Summary
Eli Lilly and Company (LLY) filed an 8-K on May 6, 2013, reporting the results of its Annual Meeting of Shareholders held on the same date. The primary purpose of this filing was to provide transparency on key shareholder votes. Notably, all five director nominees were overwhelmingly elected to serve three-year terms. The appointment of Ernst & Young as the principal independent auditor was also ratified with substantial shareholder approval. Further, shareholders provided an advisory vote on executive compensation, which passed, indicating general support for the company's compensation practices. The material terms of the performance goals for the 2002 Lilly Stock Plan were also reapproved by shareholders. These votes demonstrate continued shareholder confidence in the company's leadership and governance structures as of May 2013.
Key Highlights
- 1All five director nominees, including Ralph Alvarez, Sir Winfried Bischoff, R. David Hoover, Franklyn G. Prendergast, M.D. Ph.D., and Kathi P. Seifert, were elected to serve three-year terms ending in 2016.
- 2The appointment of Ernst & Young as Eli Lilly's principal independent auditor was ratified by a significant majority of shareholders.
- 3Shareholders approved, on an advisory basis, the compensation paid to the company's named executive officers.
- 4The material terms of the performance goals for the 2002 Lilly Stock Plan were reapproved by shareholders.
- 5The voting results show a high level of support for the company's proposed director slate and governance matters.
- 6A total of 1,129,678,645 shares of common stock were issued and outstanding as of the record date for the meeting.