Summary of 2005 Compensation for Named Executive Officers
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EX-10.12 3 c92539exv10w12.htm SUMMARY OF 2005 COMPENSATION FOR NAMED EXECUTIVE OFFICERS exv10w12
Exhibit 10.12 Summary of 2005 Compensation for Named Executive Officers
At its meeting on December 20, 2004, the Compensation Committee of the Board of Directors of Eli Lilly and Company approved the 2005 compensation of the company’s named executive officers (as defined in Regulation S-K Item 402(a)(3)) as described below:
| Executive Officer | Salary (1) | Bonus (2) | Option Grant | (3) | Performance | Award (4) | ||||||||||
| No. of shares | Present | No. of shares | Present | |||||||||||||
| value | value | |||||||||||||||
Sidney Taurel Chairman, President, and Chief Executive Officer | $ | 1,580,000 | $ | 1,726,800 | 255,621 | $ | 4,320,000 | 51,752 | $ | 2,880,000 | ||||||
John C. Lechleiter, Ph.D. Executive Vice President, Pharmaceutical Operations | $ | 929,800 | $ | 692,875 | 127,811 | $ | 2,160,000 | 25,876 | $ | 1,440,000 | ||||||
Charles E. Golden Executive Vice President and Chief Financial Officer | $ | 845,700 | $ | 631,200 | 78,107 | $ | 1,320,000 | 15,813 | $ | 880,000 | ||||||
Steven M. Paul, M.D. Executive Vice President, Science and Technology | $ | 831,060 | $ | 617,415 | 85,207 | $ | 1,440,000 | 17,251 | $ | 960,000 | ||||||
Robert A. Armitage Senior Vice President and General Counsel | $ | 637,940 | $ | 411,370 | 53,254 | $ | 900,000 | 10,782 | $ | 600,000 |
| (1) | Annualized base salaries effective as of March 1, 2005, the merit increase date for U.S. employees. | |||
| (2) | Target bonus under the Eli Lilly and Company Bonus Plan. Actual bonuses earned for 2005 may vary from zero to 200 percent of the target amount, depending on the company’s 2005 results relative to predetermined corporate performance measures that are based 25 percent on sales growth and 75 percent on earnings-per-share growth (adjusted for unusual items in accordance with predetermined criteria). | |||
| (3) | Granted February 11, 2005. The options vest February 11, 2008 and expire February 10, 2015. The exercise price is $55.65, the market value of Lilly stock on the date of grant. Present values are as of the grant date and are based on the company’s trinomial lattice valuation method of 30.37 percent of the exercise price of $55.65. | |||
| (4) | Target payout under the performance award program for 2005. Actual payouts earned for 2005 may vary from zero to 200 percent of the target amount, depending on the growth in the company’s 2005 earnings per share (adjusted for unusual items in accordance with predetermined criteria). Present values are as of February 11, 2005, and are based on 100 percent of the market value of Lilly stock on that date ($55.65 per share). | |||
The named executive officers will continue to participate in other employee benefits as described in the company’s proxy statements, including a defined benefit retirement plan, a 401(k) plan, the Lilly Deferred Compensation Plan, and the company’s change in control severance pay program.
