Eli Lilly 2011 Annual Report Download - page 128

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PROXY STATEMENT
Looking Ahead to 2012 Compensation
Several changes to the company’s executive compensation program will take effect in 2012:
• In light of the business challenges the company faces, Dr. Lechleiter requested that he receive no increase in
base salary or incentive targets in 2012. The committee agreed to maintain his 2011 compensation package for
2012.
• Similarly, employees in most countries worldwide, including the named executive officers, will not receive base
pay increases in 2012.
• Amendments to the change-in-control severance pay plans to eliminate tax gross-ups are effective
October 2012.
• All members of senior management (approximately 150 employees) are subject to share ownership require-
ments, correlated to their level of responsibility.
Compensation Committee Report
The compensation committee (“we” or “the committee”) evaluates and establishes compensation for executive offi-
cers and oversees the deferred compensation plan, the company’s management stock plans, and other management
incentive, benefit, and perquisite programs. Management has the primary responsibility for the company’s financial
statements and reporting process, including the disclosure of executive compensation. With this in mind, we have
reviewed and discussed with management the “Compensation Discussion and Analysis” above. The committee is
satisfied that the “Compensation Discussion and Analysis” fairly and completely represents the philosophy, intent,
and actions of the committee with regard to executive compensation. We recommended to the board of directors that
the “Compensation Discussion and Analysis” be included in this proxy statement for filing with the SEC.
Compensation Committee
Karen N. Horn, Ph.D., Chair
Michael L. Eskew
R. David Hoover
Ellen R. Marram
Kathi P. Seifert
38