Eli Lilly 2006 Annual Report Download - page 93

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points equaling the sum of his or her age plus years of service. Employees who retire (i) at age 65 with at least fi ve
years of service, (ii) at age 62 with at least 80 points, or (iii) with 90 or more points receive an unreduced benefi t.
Employees may elect early retirement with reduced benefi ts under either of the following two options:
• Employees with between 80 and 90 points may retire with a benefi t that is reduced by three percent for each year
that the employee has left to reach 90 points or age 62.
• Employees who have less than 80 points, but who have reached age 55 and have at least 10 years of service, may
retire with a benefi t that is reduced as described above and is further reduced by six percent for each year that
the employee has left to reach 80 points or age 65.
All U.S. retirees are entitled to medical insurance under the company’s plans. Retirees with spouses or un-
married dependents may elect that, upon the retiree’s death, the plan will pay survivor annuity benefi ts at either
25 or 50 percent of the retiree’s annuity benefi t. Election of the higher survivor benefi t will result in a lower annuity
payment during the retiree’s life.
Dr. Paul joined the company in 1993. If he remains employed by the company past age 60, he will receive 10
years’ additional service credit, and as a result, his retirement benefi t will not be reduced for early retirement.
When Mr. Armitage joined the company in 1999, the company agreed to provide him with a retirement benefi t based
on his actual years of service and earnings at age 60. When Mr. Armitage reaches age 60 with 9.75 years of service,
he will be treated as though he has, for eligibility purposes only, 20 years of service. The additional service credits
will make him eligible to begin reduced benefi ts nine months earlier, but will not change the timing or amount of
his unreduced benefi ts (shown in the Pension Benefi ts in 2006 Table above). Mr. Golden received additional service
credit when be began his employment in February 1996, contingent upon his remaining employed by Lilly for 10
years. His retirement benefi ts include the standard retiree medical benefi ts that would be available to retirees of
the same age and with the same number of years of service credited. A grant of additional years of service credit to
any employee must be approved by the compensation committee of the board of directors.
Nonqualifi ed Deferred Compensation in 2006
Executive
Contributions in Last
Fiscal Year ($)
1
Registrant
Contributions in Last
Fiscal Year ($)
2
Aggregate
Earnings in
Last Fiscal Year ($)
Aggregate
Distributions in
Last Fiscal Year ($)
Aggregate
Balance at Last
Fiscal Year End ($)
3
Current
Mr. Taurel non-qualifi ed savings
deferred compensation
total
85,820
0
85,820
85,820
0
85,820
79,063
433,657
512,720
02,517,012
8,086,877
10,603,889
Dr. Lechleiter non-qualifi ed savings
deferred compensation
total
53,520
259,884
313,404
53,520
0
53,520
125,752
156,176
0677,192
2,390,033
3,067,225
Dr. Paul non-qualifi ed savings
deferred compensation
total
41,770
0
41,770
41,770
0
41,770
25,454
0
25,454
0621,447
0
621,447
Mr. Armitage non-qualifi ed savings
deferred compensation
total
28,899
527,858
556,757
28,899
0
28,899
14,670
80,027
94,697
0271,672
1,583,742
1,855,414
Mr. Rice non-qualifi ed savings
deferred compensation
total
23,700
0
23,700
23,700
0
23,700
4,002
0
4,002
0101,584
0
101,584
Retired
Mr. Golden non-qualifi ed savings
deferred compensation
total
3,954
0
3,954
3,954
0
3,954
36,969
131,934
168,903
10,405
0
10,405
622,345
2,460,323
3,082,668
1 The amounts in this column are also included in the Summary Compensation Table on page 85 , in the salary
column (non-qualifi ed savings) or the non-equity incentive plan compensation column (deferred compensation).
2 The amounts in this column are also included in the Summary Compensation Table on page 85, in the all other
compensation column as a portion of the 401(k) match.
3 Of the totals in this column, the following totals have previously been reported in the Summary Compensation
Table for this year, and for previous years:
Name 2006 ($) Previous Years ($) Total ($)
Mr. Taurel $171,640 $3,170,235 $3,341,875
Dr. Lechleiter $366,924 $1,815,963 $2,182,887
Dr. Paul $83,540 $135,171 $218,711
Mr. Armitage $585,657 $1,281,715 $1,867,372
Mr. Rice $47,400 0 $47,400
Mr. Golden $7,908 $1,995,961 $2,003,869
PROXY STATEMENT
91
30,424
Named Executive Plan