Bonuses drive up compensation for Lilly's top brass

March 25, 2013

Eli Lilly and Co. granted larger bonuses to its top five executives early this year, which boosted their 2012 compensation anywhere from 3 percent to 8 percent.

John Lechleiter, CEO of the Indianapolis-based drugmaker, saw his overall compensation slip 10.7 percent because the calculated value of his pension fell. But excluding that on-paper reduction, actual compensation Lechleiter received for 2012 rose 3.6 percent, to $10.2 million.

His salary and stock award were unchanged from 2011, but his bonus rose 13.6 percent, to nearly $3 million.

The same trend held true for two other top executives. Enrique Conterno, the head of Lilly’s diabetes division, and Bob Armitage, Lilly’s general counsel, saw no change in salary or stock awards last year, but did see double-digit-percentage bumps in bonuses.

Conterno’s overall pay, excluding a change in his pension value, rose 3.2 percent, to $2.9 million. Armitage’s overall pay, excluding the pension adjustment, increased 5.4 percent, to $3.3 million.

Chief Financial Officer Derica Rice received a modest increase in salary and a larger bonus. His overall compensation, excluding a pension adjustment, rose 3.3 percent, to $5.2 million.

Jan Lundberg, the president of Lilly Research Laboratories, enjoyed increases in his salary, stock award and bonus, which boosted his overall pay 8.3 percent, to $4.5 million, excluding a pension adjustment.

Lilly’s stock performed well in 2012, rising 18.6 percent.


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