Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Lilly says CFO resigns after investigation into inappropriate relationship

Stock MarketsFeb 09, 2021 12:45PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. Eli Lilly and Company Senior Vice President and CFO Josh Smiley speaks during an interview in San Francisco 2/2

By Ankur Banerjee and Carl O'Donnell

(Reuters) - Eli Lilly (NYSE:LLY) and Co said on Tuesday Chief Financial Officer Josh Smiley had resigned after allegations about a personal relationship sparked an investigation that found "inappropriate personal communication" with some company employees.

The Indianapolis-based drugmaker said it immediately hired external counsel to conduct an independent probe after it was made aware of the allegations. The investigation revealed consensual though inappropriate personal communications between Smiley and certain Lilly employees.

Lilly said the behavior exhibited poor judgment by Smiley. The company would not give further details on the communications or the number of employees involved.

Reuters could not immediately reach Smiley for comment. A LinkedIn (NYSE:LNKD) search showed Smiley's account, which he managed himself, was no longer available.

The company took "swift and significant action" as soon as it learned about the allegations, a Lilly spokeswoman told Reuters.

Eli Lilly shares were down about 2%. The stock had risen 40% through Monday's close in the past 12 months.

Smiley has been with the company since 1995 and became CFO in 2018. He will be replaced by Anat Ashkenazi, who joined the company in 2001 and was most recently senior vice president, controller and chief financial officer of Lilly Research Laboratories, Lilly said.

Smiley's conduct was not related to financial controls, financial statements or any other business matters or judgments, the company said, and he will be available to assist in the transition of his role through July at reduced cash compensation of $9,000 every two weeks.

Smiley has agreed to forgo all of his $1 million 2020 cash bonus, about $3 million he was awarded between 2018 and 2020, and all of his other current and future stock awards, totaling about $20 million based on Lilly's share price, according to a public filing. Earlier this month, Smiley sold shares worth more than $3 million, filings show.

Executive behavior and the treatment of employees has been under scrutiny over the past few years following the #MeToo social media movement.

In 2019, McDonald's Corp (NYSE:MCD) dismissed Chief Executive Steve Easterbrook over a consensual relationship with an employee, which the board determined violated company policy.

Intel Corp (O:INTC) Chief Executive Brian Krzanich resigned in June 2018, after an investigation found he had a consensual relationship with an employee that breached company policy.

Lilly says CFO resigns after investigation into inappropriate relationship
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Kaveh Sun
Kaveh Sun Feb 09, 2021 10:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
S/e/x sells. Some women do it for money. Men buy it for pleasure. P/ro/stitution is illegal in most place anyway. If it is illegal, he does it then has to pay a heavy penalty just like the rest of us.
Vlad Lozovskiy
Vlad Lozovskiy Feb 09, 2021 10:05AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They just had to put trashy #metoo movement  in this article, whose leader got caught abusing women.
The Chad Bull
The Chad Bull Feb 09, 2021 7:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Typical finance creep
Wayne Gillispie
Wayne Gillispie Feb 09, 2021 7:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Like many narcissistic sexual predators that abuse their positions of trust, power and authority in the USA...Resign and move to the next Company, Police Dept, School, Church or Town. Sound familiar boys?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email