Lucas Montarce
Chief Financial Officer at LLY
Executive
About Lucas Montarce
Executive Vice President and Chief Financial Officer at Eli Lilly since September 9, 2024; he joined Lilly in 2001 and previously led finance across international and research organizations, including CFO of Lilly International (2018–2021) and Corporate Controller/CFO of Lilly Research Laboratories (2021–2024) . Lilly’s 2024 performance helps frame his pay‑for‑performance alignment: revenue was $45.0B, non‑GAAP EPS was $12.99, adjusted non‑GAAP EPS used for incentives was $16.11, and 2024 TSR was 33% . As CFO, he signed SOX certifications on October 30, 2025, evidencing responsibility for disclosure controls and financial reporting .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Eli Lilly and Company | EVP & CFO | 2024–present | Leads finance, 2025 business planning, investor engagement . |
| Eli Lilly (Spain/Portugal/Greece hub) | President & General Manager | 2024 | Regional P&L leadership . |
| Lilly Research Laboratories | VP, Corporate Controller & CFO | 2021–2024 | Financial stewardship of R&D, controls . |
| Lilly International | SVP, Finance & CFO | 2018–2021 | International finance leadership . |
External Roles
No external public-company directorships or outside roles are disclosed for Montarce in the DEF 14A; biography references focus on internal Lilly experience .
Fixed Compensation
| Metric | 2024 |
|---|---|
| Base Salary ($) | $1,000,000 . |
| Target Bonus (% of Salary) | 100% . |
| Actual Bonus Paid ($) | $1,114,558 . |
| All Other Compensation ($) | $39,878 (nonqualified savings match) . |
| Pension/SERP Present Value ($) | $360,775 (Retirement Plan + Nonqualified Plan) . |
Performance Compensation
Annual Bonus Program (2024 design and outcomes)
| Component | Weighting | Target Definition | Outcome |
|---|---|---|---|
| Product Revenue | 33.3% . | New products portfolio revenue (e.g., Kisunla, Ebglyss, Omvoh, Jaypirca, Verzenio, Mounjaro, Zepbound) . | Above target (part of final 225% payout) . |
| EPS Performance | 33.3% . | Adjusted non‑GAAP EPS with defined exclusions . | Above target (part of final 225% payout) . |
| Pipeline Progression | 33.3% . | Scorecard across discovery, late‑stage/regulatory, BD, “game changer” events . | Pipeline multiple 250% . |
| Final Bonus Multiple | — | Max 250% (raised from 200%) . | 225% of target for 2024 . |
Long-Term Incentives (structures and 2022–2024/2023–2025 results)
| Award | Design | Payout Range | Montarce 2024 Settlement |
|---|---|---|---|
| Shareholder Value Award (SVA) | 3‑yr stock price growth vs Lilly cost of capital; start price $587.42; CAPM cost 8.12%; dividend yield 0.89%; ending price avg Nov/Dec of year 3 . | 0–200% . | 2022–2024 SVA paid 1,233.75 shares (175% payout), no 1‑yr hold as he was not an exec at grant . |
| Relative Value Award (RVA) | 3‑yr TSR vs median of pharma peer group; payout by absolute TSR outperformance . | 0–200% . | 2022–2024 RVA paid 1,141.00 shares (175% payout), no 1‑yr hold as he was not an exec at grant . |
| Performance Award (PA) 2023–2025 cycle | 2‑yr EPS growth vs peer expectations; then 13‑month service‑vesting as RSUs for execs at grant . | 0–200% . | Earned 2,382 shares at 200%; as not an exec at grant, shares settled after certification (no 13‑month hold) . |
2024 Equity Targets
| Grant | Target Value ($) | Allocation | Grant Mechanics |
|---|---|---|---|
| 2024 Annual Equity | $800,000 . | 33.3% SVA; 33.3% RVA; 33.3% RSUs . | Granted 2/12/2024; RSUs include 371 (vest 2/16/2027) and 368 (vest 2/16/2026); SVA target ~259 shares; RVA target ~241 shares . |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Shares Owned | 13,973 common shares . |
| Stock Units Not Distributable Within 60 Days | 2,349 RSUs . |
| Ownership % of Outstanding | “*” less than 1% of 947,989,151 shares . |
| Stock Ownership Guideline | 6× base salary for senior execs; must retain 50% of net shares until compliant; 1‑yr hold on payouts after compliance . |
| Compliance Status | 16× base salary (compliant) . |
| Hedging/Pledging | Prohibited; none of his shares/units pledged . |
| Insider Trading Procedure | Formal procedure filed with 2024 Form 10‑K . |
Vesting Schedules and Potential Selling Pressure
| Award/Units | Vest Date | Notes |
|---|---|---|
| RSU 368 | 02/16/2026 . | Normal cycle RSU . |
| RSU 371 | 02/16/2027 . | Normal cycle RSU . |
| RSU 1,610 (Nov 2020 off‑cycle) | 11/2026 . | Off‑cycle grant . |
| 2023–2025 SVA/RVA | 12/31/2025 end of performance . | Outstanding unearned shares shown at max; would settle in early 2026 . |
| 2024–2026 SVA/RVA | 12/31/2026 end of performance . | Outstanding unearned shares shown at max; settle early 2027 . |
Employment Terms
| Provision | Detail |
|---|---|
| Employment Agreements | Company does not enter into employment agreements with executive officers . |
| Start at Lilly | Joined in 2001 . |
| CFO Effective Date | September 9, 2024 . |
| Non‑compete / Non‑solicit (award covenants) | Annual awards for execs typically bound by 1‑yr post‑termination non‑compete/non‑solicit; breach → revocation/forfeiture . |
| Clawback Policy | Mandatory recovery on restatements (3 years); discretionary recovery for misconduct/materially inaccurate performance; applies to cash/equity/non‑qualified benefits . |
| Change‑in‑Control (CIC) Plan | Double trigger; no tax gross‑ups; up to 2× base+target bonus; 18‑month benefits; equity converts/accelerates upon covered termination . |
| CIC Economics (as of 12/31/2024) | Cash: $4,000,000; Benefits PV: $65,124; Equity accel/continuation: $5,922,097; Total: $9,987,221 . |
Performance & Track Record
| Measure | 2023 | 2024 |
|---|---|---|
| Revenue ($B) | — | $45.0 . |
| EPS (reported) ($) | — | $11.71 . |
| EPS (non‑GAAP) ($) | — | $12.99 . |
| Adjusted non‑GAAP EPS for bonus ($) | — | $16.11 . |
| Total Shareholder Return (TSR) | — | 33% . |
As CFO, Montarce signed Q3 2025 SOX 302 and 906 certifications, attesting to internal controls, accurate reporting, and compliance .
Compensation Structure Analysis
- Pay mix is highly performance‑based: bonus linked equally to product revenue, EPS, and pipeline; long‑term equity via stock price and TSR relative to peers .
- 2024 final bonus multiple was 225% following a 250% pipeline multiple and above‑target financials .
- Equity awards include SVA and RVA with 0–200% ranges and structured 1‑year post‑vesting holding for execs at grant; Montarce’s 2022–2024 settlements were not subject to the hold as he wasn’t an exec at grant .
- Ownership guidelines are strict (6× salary; retention requirements); Montarce exceeds at 16×, signaling alignment .
Risk Indicators & Red Flags
- Hedging/pledging prohibited and none pledged—reduces misalignment risk .
- Robust clawback compliant with SEC/NYSE; discretionary recoupment on misconduct reduces pay‑for‑failure risk .
- No routine tax gross‑ups; CIC plan is double‑trigger—shareholder‑friendly structure .
- Awards subject to 1‑year non‑compete/non‑solicit post‑termination, with forfeiture on breach—supports retention .
Equity Ownership & Alignment Details
| Category | Data |
|---|---|
| Beneficial Ownership (Common) | 13,973 shares . |
| RSUs (not distributable within 60 days) | 2,349 units . |
| Outstanding Unearned Equity (max) | SVA 2023–2025: 1,118; RVA 2023–2025: 1,006; SVA 2024–2026: 518; RVA 2024–2026: 482 . |
| Ownership Guideline Compliance | 16× salary vs 6× requirement . |
| Pledging/Hedging | Prohibited; none pledged . |
Employment & Contracts
| Topic | Key Terms |
|---|---|
| Severance (non‑CIC) | Discretionary; equity treatment per plan; no special guarantees disclosed . |
| CIC (double‑trigger) | 2× base+target bonus; 18‑month benefits; equity acceleration/continuation; excise tax cut‑back if beneficial . |
| Garden Leave | Not disclosed. |
| Post‑termination Consulting | Not disclosed. |
Say‑on‑Pay & Shareholder Feedback
| Year | Support |
|---|---|
| 2024 Meeting | 95% say‑on‑pay approval . |
Investment Implications
- Alignment: Exceeding ownership guidelines (16× salary) and prohibition on hedging/pledging signal strong alignment with shareholders .
- Near‑term supply risk: Notable RSU vest dates in 2026–2027 and performance cycles ending 12/31/2025 and 12/31/2026 could create episodic selling pressure; some past awards lacked a post‑vesting hold due to non‑exec status at grant .
- Pay‑for‑performance: Bonus and equity frameworks tightly coupled to product revenue, EPS, pipeline, stock price, and TSR vs peers; 2024 bonus 225% and 2022–2024 equity paid at 175% reflect strong company execution .
- Retention/transition risk: CIC protections (2× cash + benefits + equity vesting) are market standard; non‑compete/non‑solicit provisions on awards and clawback reduce adverse behavior risk and support retention .
All values retrieved from S&P Global where applicable.*