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 at a price of $885.01 per share.

Summary

• Ralph Alvarez, a director at Eli Lilly & Co, acquired 13 shares of common stock on June 17, 2024.
• The shares were acquired at a price of $885.01 per share.
• The acquisition was made through the Lilly Directors' Deferral Plan, where shares are deferred in lieu of cash compensation.
• The shares will be settled in common stock following Mr. Alvarez's separation from service.
• Following the transaction, Mr. Alvarez beneficially owns 54,138 shares of Eli Lilly common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction, which is generally neutral to positive. The director's participation in the deferral plan suggests confidence in the company's future.

Positives

• The acquisition of shares by a director can be seen as a positive sign of confidence in the company's future.

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 insider transactions, which are common in publicly traded companies. It reflects a director's participation in a company's compensation plan.

Comparison to Industry Standards

• Director share acquisitions through deferral plans are a common practice among publicly traded companies, particularly in the pharmaceutical industry.
• These plans are often used to align the interests of directors with those of shareholders by tying compensation to the company's long-term performance.
• The price of $885.01 per share is consistent with the market price of Eli Lilly stock at the time of the transaction.
• Other pharmaceutical companies such as Pfizer and Johnson & Johnson also have similar director compensation plans.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it indicates a director's confidence in the company.

Key Dates

Keywords

Eli Lilly, Director, Share Acquisition, Deferral Plan, Stock Units, Insider Trading, Form 4