Eli Lilly 2015 Annual Report Download - page 144

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P28
28
Board Recommendation on Item 2
The Board recommends that you vote FOR the approval, on an advisory basis, of the compensation
paid to the named executive officers, as disclosed pursuant to Item 402 of Regulation S-K, including
the CD&A, the compensation tables, and related narratives provided below in this proxy statement.
Compensation Discussion and Analysis
This CD&A describes our executive compensation philosophy, the Compensation Committee's process for
setting executive compensation, the elements of our compensation program, the factors the committee
considered when setting executive compensation in 2015, and how the company's results affected incentive
payouts for 2015.
Say on Pay Results for 2015
At last year's annual meeting, more than 98 percent of the shares cast voted in favor of the company's Say on
Pay proposal on executive compensation. Management and the Compensation Committee view this vote as
supportive of the company's overall approach toward executive compensation.
Our Philosophy on Compensation
At Lilly, our mission is to make medicines that help people live longer, healthier, more active lives. In order to
accomplish our mission, we must attract, engage, and retain highly-talented individuals who are committed to
the company's core values of integrity, excellence, and respect for people. Our compensation programs are
designed to help us achieve these goals while balancing the long-term interests of our customers and
shareholders.
Objectives
Our compensation and benefits programs are based on the following objectives:
• Reflect both individual and company performance. We reinforce a high-performance culture by
linking pay with individual performance and company performance. As employees assume greater
responsibilities, the proportion of total compensation based on company performance and
shareholder returns increases. We perform an annual review to ensure the programs provide
incentive to deliver long-term, sustainable business results while discouraging excessive risk-taking
or other adverse behaviors.
• Attract and retain talented employees. Compensation opportunities should be competitive with our
peer group and reflect the level of job impact and responsibilities. Retention of talent is an important
factor in the design of our compensation and benefit programs.
• Implement broad-based programs. While the amount of compensation paid to employees varies,
the overall structure of our compensation and benefit programs is broadly similar across the
organization to encourage and reward all employees who contribute to our success.
• Consider shareholder input. Management and the Compensation Committee consider the results of
our annual Say on Pay vote and other sources of shareholder feedback when designing
compensation and benefit programs.