Form 4: Eli Lilly Director Acquires Shares Through Deferral Plan

Eli Lilly director Ralph Alvarez acquired 13 shares of common stock through a deferral plan, with settlement occurring after his separation from service.

Summary

• Ralph Alvarez, a director at Eli Lilly & Co, acquired 13 shares of common stock on August 19, 2024.
• The shares were acquired at a price of $921.81 per share.
• These shares were obtained through the Lilly Directors' Deferral Plan, in lieu of cash compensation.
• The shares will be settled in common stock after Mr. Alvarez's separation from service.
• Following this transaction, Mr. Alvarez beneficially owns 54,163 shares of Eli Lilly common stock.

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 company performance. 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 transaction 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 large publicly traded companies, such as those in the pharmaceutical sector like Pfizer (PFE) and Johnson & Johnson (JNJ).
• These plans are designed to align the interests of directors with the long-term performance of the company, similar to practices seen at other major corporations.
• The deferral of shares until separation from service is also a standard practice to ensure continued commitment from directors.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it demonstrates director confidence in the company.
• The deferral plan aligns director compensation with long-term company performance, which is beneficial for all stakeholders.

Key Dates

Keywords

Eli Lilly, Director, Share Acquisition, Deferral Plan, Stock Units, LLY, Beneficial Ownership