Eli Lilly 2013 Annual Report Download - page 131

Download and view the complete annual report

Please find page 131 of the 2013 Eli Lilly annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

33
The number of shares paid to NEOs during 2013 for the 2011-2013 SVA were as follows:
Name Target Shares Shares Paid Out
Dr. Lechleiter 149,522 209,331
Mr. Rice 75,758 106,061
Dr. Lundberg 54,825 76,755
Mr. Harrington 7,596 10,634
Mr. Conterno 39,872 55,821
Mr. Harrington's shares reflect amounts granted to him in 2011 before he became an executive officer.
•
•
•
Other Compensation Practices and Information
•
•
•
Stock Options
The company stopped granting stock options after 2006. The stock options granted in 2003 expired in 2013 with
no value. These awards (and other expired stock options) were not replaced.
•
•
•
Employee Benefits
The company offers core employee benefits coverage to:
• provide our workforce with a reasonable level of financial support in the event of illness or injury,
• provide post-retirement income; and
• enhance productivity and job satisfaction through benefit programs that focus on overall well-being.
The benefits available are the same for all U.S. employees and include medical and dental coverage, disability
insurance, and life insurance. In addition, The Lilly Employee 401(k) plan (the 401(k) plan) and The Lilly
Retirement Plan (the retirement plan) provide U.S. employees a reasonable level of retirement income reflecting
employees’ careers with the company. To the extent that any employee’s retirement benefit exceeds IRS limits
for amounts that can be paid through a qualified plan, the company also offers a nonqualified pension plan and a
nonqualified savings plan. These plans provide only the difference between the calculated benefits and the IRS
limits, and the formula is the same for all U.S. employees. The cost of employee benefits is partially borne by the
employee, including each executive officer.
•
•
•
Perquisites
The company provides very limited perquisites to executive officers. The company does not allow personal use
of the corporate aircraft except the aircraft is made available for the personal use of Dr. Lechleiter in very rare
cases when the security and efficiency benefits to the company outweigh the expense. Dr. Lechleiter did not use
the corporate aircraft for personal flights during 2013, nor did he receive any other perquisites. Depending on
seat availability, family members and personal guests of executive officers may travel on the company aircraft to
accompany executives who are traveling on business. There is no incremental cost to the company for these
trips.
The Lilly Deferred Compensation Plan
Executive officers may defer receipt of part or all of their cash compensation under The Lilly Deferred
Compensation Plan (the deferred compensation plan), which allows executives to save for retirement in a tax-
effective way at minimal cost to the company. Under this unfunded plan, amounts deferred by the executive are
credited at an interest rate of 120 percent of the applicable federal long-term rate, as described in more detail
following the “Nonqualified Deferred Compensation in 2013” table.
Severance Benefits
Except in the case of a change in control of the company, the company is not obligated to pay severance to