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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowA larger stock award boosted cash and stock payments to Eli Lilly and Co. CEO John Lechleiter in 2013, but overall compensation fell for the top executives of the Indianapolis-based drugmaker.
Lechleiter was paid $11.2 million in salary, bonus, stock and perks, according to Lilly’s proxy statement filed Monday morning. That represented a 10-percent increase over his take of cash and stock in 2012.
Lechleiter's salary remained the same at $1.5 million and his incentive bonus dipped slightly, from $3 million in 2012 to $2.9 million last year. But Lilly gave Lechleiter a 2013 stock award valued at $6.75 million, compared with a 2012 stock award valued at $5.63 million.
A rise in the value of Lechleiter’s pension boosted his 2012 total compensation more than $4.4 million, but his pension value remained flat in 2013 because Lilly raised the discount rate it used to calculate the present value of its pension liabilities. As a result, when pension values are included, Lechleiter’s total compensation actually fell 23 percent from the previous year.
Smaller increases in pension values also depressed the overall compensation of three other top executives at Lilly, ranging from as little as 1.5 percent for Jan Lundberg, president of Lilly Research Laboratories, to as much as 25 percent for Derica Rice, Lilly’s chief financial officer.
When those actuarial fluctuations are excluded, compensation for those other executives remained flat from 2012 to 2013.
Rice received cash, stock and perks valued at $5.18 million last year, compared with a value of $5.16 million the previous year.
Lundberg pulled in $4.55 million last year, compared with $4.54 million the previous year.
Enrique Conterno, president of Lilly’s diabetes business unit, took home $2.92 million last year in cash, stock and perks—the same amount as the year before. Including changes in his pension value for both years, Conterno’s total compensation fell 23 percent.
Lilly’s stock price had a modest performance in 2013. Lilly shares rose 3.4 percent during 2013, closing the year at $51 per share. So far in 2014, Lilly shares have risen 13.3 percent, closing Friday at $57.78 apiece.
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