Eli Lilly’s chief financial officer was forced to resign after an internal investigation revealed “consensual, though inappropriate, communications” with some Lilly employees.
The American drugmaker said the investigation was sparked by allegations that Josh Smiley had an “inadequate personal relationship” with an employee.
Smiley, who has been chief financial officer since 2018, will be replaced by Anat Ashkenazi, a senior vice president who has been controller and chief financial officer of Lilly’s research labs since 2016.
David Ricks, Lilly’s chief executive, said the company’s core values are “integrity, excellence and respect for people”.
“We expect all employees to live up to these values and we expect exemplary conduct from our executives at all times,” he said in a statement on Tuesday.
Lilly said Smiley’s conduct was not related to controls or financial statements. He will be available to assist in the transition to your successor. Lilly’s shares were stable in the New York premarket.
The resignation is the latest sign that large corporations are taking a more rigid approach to relationships at work. The #MeToo movement initially focused on sexual harassment, including illegal acts like Harvey Weinstein was found guilty in February 2002.
But many companies now feel that executives should not have relationships in the office, fearing that they are or could be interpreted as an abuse of power.
The former chief executives of McDonalds and Intel, and a former executive of BlackRock, were among those who resigned after the discovery that they had consensual personal relationships. In 2018, more leaders were removed for ethical lapses than for poor business performance, according to a PwC survey of 2,500 companies.
Ashkenazi said the company has a “high degree of confidence” in its short and long term prospects. Eli Lilly exceeded expectations in the fourth quarter, driven by the demand for diabetes and cancer drugs, as well as sales of its Covid-19 antibody treatment.
“I look forward to building on this excellent foundation, working closely with Dave and the rest of our talented Lilly team to drive our strategy and help create shareholder value for years to come,” she said.