Eli Lilly CFO resigns amid allegations of 'inappropriate' employee relationship

The senior vice president and chief financial officer of Eli Lilly has resigned amid allegations he had an "inappropriate personal relationship" with an employee, the company said Tuesday.

Josh Smiley has resigned and will leave the Indianapolis-based pharmaceutical company after an internal investigation determined Smiley had "consensual though inappropriate personal communications" with "certain Lilly employees."

Company leadership in a statement on the resignation said Smiley "exhibited poor judgment" in his alleged actions. 

"Lilly holds all employees accountable to its core values and strongly believes its executive officers carry an even higher burden in ensuring those values are upheld," the company said in the statement. "Mr. Smiley did not meet that standard."

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The company said Tuesday that Anat Ashkenazi will step into the role of senior vice president and chief financial officer. Ashkenazi has been with the company for nearly 20 years, most recently as senior vice president, controller and chief financial officer of Lilly Research Laboratories since 2016. 

Eli Lilly Chairman and Chief Executive Officer David A. Ricks said in a prepared statement that the company expects "exemplary conduct from our executives" but thanked Smiley for his "many contributions" to the company. 

Since Smiley's conduct was not related to financial controls or business matters, he will assist Lilly in its leadership transition, according to the company.

Contact Lawrence Andrea at 317-775-4313 or landrea@indystar.com. Follow him on Twitter @lawrencegandrea.