Eli Lilly 2004 Annual Report Download - page 77

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PROXY STATEMENT
7575
Aggregate Option Shares Exercised in the Last Fiscal Year and Fiscal Year-End Option Values (1)
Name
Number of
Shares
Acquired
On Exercise Value Realized
Number of
Securities Underlying
Unexercised Options at
Fiscal Year-End
Value of
Unexercised,
In-the-Money Options
at Fiscal Year-End (2)
Exercisable Unexercisable Exercisable Unexercisable
Sidney Taurel 80,000 $4,091,400 2,081,521 751,317 $13,119,533 $0
John C. Lechleiter, Ph.D. 27,728 $1,223,429 451,793 321,317 $290,452 $0
Charles E. Golden -0- $0 758,683 241,317 $ 4,971,000 $0
Steven M. Paul, M.D. 18,700 $916,347 329,900 316,000 $1,349,700 $0
Robert A. Armitage -0- $0 44,100 183,800 $0 $0
(1) No stock appreciation rights were exercised during 2004 and none were outstanding on December 31, 2004.
(2) Represents the amount by which the market price of Lilly stock exceeded the exercise prices of unexercised op-
tions held by the named individuals on December 31, 2004.
Retirement Plan
Pension Plan Table
Average Annual
Earnings (Highest
5 of Last 10 Years) Years of Service
15 20 25 30 35 40 45
$ 500,000 $ 103,295 $ 137,725 $ 172,165 $ 206,580 $ 241,020 $ 241,020 $ 249,000
1,000,000 211,090 281,450 351,815 422,170 492,540 492,540 498,010
1,500,000 318,890 425,170 531,470 637,750 744,060 744,060 747,010
2,000,000 426,685 568,895 711,120 853,345 995,570 995,570 996,010
2,500,000 534,470 712,620 890,785 1,068,935 1,247,090 1,247,090 1,247,090
3,000,000 642,265 856,345 1,070,435 1,284,515 1,498,610 1,498,610 1,498,610
3,500,000 750,060 1,000,070 1,250,090 1,500,110 1,750,130 1,750,130 1,750,130
4,000,000 857,855 1,143,790 1,429,750 1,715,690 2,001,650 2,001,650 2,001,650
4,500,000 965,640 1,287,515 1,609,405 1,931,280 2,253,155 2,253,155 2,253,155
5,000,000 1,073,435 1,431,240 1,789,055 2,146,860 2,504,675 2,504,675 2,504,675
5,500,000 1,181,230 1,574,965 1,968,720 2,362,450 2,756,195 2,756,195 2,756,195
6,000,000 1,289,030 1,718,690 2,148,370 2,578,045 3,007,715 3,007,715 3,007,715
The named executive offi cers will, upon retirement, be eligible for benefi ts under The Lilly Retirement Plan
(retirement plan). The above table sets forth a range of annual retirement benefi ts for various levels of average
annual earnings and years of service, assuming the employee retires at age 65 with a 50 percent survivor income
benefi t. The retirement plan benefi ts shown in the table are generally paid as a monthly annuity for the life of the
retiree. The amounts shown in the table are not subject to reduction for Social Security benefi ts or any other offset
amounts except that the ultimate pension benefi ts for Mr. Golden will be reduced by the amount of the pension pay-
ments he receives from his previous employer. The annual benefi t under the plan is calculated using the average of
the annual earnings for the highest 5 out of the last 10 years of service (average annual earnings). Annual earn-
ings covered by the retirement plan consist of salary, bonus, and, for years prior to 2004, long-term incentive plan
payouts as set forth in the Summary Compensation Table on page 73 but calculated for the amount of bonus paid
(rather than credited) and for the year in which earnings are paid (rather than earned or credited). For purposes of
determining the annual benefi t under the retirement plan shown in the table:
Named Executive
Years of Service at
Age 65
Current Average Annual
Earnings
Mr. Taurel 43 $4,618,368
Dr. Lechleiter 39 $1,480,212
Mr. Golden 41 $2,486,772
Dr. Paul 34 $1,221,492
Mr. Armitage 14 $1,047,600