) 4 $59,231
nonqualified plan (pre-2010) 17 $2,154,069
nonqualified plan (post-2009) 4 $235,108
total $2,962,293 $0