Eli Lilly 2005 Annual Report Download - page 83

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PROX Y S TATEM ENT
8181
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 295,728 $9,019,113 1,787,110 1,005,621 $3,235,684 $240,284
John C. Lechleiter, Ph.D. 0 $0 453,110 447,811 $288,354 $120,142
Charles E. Golden 90,830 $2,193,593 669,170 318,107 $2,532,459 $73,421
Steven M. Paul, M.D. 37,110 $977,737 363,790 330,207 $242,566 $80,095
Robert A. Armitage 0 $0 67,900 213,254 $0 $50,059
(1) No stock appreciation rights were exercised during 2005 and none were outstanding on December 31, 2005.
(2) Represents the amount by which the market price of Lilly stock exceeded the exercise prices of unexercised
options held by the named individuals on December 31, 2005.
Retirement Benefits
We maintain two programs to provide retirement income to all eligible U.S. employees, including executive officers:
• The Lilly Employee 401(k) Plan, a defined contribution plan qualified under sections 401(a) and 401(k) of the
Internal Revenue Code. Eligible employees may elect to contribute a portion of their salary to the plan, and the
company provides matching contributions on the 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 Summary Compensation Table on page 79 for information about the company
contributions to the named executive officers.
• The Lilly Retirement Plan (the retirement plan), a tax-qualified defined benefit plan that provides monthly
retirement benefits to eligible employees.
The following information further describes the retirement plan, including potential payments to named
executive officers.
Pension Plan Table
Average Annual
Earnings (Highest
5 of Last 10 Years) Years of Service
15 20 25 30 35 40 45
$ 500,000 $ 103,010 $ 137,365 $ 171,685 $ 206,015 $ 240,360 $ 240,360 $ 249,000
1,000,000 210,805 281,065 351,350 421,610 491,870 491,870 498,010
1,500,000 318,600 424,790 531,000 637,190 743,390 743,390 747,010
2,000,000 426,395 568,525 710,650 852,780 994,920 994,920 996,010
2,500,000 534,180 712,235 890,305 1,068,370 1,246,430 1,246,430 1,247,430
3,000,000 641,975 855,970 1,069,970 1,283,950 1,497,950 1,497,950 1,497,950
3,500,000 749,770 999,695 1,249,620 1,499,545 1,749,470 1,749,470 1,749,470
4,000,000 857,570 1,143,420 1,429,270 1,715,125 2,000,975 2,000,975 2,000,975
4,500,000 965,350 1,287,145 1,608,935 1,930,715 2,252,495 2,252,495 2,252,495
5,000,000 1,073,150 1,430,870 1,788,590 2,146,295 2,504,030 2,504,030 2,504,230
5,500,000 1,180,945 1,574,590 1,968,240 2,361,890 2,755,535 2,755,535 2,755,535
6,000,000 1,288,740 1,718,315 2,147,905 2,577,480 3,007,055 3,007,055 3,007,055
The named executive officers will, upon retirement, be eligible for benefits under the retirement plan. The
above table sets forth a range of annual retirement benefits for various levels of average annual earnings and
years of service, assuming the employee retires at age 65 with a 50 percent survivor income benefit. The re-
tirement plan benefits 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 benefits or any other offset amounts
except that the ultimate pension benefits for Mr. Golden will be reduced by the amount of the pension payments