Corporate Governance
Why It Matters | Our Approach | Resources | Related Topics
Last updated: July 1, 2026
Why It Matters
To Lilly
Corporate governance underpins how we deliver on our purpose and create long-term value for our stakeholders, including shareholders, patients, health care professionals and payers, employees, partners and suppliers, and local communities. Our governance framework is designed to hold Lilly's leadership accountable, support proper risk management, and help the company pursue its mission in a responsible and sustainable way.
To the World
Good corporate governance gives stakeholders confidence that a company is being run responsibly and shapes the culture that anchors how management and employees lead and operate. We believe that companies that govern well and transparently are better positioned to manage risk effectively, maintain ethical behavior, and deliver consistent, long-term results.
Approach
Governance Framework
Our governance framework is built on an independent Board with a strong lead independent director, independent committees, and regular shareholder engagement. The Board and its committees oversee company strategy, performance, executive compensation, succession planning, risk, and emerging trends that may affect the business. Management is responsible for day-to-day execution and reports regularly to the Board and its committees.
To support this oversight, the Board operates under a variety of governance best practices as outlined in our Corporate Governance Guidelines.
Stakeholder Engagement
We engage with a variety of stakeholders on an ongoing basis and incorporate feedback as appropriate. The insights gained from these conversations can inform our Board's thinking and factor into evolving our governance structures and practices.
Board Strategic Oversight
Among the Board's most important responsibilities is its active role in overseeing company strategy. Each year, the Board and executive management conduct an in-depth review of the company's strategy, including key risks and decisions facing the company - revisiting those decisions throughout the year as the business evolves. Additionally, the Board is engaged in strategic oversight of sustainability matters and receives regular updates on these matters.
Resources