Form 4: Eli Lilly Director Acquires Shares Through Deferred Compensation Plan

Eli Lilly & Co. Director Mary Lynne Hedley acquired 12.279 shares of common stock on June 16, 2025, as part of a deferred compensation plan, increasing her direct beneficial ownership.

Summary

• Mary Lynne Hedley, a Director at Eli Lilly & Co. (LLY), acquired 12.279 shares of common stock on June 16, 2025.
• The shares were acquired at a price of $807.58 per share.
• This acquisition was made pursuant to the Lilly Directors' Deferral Plan, where the shares were deferred in lieu of cash compensation as stock units.
• These stock units will be settled in shares of common stock following Ms. Hedley's separation from service.
• Following this transaction, Ms. Hedley directly beneficially owns 1,959.563 shares of Eli Lilly & Co. common stock.
• Additionally, 98 shares are indirectly owned by a Trust, for which the reporting person disclaims beneficial ownership except to the extent of pecuniary interest.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive as a director is increasing their stake in the company, albeit through a compensation plan rather than an open market purchase. It indicates continued alignment of interests.

Positives

• A director increasing their beneficial ownership, even through a compensation plan, can signal confidence in the company's future prospects.
• The transaction is part of a structured compensation plan, indicating stable corporate governance practices regarding director remuneration.

Management Comments

• The shares acquired pursuant to this filing have been deferred in lieu of cash compensation as stock units under the Lilly Directors' Deferral Plan and will be settled in shares of common stock following the reporting person's separation from service.

Corporate Governance

Related Party Transactions

• The acquisition of shares by a director through the Lilly Directors' Deferral Plan can be considered a related party transaction, as it involves compensation from the company to a member of its board.

Stakeholder Impact

• Shareholders: The transaction increases a director's direct equity stake, potentially aligning their interests more closely with long-term shareholder value.

Next Steps

• Settlement of the acquired stock units into shares of common stock following Mary Lynne Hedley's separation from service.

Key Dates

Keywords

Eli Lilly, LLY, Form 4, Insider Transaction, Director Compensation, Stock Acquisition, Beneficial Ownership