In a Feb. 6 story about 2007 compensation given to Eli Lilly & Co.'s former chief executive, Sidney Taurel, The Associated Press gave an incorrect figure for his equity grants as of Dec. 31. The AP's executive pay formula values equity grants on the day they were granted, and under that criteria, Taurel's equity grants were worth $6.1 million, not $5.3 million. The story also erroneously reported his 2006 total compensation, which was $11.8 million, not $9.6 million.
A corrected version follows.
INDIANAPOLIS (AP) — Eli Lilly and Co.'s chairman and chief executive officer, Sidney Taurel, who has announced that he's stepping down in March, received total compensation valued at $12.1 million in 2007, a 3 percent increase from 2006, according to regulatory filings.
The drug maker gave Taurel a $1.72 million salary last year. His pay package also included $4.04 million in non-equity incentive plan compensation and $215,044 in miscellaneous compensation, which included $107,105 for use of the corporate jet, according to a preliminary proxy statement filed Wednesday with the Security and Exchange Commission.
In addition, he was awarded equity grants worth $6.1 million on the day they were granted.
The company said it based Taurel's 2007 compensation on Lilly's 2006 performance. It noted that Lilly exceeded earnings targets that year, strengthened diversity programs and "enhanced its brand image and reputation."
Lilly spokesman Phil Belt said the company aims "to be competitive in the upper half of compensation packages among peer companies."
In 2007, Lilly earned $2.95 billion, or $2.71 a share, up from $2.66 billion, or $2.45 a share, in 2006.
In 2006, Taurel received total compensation valued at $11.8 million, according to the company proxy.
The Associated Press total pay calculations include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals that companies release.
Taurel announced in December that he plans to step down as CEO on March 31.
His replacement, President and Chief Operating Officer John Lechleiter, received compensation valued at $7.3 million last year. It included $1.15 million in salary, $2.16 million in non-equity incentive pay and $70,761 in perquisites. He also was awarded $3.9 million in restricted stock.
Taurel will remain as chairman for the rest of 2008. After he leaves the CEO post, his salary will be cut to $864,250 and he'll be eligible for a cash bonus of more than $1 million, the company said. Starting in 2009, the 35-year company veteran can start collecting a pension valued at more than $30 million.
Source: AP Features
