Dive Brief:

• Pharmaceutical company Eli Lilly appointed long-time company alum Lucas Montarce as its CFO and executive vice president, effective immediately, according to a Monday press release. As CFO, Montarce will receive an annual base salary of $1 million, and will be eligible for an annual target bonus amount of $1 million as well, according to the filing.
• Montarce, who joined the pharmaceutical giant in 2001, is assuming the role following the departure of the company’s previous CFO Anat Ashkenazi — also a long-time company veteran — who left to take the top financial seat at Google parent Alphabet in July, CFO Dive previously reported.
• “Developing leadership talent has always been a strength for Lilly, and Lucas has thrived in a wide variety of roles of increasing scope and impact,” CEO and Chairman David Ricks said in a statement included in the release. “Having worked directly with Lucas for more than a decade, I am highly confident he has the drive, curiosity and integrity to excel as our next CFO.”

Dive Insight:

Montarce’s $1 million base salary mirrors that given to Ashkenazi upon taking the top financial seat at Alphabet. As part of her compensation package, Ashkenazi is set to receive a $1 million base salary, and also received a $13.1 million sign-on equity grant comprised of restricted stock as Alphabet’s CFO, CFO Dive previously reported.

Ashkenazi also received a $9.9 million sign-on bonus upon joining Alphabet, which was granted to supplement the CFO for “her prior company’s forfeited compensation,” Alphabet asserted in a June filing with the Securities and Exchange Commission. Last year Ashkenazi received $7.6 million in total compensation as CFO of Eli Lilly, including $3.7 million in stock awards and an annual salary of just over $1 million, according to its most recent proxy statement.

In its Monday filing, Eli Lilly did not detail if Montarce, who will also become a member of the company’s executive committee, will receive equity as part of his compensation upon assuming the CFO seat. The company declined to provide further information beyond referencing its most recent proxy for what the CFO’s other compensation could entail. Equity made up the bulk of the compensation mix for its named executives in 2023, with its NEOs receiving approximately 66% of their compensation in equity, according to their most recent proxy statement.

As its newly-minted CFO, Montarce has held numerous executive and financial titles, including CFO positions, throughout his more than two decades with the Indianapolis, Indiana-based pharmaceutical giant. He most recently served as president and general manager for Eli Lilly’s Spain, Portugal and Greece hub, according to the filing.

He has also served as Group VP, global controller and CFO for Lilly Research, as well as VP of finance and CFO for Lilly International, finance business development and strategy, according to his LinkedIn profile.

Montarce will take over the CFO seat from Gordon Brooks, Eli Lilly’s VP, controller and corporate strategy, who was appointed as Eli Lilly’s interim finance chief beginning July 15, according to a company filing with the Securities and Exchange Commission. Ashkenazi officially succeeded Ruth Porat in Alphabet’s top finance seat effective July 31, CFO Dive previously reported.

The financial leadership shift comes as the pharmaceutical company looks to continue a period of strong growth, with the adoption of new diabetes and weight loss medications driving significant revenue increases for its most recent quarter.

The company reported a 36% increase in total revenues for its most recent quarter ended June 30, reaching $11.3 billion, thanks in part to a 27% jump in volume, according to its earnings results released in August. The volume increase was “primarily driven” by growth in certain medications, including Mounjaro, a drug designed to treat type 2 diabetes in adults, and Zepbound, a weight loss medication, according to its earnings report.

The revenue boost also led the pharma company to raise its full-year outlook by $3 billion, with Eili Lilly now expecting full-year revenues between $45.4 billion to $46.6 billion.

Rising demand for medications such as Zepbound and Mounjaro could also be putting the company on the path to a $1 trillion market value, according to a recent report by CNBC. Growing sales for weight loss medications such as Zepbound have contributed to a bump in stock for the company, with Eli Lilly’s market cap currently hovering around $858 billion, with a share price of $903.53 at the time of reporting.