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Ricks makes $14.4 million in first year as Eli Lilly CEO

March 1, 2018

David Ricks, who took over last year as chairman, president and CEO of Eli Lilly and Co., got a compensation package worth about $14.4 million in his first year at the helm.

The year was marked by a wave of activity, including the announcement that the Indianapolis-based drugmaker might sell or spin off its Elanco animal health business, and a huge corporate restructuring, in which the company accepted early retirements from about 2,300 U.S. workers, many of them in Indianapolis. The stock rose about 6.2 percent last year.

Ricks earned a base salary of $1.4 million, according to a proxy statement filed this week with the Securities and Exchange Commission. In addition, the board gave him stock awards with a grant value of $10.2 million and non-equity incentive plan compensation of $2.8 million. He did not get a cash bonus.

The filing does not indicate how much Ricks earned in 2016, when he served as president of Lilly Bio-Medicines. He became president and CEO on Jan. 1, 2017, and took on the additional role of chairman on June 1.

Ricks succeeded John C. Lechleiter, who retired Dec. 31, 2016, after nine years at the helm. Lechleiter had earned total compensation package of $15.2 million, an amount that doesn't include changes in his pension value, according to the proxy filing. The compensation package included a base salary of $1.5 million, stock awards of $11 million, non-equity incentive plan compensation of $2.6 million, and $90,000 in other compensation.

Other Lilly top executives saw their compensation climb last year. Enrique Conterno, who took on combined roles as president of Lilly Diabetes and president of Lilly USA, earned $7.6 million, up from $3.65 million.

Derica Rice, who retired in December as chief financial officer, made $7.2 million, up from $6.2 million. He was succeeded Jan. 1 by Joshua L. Smiley as CFO. Smiley will receive a base salary this year of $875,000 and will be eligible for a cash bonus with a target of 95 percent of his salary. He was also given an equity award last month as part of the company’s annual equity incentive with a grant value of $2.3 million.

Jan Lundberg, executive vice president for science and technology, received $6.8 million last year, up from $5.8 million.

None of these compensation packages includes a change in pension value.

 

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