Eli Lilly 2007 Annual Report Download - page 100

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PROXY STATEMENT
9898
ees are eligible to participate. Executive offi cers and other executives may also defer receipt of all or part of their
cash compensation under the company’s deferred compensation plan. Amounts deferred by executives under this
program are credited with interest at 120 percent of the applicable federal long-term rate as established for the
preceding December by the U.S. Treasury Department under Section 1274(d) of the Internal Revenue Code with
monthly compounding, which was 5.7 percent for 2007 and is 5.5 percent for 2008. Participants may elect to receive
the funds in a lump sum or in up to 10 annual installments following retirement, but may not make withdrawals
during their employment, except in the event of hardship as approved by the compensation committee. All deferral
elections and associated distribution schedules are irrevocable. Both plans are unfunded and subject to forfeiture
in the event of bankruptcy.
Potential Payments Upon Termination or Change in Control
The following table describes the potential payments and benefi ts under the company’s compensation and benefi t
plans and arrangements to which the named executive offi cers would be entitled upon termination of employment.
Except for (i) certain terminations following a change in control of the company, as described below, and (ii) certain
pension arrangements as shown below and described under “Retirement Benefi ts” above, there are no agreements,
arrangements, or plans that entitle named executive offi cers to severance, perquisites, or other enhanced benefi ts
upon termination of their employment. Any agreement to provide such payments or benefi ts to a terminating execu-
tive offi cer (other than following a change in control) would be at the discretion of the compensation committee.
Potential Payments Upon Termination of Employment
Cash Severance
Payment
Incremental
Pension Benefi t
(present value)
Continuation of
Medical / Welfare
Benefi ts (present
value)
Acceleration and
Continuation of
Equity Awards
(unamortized
expense as of
12/31/07)
Excise Tax
Gross-Up
Total
Termination
Benefi ts
Mr. Taurel
• Voluntary retirement 00 0 000
• Involuntary termination 000 000
• Involuntary or good reason
termination after change in control
(CIC) $11,580,950 0 1 $24,0002$487,102 0 $12,092,052
Dr. Lechleiter
• Voluntary retirement 00 0 000
• Involuntary termination 000 000
• Involuntary or good reason
termination after CIC $6,661,440 $1,347,065 $24,000 $316,617 $3,301,506 $11,650,628
Dr. Paul
• Voluntary retirement 00 0 000
• Involuntary termination 0$3,141,258
3$89,577 3 00$3,230,835
• Involuntary or good reason
termination after CIC $5,029,728 $4,108,2063$113,577 3 $457,972 $3,888,845 $13,598,328
Mr. Armitage
• Voluntary termination 000 000
• Involuntary termination 000 000
• Involuntary or good reason
termination after CIC $3,603,432 $720,138 $242,082 $3,102,557 $2,171,275 $9,839,484
Mr. Rice
• Voluntary termination 000 000
• Involuntary termination 000 000
• Involuntary or good reason
termination after CIC $3,637,654 $104,298 $24,000 $1,845,095 $1,697,147 $7,308,194
1 See “Change-in-Control Severance Pay Program—Incremental pension benefi t” on page 100.
2 See “Accrued Pay and Regular Retirement Benefi ts” and “Change-in-Control Severance Pay Program—Continua-
tion of medical and welfare benefi ts” on pages 99–100.
3 These amounts refl ect an additional 10 years of service credit that would be credited to Dr. Paul upon an invol-
untary termination, other than for cause, should it occur before he reaches age 60 (see pages 96–97 for more
information about Dr. Paul’s retirement benefi ts).