Eli Lilly’s chief executive Sidney Taurel stands to receive up to $10.9 million dollars for services rendered next year, after the company’s board approved a compensation package for 2006.
The package includes a salary of around $1.65 million, a bonus of $2.06 million (which could range from zero to $4.12 million depending on the performance of Lilly during the year) and stock options and a ‘performance award’, each worth $3.6 million, according to a filing with the Securities and Exchange Commission.
Chief operating officer John Lechleiter will draw a salary of $1.11 million, a potential bonus of the same value, and stock options and a performance award of $2.34 million apiece.
Fourth-quarter charge
Lilly also informed said in the SEC filing that said it expects to record a pretax charge of $170 million to $190 million in the fourth quarter, reducing earnings by 13 to 15 cents a share.
The charge is related to the write-down of certain impaired assets, including manufacturing facilities and equipment, and obsolete R&D equipment.
