Eli Lilly 2015 Annual Report Download - page 150
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P34
Name 2014 Annual Base Salary 2015 Annual Base Salary Increase (effective March 1, 2015)
Dr. Lechleiter $1,500,000 $1,500,000 —
Mr. Rice $1,019,700 $1,050,300 3%
Dr. Lundberg $1,007,855 $1,007,855 —
Mr. Harrington $765,000 $788,000 3%
Mr. Conterno $682,890 $710,205 4%
Annual Bonus Targets
Based on a review of internal relativity, peer data, and individual performance, the committee decided to
maintain the same 2014 bonus targets for all NEOs in 2015, except Dr. Lechleiter. Based on the rationale
described above, Dr. Lechleiter's target was increased. Bonus targets are shown in the table below as a
percentage of base salary:
Name 2014 Bonus Target 2015 Bonus Target
Dr. Lechleiter 140% 150%
Mr. Rice 90% 90%
Dr. Lundberg 90% 90%
Mr. Harrington 75% 75%
Mr. Conterno 75% 75%
Total Equity Program - Target Grant Values
For 2015 equity grants, the committee set the total target values for NEOs based on internal relativity,
individual performance, and peer-group data. The committee determined that for all NEOs a 50/50 split
between PAs and SVAs would continue to appropriately balance company financial performance with
shareholder return. Total target values for the 2014 and 2015 equity grants to the NEOs were as follows:
Name 2014 Total Equity 2015 Total Equity
Dr. Lechleiter $9,000,000 $10,000,000
Mr. Rice $3,800,000 $3,800,000
Dr. Lundberg $3,000,000 $3,400,000
Mr. Harrington $1,900,000 $2,300,000
Mr. Conterno $2,000,000 $2,000,000
Performance Goals for 2015 Incentive Programs
2015 Annual Bonus Goals
The Compensation Committee established the company performance targets for 2015 at the targets specified
in the company's 2015 corporate operating plan approved by the Board of Directors in 2014.
Performance Awards – 2015-2016 PA
In January 2015, the committee established an EPS growth target based on investment analysts’ peer group
estimates at that time. However, the first two months of 2015 saw an extraordinarily rapid and steep decline in
the value of several currencies against the U.S. dollar, significantly driving down the median of analysts'
growth expectations for our peer group. As a result, in March 2015, less than 90 days into the two-year
performance period, the committee reset the target at one percent compounded annually to reflect revised
investment analysts' estimates for the peer group.
Possible payouts for the 2015-2016 PA range from 0 to 150 percent of the target, as illustrated in the chart
below: