Wall Street Journal: Eli Lilly Doesn’t Plan to Claw Back Past Pay From Former CFO
February 10, 2021
Eli Lilly & Co. said it won’t try to claw back past pay from newly departed finance chief Joshua Smiley, but moved to take away his 2020 bonus and other incentive compensation following years of rule tightening around executive conduct and recuperation of funds at the drugmaker.
He is entitled to reduced cash compensation of $9,000 every two weeks through July 2021 to help with the transition to his successor Anat Ashkenazi, who most recently led the finances of Lilly Research Laboratories.
The loss of bonuses and other incentive compensation is expected in cases such as this one, said Robin Ferracone, chief executive of Farient Advisors LLC, a compensation consulting firm.
“There is a lot that is entrusted to the CFO,” Ms. Ferracone said, pointing toward duties such as signing off on financial statements. “One expects an officer like that to live up to the highest codes of conduct,” she said.
by Nina Trentmann
About Robin Ferracone
Founder and CEO, Farient Advisors/GECN Group
As the founder and CEO of Farient Advisors LLC, Robin has led the strategic development and expansion of the executive compensation, performance, and corporate governance advisory firm. Her client work focuses on providing high-impact decision-making support and organizational solutions based on insightful market insights.
With over 30 years of consulting experience, Robin advises clients in business and talent strategies, executive compensation, organization, value management, and performance measurement. She is the author of Fair Pay Fair Play: Aligning Executive Performance and Pay (John Wiley & Sons, 2010). In addition, Robin has authored numerous articles, is a regular contributor to Forbes.com and Directorship magazine, and is often quoted in national publications. She is a frequent presenter for prominent organizations such as the Council of Institutional Investors, Society for Corporate Secretaries and Governance Professionals, the National Association of Corporate Directors (NACD), and The Conference Board.
Robin formerly served on the board of directors of Trupanion, Inc., where she chaired the compensation committee. In addition, Robin is a trustee emeritus of Duke University. She currently chairs the board of WildAid and is a member of 5050 Women on Boards, NACD, Women Corporate Directors, YPO Gold, and the Trusteeship. For 12 years, Robin has been named to the NACD Directorship 100, a list of the most influential people in corporate governance and the boardroom. In 2014, she was selected as one of EY’s Entrepreneurial Winning Women, an annual competition recognizing female entrepreneurs. Robin is also a founding partner of the Global Governance and Executive Compensation (GECN) Group collectively serving clients in more than 35 countries across five continents.
Robin received an MBA from Harvard Business School and a BA in management science and economics from Duke University.