Report of Political Financial Support 2018 Lillypac Mission
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Advancing our Mission to Make Life Better REPORT OF POLITICAL FINANCIAL SUPPORT 2018 LILLYPAC MISSION LillyPAC brings us together with a united voice to financially support candidates of both parties who will champion policies that advance a positive environment for pharmaceutical innovation. LillyPAC received the corporate Trailblazer “Best in Class” Award from the National Association of Business Political Action Committees (NABPAC) in 2018. NABPAC is the leading association of business political action committees from all across the United States. While we are grateful for the recognition, it is imperative that we continue to place Lilly in strongest position to weather the pressures of the U.S. policy environment. 1 | 2018 LillyPAC MESSAGE FROM THE PAC CHAIR I’m pleased to present the LillyPAC 2018 Annual Report, which details the PAC’s role in protecting and strengthening the U.S. policy environment to support pharmaceutical innovation. As you’ll read, LillyPAC makes our democracy more inclusive by providing the opportunity for Lilly employees to effectively participate in the political process to advocate on behalf of the company and patients. As LillyPAC’s chairman, one of my fundamental beliefs is that democracy is not a spectator sport. Meaning, change doesn’t happen without direct involvement and input from our employee PAC members. I am thankful for the LillyPAC members who contributed their time, talent and resources to support our company’s policy priorities through political involvement in 2018. I don’t take lightly what those contributions are meant to do, which is to assure Lilly is in strongest position possible to weather the pressures of the U.S. policy environment. To that end, LillyPAC had a healthy record of successes in 2018, including: • We supported 116 federal candidates for elected office; • We supported 513 local and state candidates for elected office; • We had a record-breaking LillyPAC membership campaign, where we welcomed 282 new members in 2018 and 191 current members increased their annual contributions helping the PAC raise $210,000 in new annualized PAC receipts; and • We launched the brand new Discovery Club and PAC Charity Match program last year and won a prestigious industry award. You will find more information about all of this contained in the following pages along with a full report of LillyPAC’s finances, the candidates and committees it supported in 2018, and the people who are helping the program grow. Over the course of the next 3 to 5 years, Lilly has a tremendous opportunity to deliver more innovative medicines to patients than any time in our company’s history. A number of forces will impact our ability to achieve this innovation, not the least of which will be the impact of U.S. policy decisions. With this in mind, continuing to grow and strengthen LillyPAC is a necessary priority. We look forward to building an even stronger Team LillyPAC in the year ahead. Michael J. Harrington Senior Vice President and General Counsel Chair, LillyPAC Governing Board 2 | 2018 LillyPAC BY THE NUMBERS Number of eligible Participation rate of eligible employees who gave employees 2,01 their financial support 19 of eligible Senior Executives (GLC) are participating in $909,511 75 LillyPAC Total voluntary contributions from Lilly employees GIING PERCENTAGES Ratio of federal candidates 3.77 & political committees 100 5.97 of eligible EC are participating Republican in LillyPAC at the suggested Independent guideline Democrat 1.26 26.66 Lilly Bio-Medicines Amount LillyPAC 8.0 donated to Lilly $978,300 Diabetes federal state & local 18.8 candidates & candidates & Global 116 committees 513 committees Services 6.67 $2,000,000 Lilly PhRMA Industry PAC Receipts International Participation Pfizer 8.55 By Business $1,500,000 LRL Areas 8.0 $1,000,000 Amgen Manufacturing AbbVie and Quality Merck J&J LILLY Sanofi 30.63 $500,000 AstraZenecaGenentech Lilly GSK Oncology Novo NordiskBristol Meyers LILLYPAC 2018 23 | 2018 LillyPAC 2018 FINANCIAL STATEMENT LillyPAC Revenue Cash on Hand (1/1/2018) $ 311,227.44 Donations from eligible Lilly employees $ 909,511.24 Other (Dividends, Interest, etc.) $ 218.06 $ 1,220,956.74 Disbursements Federal Candidates $ 454,000.00 State & Local Candidates $ 497,300.00 Refunds of Contributions $ 486.78 Operating Expenses (bank fees) $ 150.00 $ 951,936.78 Ending Balance (12/31/18) $ 269,019.96 4 | 2018 LillyPAC WHO MAKES THE DECISIONS? A 15-person LillyPAC Governing Board approves all donations made by the PAC. This Board is comprised of employees who represent various areas of Lilly. 2018 LILLYPAC BOARD Mike Harrington Matthew “Kip” Chase LillyPAC Chairman Senior Director Senior Vice President & HR-LillyUSA General Counsel Dr. Carlos Garner Kelly Wiggins Payne Vice President LillyPAC Treasurer Regulatory Affairs, Vice President, Global Ethics & North America Compliance Officer James Gilroy Senior Director Hormaz Dubash National Managed Care LillyPAC Assistant Treasurer Senior Director Corporate Financial Planning Keith Johns Vice President Diabetes Global Marketing and Alliance Management Carolyn Anker Rick Kanner Director, Contracts & Senior Director Administrative Services Market Access, Oncology Eric Anttonen Paul Leonardi Senior Director—IT Senior Director Diabetes, West Diabetes Area Dr. Henry Bryant John Neal Fellow, Lilly Research Labs Senior Director Manufacturing Strategy Mark Butchko Nolita Stewart Senior Director Senior Director Global Quality Labs Brand Marketing, Lasmiditan 5 | 2018 LillyPAC LILLYPAC CHAMPIONS MAKE ALL THE DIFFERENCE During 2018, LillyPAC was honored that 79 Lilly employees served as LillyPAC Champions. These men and women were trained about LillyPAC and its importance to our business, and they took LillyPAC’s message to their colleagues inviting them to learn more about the program and make the decision to join. These individuals are LillyPAC’s best advocates, and their commitment as Champions is absolutely key to strengthening our ability to advocate for issues that affect our future. Area Represented PAC Champ Area Represented PAC Champ HR Mike Adams LRL Asim Dey Finance and Beth Ameno Diabetes Sales Casey Donegan Procurement Oncology Jackie Doorhy Legal Arvie Anderson Bio-Meds John Fagan IT David Birrer Bio-Meds Tom Fagan Diabetes Sales Katy Bloom Manufacturing Ryan Fegan Bio-Meds Ben Brockman IT Jim Feltz LRL Harold Brooks Finance and Stu Flannery Diabetes Sales Mark Burger Procurement HR Lindsey Caruthers Legal Ashley Garry LRL Julia Clay Diabetes Sales Kirsten Gilbert Oncology Nick Collins Bio-Meds Hannah Gish LRL Dave Coutant Corporate Affairs Karen Glowacki Diabetes Sales Steve Cox Diabetes Sales Oscar Grau Oncology Myriam Currier Quality Elizabeth Harrigan Diabetes Sales Johnny Custer IT LaShonda Harris LRL Dan Dairaghi Diabetes John Heneberry 6 | 2018 LillyPAC Area Represented PAC Champ Area Represented PAC Champ Diabetes Sales Jack Honaker Diabetes Sales Joann Perrine Corporate Affairs Brad Jacklin Manufacturing Senthil Rajaratnam IT Christopher Colton Manufacturing Don Robin Johnson Finance and Matt Robinson Manufacturing Marlon Johnson Procurement Diabetes Sales Simon Joseb Diabetes Sales Derek Salyer Manufacturing Katie Kiley Manufacturing Carmen Sanders Diabetes Sales Bruce Killough Diabetes Sales Jason Santos Diabetes Sales Marty Knowles Finance and Will Schenkel Procurement IT Aravind Kottam Manufacturing Craig Seager Manufacturing Jen Kreusch IT Jamil Shabazz LRL Gary Krishnan IT Gary Sicard Ethics & Compliance Aaron Lehikoinen Diabetes Sales Chad Smith IT Ben Malott Manufacturing Howard Smulewitz Diabetes Sales Erica Manne Bio-Meds Mitch Stayer Bio-Meds Susan Marchant Oncology Art Stephenson IT Emma Martinez IT Christopher Tam Quality Paul Michael-Butler IT Jake Todd Diabetes Sales Chris Murray Oncology Jodi Trivax Diabetes Sales Jared Packard LRL Lincoln Wallis Finance and Shivam Parikshak Procurement Diabetes Dana Webster LRL David Paul Diabetes Jordyn Wells Manufacturing Jeff Pawar LRL Brian Willis Oncology Kevin Pedigo Bio-Meds Lindsay Zeckel IT Rebecca Penn 7 | 2018 LillyPAC Charities Eligible for Matching Funds National charities: Any local United Way (for field-based employees not in Indianapolis) Alzheimer’s Association American Cancer Society (ACS) American Diabetes Association (ADA) American Migraine Foundation American Red Cross Boys & Girls Clubs of America Global Healthy Living Foundation JDRF Make-A-Wish Foundation of America PAC CHARITY MATCH National Eczema Association National Parks Foundation Your Contributions to LillyPAC Can Make Life Better Public Broadcasting Service (PBS) in the Communities We Serve Salvation Army Spondylitis Association of America Susan G. Komen for the Cure In 2018, LillyPAC introduced a new PAC Charity Match The V Foundation program for members contributing at our Discovery Club Wounded Warrior Project level. Members who joined at this level received a $500 charity match to one of 30 local or national charities— Indianapolis-based charities: doubling the impact of their giving by helping Lilly United Way of Central Indiana succeed in our policy efforts, while making life better in Center for Leadership Development the communities we serve. Christel House International Gleaners Food Bank of Indiana In this first year, Indianapolis Children’s Museum LillyPAC Discovery Club members had Indianapolis Public Library Foundation their investment matched with a $500 International Center of Indiana Keep Indianapolis Beautiful charitable contribution resulting in 167 Little Red Door Cancer Agency