Lilly says CFO resigns after investigation into inappropriate relationship

The company took "swift and significant action" as soon as it learned about the allegations, a Lilly spokeswoman told Reuters.

Eli Lilly shares were down about 2%. The stock had risen 40% through Monday's close in the past 12 months.

Smiley has been with the company since 1995 and became CFO in 2018. He will be replaced by Anat Ashkenazi, who joined the company in 2001 and was most recently senior vice president, controller and chief financial officer of Lilly Research Laboratories, Lilly said.

Smiley's conduct was not related to financial controls, financial statements or any other business matters or judgments, the company said, and he will be available to assist in the transition of his role through July at reduced cash compensation of $9,000 every two weeks.

Smiley has agreed to forgo all of his $1 million 2020 cash bonus, about $3 million he was awarded between 2018 and 2020, and all of his other current and future stock awards, totaling about $20 million based on Lilly's share price, according to a public filing. Earlier this month, Smiley sold shares worth more than $3 million, filings show.