Summary
Eli Lilly and Company (LLY) announced significant leadership changes within its finance department. Anat Ashkenazi has been appointed as the new Senior Vice President and Chief Financial Officer, effective February 9, 2021. Ms. Ashkenazi brings extensive experience within Lilly, having held various strategic and financial roles, most recently as Senior Vice President, Controller and Chief Financial Officer of Lilly Research Laboratories. Her compensation package includes a base salary of $900,000, an annual target bonus of $900,000, and substantial equity awards valued at $2.2 million. This appointment follows the resignation of the previous CFO, Joshua L. Smiley. Mr. Smiley resigned due to allegations of an inappropriate personal relationship with a Lilly employee, which was confirmed by an internal investigation revealing consensual but inappropriate communications and poor judgment. As part of his separation agreement, Mr. Smiley has forfeited significant bonuses and equity awards totaling over $20 million and will provide transition assistance through July 2021 under a reduced compensation arrangement. He is also subject to non-solicitation and non-competition clauses.
Key Highlights
- 1Anat Ashkenazi appointed as new Chief Financial Officer (CFO) of Eli Lilly.
- 2Ms. Ashkenazi's compensation includes a $900,000 base salary, $900,000 target bonus, and $2.2 million in equity awards.
- 3Previous CFO, Joshua L. Smiley, resigned due to an investigation into inappropriate personal conduct.
- 4Mr. Smiley forfeited over $20 million in bonuses and equity awards as part of his separation agreement.
- 5Mr. Smiley will provide transition assistance through July 2021.
- 6Eli Lilly amended its bylaws to remove a provision for temporary CEO authority to specific officers in cases of incapacity, with the Board of Directors now to exercise discretion.
- 7The company's investigation into Mr. Smiley's conduct confirmed inappropriate communications and poor judgment, though not related to financial matters.