Eli Lilly 2007 Annual Report Download - page 94

PROXY STATEMENT
9292
2 Tax reimbursements for travel by the executives’ spouses on the corporate aircraft to attend certain company
functions involving spouse participation.
3 For Mr. Rice, this amount includes $13,051 in tax reimbursements for the payment described in footnote 5
below.
4 T
hese amounts include the incremental cost to the company of use of the corporate aircraft to attend outside
board meetings and one personal trip in 2007, offset by Mr. Taurel’s reimbursement under the time-share
agreement. The incremental cost of Mr. Taurel’s use of the corporate aircraft was $107,105 in 2007 and $91,069
in 2006. The amounts in this column also include Mrs. Taurel’s expenses to attend board functions that
included spouse participation. In addition, Mr. Taurel’s family members have occasionally accompanied him
on business trips, at no incremental cost to the company. We calculate the incremental cost to the company
of any personal use of the corporate aircraft based on the cost of fuel, trip-related maintenance, crew travel
expenses, on-board catering, landing fees, trip-related hangar and parking costs, and smaller variable costs,
offset by any time-share lease payments by the executive. Since the company-owned aircraft are used primar-
ily for business travel, we do not include the fi xed costs that do not change based on usage, such as pilots’
salaries, the purchase costs of the company-owned aircraft and the cost of maintenance not related to trips.
5 Reimbursement for an over-withholding of taxes by the company in a prior year when Mr. Rice was on an
overseas assignment.
We have no employment agreements with our named executive offi cers. See, however, the description of ad-
ditional years of service that may be credited to certain named executive offi cers upon retirement (pages 96–97).
The compensation plans under which the grants in the following table were made are generally described in
the Compensation Discussion and Analysis, beginning on page 81, and include the Eli Lilly and Company Bonus
Plan, a non-equity incentive plan, and the 2002 Lilly Stock Plan, which provides for performance awards, share-
holder value awards, stock options, restricted stock grants, and stock units.
Grants of Plan-Based Awards During 2007
Name Grant Date
Compensation
Committee
Action Date
Estimated Possible Payouts
Under Non-Equity
Incentive Plan Awards 1
Estimated Possible and Future
Payouts Under Equity
Incentive Plan Awards 2
All Other
Option
Awards:
Number of
Securities
Underlying
Options 3
Grant Date
Fair Value
of Equity
Awards
Threshold
($)
Target
($)
Maximum
($)
Threshold
(# shares)
Target
(# shares)
Maximum
(# shares)
Mr. Taurel —
2/9/2007 4
2/9/2007 5
—
12/18/2006
12/18/2006
0$2,146,771$4,293,542
0
056,426 68,426 100,000 95,796 0
$3,060,000
$3,060,000
Dr. Lechleiter —
2/9/2007 4
2/9/2007 5
—
12/18/2006
12/18/2006
0$1,149,083$2,298,166
0
036,677 44,477 73,354 62,268 0
$1,989,000
$1,989,000
Dr. Paul —
2/9/2007 4
2/9/2007 5
—
12/18/2006
12/18/2006
0$816,283$1,632,566
0
022,128 26,834 44,256 37,568 0
$1,200,000
$1,200,000
Mr. Armitage —
2/9/2007 4
2/9/2007 5
—
12/18/2006
12/18/2006
0$556,250$1,112,500
0
015,766 19,119 31,532 26,767 0
$855,000
$855,000
Mr. Rice —
2/9/2007 4
2/9/2007 5
—
12/18/2006
12/18/2006
0 $560,688 $1,121,376 0
015,766 19,119 31,532 26,767 0
$855,000
$855,000
1 These columns show the range of payouts targeted for 2007 performance under the Eli Lilly and Company Bonus
Plan as described in the section titled “Cash Incentive Bonuses” in the Compensation Discussion and Analysis.
The 2008 bonus payment for 2007 performance has been made based on the metrics described, at 188 percent of
target, and is shown in the Summary Compensation Table in the column titled “Non-Equity Incentive Plan Com-
pensation.”
2 These columns show the range of payouts targeted for 2007 performance under the 2002 Lilly Stock Plan as
described in the sections titled “Equity Incentives—Performance Awards” and “Equity Incentives—Shareholder