Form 4: Eli Lilly Director Acquires Shares Through Deferral Plan

Mary Lynne Hedley, a director at Eli Lilly, acquired 11 shares of common stock through a deferral plan.

Summary

• Mary Lynne Hedley, a director at Eli Lilly & Co, acquired 11 shares of common stock on October 21, 2024, at a price of $906.13 per share.
• These shares were acquired as part of the Lilly Directors' Deferral Plan, in lieu of cash compensation.
• The shares will be settled in common stock after Ms. Hedley's separation from service.
• Ms. Hedley also has indirect ownership of 98 shares through a trust, but disclaims beneficial ownership except for her pecuniary interest.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed positively as it aligns director interests with shareholders. There are no negative implications.

Positives

• The acquisition of shares by a director demonstrates confidence in the company's future.
• The use of a deferral plan aligns director compensation with long-term company performance.

Future Outlook

The acquired shares will be settled in common stock following the reporting person's separation from service.

Industry Context

This is a routine filing related to director compensation and is common practice for publicly traded companies.

Comparison to Industry Standards

• Director share acquisitions through deferral plans are a common practice among publicly listed companies, including pharmaceutical companies like Pfizer and Merck.
• These plans are designed to align the interests of directors with those of shareholders by tying compensation to long-term stock performance.
• The specific terms of deferral plans can vary, but the general principle of deferred stock compensation is widely used.

Stakeholder Impact

• The share acquisition has a minor positive impact on shareholders as it demonstrates director confidence in the company.

Key Dates

Keywords

Eli Lilly, Director, Share Acquisition, Deferral Plan, Stock Units, Common Stock, Beneficial Ownership, Lilly Directors' Deferral Plan