Wall Street Journal: Eli Lilly Doesn’t Plan to Claw Back Past Pay From Former CFO
February 10, 2021
by Nina Trentmann
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.