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Eli Lilly & Co. has altered its compensation scheme for 2011 and 2012 to tie employee bonuses to the success of its new-drug pipeline. To do this, the company has introduced a “research metric” to track the output of its R&D engine. In addition to keeping tabs on the number of new-product approvals and compounds that move into Phase III trials, Lilly is monitoring the progress of projects as they hit research milestones. Acknowledging the firm’s business challenges, CEO John C. Lechleiter has asked that he receive no compensation increase in 2011.
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