Eli Lilly 2015 Annual Report Download - page 132

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Deferred Compensation Account. Funds in this account earn interest each year at a rate of 120 percent of
the applicable federal long-term rate, compounded monthly, as established the preceding December by the
U.S. Treasury Department under Section 1274(d) of the Internal Revenue Code of 1986, as amended (the
Internal Revenue Code). The aggregate amount of interest that accrued in 2015 for the participating directors
was $171,916, at a rate of 3.2 percent. The rate for 2016 is 3.1 percent.
Both accounts may be paid in a lump sum or in annual installments for up to 10 years, beginning the second
January following the director’s departure from board service. Amounts in the deferred stock account are paid
in shares of company stock.
2015 Compensation for Nonemployee Directors
Name1Fees Earned or Paid in Cash ($) Stock Awards ($)2
All Other
Compensation
and Payments ($)3Total ($)4
Mr. Alvarez $119,000 $145,000 $0 $264,000
Dr. Baicker $119,000 $145,000 $0 $264,000
Mr. Eskew $140,000 $145,000 $10,000 $295,000
Mr. Fyrwald $125,000 $145,000 $12,500 $282,500
Mr. Hoover $128,000 $145,000 $30,000 $303,000
Ms. Horn $128,000 $145,000 $3,050 $276,050
Dr. Kaelin $134,000 $145,000 $0 $279,000
Ms. Marram $158,000 $145,000 $22,000 $325,000
Mr. Douglas Oberhelman5$49,583 $60,417 $30,000 $140,000
Dr. Prendergast $119,000 $145,000 $0 $264,000
Dr. Runge $129,500 $145,000 $0 $274,500
Ms. Seifert $119,000 $145,000 $7,050 $271,050
Mr. Tai $129,500 $145,000 $30,000 $304,500
1Mr. Luciano is not included in this chart as he became a board member effective February 2016.
2 Each nonemployee director received an award of stock valued at $145,000 (approximately 1,785 shares),
except Mr. Oberhelman, who retired from the board in May 2015 and received a pro-rated award for a partial
year of service. This stock award and all prior stock awards are fully vested; however, the shares are not
issued until the director ends his or her service on the Board, as described above under “Lilly Directors’
Deferral Plan.” The column shows the grant date fair value for each director’s stock award. Aggregate
outstanding stock awards are shown in the “Common Stock Ownership by Directors and Executive Officers”
table in the “Stock Units Not Distributable Within 60 Days” column.
3 This column consists of amounts donated by the Eli Lilly and Company Foundation, Inc. ("Foundation")
under its matching gift program, which is generally available to U.S. employees as well as the non-employee
directors. Under this program, the Foundation matched 100 percent of charitable donations over $25 made
to eligible charities, up to a maximum of $30,000 per year for each individual. The Foundation matched
these donations via payments made directly to the recipient charity. The amount for Ms. Horn includes
matching contributions for donations made at the end of 2014 ($1,700), for which the matching contribution
was not paid until 2015.
4 Directors do not participate in a company pension plan or non-equity incentive plan.
5 Mr. Olberhelman's term expired in May 2015, and he chose not to seek reelection.
2016 Director Compensation
In 2016, nonemployee directors will receive $160,000 in stock compensation. This is the first increase to
nonemployee directors' stock compensation in over ten years. All other elements of director compensation
remain the same as in 2015.