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Filed by the Registrant ☒
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Filed by a Party other than the Registrant ☐
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☐
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Preliminary Proxy Statement
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☐
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
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☒
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Definitive Proxy Statement
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☐
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Definitive Additional Materials
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☐
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Soliciting Material Pursuant to §240.14a-12
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Payment of Filing Fee (Check all boxes that apply):
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☒
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No fee required.
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☐
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Fee paid previously with preliminary materials.
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☐
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Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a6(i)(1) and 0-11.
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Letter from
our Leadership
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Jeff Simmons
President and Chief Executive Officer
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Lawrence Kurzius
Board Chairman
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Notice of the Annual Meeting
of Shareholders to be Held on May 16, 2025 |
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ELANCO
ANIMAL HEALTH
INCORPORATED
2500 Innovation Way
Greenfield, Indiana 46140
|
The 2025 Annual Meeting of Shareholders of
ELANCO ANIMAL HEALTH INCORPORATED
, an Indiana corporation, will be a virtual meeting of shareholders, conducted via live audio webcast at www.virtualshareholdermeeting.com/ELAN2025 on Friday, May 16, 2025, at 8:00 a.m., Eastern Time, to consider and act upon the following matters:
Voting Matters:
|
||||||||||
| Item of Business | |||||||||||
Date Time
8:00 a.m., Eastern Time,
Friday, May 16, 2025
Location
Audio webcast at: virtualshareholdermeeting.com/ELAN2025
Record Date
Close of business on March 19, 2025
|
1 |
Election of two director nominees to serve one-year terms.
|
|||||||||
| 2 |
Ratification of the appointment of Ernst Young LLP as Elanco’s independent registered public accounting firm for 2025.
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||||||||||
| 3 | Advisory vote on the compensation of Elanco’s named executive officers. | ||||||||||
| 4 |
Advisory vote on the frequency with which shareholders vote on the compensation of Elanco's named executive officers.
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In addition, we will transact such other business as may properly come before the meeting.
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This Notice and the accompanying Proxy Statement, or a Notice of Internet Availability of Proxy Materials, are expected to be mailed to shareholders commencing March 27, 2025.
By Order of the Board of Directors,
Shiv O'Neill
Executive Vice President, General Counsel and Corporate Secretary
March 27, 2025
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|||||||||||
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Table of Contents
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|||||
| Page | Page | |||||||||||||
| Proxy Statement Summary | Executive Officers | |||||||||||||
| About Elanco |
Proposal No. 2: Ratification of Appointment of
Independent Auditor
|
|||||||||||||
| Proposal No. 1: Election of Directors | ||||||||||||||
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Director Skills
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Audit Committee Report | |||||||||||||
| Board Membership Criteria | Compensation Discussion and Analysis | |||||||||||||
| Our Director Nominees and Continuing Directors | Compensation and Human Capital Committee Report | |||||||||||||
| Corporate Governance | Executive Compensation Tables | |||||||||||||
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Recent Corporate Governance Enhancements; Board Additions
|
Pay Versus Performance | |||||||||||||
|
Proposal No. 3: Advisory Vote to Approve
Executive Compensation |
||||||||||||||
| Board Leadership Structure | ||||||||||||||
| Board Oversight |
Proposal No. 4: Advisory Vote on the Frequency with which Shareholders Vote on Executive Compensation
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|||||||||||||
| Board and Committee Information | ||||||||||||||
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Shareholder Engagement
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Stock Ownership Information | |||||||||||||
| Director Independence | Equity Compensation Plan Information | |||||||||||||
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Related Person Transactions
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General Information About the Annual Meeting | |||||||||||||
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Insider Trading Policy
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Submission of Shareholder Proposals or Nominations | |||||||||||||
| Business Ethics, Compliance and Privacy | Other Information | |||||||||||||
| Code of Conduct |
Appendices
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| Other Information |
Appendix A - Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information
|
A-
1
|
||||||||||||
| Non-Employee Director Compensation | ||||||||||||||
|
Proxy Statement
Summary
|
||||||||
|
WAYS TO VOTE
Online Prior to the Annual Meeting
You may vote by proxy by visiting www.proxyvote.com and entering the control number found on your Notice of Internet Availability.
Online During the Annual Meeting
You may vote online during the Annual Meeting by visiting www.virtualshareholder meeting.com/ELAN2025
Telephone
If you request printed copies of the proxy materials by mail, you will receive a proxy card or voting instruction form and you may vote by proxy by calling the toll-free number found on the card or form.
Mail
If you request printed copies of the proxy materials by mail, you will receive a proxy card or voting instruction form.
|
This summary highlights information contained in this Proxy Statement. This summary does not contain all of the information that you should consider and you should carefully read the entire Proxy Statement before voting.
Voting Matters and Recommendations
|
||||||||||||||||
| Item of Business | Board Recommendation | Page | |||||||||||||||
| 1 |
Election of two director nominees to serve one-year terms.
|
“FOR”
Each Nominee
|
|||||||||||||||
| 2 |
Ratification of the appointment of Ernst Young LLP as Elanco’s independent registered public accounting firm for 2025.
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“FOR” | |||||||||||||||
| 3 | Advisory vote on the compensation of Elanco’s named executive officers. | “FOR” | |||||||||||||||
| 4 |
Advisory vote on the frequency with which shareholders vote on the compensation of Elanco's named executive officers.
|
“1 YEAR”
|
|||||||||||||||
| Elanco Animal Health Incorporated |
1
|
2025 Proxy Statement
|
||||||
|
Proxy Summary
|
||||||||
| Name | Primary Occupation | Age |
Director
Since
|
Independent | ||||||||||
|
CLASS I DIRECTORS — Director Nominees for Terms Expiring in 2026
|
||||||||||||||
|
Kapila Anand
|
Retired Partner, KPMG LLP |
71
|
2018 |
|
||||||||||
| Paul Herendeen |
Former CFO, Bausch Health Companies, Inc.
|
69
|
2020 |
|
||||||||||
| CLASS II DIRECTORS— Terms Expiring in 2026 | ||||||||||||||
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Michael Harrington
|
Former General Counsel, Eli Lilly and Company ("Lilly")
|
62
|
2018 |
|
||||||||||
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R. David Hoover
|
Former Chairman and CEO, Ball Corporation
|
79
|
2018 |
|
||||||||||
|
Deborah Kochevar
|
Senior Fellow, The Fletcher School of Law and Diplomacy and Dean Emerita, Cummings School of Veterinary Medicine, Tufts University
|
68
|
2019 |
|
||||||||||
|
Lawrence Kurzius
|
Former Executive Chairman, McCormick Company, Inc.
|
67
|
2018
|
|
||||||||||
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Kirk McDonald
|
Former CEO, Group M North America
|
58
|
2019 |
|
||||||||||
|
CLASS III DIRECTORS— Terms Expiring in 2027
|
||||||||||||||
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Art Garcia
|
Former CFO, Ryder System, Inc. |
64
|
2019 |
|
||||||||||
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Stacey Ma
|
Executive Vice President, Gilead Sciences, Inc.
|
55
|
2024
|
|
||||||||||
| Denise Scots-Knight |
Co-Founder and CEO, Mereo BioPharma Group plc
|
65
|
2019 |
|
||||||||||
|
Jeffrey Simmons
|
President and CEO, Elanco Animal Health Incorporated
|
57
|
2018 | |||||||||||
| Elanco Animal Health Incorporated |
2
|
2025 Proxy Statement
|
||||||
|
Proxy Summary
|
||||||||
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Independent
Oversight
|
|||||||||||
|
•
All directors, including our Board Chairman, are independent, except for our Chief Executive Officer
•
Four Board committees – Audit; Compensation and Human Capital; Corporate Governance; and Innovation, Science and Technology – are composed entirely of independent directors
•
Independent directors regularly conduct executive sessions at Board meetings (chaired by the independent Board Chairman) and Committee meetings (chaired by the independent committee chairs) without management present
•
The Board and committees conduct active oversight of our strategy and risk management, including environmental, social and governance ("ESG") matters
|
|||||||||||
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Board Refreshment
and Practices
|
|||||||||||
|
•
Eight new independent directors since 2019, including three in 2024
•
Comprehensive, ongoing Board succession planning process
•
Annual Board and committee self-assessments led by the independent Corporate Governance Committee
•
Board policy limiting director membership on other public company boards
•
Continuing director education on key topics and issues
•
Commencement of a process to declassify the Board by 2027
•
Majority vote standard for uncontested elections of directors
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Shareholder
Rights
|
|||||||||||
|
•
3%/3 years proxy access right for shareholders
•
Shareholders can approve amendments to our Articles of Incorporation and Bylaws with a simple majority vote
•
One class of outstanding shares with each share entitled to one vote
•
Shareholders owning a majority of votes entitled to be cast may amend the Bylaws
•
Shareholders owning at least 25% of common stock may request a special meeting of shareholders
|
|||||||||||
|
Governance
Practices
|
|||||||||||
|
•
Code of Conduct applicable to all employees and directors
•
Corporate Governance Guidelines and Financial Code of Ethics
•
Clawback policy applicable to executives
•
Rigorous executive stock ownership requirements
•
Prohibition on hedging or pledging Elanco stock
•
Regular review of succession planning for CEO and other key executives
•
Comprehensive Board oversight of ESG and sustainability and annual reporting aligned with leading global disclosure standards and frameworks
•
Comprehensive shareholder engagement program with independent director participation
|
|||||||||||
| Elanco Animal Health Incorporated |
3
|
2025 Proxy Statement
|
||||||
|
Proxy Summary
|
||||||||
|
CEO Target Pay Mix
|
NEO Average Target Pay
Mix (Excluding CEO)
|
|||||||
|
|
|||||||
| Elanco Animal Health Incorporated |
4
|
2025 Proxy Statement
|
||||||
|
About Elanco
A Global Leader
Going Beyond
for Animals
|
|
||||||||||||||||
|
$
4.439B
REVENUE
|
|||||||||||||||||
|
$
910M
ADJUSTED EBITDA
1
|
|||||||||||||||||
|
$
0.91
ADJUSTED EPS
2
|
|||||||||||||||||
|
Reaching the
World’s Animals
|
|||||||||||||||||
|
5
Core Species
Pet health farm animals: Dogs,
cats, cattle, swine, and poultry
|
200+
Brands
sold for pets
farm animals
|
10
Blockbusters
$100M in
annual revenue
|
|||||||||||||||
|
17
Manufacturing Sites
|
54%
Revenue from outside the U.S.
|
90+
Countries
Served
|
|||||||||||||||
|
~9,450
Employees Worldwide
|
~2,200
Sales Representatives
|
~1,000
RD
Employees
|
|||||||||||||||
|
Diversified Portfolio
of pet health and livestock products
|
|||||||||||||||||
|
1, 2
Non-GAAP financial measure. See Appendix A for more information, including GAAP to non-GAAP reconciliations.
* Facts and figures shown are as of Dec. 31, 2024. Revenue breakdown excludes contract manufacturing/other.
|
|||||||||||||||||
|
Business
Highlights
|
|
|||||||
|
|
|
||||||||||||
|
Launched diverse portfolio of Innovation with one new blockbuster and five potential blockbusters now in market
|
Driving intentional portfolio shift towards high margin Pet Health | Taking decisive actions to strengthen balance sheet and shift investment to areas of higher earnings potential | ||||||||||||
|
Accelerating Topline Growth
3%
organic constant currency
revenue growth in 2024
|
|||||
|
Focus on
Cash Flow
$1.48B
gross debt paydown
in 2024
|
|||||
|
Diverse Portfolio of Innovation
5+1
recently launched blockbuster products
2
(potential + actual) contributing to expected mid-single digit
growth in 2025
|
|||||
| Elanco Animal Health Incorporated |
6
|
2025 Proxy Statement
|
||||||
|
||||||||
|
Delivering on our
Innovation, Portfolio, Productivity Strategy
Elanco's strategy to deliver value for all stakeholders,
rooted in a deep focus on the customer |
|
|||||||
| Elanco Animal Health Incorporated |
7
|
2025 Proxy Statement
|
||||||
|
Proposal No. 1
Election of Directors
|
||||||||
| Elanco Animal Health Incorporated |
8
|
2025 Proxy Statement
|
||||||
|
Proposal No. 1
|
||||||||
|
The Board unanimously recommends a vote
“FOR”
each of Elanco's Class I director nominees.
|
||||||||
| Elanco Animal Health Incorporated |
9
|
2025 Proxy Statement
|
||||||
|
Director
Skills
|
|
|||||||
|
Animal Health/
Health Care Industry
|
Directors with experience in our industry bring important expertise to the Board and guidance to our management.
|
||||||
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Business Leadership
and Operations
|
Serving in senior management of a public or private organization provides a practical understanding of effective business and organizational processes, operations and strategic planning.
|
||||||
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Consumer
Products
|
Directors with experience in consumer product development, sales or marketing provide value perspectives on retail marketing and sales for Elanco’s products.
|
||||||
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Digital, Technology
and Cybersecurity
|
Directors who have experience in digitization, technology or cybersecurity oversight are important as we navigate evolving technology developments that may be relevant to Elanco and our stakeholders while seeking to protect and advance our business processes and assets.
|
||||||
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Finance and
Accounting
|
Directors with experience in corporate finance, financial accounting and reporting and financial strategy provide important oversight of our financial policies.
|
||||||
|
Global Business Experience |
As a global organization, directors with global business and cultural perspectives provide important insights on our current and future international operations.
|
||||||
|
Human Capital Management |
Directors with experience developing or implementing human capital management programs help the Board provide effective oversight of Elanco’s plans for talent attraction, development and retention and our corporate culture.
|
||||||
|
Institutional Investor Perspective |
We value the perspectives of our shareholders on Elanco’s strategy, plans and priorities.
|
||||||
|
Legal, Public Policy
and Regulatory
|
Directors with experience in legal, policy or regulatory matters provide key insights into the public policy environment that may be relevant to Elanco.
|
||||||
|
MA and Business Development |
Directors with experience in business development and mergers and acquisitions, including assessing and analyzing potential transactions, help us develop the company’s strategy, build our business portfolio and integrate effectively.
|
||||||
|
Public Company Board Experience |
Directors who have served on public company boards bring valuable strategic experience and perspectives to analyze and oversee the development and execution of Elanco’s long-term strategy.
|
||||||
|
Research and Development/Innovation |
Experience in research and development and innovation provide valuable experience and perspectives for a crucial aspect of our business and value creation initiatives.
|
||||||
|
Risk Management
and Sustainability
|
Directors with experience in sustainability and other environmental programs and initiatives, as well as risk management, bring valuable insights into how we can develop our corporate responsibility and sustainability strategies.
|
||||||
| Elanco Animal Health Incorporated |
10
|
2025 Proxy Statement
|
||||||
|
Skills
Matrix
|
|
|||||||
|
Skills Experience
Continuing Directors and Director Nominees
|
Kapila Anand | Art Garcia | Michael Harrington | Paul Herendeen | R. David Hoover | Deborah Kochevar | Lawrence Kurzius | Stacey Ma | Kirk McDonald | Denise Scots-Knight | Jeffrey Simmons | |||||||||||||||||||||||||||
|
Animal Health/Health Care Industry | l | l | l | l | l | l | l | ||||||||||||||||||||||||||||||
|
Business Leadership and Operations | l | l | l | l | l | l | l | l | l | ||||||||||||||||||||||||||||
|
Consumer Products | l | l | l | l | l | ||||||||||||||||||||||||||||||||
|
Digital, Technology and Cybersecurity | l | l | l | l | |||||||||||||||||||||||||||||||||
|
Finance and Accounting | l | l | l | l | l | l | l | ||||||||||||||||||||||||||||||
|
Global Business Experience | l | l | l | l | l | l | l | l | l | ||||||||||||||||||||||||||||
|
Human Capital Management | l | l | l | l | l | l | l | l | l | l | |||||||||||||||||||||||||||
|
Institutional Investor Perspective | l | l | l | ||||||||||||||||||||||||||||||||||
|
Legal, Public Policy and Regulatory | l | l | l | l | |||||||||||||||||||||||||||||||||
|
MA and Business Development | l | l | l | l | l | l | l | l | |||||||||||||||||||||||||||||
|
Public Company Board Experience | l | l | l | l | l | l | l | l | l | ||||||||||||||||||||||||||||
|
Research and Development/Innovation | l | l | l | l | |||||||||||||||||||||||||||||||||
|
Risk Management and Sustainability | l | l | l | l | l | l | l | l | |||||||||||||||||||||||||||||
| TENURE/GENDER/AGE | ||||||||||||||||||||||||||||||||||||||
| Years Served |
7
|
6
|
7
|
4
|
7
|
6
|
7
|
1
|
6
|
6
|
7
|
|||||||||||||||||||||||||||
| Gender | F | M | M | M | M | F | M |
F
|
M | F | M | |||||||||||||||||||||||||||
| Age |
71
|
64
|
62
|
69
|
79
|
68
|
67
|
55
|
58
|
65
|
57
|
|||||||||||||||||||||||||||
| RACE/ETHNICITY | ||||||||||||||||||||||||||||||||||||||
| African American/Black | l | |||||||||||||||||||||||||||||||||||||
|
Alaskan Native or Native American
|
||||||||||||||||||||||||||||||||||||||
| Asian, Hawaiian, or Pacific Islander | l | l | ||||||||||||||||||||||||||||||||||||
| White/Caucasian | l | l | l | l | l | l | l | |||||||||||||||||||||||||||||||
| Hispanic/Latino | l | |||||||||||||||||||||||||||||||||||||
| Elanco Animal Health Incorporated |
11
|
2025 Proxy Statement
|
||||||
|
Proposal No. 1
|
||||||||
| Elanco Animal Health Incorporated |
12
|
2025 Proxy Statement
|
||||||
|
Proposal No. 1
|
||||||||
|
||||||||||||||
|
Kapila Anand
|
||||||||||||||
|
EXPERIENCE
•
KPMG LLP
, one of the world's leading accounting firms
-
Senior Advisor (2016 - 2020)
-
Audit Signing Partner and Advisory Partner (1989 - 2016)
-
Elected to KPMG's U.S. and Americas boards (2005 - 2010) and Chair of the KPMG Foundation
OTHER CURRENT AND PRIOR PUBLIC COMPANY BOARDS
•
Omega Healthcare Investors Inc. (since 2018)
•
Extended Stay America, Inc. and its REIT subsidiary, ESH Hospitality, Inc. (2016 - 2021)
KEY QUALIFICATIONS
•
Finance and Accounting
experience gained through her more than 30 years of services as a Certified Public Accountant at KPMG and utilized during her service on the audit committees of multiple public companies
•
Risk Management and Sustainability
expertise developed over her career advising companies throughout their life cycle on topics such as strategic planning, due diligence, risk assessments, enterprise risk management, and setting up proper internal controls and further honed through her work as an advisory partner to KPMG's risk and governance practice
•
Legal, Public Policy and Regulatory
experience acquired while playing a leading role in the development of KPMG's private equity and regulatory businesses
•
MA and Business Development
experience obtained while acting as an advisory partner to KPMG's MA and integration services practices
|
||||||||||||||
|
Age: 71
Independent Director since: September 2018
|
||||||||||||||
|
BOARD COMMITTEES
Audit (Chair)
Corporate Governance
|
||||||||||||||
|
QUALIFICATIONS
|
||||||||||||||
| Elanco Animal Health Incorporated |
13
|
2025 Proxy Statement
|
||||||
|
Proposal No. 1
|
||||||||
|
||||||||||||||
|
Paul Herendeen
|
||||||||||||||
|
EXPERIENCE
•
Bausch Health Companies Inc.
, a global health care products company
-
Advisor to the Chairman and Chief Executive Officer (2021 – 2022)
-
Executive Vice President and Chief Financial Officer (2016 – 2021)
•
Executive Vice President and Chief Financial Officer,
Zoetis Inc.
, an animal health company (2014 – 2016)
•
Chief Financial Officer,
Warner Chilcott
, a specialty pharmaceuticals company (2005 – 2013; 1998 – 2001)
•
Executive Vice President and Chief Financial Officer,
MedPointe Pharmaceuticals
, a privately held pharmaceutical company
•
Principal investor,
Dominion Income Management
•
Principal investor,
Cornerstone Partners
•
Held various positions with the investment banking group of
Oppenheimer Company
and the capital markets group of
Continental Bank Corporation
•
Senior auditor,
Arthur Andersen Company
OTHER CURRENT PUBLIC COMPANY BOARDS
•
Endo, Inc. (since 2024)
•
Grifols, S.A. (since 2024)
KEY QUALIFICATIONS
•
Animal Health/Health Care Industry
more than 20 years' experience serving in leadership positions at MedPointe, Warner Chilcott, Zoetis, and Bausch Health
•
Finance and Accounting
expertise developed through decades serving in financial roles in the life sciences industry, including service as the Chief Financial Officer of Zoetis, and at Bausch Health, where he helped the company reduce its debt and strengthen its balance sheet
•
MA and Business Development
experience from his tenure at Warner Chilcott, MedPointe, Zoetis and Bausch Health, as well as his nearly decade of experience as a principal at Dominion Income Management and Cornerstone Partners, where he worked on investments, mergers and acquisitions for the firms and their portfolio companies
•
Institutional Investor Perspective
developed through his more than 15 years of experience engaging with the financial community as a public company Chief Financial Officer and leader of award-winning investor relations programs
|
||||||||||||||
|
Age: 69
Independent Director since: December 2020
|
||||||||||||||
|
BOARD COMMITTEES
Audit
Finance, Strategy and Oversight
|
||||||||||||||
|
QUALIFICATIONS
|
||||||||||||||
| Elanco Animal Health Incorporated |
14
|
2025 Proxy Statement
|
||||||
|
Proposal No. 1
|
||||||||
|
||||||||||||||
|
Michael Harrington
|
||||||||||||||
|
EXPERIENCE
•
Eli Lilly and Company
, a global pharmaceutical company (1991 - 2020)
-
Senior Vice President, General Counsel (2013 – 2020)
-
Vice President and Deputy General Counsel, Global Pharmaceutical Operations (2010 – 2012)
-
Vice President and Deputy General Counsel, Corporate (2004 – 2010)
-
Managing Director of New Zealand affiliate (2001 - 2003)
-
General Counsel, Asia Pacific (1996 - 2000)
OTHER CURRENT PUBLIC COMPANY BOARDS
•
Inotiv, Inc. (since 2024)
KEY QUALIFICATIONS
•
Animal Health/Health Care Industry
experience in more than three decades at Lilly, one of the world’s leading global pharmaceutical companies and our former parent company
•
Digital, Technology and Cybersecurity
expertise developed through his prior oversight of Lilly’s information security program
•
Legal, Public Policy and Regulatory
expertise developed and demonstrated having responsibility and oversight of legal and public policy issues, government and regulatory affairs, intellectual property, risk management, corporate governance and compliance for Lilly
•
MA and Business Development
expertise gained executing numerous transactions while at Lilly, including playing a leading role in the separation of Elanco from Lilly and subsequent listing of Elanco on the NYSE as an independent public company
|
||||||||||||||
|
Age: 62
Independent Director since: September 2018
|
||||||||||||||
|
BOARD COMMITTEES
Audit
Corporate Governance (Chair)
Innovation, Science and Technology
|
||||||||||||||
|
QUALIFICATIONS
|
||||||||||||||
| Elanco Animal Health Incorporated |
15
|
2025 Proxy Statement
|
||||||
|
Proposal No. 1
|
||||||||
|
||||||||||||||
|
R. David Hoover
|
||||||||||||||
|
EXPERIENCE
•
Ball Corporation
, one of the world’s leading suppliers of aluminum packaging for the beverage, personal care and household products industries as well as a provider of aerospace and other technologies (1970 - 2011)
-
Chairman (2002 – 2011)
-
Chief Executive Officer (2001 – 2011)
-
President (2000 – 2010)
-
Chief Operating Officer (2000 – 2001)
-
Vice Chairman and Chief Financial Officer (1998 – 2000)
OTHER PRIOR PUBLIC COMPANY BOARDS
•
Edgewell Personal Care, and its predecessor company, Energizer Holdings, Inc. (2000 – 2021)
•
Eli Lilly and Company (2009 - 2018)
•
Ball Corporation (1996 – 2018)
•
Steelcase Inc. (2016 – 2016)
KEY QUALIFICATIONS
•
Business Leadership and Operations
experience gained from leading Ball for over four decades, resulting in a deep understanding of leading global businesses, human capital management, financial and accounting practices, risk management and business development
•
Consumer Products
expertise gained by leading Ball, a leading supplier of innovative and sustainable packaging for beverage, personal care, household and other products, where he developed an understanding of consumer trends and preferences; this developed further while serving on the board of Edgewell
•
Finance and Accounting
knowledge and expertise acquired while serving in financial roles at Ball, including as Chief Financial Officer
•
MA and Business Development
experience gained while at Ball, where he was instrumental as the chief strategist and lead negotiator for Ball in the largest acquisition in the company's history, the purchase of the North American beverage can manufacturing assets of Reynolds Metals Company, which made Ball the largest manufacturer of recyclable aluminum beverage cans in North America and one of the largest in the world
|
||||||||||||||
|
Age: 79
Independent Director since: September 2018
|
||||||||||||||
|
BOARD COMMITTEES
Compensation and Human Capital
Corporate Governance
|
||||||||||||||
|
QUALIFICATIONS
|
||||||||||||||
| Elanco Animal Health Incorporated |
16
|
2025 Proxy Statement
|
||||||
|
Proposal No. 1
|
||||||||
|
||||||||||||||
|
Deborah Kochevar,
DVM, Ph.D, DACVCP
|
||||||||||||||
|
EXPERIENCE
•
Tufts University
, a private research university
-
Senior Fellow, The Fletcher School of Law and Diplomacy and Dean Emerita, Cummings School of Veterinary Medicine (since 2019)
-
Provost and Senior Vice President ad interim (2018 – 2019)
-
Dean of the Cummings School of Veterinary Medicine (2006 – 2018)
•
Long-time faculty member and administrator,
College of Veterinary Medicine and Biomedical Sciences at Texas AM University
, held the Wiley Chair of Veterinary Medical Education
•
Boarded diplomate of the
American College of Veterinary Clinical Pharmacology
OTHER CURRENT PUBLIC COMPANY BOARDS
•
Charles River Laboratories International, Inc. (since 2008)
KEY QUALIFICATIONS
•
Animal Health Industry
expertise gained through her distinguished academic career, including as Dean of one of the world’s leading veterinary schools and her service as a director of a national group of general specialty and emergency veterinary practices
•
Legal, Public Policy and Regulatory
acumen due to her experience with various government entities and from advancing evidence-based science with international aspects like inter-professional education, clinical and translational research, and global One Health diplomacy
•
Research and Development/Innovation
expertise developed and demonstrated by publication in peer-reviewed journals and strategic planning, resourcing and oversight of diverse institutional research programming
•
Risk Management and Sustainability
knowledge acquired from her understanding of quality veterinary practices and the needs of scientists and the research and development community
|
||||||||||||||
|
Age: 68
Independent Director since: March 2019
|
||||||||||||||
|
BOARD COMMITTEES
Corporate Governance
Innovation, Science and Technology (Chair)
|
||||||||||||||
|
QUALIFICATIONS
|
||||||||||||||
| Elanco Animal Health Incorporated |
17
|
2025 Proxy Statement
|
||||||
|
Proposal No. 1
|
||||||||
|
||||||||||||||
|
Lawrence Kurzius
|
||||||||||||||
|
EXPERIENCE
•
McCormick Company, Inc.
, a global Fortune 500 food company (since 2005)
-
Executive Chairman (2023 - 2024)
-
Chairman and Chief Executive Officer (2017 - 2023)
-
Chief Executive Officer (2016)
-
Held various leadership roles, including President and Chief Operating Officer; Chief Administrative Officer; President, International Businesses; President, Europe, Middle East and Africa; President, U.S. Consumer Foods
•
Zatarain's
, an American food company
-
President and CEO (1997 - 2004 when acquired by McCormick)
-
Vice President and Marketing Director (1991 - 1997)
•
Marketing executive,
Quaker Oats Company
and
Mars Inc.'s Uncle Ben's Company
OTHER CURRENT AND PRIOR PUBLIC COMPANY BOARDS
•
The Cooper Companies, Inc. (since 2023)
•
McCormick Company, Inc. (2015 - 2025), Executive Chairman (2023 - 2024), Chairman (2017 - 2023)
KEY QUALIFICATIONS
•
Consumer Products
experience acquired over his career in consumer goods marketing and senior leadership roles at Mars, Quaker Oats, Zatarain's and McCormick, a large, multi-faceted, consumer and flavor solutions food business, and further developed while serving on the boards of multiple industry groups, including The Consumer Goods Forum, The Consumer Brands Association and The National Association of Manufacturers, resulting in his extensive knowledge of consumer trends and a deep understanding of consumer preferences
•
Global Business Experience
gained leading multinational companies, where understanding both the domestic and international markets was essential to success
•
Human Capital Management
expertise developed through his leadership of a company with over 14,000 employees globally, which has resulted in a deep understanding of attracting, developing, motivating and retaining top talent, as well as executive compensation and leadership development
•
Risk Management and Sustainability
experience obtained from his broad executive experience at McCormick, where under his leadership, the company became a UN Global Compact LEAD company while embedding purpose-led performance into McCormick's culture by championing the company's industry-leading sustainability efforts
|
||||||||||||||
|
Chairman
Age: 67
Independent Director since: September 2018
|
||||||||||||||
|
BOARD COMMITTEES
None
|
||||||||||||||
|
QUALIFICATIONS
|
||||||||||||||
| Elanco Animal Health Incorporated |
18
|
2025 Proxy Statement
|
||||||
|
Proposal No. 1
|
||||||||
|
||||||||||||||
|
Kirk McDonald
|
||||||||||||||
|
EXPERIENCE
•
Founding member and Chief Executive Officer at Sundial Media Group, a virtually integrated media, technology and experiential company (since 2024)
•
Chief Executive Officer and member of Global Leadership Team,
GroupM North America
, a global provider of media and advertising solutions through the development of technology-enabled services (2020 – 2023)
•
Xandr, Inc.
, ATT's advertising division
-
Chief Business Officer (2019 – 2020)
-
Chief Marketing Officer (2018 – 2019)
•
Held leadership roles at several other leading companies, including:
-
Chief Marketing Officer, Advertising and Analytics,
ATT Inc.
-
President,
PubMatic, Inc.
-
President,
Digital, Time Inc.
-
Chief Advertising Officer,
Fortune|Money Group
-
Senior Vice President of Network Sales,
DRIVEpm
and
Atlas
(both units of Microsoft's advertising business)
OTHER CURRENT PUBLIC COMPANY BOARDS
•
Ziff Davis, Inc. (since 2023)
KEY QUALIFICATIONS
•
Business Leadership and Operations
expertise gained over his significant career in leadership roles with responsibility for developing and executing on business strategies
•
Consumer Products
experience gained during his more than 30 years of experience in marketing leadership roles at leading companies like Microsoft and ATT
•
Digital, Technology and Cybersecurity
expertise developed at GroupM, where he helped develop technology-enabled services for media and advertising solutions, resulting in experience with digital and emerging technologies; recognized by AdWeek for his digital expertise as one of the "50 vital leaders in tech, media and marketing"
•
Human Capital Management
insights gained as Chief Executive Officer of GroupM, an organization of approximately 6,500 people in a fast-growing industry
|
||||||||||||||
|
Age: 58
Independent Director since: March 2019
|
||||||||||||||
|
BOARD COMMITTEES
Compensation and Human Capital (Chair)
Innovation, Science and Technology
|
||||||||||||||
|
QUALIFICATIONS
|
||||||||||||||
| Elanco Animal Health Incorporated |
19
|
2025 Proxy Statement
|
||||||
|
Proposal No. 1
|
||||||||
|
||||||||||||||
|
Art Garcia
|
||||||||||||||
|
EXPERIENCE
•
Ryder System, Inc.
, a North American provider of transportation and supply chain management products known for its fleet of rental trucks
-
Executive Vice President and Chief Financial Officer (2010 – 2019)
-
Senior Vice President and Controller (2005 – 2010)
-
Vice President and Controller (2002 – 2005)
OTHER CURRENT PUBLIC COMPANY BOARDS
•
Raymond James Associates (since 2023)
•
American Electric Power Company, Inc. (since 2019)
•
ABM Industries Incorporated (since 2017)
KEY QUALIFICATIONS
•
Business Leadership and Operations
expertise acquired through his experience leading the finance organization at Ryder Systems, where he led the re-engineering of the organization to help drive efficiency, established a new business model and implemented strategies to revitalize growth and improve profitability
•
Finance and Accounting
experience developed during the 18 years he served in financial roles at Ryder Systems, where he ultimately had oversight of the entire financial function for almost a decade and during his service on the audit, risk management and governance committees on the boards of other public companies
•
MA and Business Development
expertise obtained while overseeing the corporate strategy and business development functions and managing the financial integration of numerous acquisitions at Ryder Systems
•
Institutional Investor Perspective
developed through his nearly 10 years of experience engaging with the financial community as a public company Chief Financial Officer
|
||||||||||||||
|
Age: 64
Independent Director since: May 2019
|
||||||||||||||
|
BOARD COMMITTEES
Audit
Finance, Strategy and Oversight
|
||||||||||||||
|
QUALIFICATIONS
|
||||||||||||||
| Elanco Animal Health Incorporated |
20
|
2025 Proxy Statement
|
||||||
|
Proposal No. 1
|
||||||||
|
||||||||||||||
|
Stacey Ma, Ph.D
|
||||||||||||||
|
EXPERIENCE
•
Executive Vice President of Pharmaceutical Development and Manufacturing,
Gilead Sciences, Inc
., a research-based biopharmaceutical company focused on the discovery, development and commercialization of innovative medicines (since 2022)
•
Executive Vice President of Technical Operations,
Sana Biotechnology
, a biotechnology company focused on utilizing engineered cells as medicines (2019-2022)
•
Genentech, Inc.
, an American biotechnology company and member of the Roche Group (1996 - 2019)
-
Global Head of Innovation, Manufacturing Science and Technology (2018 - 2019)
-
Roles of increasing responsibility, including Vice President, Global Head of IMP Quality, Pharma Technical Development
PRIOR PUBLIC COMPANY BOARDS
•
Atreca, Inc. (2021-2024)
KEY QUALIFICATIONS
•
Animal Health/Health Care Industry
experience gained through nearly 30 years of experience in the health care industry, including with
Gilead Sciences, Inc.
,
Sana Biotechnology
, and
Genentech, Inc.
•
Business Leadership and Operations
leader with extensive experience in product and supply chain management, manufacturing, and quality operations
•
Research and Development/Innovation
expertise developed by leading technology innovation and product development at leading human pharmaceutical companies
•
Legal, Public Policy, and Regulatory
experience gained through leadership of CMC regulatory functions as multiple global companies
|
||||||||||||||
|
Age: 55
Independent Director since: November 2024
|
||||||||||||||
|
BOARD COMMITTEES
Innovation, Science and Technology
|
||||||||||||||
|
QUALIFICATIONS
|
||||||||||||||
| Elanco Animal Health Incorporated |
21
|
2025 Proxy Statement
|
||||||
|
Proposal No. 1
|
||||||||
|
||||||||||||||
|
Denise Scots-Knight
|
||||||||||||||
|
EXPERIENCE
•
Co-Founder, Chief Executive Officer and Director,
Mereo BioPharma Group plc
, an international biopharmaceutical company focused on rare diseases (since 2015)
•
Partner,
Phase4 Ventures GP Ltd.
,
Phase4 Ventures GP III Ltd.
,
Phase4 Ventures III FPGP Ltd.
,
Phase4 Ventures III GP LP
, and
Phase4 Ventures III FP LP
, privately held global life science venture capital firms (2010 – 2019)
•
Chief Executive Officer,
Phase4 Partners Ltd.
, a privately held, global life science venture capital firm (2010 – 2015)
•
Head,
Nomura Phase4 Ventures
, a venture capital affiliate of Nomura International plc, a leading Japanese financial institution (2004 – 2010)
OTHER CURRENT AND PRIOR PUBLIC COMPANY BOARDS
•
Mereo BioPharma Group plc (since 2015)
•
OncoMed Pharmaceuticals Inc. (2008 – 2018)
•
Albireo Pharma, Inc. (2008 – 2017)
KEY QUALIFICATIONS
•
Health Care Industry
experience acquired over her career in the life sciences industry, and through her current and past service as a director of other public and privately held biotech and life sciences companies and supported by being named of one of the 15 leading women in European biotech by Labiotech UG
•
Global Business Experience
gained through her service as Co-Founder and Chief Executive Officer of Mereo BioPharma, a United Kingdom-based, Nasdaq-listed company with operations in the U.S., as well as leadership roles in other non-U.S. organizations, which further developed her valuable insights into global strategic oversight, talent and leadership development that are critical in our growth-oriented industry
•
Institutional Investor Perspective
obtained through her extensive experience investing and allocating capital as the head of a life sciences-focused venture capital firm
•
Research and Development/Innovation
expertise developed through her career, where she has a track record of building new innovation models and strategic partnerships for emerging technologies, which has resulted in her having a deep acumen and technical expertise beneficial for overseeing our research and development activities
|
||||||||||||||
|
Age: 65
Independent Director since: March 2019
|
||||||||||||||
|
BOARD COMMITTEES
Compensation and Human Capital
Innovation, Science and Technology
|
||||||||||||||
|
QUALIFICATIONS
|
||||||||||||||
| Elanco Animal Health Incorporated |
22
|
2025 Proxy Statement
|
||||||
|
Proposal No. 1
|
||||||||
|
||||||||||||||
|
Jeffrey Simmons
|
||||||||||||||
|
EXPERIENCE
•
President and Chief Executive Officer,
Elanco Animal Health Incorporated
(since 2018)
•
Eli Lilly and Company
, a global pharmaceutical company (1989 - 2018)
-
Senior Vice President and President of the Elanco Animal Health division at Lilly (2008 – 2018)
-
Held various leadership roles in the Elanco Animal Health division, including International Marketing Manager, Country Director for Brazil, Area Director for Western Europe and Executive Director for U.S. and Global Research Development
KEY QUALIFICATIONS
•
Business Leadership and Operations
expertise exhibited as a proven, purpose-driven leader during his 30-plus years in the life sciences industry, including as the head of Elanco for the past decade, during which he directed Elanco's growth and transformation from a primarily U.S. livestock feed additive company to a global animal health leader with a diversified business, more than quadrupled revenue, created a unique innovation engine and built five new businesses, including a greater than $2 billion pet health business
•
MA and Business Development
experience acquired while evaluating, executing and integrating several significant acquisitions during his tenure as Elanco’s CEO, including the acquisitions of Aratana Therapeutics, Kindred Biosciences and Bayer Animal Health, one of the largest animal health transactions to date
•
Risk Management and Sustainability
expertise shown when under his leadership, Elanco deepened its commitment to sustainability and, in October 2020, became the first independent animal health company to launch sustainability commitments connected to the United Nations Sustainable Development Goals; also demonstrated by his role in progressing Bovaer, Elanco’s methane reduction product, and developing a carbon insetting marketplace
•
Research and Development/Innovation
experience acquired through his oversight of research and development programs over the past three decades, including the successful product launch of numerous animal health blockbuster drugs while serving as Executive Director for U.S. and Global Research Development as well as other senior leadership roles within the Elanco Animal Health Division of Lilly
|
||||||||||||||
|
Age: 57
Director since: September 2018
|
||||||||||||||
|
BOARD COMMITTEES
Finance, Strategy and Oversight
|
||||||||||||||
|
QUALIFICATIONS
|
||||||||||||||
| Elanco Animal Health Incorporated |
23
|
2025 Proxy Statement
|
||||||
|
Corporate
Governance
|
||||||||
| Elanco Animal Health Incorporated |
24
|
2025 Proxy Statement
|
||||||
| Corporate Governance | ||||||||
| Elanco Animal Health Incorporated |
25
|
2025 Proxy Statement
|
||||||
| Corporate Governance | ||||||||
|
Our Board
Our Board considers significant enterprise risk topics, including, among others, risks associated with competition, innovation, market access, corporate and brand reputation management, information security and data privacy and business continuity. Our Board is routinely informed of developments that could affect our risk profile or other aspects of our business. In addition, our Board receives regular reports from members of our senior leadership team that include discussions of the risks involved in their respective areas of responsibility.
Our Board is kept informed of its committees’ risk oversight and other activities through reports by the committee Chairs to the Board, which occur at each regularly scheduled quarterly Board meeting.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Audit Committee
Oversees the management of risks related to financial matters, programs, policies; as well as procedures related to information asset security and data protection as it relates to financial reporting and internal controls.
|
Compensation and Human Capital Committee
Oversees the management of risks related to our compensation programs and benefit plans, including our conclusion that our compensation policies and practices do not create risks that are reasonably likely to have a material adverse effect on Elanco.
|
Corporate Governance Committee
Oversees risks relating to public policy issues, including our lobbying priorities and activities; as well as risks arising from our ESG-related practices and disclosures, as well as corporate responsibility and sustainability initiatives.
|
Finance, Strategy and Oversight Committee
Oversees financial risk management including related policies and risks associated with liquidity, tax strategies, currency and interest rate exposures, as well as strategy related to MA and divestitures.
|
Innovation, Science and Technology Committee
Oversees the management of risks associated with our research and development program, risks related to competitive or disruptive technologies and risks related to technologies that we are acquiring or in which we are investing.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Management
Management is primarily responsible for identifying risk and risk controls related to significant business activities and mapping the risks to our strategy. Management is also responsible for developing programs and recommendations to determine the sufficiency of risk identification, the balance of potential risk to potential reward and the appropriate manner with which to manage risk.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Elanco Animal Health Incorporated |
26
|
2025 Proxy Statement
|
||||||
| Corporate Governance | ||||||||
| Elanco Animal Health Incorporated |
27
|
2025 Proxy Statement
|
||||||
| Corporate Governance | ||||||||
| Elanco Animal Health Incorporated |
28
|
2025 Proxy Statement
|
||||||
| Corporate Governance | ||||||||
|
Audit
Committee
|
Compensation and Human
Capital
Committee
|
Corporate
Governance
Committee
|
Finance, Strategy and Oversight
Committee
|
Innovation,
Science and
Technology
Committee
|
|||||||||||||
| Kapila Anand |
|
|
|||||||||||||||
|
John Bilbrey
|
|
|
|||||||||||||||
| Art Garcia |
|
|
|||||||||||||||
| Michael Harrington |
|
|
|
||||||||||||||
| Paul Herendeen |
|
|
|||||||||||||||
|
R. David Hoover
|
|
|
|||||||||||||||
| Deborah Kochevar |
|
|
|||||||||||||||
| Lawrence Kurzius |
|
||||||||||||||||
|
Stacey Ma
|
|
||||||||||||||||
| Kirk McDonald |
|
|
|||||||||||||||
| Denise Scots-Knight |
|
|
|||||||||||||||
| Jeffrey Simmons |
|
||||||||||||||||
|
Kathy Turner
|
|
||||||||||||||||
|
Craig Wallace
|
|
||||||||||||||||
Chair
Member
| Elanco Animal Health Incorporated |
29
|
2025 Proxy Statement
|
||||||
| Corporate Governance | ||||||||
|
Membership:
Kapila Anand (Chair)
Art Garcia
John Bilbrey
Michael Harrington
Paul Herendeen
Meetings in 2024:
9
|
Key Responsibilities:
Assist our Board in its oversight of:
•
the integrity of our financial statements and any other financial information that is provided to our shareholders and others;
•
the independent auditor’s qualifications and independence;
•
the systems of internal controls and disclosure controls that our management has established;
•
the performance of our internal and independent audit functions;
•
risk assessment and risk management processes related to financial matters;
•
our compliance with legal and regulatory requirements involving matters of financial compliance; and
•
information security and data privacy matters as they relate to financial reporting and internal controls.
The Audit Committee is also directly responsible for the appointment, compensation, retention and oversight of our independent registered public accounting firm.
The Audit Committee has established policies and procedures for the pre-approval of all services provided by the independent registered public accounting firm. The Audit Committee has also established procedures for the receipt, retention and treatment, on a confidential basis, of complaints received by Elanco regarding our accounting, internal controls and auditing matters. Further details of the role of the Audit Committee, as well as the Audit Committee Report, can be found in “Proposal No. 2: Ratification of Appointment of Independent Auditor” below. The Audit Committee’s charter is available on our website at www.elanco.com/en-us/about-us/governance/corporate by clicking on the “Audit Committee Charter” link. |
||||||||||||||||
|
Our Board has determined that each member of the Audit Committee is independent within the meaning of our independence standards and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) and applicable NYSE listing standards. Each member is also financially literate, and Ms. Anand, Mr. Garcia and Mr. Herendeen each qualify as an “audit committee financial expert.”
|
|||||||||||||||||
| Elanco Animal Health Incorporated |
30
|
2025 Proxy Statement
|
||||||
| Corporate Governance | ||||||||
|
Membership:
Kirk McDonald (Chair)
R. David Hoover
Denise Scots-Knight
Meetings in 2024:
6
|
Key Responsibilities:
Assist our Board in its oversight of:
•
our compensation policies and practices, including determining and approving the compensation of our executive officers and our compensation plans, including by reviewing and approving incentive compensation and equity compensation policies and programs;
•
our compensation program for non-employee directors;
•
our stock ownership for executive officers and the stock ownership and retention guidelines for executive officers;
•
succession plans and leadership development for the Chief Executive Officer position and other executive officer positions, including a broad review of our succession management; and
•
Elanco’s performance in the oversight, development, implementation and effectiveness of the Company’s policies and strategies relating to its human capital management, including inclusion, diversity, equity and accessibility in the Company’s workforce.
Each Compensation and Human Capital Committee member is a “non-employee director” as defined in Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
The Compensation and Human Capital Committee’s charter is available on our website at www.elanco.com/en-us/about-us/governance/corporate by clicking on the “Compensation and Human Capital Committee Charter” link.
Compensation Committee Interlocks and Insider Participation: During 2024 and as of the date of this Proxy Statement, none of the members of the Compensation and Human Capital Committee was or is an officer or employee of Elanco and none of our executive officers served or serves on the compensation committee or board of directors of any company that employed or employs any member of our Compensation and Human Capital Committee or Board.
|
||||||||||||||||
| Our Board has determined that each member of the Compensation and Human Capital Committee is independent within the meaning of our independence standards and applicable NYSE listing standards. | |||||||||||||||||
| Elanco Animal Health Incorporated |
31
|
2025 Proxy Statement
|
||||||
| Corporate Governance | ||||||||
|
Membership:
Michael Harrington (Chair)
Kapila Anand
Deborah Kochevar
R. David Hoover
Meetings in 2024:
5
|
Key Responsibilities:
Assist our Board in its oversight of:
•
recommending qualifications required for membership on our Board and its committees;
•
identifying and recommending candidates for membership on our Board and its committees;
•
developing and recommending criteria and policies relating to service and tenure of directors on our Board;
•
risk management related to public policy issues, including lobbying priorities and activities, corporate governance and ESG practices and corporate responsibility and sustainability initiatives;
•
current and emerging political, social and environmental trends and public policy issues that may affect Elanco's operations, performance and public image; and
•
other matters of corporate governance.
The Corporate Governance Committee’s charter is available on our website at
www.elanco.com/en-us/about-us/governance/corporate by clicking on the “Corporate Governance Committee Charter” link. |
||||||||||||||||
| Our Board has determined that each member of the Corporate Governance Committee is independent within the meaning of our independence standards. | |||||||||||||||||
|
Membership:
John Bilbrey (Chair)
Art Garcia
Paul Herendeen
Jeffrey Simmons
Kathy Turner
Craig Wallace
Meetings in 2024:
4
|
Key Responsibilities:
Assist our Board in its oversight of:
•
certain of our financial policies, plans and transactions, including mergers and acquisitions (including the effective integration of acquired businesses), divestitures and strategic partnerships and capital, foreign exchange and debt transactions;
•
balance sheet management, capital structure, leverage and financial strategy;
•
financial risk management, including oversight of Elanco’s financial risk management policies, and risks associated with liquidity, tax strategies, currency and interest rate exposures; and
•
our progress toward achieving our margin, growth and operational goals.
The Finance, Strategy and Oversight Committee’s charter is available on our website at www.elanco.com/en-us/about-us/governance/corporate by clicking on the “Finance, Strategy and Oversight Committee Charter” link.
|
||||||||||||||||
|
The Corporate Governance Committee has recommended that Paul Herendeen be appointed as Chair of the Finance, Strategy and Oversight Committee as of the Annual Meeting.
|
|||||||||||||||||
| Elanco Animal Health Incorporated |
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|
||||||
| Corporate Governance | ||||||||
|
Membership:
Deborah Kochevar (Chair)
Michael Harrington
Kirk McDonald
Stacey Ma
Denise Scots-Knight
Meetings in 2024:
4
|
Key Responsibilities:
Assist our Board in its oversight of:
•
our strategy, activities, results and investment in and optimization of research, development, and go-to-market strategies, as well as supporting investments, external innovation/business development and innovation initiatives;
•
our strategic, tactical and policy matters related to science and technology and any changes to the development and regulatory landscape;
•
advancement and augmentation of our product pipeline innovation; and
•
management of risks related to our research and development program, competitive or disruptive technologies and technologies which Elanco is acquiring or in which we are investing; and
•
Elanco's ambition to achieve scientific innovation leadership in the animal health industry.
The Innovation, Science and Technology Committee’s charter is available on our website at www.elanco.com/en-us/about-us/governance/corporate by clicking on the “Innovation, Science and Technology Committee Charter” link.
|
||||||||||||||||
|
Our Board has determined that each member of the Innovation, Science and Technology Committee is independent within the meaning of our independence standards.
|
|||||||||||||||||
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| Corporate Governance | ||||||||
| Elanco Animal Health Incorporated |
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2025 Proxy Statement
|
||||||
| Corporate Governance | ||||||||
| Elanco Animal Health Incorporated |
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|
2025 Proxy Statement
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||||||
| Corporate Governance | ||||||||
| Elanco Animal Health Incorporated |
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|
2025 Proxy Statement
|
||||||
| Corporate Governance | ||||||||
| Elanco Animal Health Incorporated |
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|
2025 Proxy Statement
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||||||
|
Non-Employee
Director Compensation
|
||||||||
|
Cash
($)
|
Deferred Stock Units
($)
|
||||||||||
| All Non-Employee Directors | 90,000 | 240,000 | |||||||||
| Chairman of the Board | 150,000 | — | |||||||||
| Chair of the Audit Committee | 25,000 | — | |||||||||
| Chair of the Compensation and Human Capital Committee | 20,000 | — | |||||||||
| Other Committee Chairs | 16,000 | — | |||||||||
| Elanco Animal Health Incorporated |
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2025 Proxy Statement
|
||||||
|
Non-Employee Director Compensation
|
||||||||
| Elanco Animal Health Incorporated |
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|
2025 Proxy Statement
|
||||||
|
Non-Employee Director Compensation
|
||||||||
| Name |
Fees Earned or Paid in Cash
($)
|
Stock
Awards
(1)
($)
|
Total
($)
|
|||||||||||
| Kapila Anand | 115,000 | 240,012 | 355,012 | |||||||||||
| John Bilbrey | 106,000 | 240,012 | 346,012 | |||||||||||
| William Doyle | 90,000 | 240,012 | 330,012 | |||||||||||
| Art Garcia | 90,000 | 240,012 | 330,012 | |||||||||||
| Michael Harrington | 99,363 | 240,012 | 339,375 | |||||||||||
| Paul Herendeen | 90,000 | 240,012 | 330,012 | |||||||||||
| David Hoover | 158,863 | 240,012 | 398,875 | |||||||||||
| Deborah Kochevar | 106,000 | 240,012 | 346,012 | |||||||||||
| Lawrence Kurzius | 186,071 | 240,012 | 426,083 | |||||||||||
|
Stacey Ma
|
12,473 | 33,540 | 46,013 | |||||||||||
| Kirk McDonald | 101,703 | 240,012 | 341,715 | |||||||||||
| Denise Scots-Knight | 90,000 | 240,012 | 330,012 | |||||||||||
|
Kathleen Turner
|
67,500 | 182,800 | 250,300 | |||||||||||
|
Craig Wallace
|
67,500 | 182,800 | 250,300 | |||||||||||
| Elanco Animal Health Incorporated |
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2025 Proxy Statement
|
||||||
|
Executive
Officers
|
||||||||
| Elanco Animal Health Incorporated |
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|
2025 Proxy Statement
|
||||||
|
Executive Officers
|
||||||||
| Elanco Animal Health Incorporated |
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|
2025 Proxy Statement
|
||||||
|
Executive Officers
|
||||||||
| Elanco Animal Health Incorporated |
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|
2025 Proxy Statement
|
||||||
|
Proposal No. 2
Ratification of Appointment
of Independent Auditor
|
||||||||
|
The Board unanimously recommends a vote
“FOR”
the ratification of the appointment of Ernst Young LLP as our principal independent auditor for 2025.
|
||||||||
| Elanco Animal Health Incorporated |
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2025 Proxy Statement
|
||||||
|
Proposal No. 2
|
||||||||
|
2024
($)
|
2023
($)
|
||||||||||
|
Audit Fees
(1)
|
12,199,472
|
12,153,830
|
|||||||||
|
Audit-Related Fees
(2)
|
29,648
|
11,667
|
|||||||||
|
Tax Fees
(3)
|
3,116
|
5,103
|
|||||||||
| All Other Fees | — | — | |||||||||
| Total Fees |
12,232,236
|
12,170,600
|
|||||||||
| Elanco Animal Health Incorporated |
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2025 Proxy Statement
|
||||||
|
Proposal No. 2
|
||||||||
| Elanco Animal Health Incorporated |
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2025 Proxy Statement
|
||||||
|
Compensation
Discussion and Analysis
|
||||||||
| Jeffrey Simmons | President, CEO and Director | ||||
| Todd Young | EVP, CFO | ||||
| Ellen de Brabander | EVP, Innovation and Regulatory Affairs | ||||
| Ramiro Cabral | EVP, Elanco International | ||||
| Timothy Bettington | EVP, Corporate Strategy and Market Development | ||||
|
Elanco ended 2024 with momentum reporting our sixth straight quarter of organic constant currency
(1)
revenue growth. From protein to pets, global Elanco continues to deliver for our customers while advancing our IPP strategy, driving our priority outcomes of Growth, Innovation and Cash. Performance and results in 2024 include:
•
Delivering five new U.S. product approvals and market authorizations in 2024.
•
Launching our diverse portfolio of innovation, with one new blockbuster and five potential blockbusters now in market.
•
Generating $461 million of revenue from new products launched since 2021, surpassing our target of $420 million to $450 million.
•
Focusing on the highest impact opportunities and successfully divesting our aqua business for gross proceeds of $1,294 million.
•
Growing organic constant currency revenue
((1)
in both Pet Health and Farm Animal in 2024, in our top 5 product franchises, and in 9 of our top 10 countries, demonstrating the broad-based strength of our diverse portfolio.
•
Strengthening our financial position through substantial debt reduction. Debt reduction of $1,475 million resulted in a net leverage ratio of 4.3 times at the end of 2024, down from 5.6 times at the beginning of 2024.
•
Generating $541 million of operating cash flow, or 120 percent of adjusted net income. This was an improvement versus 2023 of $270 million driven by improved inventory performance, strong collections, and lower project expenses.
•
Delivering revenue of $4,439 million, representing year-over-year growth of 3% on an organic constant currency basis. Revenue was flat to 2023 on a reported basis.
•
Adjusted EBITDA
(2)
was $910 million, or 20.5% of revenue, and Adjusted EPS
(2)
was $0.91.
|
||||||||
| Elanco Animal Health Incorporated |
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2025 Proxy Statement
|
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|
Compensation Discussion Analysis
|
||||||||
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|
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| Compensation Discussion Analysis | ||||||||
| What We Do | What We Don't Do | |||||||||||||
|
Balance short- and long-term strategic objectives and directly link compensation to shareholder value
|
|
No pay design features that may have the potential to encourage excessive risk-taking
|
|||||||||||
|
Tie more than 90% of target CEO compensation to financial performance, stock price performance or both
|
|
No excise tax gross-ups on NEO compensation
|
|||||||||||
|
Maintain robust stock ownership guidelines for NEOs and senior management
|
|
No employment agreements with any NEO
|
|||||||||||
|
Maintain robust clawback policies – one policy applicable to former and current executive officers addressing restatements in accordance with the NYSE’s new requirements (which applies regardless of whether there is any misconduct) and one continuing policy extending from executive officers down to the vice president level addressing both misconduct and restatements
|
|
No hedging or pledging of our securities by any NEO
|
|||||||||||
|
No single trigger change in control vesting or payments
|
|||||||||||||
|
Engage at least annually with shareholders to obtain feedback on executive compensation and other matters
|
|
No repricing of stock options without shareholder approval
|
|||||||||||
|
Engage an independent compensation consultant that performs no other work for us or our senior management
|
|
No supplemental executive retirement, health or insurance benefits for NEOs
|
|||||||||||
|
No significant perquisites
|
|||||||||||||
|
No guaranteed short-term incentives or equity awards
|
|||||||||||||
|
No dividends or dividend equivalents paid on unvested equity awards
|
|||||||||||||
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|
Compensation Discussion Analysis
|
||||||||
| Elanco Animal Health Incorporated |
50
|
2025 Proxy Statement
|
||||||
| Compensation Discussion Analysis | ||||||||
|
Agilent Technologies, Inc. (A)
|
Horizon Therapeutics (HZNP)
|
Revvity, Inc. (RVTY)
|
||||||||||||
|
Catalent, Inc. (CLT)
|
IDEXX Laboratories, Inc. (IDXX)
|
STERIS plc (STE)
|
||||||||||||
|
Charles River Laboratories International, Inc. (CRL)
|
Incyte Corporation (INCY)
|
Vertex Pharmaceuticals, Inc. (VRTX)
|
||||||||||||
|
DENTSPLY SIRONA Inc. (XRAY)
|
Jazz Pharmaceuticals plc (JAZZ)
|
Zimmer Biomet Holdings, Inc. (ZBH)
|
||||||||||||
|
Edwards Lifesciences Corporation (EW)
|
Perrigo Company plc (PRGO)
|
Zoetis Inc. (ZTS)
|
||||||||||||
|
Hologic, Inc. (HOLX)
|
QuidelOrtho Corporation (QDEL)
|
|||||||||||||
| Elanco Animal Health Incorporated |
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2025 Proxy Statement
|
||||||
|
Compensation Discussion Analysis
|
||||||||
| Elanco Animal Health Incorporated |
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|
2025 Proxy Statement
|
||||||
| Compensation Discussion Analysis | ||||||||
|
CEO Target Pay Mix
|
NEO Average Target Pay
Mix (Excluding CEO)
|
|||||||
|
|
|||||||
| Name |
2023 Annual
Base Salary
($)
|
2024 Annual
Base Salary
($)
|
Annual
Change
|
||||||||
| Mr. Simmons | 1,200,000 | 1,200,000 | — | % | |||||||
| Mr. Young | 661,400 | 694,000 | 4.9 | % | |||||||
|
Dr. de Brabander
(1)
|
709,748 | 753,048 | 6.1 | % | |||||||
| Dr. Cabral | 592,000 | 620,000 | 4.7 | % | |||||||
| Mr. Bettington | 620,000 | 642,000 | 3.5 | % | |||||||
| Elanco Animal Health Incorporated |
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2025 Proxy Statement
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||||||
|
Compensation Discussion Analysis
|
||||||||
| Elanco Animal Health Incorporated |
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|
2025 Proxy Statement
|
||||||
| Compensation Discussion Analysis | ||||||||
|
We start with Adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization), add back Adjusted RD expense and then subtract taxes to give us Gross Cash Earnings (“GCE”), a measurement of profit.
|
We multiply the sum of our average Gross Operating Assets and eight years of Adjusted RD expense (together, "Gross Investments") by 8.5% to determine the Capital Charge on Gross Investments.
|
Subtracting the Capital Charge from GCE gives us ECE, which tells us whether we are generating a return greater or less than the Required Rate of Return of 8.5%.
|
||||||||||||||||||||||||||||||
| Adjusted EBITDA | Average Gross Operating Assets |
Elanco Cash Earnings
|
||||||||||||||||||||||||||||||||||||
| + | Adjusted RD Expense | + | 8 years of Adjusted RD Expense | |||||||||||||||||||||||||||||||||||
| Gross Investments | ||||||||||||||||||||||||||||||||||||||
| - | Taxes |
x
|
Required Rate of Return | |||||||||||||||||||||||||||||||||||
| Gross Cash Earnings | - | Capital Charge on Gross Investments | = | |||||||||||||||||||||||||||||||||||
| Name |
2023
Annual Cash Incentive Target
(%)
|
2024
Annual Cash Incentive Target
(%)
|
|||||||||
| Mr. Simmons | 130 | 130 | |||||||||
| Mr. Young | 80 | 80 | |||||||||
| Dr. de Brabander | 70 | 75 | |||||||||
| Dr. Cabral | 70 | 75 | |||||||||
| Mr. Bettington | 70 | 70 | |||||||||
| Elanco Animal Health Incorporated |
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|
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|
||||||
|
Compensation Discussion Analysis
|
||||||||
| Adjusted EBITDA | 979 | Average Gross Operating Assets | 16,226 | ||||||||||||||||||||||||||
| - |
Adj. EBITDA from Aqua Business
|
92 | - |
Average GOA related to Aqua Business
|
643 | ||||||||||||||||||||||||
|
EBITDA excluding Aqua
|
886 | + |
8 Years of Adjusted RD Expense
|
3,130 | |||||||||||||||||||||||||
| + |
Adjusted RD Expense
(1)
|
317 | Gross Investments | 18,713 | |||||||||||||||||||||||||
| - |
Taxes (based on EBITDA above)
|
132 | x | Required Rate of Return | 8.5 | % | |||||||||||||||||||||||
| Gross Cash Earnings | 1,070 | — | Capital Charge on Gross Investments | 1,591 | = |
ECE (520) million
|
|||||||||||||||||||||||
| Adjusted EBITDA | 910 | Average Gross Operating Assets | 15,868 | ||||||||||||||||||||||||||
| - |
Adj. EBITDA from Aqua Business
|
40 | - |
Average GOA related to Aqua Business
|
319 | ||||||||||||||||||||||||
|
EBITDA excluding Aqua
|
870 | + |
8 Years of Adjusted RD Expense
|
3,022 | |||||||||||||||||||||||||
| + |
Adjusted RD Expense
(1)
|
332 | Gross Investments | 18,750 | |||||||||||||||||||||||||
| - |
Taxes (based on EBITDA above)
|
132 | x | Required Rate of Return | 8.5 | % | |||||||||||||||||||||||
| Gross Cash Earnings | 1,070 | — | Capital Charge on Gross Investments | 1,578 | = |
ECE (509) million
|
|||||||||||||||||||||||
| Threshold | Target | Maximum |
2024 Actual Results
|
|||||||||||
| ECE | $(860) million | $(520) million | $(181) million | $(509) million | ||||||||||
| Payout | 0 % | 100 | % | 200 | % | 103 | % | |||||||
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|
||||||
| Compensation Discussion Analysis | ||||||||
|
Category
|
2023 ECE ($M)
|
2024 ECE ($M)
|
Δ ECE ($M)
|
Bonus Multiple (%)
|
||||||||||
|
Unadjusted
|
(492) | (499) | (7) | 98 | ||||||||||
|
Aqua Business Divestiture
|
(28) | (10) | 18 | 5 | ||||||||||
|
Results Excluding Aqua
|
(520) | (509) | 11 | 103 | ||||||||||
|
2024 Base Salary
($)
|
2024 Target
Bonus
(%)
|
2024 Company
Achievement
(%)
|
2024 Bonus
Payout
($)
|
||||||||||||||
| Mr. Simmons | 1,200,000 | 130 | 103 | 1,606,800 | |||||||||||||
| Mr. Young | 694,000 | 80 | 103 | 571,856 | |||||||||||||
|
Dr. de Brabander
(1)
|
753,048 | 75 | 103 | 581,730 | |||||||||||||
| Dr. Cabral | 620,000 | 75 | 103 | 478,950 | |||||||||||||
| Mr. Bettington | 642,000 | 70 | 103 | 462,882 | |||||||||||||
| Elanco Animal Health Incorporated |
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|
||||||
|
Compensation Discussion Analysis
|
||||||||
| Name |
2024 Annual Equity Grant ($)
|
|||||||
| Mr. Simmons | 12,000,000 | |||||||
| Mr. Young | 2,815,000 | |||||||
| Dr. de Brabander | 2,042,000 | |||||||
| Dr. Cabral | 1,815,000 | |||||||
| Mr. Bettington | 1,400,000 | |||||||
| Elanco Animal Health Incorporated |
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||||||
| Compensation Discussion Analysis | ||||||||
| Name | Payout Date |
Grant Date
Fair Value
(1)
($)
|
|||||||||
| Mr. Simmons | February 2026 | 6,000,013 | |||||||||
| Mr. Young | February 2026 | 1,407,514 | |||||||||
| Dr. de Brabander | February 2026 | 1,021,015 | |||||||||
| Dr. Cabral | February 2026 | 907,506 | |||||||||
| Mr. Bettington | February 2026 | 700,014 | |||||||||
|
76.75%
$1,296M
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Performance Multiple (%)
|
0% | 25% | 50% | 75% | 100% | 125% | 150% | 175% | 200% | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
EBITDAR Attainment ($M)
|
$1,025M
|
$1,113M
|
$1,201M
|
$1,290M
|
$1,378M
|
$1,466M
|
$1,554M
|
$1,643M
|
$1,731M
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
103.97%
$1,202M
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Performance Multiple (%)
|
0% | 25% | 50% | 75% | 100% | 125% | 150% | 175% | 200% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
EBITDAR Attainment ($M)
|
$849M
|
$934M
|
$1,019M
|
$1,103M
|
$1,188M
|
$1,273M
|
$1,358M
|
$1,443M
|
$1,528M
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Elanco Animal Health Incorporated |
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|
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|
||||||
|
Compensation Discussion Analysis
|
||||||||
| 2023 Performance Period | 2024 Performance Period | |||||||||||||||||||||||||||||||
|
Adjustment Category
|
EBITDAR
Attainment vs. Target
($M)
|
Attainment
Multiple Impact
(%)
|
EBITDAR
Attainment vs. Target
($M)
|
Attainment
Multiple Impact
(%)
|
||||||||||||||||||||||||||||
| Pre-BAH Normalized Capitalized RD | 10 | 3 | 16 | 5 | ||||||||||||||||||||||||||||
| FX and Impairments to Goodwill | (41) | (12) | (51) | (15) | ||||||||||||||||||||||||||||
| FX on Gross Intangibles | 19 | 5 | (14) | (4) | ||||||||||||||||||||||||||||
| Rate Changes on Accrued Pension | 6 | 2 | (1) | — | ||||||||||||||||||||||||||||
|
Aqua Divestiture
|
N/A
|
N/A
|
19 | 6 | ||||||||||||||||||||||||||||
| Total Adjustments | (6) | (2) | (30) | (9) | ||||||||||||||||||||||||||||
| Name | Target Shares |
Shares Paid Out
|
|||||||||
| Mr. Simmons | 497,336 | 449,408 | |||||||||
| Mr. Young | 116,120 | 104,930 | |||||||||
| Dr. de Brabander | 90,675 | 81,937 | |||||||||
| Dr. Cabral | 75,489 | 68,214 | |||||||||
| Elanco Animal Health Incorporated |
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|
2025 Proxy Statement
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||||||
| Compensation Discussion Analysis | ||||||||
| Name | Vesting Date |
Grant Date Fair
Market Value
(1)
($)
|
|||||||||
| Mr. Simmons | March 2027 | 3,000,015 | |||||||||
| Mr. Young | March 2027 | 703,765 | |||||||||
| Dr. de Brabander | March 2027 | 510,507 | |||||||||
| Dr. Cabral | March 2027 | 453,761 | |||||||||
| Mr. Bettington | March 2027 | 350,015 | |||||||||
| Elanco Animal Health Incorporated |
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|
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|
||||||
|
Compensation Discussion Analysis
|
||||||||
| Name | Vesting Date |
Grant Date Fair
Market Value
(1)
($)
|
|||||||||
| Mr. Simmons | March 2027 | 3,000,005 | |||||||||
| Mr. Young | March 2027 | 703,755 | |||||||||
| Dr. de Brabander | March 2027 | 510,502 | |||||||||
| Dr. Cabral | March 2027 | 453,752 | |||||||||
| Mr. Bettington | March 2027 | 350,007 | |||||||||
|
RD PA Regulatory Milestone
|
Performance Weight
|
Approval Deadline
|
Approval Date
|
Multiple Impact (%)
|
||||||||||
|
Award Target Value
|
100 | |||||||||||||
|
Bovaer Dairy (US Approval)
|
+/-10%
|
December 31, 2024 | May 28, 2024 | 10 | ||||||||||
|
Zenrelia (US Approval)
|
+/-10%
|
December 31, 2024 | September 19, 2024 | 10 | ||||||||||
|
Credelio Quattro (US Approval)
|
+/-10%
|
December 31, 2024 | October 7, 2024 | 10 | ||||||||||
|
Final Performance Multiple
|
130 | |||||||||||||
| Elanco Animal Health Incorporated |
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|
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|
||||||
| Compensation Discussion Analysis | ||||||||
| Name | Target Shares |
Shares Paid Out
|
|||||||||
|
Dr. de Brabander
|
45,621 | 59,307 | |||||||||
| Elanco Animal Health Incorporated |
63
|
2025 Proxy Statement
|
||||||
|
Compensation Discussion Analysis
|
||||||||
| Elanco Animal Health Incorporated |
64
|
2025 Proxy Statement
|
||||||
| Compensation Discussion Analysis | ||||||||
| Elanco Animal Health Incorporated |
65
|
2025 Proxy Statement
|
||||||
|
Compensation Discussion Analysis
|
||||||||
| Elanco Animal Health Incorporated |
66
|
2025 Proxy Statement
|
||||||
|
Executive Compensation
Tables
|
||||||||
|
Name and
Principal Position
|
Year |
Salary
($)
|
Bonus
($)
|
Stock
Awards
(4)
($)
|
Option
Awards
(5)
($)
|
Non-Equity
Incentive Plan
Compensation
(6)
($)
|
All Other
Compensation
(7)
($)
|
Total
($)
|
|||||||||||||||||||||
|
Jeffrey Simmons
(1)
President and CEO
|
2024 | 1,200,000 | — | 9,000,027 | 3,000,005 | 1,606,800 | 26,871 |
|
|||||||||||||||||||||
| 2023 | 1,200,000 | — | 8,400,005 | 2,800,003 | 1,232,400 | 30,761 | 13,663,169 | ||||||||||||||||||||||
| 2022 | 1,125,000 | — | 7,650,029 | 2,550,002 | 1,360,125 | 28,476 | 12,713,632 | ||||||||||||||||||||||
|
Todd Young
Executive Vice President and Chief Financial Officer
|
2024 | 694,000 | — | 2,111,279 | 703,755 | 571,856 | 28,471 | 4,109,361 | |||||||||||||||||||||
| 2023 | 661,400 | — | 1,961,267 | 653,753 | 418,005 | 32,296 | 3,726,720 | ||||||||||||||||||||||
| 2022 | 639,000 | — | 1,882,518 | 627,504 | 475,416 | 30,046 | 3,654,484 | ||||||||||||||||||||||
|
Ellen de Brabander
(2)
Executive Vice President, Innovation and Regulatory
|
2024 | 753,048 | — | 2,031,537 | 510,502 | 581,730 | 37,115 | 3,913,932 | |||||||||||||||||||||
| 2023 | 709,748 | — | 2,031,513 | 510,502 | 392,491 | 39,480 | 3,683,732 | ||||||||||||||||||||||
| 2022 | 667,819 | — | 1,258,543 | 419,505 | 434,750 | 29,426 | 2,810,043 | ||||||||||||||||||||||
|
Ramiro Cabral
Executive Vice President, President International
|
2024 | 620,000 | — | 1,361,268 | 453,752 | 478,950 | 28,501 | 2,942,471 | |||||||||||||||||||||
| 2023 | 592,000 | — | 1,275,015 | 425,001 | 327,376 | 31,362 | 2,650,754 | ||||||||||||||||||||||
| 2022 | 572,000 | — | 1,102,527 | 367,505 | 372,372 | 28,446 | 2,442,850 | ||||||||||||||||||||||
|
Timothy Bettington
(3)
Executive Vice President, Global Strategy and Market Development
|
2024 | 642,000 | — | 1,050,029 | 350,007 | 462,882 | 28,471 | 2,533,389 | |||||||||||||||||||||
| 2023 | 486,528 | 100,000 | 1,000,008 | — | 269,591 | 197,835 | 2,053,962 | ||||||||||||||||||||||
| Elanco Animal Health Incorporated |
67
|
2025 Proxy Statement
|
||||||
|
Executive Compensation Tables
|
||||||||
| Name |
Award
|
Payout Date |
Target Payout
($)
|
Maximum Payout
($)
|
|||||||||||||
| Mr. Simmons |
2024 PAs
|
February 2026 | 6,000,013 | 12,000,026 | |||||||||||||
| Mr. Young | 2024 PAs | February 2026 | 1,407,514 | 2,815,028 | |||||||||||||
| Dr. de Brabander | 2024 PAs | February 2026 | 1,021,015 | 2,042,030 | |||||||||||||
|
Dr. de Brabander
|
2024 Special RD PA
|
Q2 2026
|
500,015 | 700,020 | |||||||||||||
| Dr. Cabral |
2024 PAs
|
February 2026 | 907,506 | 1,815,013 | |||||||||||||
| Mr. Bettington | 2024 PAs | February 2026 | 700,014 | 1,400,028 | |||||||||||||
| Elanco Animal Health Incorporated |
68
|
2025 Proxy Statement
|
||||||
| Executive Compensation Tables | ||||||||
|
Elanco
Compensation
and Human Capital
Committee
|
Estimated Future Payouts Under
Non-Equity Incentive
Plan Awards
(1)
|
Estimated Future
Payouts Under Equity
Incentive Plan Awards
|
All Other
Stock
Awards:
Number
of Shares
of Stock
or Units
(#)
|
All Other
Option
Awards:
Number of
Securities
Underlying
Options
(#)
|
Exercise
or Base
Price of
Option
Awards
($)
|
Grant
Date Fair
Value of Stock and
Option
Awards
(6)
($)
|
|||||||||||||||||||||||||||||||||||||||||
| Name | Award |
Grant
Date
|
Approval
Date
|
Target
($)
|
Maximum
($)
|
Threshold
(#)
|
Target
(#)
|
Maximum
(#)
|
|||||||||||||||||||||||||||||||||||||||
|
Mr.
Simmons
|
2024 Elanco Bonus Plan
(2)
|
— | — | 1,560,000 | 3,120,000 | ||||||||||||||||||||||||||||||||||||||||||
|
2024 PAs
(3)
|
3/1/24 | 2/29/24 | — | 374,299 | 748,598 | 6,000,013 | |||||||||||||||||||||||||||||||||||||||||
|
2024 RSUs
(4)
|
3/1/24 | 2/29/24 | 187,150 | 3,000,015 | |||||||||||||||||||||||||||||||||||||||||||
|
2024 Elanco Options
(5)
|
3/1/24 | 2/29/24 | 408,164 | 16.03 | 3,000,005 | ||||||||||||||||||||||||||||||||||||||||||
|
Mr.
Young
|
2024 Elanco Bonus Plan
|
— | — | 555,200 | 1,110,400 | ||||||||||||||||||||||||||||||||||||||||||
|
2024 PAs
(3)
|
3/1/24 | 2/28/24 | — | 87,805 | 175,610 | 1,407,514 | |||||||||||||||||||||||||||||||||||||||||
|
2024 RSUs
(4)
|
3/1/24 | 2/28/24 | 43,903 | 703,765 | |||||||||||||||||||||||||||||||||||||||||||
|
2024 Options
(5)
|
3/1/24 | 2/28/24 | 95,749 | 16.03 | 703,755 | ||||||||||||||||||||||||||||||||||||||||||
| Dr. de Brabander |
2024 Elanco Bonus Plan
(7)
|
— | — | 564,786 | 1,129,573 | ||||||||||||||||||||||||||||||||||||||||||
|
2024 PAs
(3)
|
3/1/24 | 2/28/24 | — | 63,694 | 127,388 | 1,021,015 | |||||||||||||||||||||||||||||||||||||||||
|
2024 RSUs
(4)
|
3/1/24 | 2/28/24 | 31,847 | 510,507 | |||||||||||||||||||||||||||||||||||||||||||
|
2024 Options
(5)
|
3/1/24 | 2/28/24 | 69,456 | 16.03 | 510,502 | ||||||||||||||||||||||||||||||||||||||||||
|
2024 Special RD PA
(8)
|
1/2/24 | 8/15/23 | 20,492 | 34,154 | 47,816 | 500,015 | |||||||||||||||||||||||||||||||||||||||||
|
Dr.
Cabral
|
2024 Elanco Bonus Plan
|
— | — | 465,000 | 930,000 | ||||||||||||||||||||||||||||||||||||||||||
|
2024 PAs
(3)
|
3/1/24 | 2/28/24 | — | 56,613 | 113,226 | 907,506 | |||||||||||||||||||||||||||||||||||||||||
|
2024 RSUs
(4)
|
3/1/24 | 2/28/24 | 28,307 | 453,761 | |||||||||||||||||||||||||||||||||||||||||||
|
2024 Options
(5)
|
3/1/24 | 2/28/24 | 61,735 | 16.03 | 453,752 | ||||||||||||||||||||||||||||||||||||||||||
| Mr. Bettington |
2024 Elanco Bonus Plan
|
— | — | 449,400 | 898,800 | ||||||||||||||||||||||||||||||||||||||||||
|
2024 PAs
(3)
|
3/1/24 | 2/28/24 | — | 43,669 | 87,338 | 700,014 | |||||||||||||||||||||||||||||||||||||||||
|
2024 RSUs
(4)
|
3/1/24 | 2/28/24 | 21,835 | 350,015 | |||||||||||||||||||||||||||||||||||||||||||
|
2024 Options
(5)
|
3/1/24 | 2/28/24 | 47,620 | 16.03 | 350,007 | ||||||||||||||||||||||||||||||||||||||||||
| Elanco Animal Health Incorporated |
69
|
2025 Proxy Statement
|
||||||
|
Executive Compensation Tables
|
||||||||
| Elanco Animal Health Incorporated |
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|
2025 Proxy Statement
|
||||||
| Executive Compensation Tables | ||||||||
| Option Awards | Stock Awards | |||||||||||||||||||||||||||||||
| Name | Award |
Number of
Securities
Underlying
Options
Exercisable
(#)
|
Number of
Securities Underlying Options Unexercisable (#) |
Option
Exercise Price ($) |
Option
Expiration Date |
Number of
Shares or
Units of
Stock That
Have Not
Vested
(#)
|
Market
Value of
Shares or
Units of
Stock That
Have Not
Vested
($)
|
Equity
Incentive
Plan Awards: Number of Unearned Shares, Units, or Other Rights That Have Not
Vested
(#)
|
Equity
Incentive Plan
Awards:
Market or
Payout Value of Unearned
Shares,
Units, or Other Rights That
Have Not
Vested
($)
|
|||||||||||||||||||||||
| Mr. Simmons |
2018 Options
(1)
|
109,642 | — | 31.61 | 10/20/2028 | |||||||||||||||||||||||||||
|
2022 RSUs
(2)
|
29,960 | 362,816 | ||||||||||||||||||||||||||||||
|
2022 Options
(3)
|
154,544 | 79,616 | 28.94 | 3/1/2032 | ||||||||||||||||||||||||||||
|
2023 - 2024 Executive PAs
(4)
|
497,336 | 6,022,739 | ||||||||||||||||||||||||||||||
|
2023 RSUs
(5)
|
166,608 | 2,017,623 | ||||||||||||||||||||||||||||||
|
2023 Options
(6)
|
187,424 | 380,528 | 11.26 | 3/1/2033 | ||||||||||||||||||||||||||||
|
2024 - 2025 Executive PAs
(7)
|
374,299 | 4,532,761 | ||||||||||||||||||||||||||||||
|
2024 RSUs
(8)
|
187,150 | 2,266,387 | ||||||||||||||||||||||||||||||
|
2024 Options
(9)
|
— | 408,164 | 16.03 | 3/1/2034 | ||||||||||||||||||||||||||||
| Mr. Young |
2022 RSUs
(2)
|
7,373 | 89,287 | |||||||||||||||||||||||||||||
|
2022 Options
(3)
|
38,030 | 19,592 | 28.94 | 3/1/2032 | ||||||||||||||||||||||||||||
|
2023 - 2024 Executive PAs
(4)
|
116,120 | 1,406,213 | ||||||||||||||||||||||||||||||
|
2023 RSUs
(5)
|
38,901 | 471,091 | ||||||||||||||||||||||||||||||
|
2023 Options
(6)
|
43,760 | 88,847 | 11.26 | 3/1/2033 | ||||||||||||||||||||||||||||
|
2024 - 2025 Executive PAs
(7)
|
87,805 | 1,063,319 | ||||||||||||||||||||||||||||||
|
2024 RSUs
(8)
|
43,903 | 531,665 | ||||||||||||||||||||||||||||||
|
2024 Options
(9)
|
— | 95,749 | 16.03 | 3/1/2034 | ||||||||||||||||||||||||||||
| Dr. de Brabander |
2022 RSUs
(2)
|
4,930 | 59,702 | |||||||||||||||||||||||||||||
|
2022 Options
(3)
|
25,424 | 13,098 | 28.94 | 3/1/2032 | ||||||||||||||||||||||||||||
|
2023 - 2024 Executive PAs
(4)
|
90,675 | 1,098,074 | ||||||||||||||||||||||||||||||
|
2023 RSUs
(5)
|
30,377 | 367,865 | ||||||||||||||||||||||||||||||
|
2023 Options
(6)
|
34,171 | 69,379 | 11.26 | 3/1/2033 | ||||||||||||||||||||||||||||
|
2023 Special RD PA
(10)
|
45,621 | 552,470 | ||||||||||||||||||||||||||||||
|
2024 Special RD PA
(11)
|
34,154 | 413,605 | ||||||||||||||||||||||||||||||
|
2024 - 2025 Executive PAs
(7)
|
63,694 | 771,334 | ||||||||||||||||||||||||||||||
|
2024 RSUs
(8)
|
31,847 | 385,667 | ||||||||||||||||||||||||||||||
|
2024 Options
(9)
|
— | 69,456 | 16.03 | 3/1/2034 | ||||||||||||||||||||||||||||
| Elanco Animal Health Incorporated |
71
|
2025 Proxy Statement
|
||||||
|
Executive Compensation Tables
|
||||||||
| Option Awards | Stock Awards | |||||||||||||||||||||||||||||||
| Name | Award |
Number of
Securities
Underlying
Options
Exercisable
(#)
|
Number of
Securities Underlying Options Unexercisable (#) |
Option
Exercise Price ($) |
Option
Expiration Date |
Number of
Shares or
Units of
Stock That
Have Not
Vested
(#)
|
Market
Value of
Shares or
Units of
Stock That
Have Not
Vested
($)
|
Equity
Incentive
Plan Awards: Number of Unearned Shares, Units, or Other Rights That Have Not
Vested
(#)
|
Equity
Incentive Plan
Awards:
Market or
Payout Value of Unearned
Shares,
Units, or Other Rights That
Have Not
Vested
($)
|
|||||||||||||||||||||||
| Dr. Cabral |
2018 Options
(1)
|
21,086 | — | 31.61 | 10/20/2028 | |||||||||||||||||||||||||||
|
2022 RSUs
(2)
|
4,319 | 52,303 | ||||||||||||||||||||||||||||||
|
2022 Options
(3)
|
22,272 | 11,475 | 28.94 | 3/1/2032 | ||||||||||||||||||||||||||||
|
2023 - 2024 Executive PAs
(4)
|
75,489 | 914,172 | ||||||||||||||||||||||||||||||
|
2023 RSUs
(5)
|
25,290 | 306,262 | ||||||||||||||||||||||||||||||
|
2023 Options
(6)
|
28,448 | 57,759 | 11.26 | 3/1/2033 | ||||||||||||||||||||||||||||
|
2024 - 2025 Executive PAs
(7)
|
56,613 | 685,583 | ||||||||||||||||||||||||||||||
|
2024 RSUs
(8)
|
28,307 | 342,798 | ||||||||||||||||||||||||||||||
|
2024 Options
(9)
|
— | 61,735 | 16.03 | 3/1/2034 | ||||||||||||||||||||||||||||
|
Mr. Bettington
|
2023 Sign-On RSUs
(12)
|
54,055 | 654,606 | |||||||||||||||||||||||||||||
|
2024 - 2025 Executive PAs
(7)
|
43,669 | 528,832 | ||||||||||||||||||||||||||||||
|
2024 RSUs
(8)
|
21,835 | 264,422 | ||||||||||||||||||||||||||||||
|
2024 Options
(9)
|
— | 47,620 | 16.03 | 3/1/2034 | ||||||||||||||||||||||||||||
| Elanco Animal Health Incorporated |
72
|
2025 Proxy Statement
|
||||||
| Executive Compensation Tables | ||||||||
| Stock Awards | |||||||||||||||||
| Name |
Number
of Shares
Acquired on Vesting
(#)
|
Value
Realized
on Vesting
(1)
($)
|
|||||||||||||||
| Mr. Simmons | 284,509 |
(2)
|
4,623,344 | ||||||||||||||
| Mr. Young | 68,083 |
(3)
|
1,107,040 | ||||||||||||||
| Dr. de Brabander | 44,106 |
(4)
|
717,495 | ||||||||||||||
| Dr. Cabral | 41,220 |
(5)
|
669,934 | ||||||||||||||
| Mr. Bettington | 54,054 |
(6)
|
834,053 | ||||||||||||||
| Elanco Animal Health Incorporated |
73
|
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|
||||||
|
Executive Compensation Tables
|
||||||||
|
Name
|
Executive
Contributions
in 2024
($)
|
Aggregate
Earnings
in 2024
($)
|
Aggregate Withdrawals/ Distributions ($)
|
Aggregate
Balance at December 31,
2024
(1)
($)
|
|||||||||||||
|
Mr. Simmons
(1)
|
168,408 | (11,541) | — | 156,868 | |||||||||||||
| Dr. Cabral | — | 12,270 | (304,581) | 246,997 | |||||||||||||
| Elanco Animal Health Incorporated |
74
|
2025 Proxy Statement
|
||||||
| Executive Compensation Tables | ||||||||
|
Cash
Severance
Payment
(1)
($)
|
Continuation
of Medical /
Welfare
Benefits
(present
value)
($)
|
Value of
Acceleration
of Equity
Awards
($)
|
Total
Termination
Benefits
($)
|
||||||||||||||||||||
|
MR. SIMMONS
|
|||||||||||||||||||||||
| Termination due to death | — | — | 13,259,393 |
(2)
|
13,259,393 | ||||||||||||||||||
|
Termination due to disability, reduction in force, or other qualified reason not in connection with change in control
|
5,520,000 | 69,085 |
(3)
|
10,180,766 |
(2)
|
15,769,851 | |||||||||||||||||
| Non-qualified discharge not in connection with change in control | 5,520,000 | 69,085 |
(3)
|
— |
(4)
|
5,589,085 | |||||||||||||||||
|
Qualifying termination in connection with change in control
|
5,520,000 | 53,522 |
(5)
|
15,525,774 |
(6)
|
21,099,296 | |||||||||||||||||
|
MR. YOUNG
|
|||||||||||||||||||||||
| Termination due to death | — | — | 3,105,436 |
(2)
|
3,105,436 | ||||||||||||||||||
|
Termination due to disability, reduction in force, or other qualified reason not in connection with change in control
|
1,249,200 | 33,938 |
(3)
|
2,384,038 |
(2)
|
3,667,176 | |||||||||||||||||
| Non-qualified discharge not in connection with change in control | 1,249,200 | 33,938 |
(3)
|
— |
(4)
|
1,283,138 | |||||||||||||||||
|
Qualifying termination in connection with change in control
|
2,498,400 | 52,615 |
(5)
|
3,637,095 |
(6)
|
6,188,110 | |||||||||||||||||
|
DR. DE BRABANDER
(7)
|
|||||||||||||||||||||||
| Termination due to death | — | — | 3,092,243 |
(2)
|
3,092,243 | ||||||||||||||||||
|
Termination due to disability, reduction in force, or other qualified reason not in connection with change in control
|
1,317,835 | — |
(3)
|
2,551,934 |
(2)
|
3,869,769 | |||||||||||||||||
| Non-qualified discharge not in connection with change in control | 1,317,835 | — |
(3)
|
— |
(4)
|
1,317,835 | |||||||||||||||||
|
Qualifying termination in connection with change in control
|
2,635,669 | 901 |
(5)
|
3,707,691 |
(6)
|
6,344,261 | |||||||||||||||||
|
DR. CABRAL
|
|||||||||||||||||||||||
| Termination due to death | — | — | 2,007,421 |
(2)
|
2,007,421 | ||||||||||||||||||
|
Termination due to disability, reduction in force, or other qualified reason not in connection with change in control
|
1,085,000 | 34,452 |
(3)
|
1,541,435 |
(2)
|
2,660,887 | |||||||||||||||||
| Non-qualified discharge not in connection with change in control | 1,085,000 | 34,452 |
(3)
|
— |
(4)
|
1,119,452 | |||||||||||||||||
|
Qualifying termination in connection with change in control
|
2,170,000 | 53,386 |
(5)
|
2,350,213 |
(6)
|
4,573,599 | |||||||||||||||||
|
MR. BETTINGTON
|
|||||||||||||||||||||||
| Termination due to death | — | — | 1,183,444 |
(2)
|
1,183,444 | ||||||||||||||||||
|
Termination due to disability, reduction in force, or other qualified reason not in connection with change in control
|
1,091,400 | 34,452 |
(3)
|
825,141 |
(2)
|
1,950,993 | |||||||||||||||||
| Non-qualified discharge not in connection with change in control | 1,091,400 | 34,452 |
(3)
|
— |
(4)
|
1,125,852 | |||||||||||||||||
|
Qualifying termination in connection with change in control
|
2,182,800 | 53,386 |
(5)
|
1,447,859 |
(6)
|
3,684,045 | |||||||||||||||||
| Elanco Animal Health Incorporated |
75
|
2025 Proxy Statement
|
||||||
|
Executive Compensation Tables
|
||||||||
| Elanco Animal Health Incorporated |
76
|
2025 Proxy Statement
|
||||||
| Executive Compensation Tables | ||||||||
| Elanco Animal Health Incorporated |
77
|
2025 Proxy Statement
|
||||||
|
Pay Versus
Performance
|
||||||||
|
Summary
Comp. Table Total for CEO
(1)(2)
($)
|
Average
Summary
Comp.
Table Total
for non-CEO NEOs
(1)(2)
($)
|
Average
Comp.
Actually Paid
to non-CEO NEOs
(1)(2)
($)
|
Value of Initial Fixed
$100 Investment Based
On:
|
|||||||||||||||||||||||
| Year |
Comp.
Actually Paid
to CEO
(1)(2)
($)
|
Total
Shareholder
Return
(3)
($)
|
SP 500 Pharmaceuticals Index TSR
(3)
($)
|
Net
Income
(Loss)
($)
|
Adjusted EBITDA
(4)
($)
|
|||||||||||||||||||||
|
2024
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
2023
|
|
|
|
|
|
|
(
|
|
||||||||||||||||||
| 2022 |
|
(
|
|
|
|
|
(
|
|
||||||||||||||||||
| 2021 |
|
|
|
|
|
|
(
|
|
||||||||||||||||||
| 2020 |
|
|
|
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(
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| Elanco Animal Health Incorporated |
78
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2025 Proxy Statement
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Pay Versus Performance
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||||||||
| 2024 | ||||||||
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Adjustments
(a)
|
CEO
($)
|
Average of
Other NEOs
($)
|
||||||
| Total Compensation from SCT |
|
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| Adjustments for stock and option awards: | ||||||||
|
Deduct: SCT amount of Stock and Option awards
|
(
|
(
|
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Add: Fair value at year-end of awards granted during the covered fiscal year that are outstanding and unvested at year-end
|
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Add/Deduct: The difference between the fair value of awards from the end of the prior fiscal year(s) to the end of the applicable fiscal year for awards that are outstanding and unvested at year end
|
(
|
(
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||||||
|
Add: Change in fair value from the end of the prior fiscal year to the vesting date of awards granted in any prior fiscal year for which vesting conditions were satisfied during such year
|
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| Compensation Actually Paid (as calculated) |
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| Elanco Animal Health Incorporated |
79
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2025 Proxy Statement
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| Pay Versus Performance | ||||||||
| Elanco Animal Health Incorporated |
80
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2025 Proxy Statement
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Pay Versus Performance
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| Elanco Animal Health Incorporated |
81
|
2025 Proxy Statement
|
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Proposal No. 3
Advisory Vote to
Approve Executive
Compensation
|
||||||||
|
The Board unanimously recommends a vote
“FOR”
the approval of the compensation of the Company’s named executive officers on an advisory basis.
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| Elanco Animal Health Incorporated |
82
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2025 Proxy Statement
|
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Proposal No. 4
Advisory Vote on the Frequency
with which Shareholders Vote
on Executive Compensation
|
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|
The Board unanimously recommends that you vote for the shareholder votes on the compensation of named executive officers to occur every
“1 YEAR”
.
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| Elanco Animal Health Incorporated |
83
|
2025 Proxy Statement
|
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|
Stock Ownership
Information
|
||||||||
| Name |
Shares Beneficially Owned
(1)
(#)
|
Percent of Class
(%)
|
DSUs
(2)
(#)
|
||||||||||||||
| Kapila Anand |
3,200
|
* |
88,119
|
||||||||||||||
| John Bilbrey |
41,722
|
(3)
|
* |
92,887
|
|||||||||||||
| Art Garcia | 3,525 | * |
77,439
|
||||||||||||||
| Michael Harrington |
19,600
|
* |
79,663
|
||||||||||||||
| Paul Herendeen | 10,000 | * |
64,499
|
||||||||||||||
| R. David Hoover |
320,920
|
(4)
|
* |
119,859
|
|||||||||||||
| Deborah Kochevar | 1,000 | * |
78,400
|
||||||||||||||
| Lawrence Kurzius |
30,000
|
* |
120,026
|
||||||||||||||
|
Stacey Ma
|
— | * |
2,539
|
||||||||||||||
| Kirk McDonald | — | * |
78,400
|
||||||||||||||
| Denise Scots-Knight | — | * |
79,387
|
||||||||||||||
| Jeffrey Simmons |
2,325,532
|
(5)
|
* |
29,750
|
|||||||||||||
| Kathy Turner | — | * |
13,838
|
||||||||||||||
| Craig Wallace | — | * |
13,838
|
||||||||||||||
| Todd Young |
433,317
|
(6)
|
* | — | |||||||||||||
| Ellen de Brabander |
264,195
|
* | — | ||||||||||||||
| Ramiro Cabral |
295,720
|
* | — | ||||||||||||||
| Timothy Bettington |
103,957
|
(7)
|
* | — | |||||||||||||
|
All directors and executive officers as a group (24 persons)
|
4,393,945
|
* |
956,039
|
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| Elanco Animal Health Incorporated |
84
|
2025 Proxy Statement
|
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|
Security Ownership of Certain Beneficial Owners
|
||||||||
| Name |
Number
of Shares
(#)
|
Percent
of Class
(%)
|
|||||||||
|
Dodge Cox
(1)
|
83,980,900
|
16.92
|
|||||||||
|
PRIMECAP Management Company
(2)
|
50,600,324
|
10.19
|
|||||||||
|
FMR LLC
(3)
|
49,541,123
|
9.98
|
|||||||||
|
The Vanguard Group
(4)
|
49,468,637
|
9.96
|
|||||||||
| Elanco Animal Health Incorporated |
85
|
2025 Proxy Statement
|
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|
Equity Compensation Plan
Information
|
||||||||
| Name |
Number of securities
to be issued upon
exercise of outstanding
options and rights
(#)
|
Weighted-average
exercise price of
outstanding options
and rights
(1)
($)
|
Number of securities
remaining available for
future issuance under
equity compensation
plans (excluding
securities reflected in
column (a))
(#)
|
|||||||||||
|
(a)
|
(b)
|
(c)
|
||||||||||||
|
Equity Compensation Plans
approved by security holders
|
10,318,026
(2)
|
17.27 |
27,538,488
(3)
|
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| Elanco Animal Health Incorporated |
86
|
2025 Proxy Statement
|
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|
General Information
About the Annual Meeting
|
||||||||
| Elanco Animal Health Incorporated |
87
|
2025 Proxy Statement
|
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|
General Information
|
||||||||
| Elanco Animal Health Incorporated |
88
|
2025 Proxy Statement
|
||||||
|
General Information
|
||||||||
| Proposal |
Voting
Options
|
Vote Required
to Adopt the Proposal
|
Effect of
Abstentions
|
Effect of
“Broker
Non-Votes”
|
||||||||||
|
No. 1 – Election of Directors
(1)
|
For, against or abstain on each nominee.
|
More votes "For" than "Against."
|
No effect. | No effect. No broker discretion to vote. | ||||||||||
|
No. 2 – Ratification of Independent
Auditor
|
For, against or abstain.
|
More votes “For” than “Against.”
|
No effect. |
Brokers have
discretion to vote.
|
||||||||||
|
No. 3 – Advisory Vote on Executive
Compensation
(2)
|
For, against or abstain.
|
More votes “For” than “Against.”
|
No effect. | No effect. No broker discretion to vote. | ||||||||||
|
No. 4 – Advisory Vote on the Frequency with which Shareholders Vote on Executive Compensation
(2)
|
1 year, 2 years, 3 years or abstain.
|
Alternative receiving greatest number of votes.
|
No effect.
|
No effect. No broker discretion to vote.
|
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| Elanco Animal Health Incorporated |
89
|
2025 Proxy Statement
|
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|
Submission of
Shareholder Proposals or Nominations
|
||||||||
| Elanco Animal Health Incorporated |
90
|
2025 Proxy Statement
|
||||||
|
Shareholder Proposals or Nominations
|
||||||||
| Elanco Animal Health Incorporated |
91
|
2025 Proxy Statement
|
||||||
|
Other
Information
|
||||||||
| Elanco Animal Health Incorporated |
92
|
2025 Proxy Statement
|
||||||
|
Other Information
|
||||||||
| Elanco Animal Health Incorporated |
93
|
2025 Proxy Statement
|
||||||
|
Other Information
|
||||||||
| Elanco Animal Health Incorporated |
94
|
2025 Proxy Statement
|
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|
Appendix A
Reconciliation of GAAP Reported
to Selected Non-GAAP Adjusted Information
|
||||||||
| Elanco Animal Health Incorporated |
A-1
|
2025 Proxy Statement
|
||||||
|
Appendix A
|
||||||||
|
Twelve months ended
December 31, 2024
|
Twelve months ended
December 31, 2023
|
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| $ in millions, expect per share amounts | GAAP Reported |
Adjusted Items
(b)
|
Non-
GAAP
(a)
|
GAAP Reported |
Adjusted Items
(b)
|
Non-
GAAP
(a)
|
||||||||||||||||||||||||||||||||
|
Cost of sales
|
$ | 2,003 | $ | — | $ | 2,003 | $ | 1,931 | $ | 2 | $ | 1,929 | ||||||||||||||||||||||||||
| Amortization of intangible assets | 527 | 527 | — | 548 | 548 | — | ||||||||||||||||||||||||||||||||
|
Asset impairment, restructuring and other special charges
(1)
|
150 | 150 | — | 127 | 127 | — | ||||||||||||||||||||||||||||||||
| Goodwill impairment | — | — | — | 1,042 | 1,042 | — | ||||||||||||||||||||||||||||||||
|
Gain on divestiture
|
(640) | (640) | — | — | — | — | ||||||||||||||||||||||||||||||||
|
Interest expense, net of capitalized interest
(2)
|
235 | 12 | 223 | 277 | — | 277 | ||||||||||||||||||||||||||||||||
|
Other expense, net
(3)
|
18 | 15 | 3 | 75 | 42 | 33 | ||||||||||||||||||||||||||||||||
|
Income (loss) before taxes
|
488 | 64 | 552 | (1,195) | 1,761 | 566 | ||||||||||||||||||||||||||||||||
|
Income tax expense
(4)
|
150 | 50 | 100 | 36 | (91) | 127 | ||||||||||||||||||||||||||||||||
|
Net income (loss)
|
$ | 338 | $ | 114 | $ | 452 | $ | (1,231) | $ | 1,670 | $ | 439 | ||||||||||||||||||||||||||
|
Earnings (loss) per share:
|
||||||||||||||||||||||||||||||||||||||
| basic | $ | 0.68 | $ | 0.23 | $ | 0.91 | $ | (2.50) | $ | 3.39 | $ | 0.89 | ||||||||||||||||||||||||||
| diluted | $ | 0.68 | $ | 0.23 | $ | 0.91 | $ | (2.50) | $ | 3.39 | $ | 0.89 | ||||||||||||||||||||||||||
| Adjusted weighted average shares outstanding: | ||||||||||||||||||||||||||||||||||||||
| basic |
494.0
|
494.0 | 494.0 |
492.3
|
492.3
|
492.3
|
||||||||||||||||||||||||||||||||
|
diluted
(5)
|
497.3
|
497.3 | 497.3 |
492.3
|
493.7
|
493.7
|
||||||||||||||||||||||||||||||||
| Elanco Animal Health Incorporated |
A-2
|
2025 Proxy Statement
|
||||||
| Appendix A | ||||||||
| Elanco Animal Health Incorporated |
A-3
|
2025 Proxy Statement
|
||||||
|
Appendix A
|
||||||||
| Twelve Months Ended December 31, | ||||||||||||||
|
$ in millions
|
2024
|
2023
|
||||||||||||
|
Reported net income (loss)
|
$ | 338 | $ | (1,231) | ||||||||||
| Net interest expense | 235 | 277 | ||||||||||||
|
Income tax expense
|
150 | 36 | ||||||||||||
|
Depreciation and amortization
|
662 | 694 | ||||||||||||
| EBITDA | $ | 1,385 | $ | (224) | ||||||||||
| Non-GAAP Adjustments: | ||||||||||||||
| Cost of sales | $ | — | $ | 2 | ||||||||||
| Asset impairment, restructuring and other special charges | 150 | 127 | ||||||||||||
| Goodwill impairment | — | 1,042 | ||||||||||||
|
Gain on divestiture
|
(640) | — | ||||||||||||
| Other expense, net | 15 | 42 | ||||||||||||
|
Accelerated depreciation and amortization
(1)
|
— | (10) | ||||||||||||
| Adjusted EBITDA | $ | 910 | $ | 979 | ||||||||||
|
Adjusted EBITDA Margin
|
20.5 | % |
22.2%
|
|||||||||||
| Elanco Animal Health Incorporated |
A-4
|
2025 Proxy Statement
|
||||||
| Appendix A | ||||||||
|
$ in millions
|
||||||||
| Long-term debt | $ | 4,277 | ||||||
| Current portion of long-term debt | 44 | |||||||
| Less: Unamortized debt issuance costs | (28) | |||||||
| Total gross debt | 4,349 | |||||||
| Less: Cash and cash equivalents | 468 | |||||||
| Net Debt | $ | 3,881 | ||||||
|
Net Debt Leverage Ratio
|
4.3x
|
|||||||
| Elanco Animal Health Incorporated |
A-5
|
2025 Proxy Statement
|
||||||
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
No Customers Found
No Suppliers Found
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|