Eli Lilly 2007 Annual Report Download - page 99

PROXY STATEMENT
9797
• 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. Dr. Paul will receive 10 years of additional service credit if he remains
employed by the company past age 60, or is involuntarily terminated before he turns 60. 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 2007 table on page 96). 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 2007
Name Plan
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
Mr. Taurel nonqualifi ed savings
deferred compensation
total
$89,545
—
$89,545
$89,545
—
$89,545
$149,079
$464,186
$613,265 0
$2,924,791
$8,551,063
$11,475,854
Dr. Lechleiter nonqualifi ed savings
deferred compensation
total
$55,445
$372,520
$427,965
$55,445
—
$55,445
$42,801
$154,615
$197,416 0
$866,467
$2,917,168
$3,783,635
Dr. Paul nonqualifi ed savings
deferred compensation
total
—
—
0
—
—
0
$38,821
—
$38,821 0
$689,318
—
$689,318
Mr. Armitage nonqualifi ed savings
deferred compensation
total
$31,000
$690,703
$721,703
$31,000
—
$31,000
$18,646
$123,219
$141,865 0
$370,254
$2,397,663
$2,767,917
Mr. Rice nonqualifi ed savings
deferred compensation
total
$31,355
—
$31,355
$31,355
—
$31,355
$7,670
—
$7,670 0
$185,495
—
$185,495
1 The amounts in this column are also included in the Summary Compensation Table on page 91, in the “Salary” col-
umn (nonqualifi ed savings) or the “Non-Equity Incentive Plan Compensation” column (deferred compensation).
2 The amounts in this column are also included in the Summary Compensation Table on page 91, in the “All Other
Compensation” column as a portion of the savings plan match.
3 Of the totals in this column, the following amounts have previously been reported in the Summary Compensation
Table for this year and for previous years:
Name 2007 ($) Previous Years ($) Total ($)
Mr. Taurel $179,090 $3,341,875 $3,520,965
Dr. Lechleiter $483,410 $2,182,887 $2,666,297
Dr. Paul 0$218,711$218,711
Mr. Armitage $752,703 $1,867,372 $2,620,075
Mr. Rice $62,710 $47,400 $110,110
The Nonqualifi ed Deferred Compensation in 2007 table above shows information about two company pro-
grams: a nonqualifi ed savings plan and a deferred compensation plan. The nonqualifi ed savings plan is designed
to allow each executive to contribute up to 6 percent of his or her base salary, and receive a company match,
beyond the contribution limits prescribed by the IRS with regard to 401(k) plans. This plan is administered in the
same manner as the company 401(k) Plan, with the same participation and investment elections, and all employ-