Friends Fiduciary has co-filed a shareholder proposal, with lead filer Mercy Investment Services, requesting Eli Lilly’s Chair of the Board of Directors, whenever possible, be an independent member of the Board.
Eli Lilly faces substantial financial, legal and reputational risks stemming from allegations that it has engaged in anti-competitive pricing and related behavior in the insulin and GLP-1 markets. We believe a structure where the CEO runs the business and is accountable to a board led by an independent chair is in the best interests of the company’s shareholders. U.S. boards are increasingly recognizing the value of an independent board chair. As of 2024, approximately 40 percent of S&P 500 firms had an independent chair. Additionally, pharmaceutical companies headquartered in Europe are required to have separate roles and have not suffered as a result.
The proposal is Item 6 on the company’s proxy and will be presented at Eli Lilly’s annual general meeting on Monday, May 4, 2026.
Click here to access Eli Lilly’s proxy to read the full proposal and here to read the investor rationale for support.