Eli Lilly 2015 Annual Report Download - page 121

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P5
• Our executives are subject to robust stock ownership guidelines and are prohibited from hedging or
pledging their company stock.
• We do not have "top hat" retirement plans - supplemental plans are open to all employees and are
limited to restoring benefits lost due to IRS limits on qualified plans.
• We do not provide tax gross-ups to executive officers (except for limited gross-ups related to
international assignments).
• We have a very restrictive policy on perquisites.
• Our severance plans related to change-in-control generally require a double trigger.
• We do not have employment agreements with any of our executive officers.
Executive Compensation Summary for 2015
At the time the total target compensation was established at the end of 2014, compensation for our named
executive officers (the five officers whose compensation is disclosed in this proxy statement) was in the
middle range of the company's peer group. Incentive compensation program payouts were increased,
consistent with the company's strong performance in 2015, as outlined below under "Pay for Performance."
Pay for Performance
As described more fully in the Compensation Disclosures and Analysis (CD&A) section, we link our incentive
pay programs to a balanced mix of measures on three dimensions of company performance: (1) operating
performance; (2) progress with our innovation pipeline; and (3) shareholder returns.
The summary information below highlights how our incentive pay programs align with company performance.
Please see the CD&A for details of how our three incentive pay programs work and how the payouts for 2015
were calculated. Please also see Appendix A for adjustments that were made to revenue and earnings per
share (EPS) for incentive compensation programs.
2015 Annual Bonus Multiple
The company exceeded its annual bonus targets for revenue, EPS, and pipeline progress.
*Performance goal multiples are capped at 2.0.
2015 Performance Multiples Resulting Bonus Multiple
2.0
1.5
1.0
0.5
0.0
Multiple
Revenue EPS Pipeline Score
1.06
2.00
1.37
2.0
1.5
1.0
0.5
0.0
Multiple
Target Actual
1.00
1.61