Eli Lilly CEO David Ricks' pay rose to almost $30 million in 2024

Quartz
03-11
David Ricks, Chair and C.E.O. of Eli Lilly and Company, speaks during the New York Times annual DealBook summit at Jazz at Lincoln Center on December 04, 2024 in New York City. - Image: Michael M. Santiago / Staff (Getty Images)

Eli Lilly (LLY) CEO David Ricks got a 10% raise in 2024, as a surge in demand for weigh-loss drugs has propelled the pharma giant into the most valuable pharmaceutical company in the world.

Ricks’ total compensation for 2024 reached $29.2 million, according to the company’s latest proxy statement, up from $26.6 million in 2023. When he became CEO in 2017, Ricks’ annual compensation started at $15.8 million.

In that time, Eli Lilly has seen explosive growth, largely due to its blockbuster diabetes and weight-loss drugs, Mounjaro and Zepbound.

Both drugs belong to GLP-1 class of treatments, made famous by rival Novo Nordisk’s (NVO) Ozempic. GLP-1s, or incretin medications, mimic gut hormones that regulate blood sugar and curb appetite. Morgan Stanley (MS) analysts anticipate the global market for these drugs will reach $105 billion by 2030.

Mounjaro brought in $11.5 billion in sales in 2024, while Zepbound generated $4.9 billion in annual revenue.

Overall, Eli Lilly’s total sales for the year across all its drugs amounted to $45 billion. The company projects that sales in 2025 will reach between $58 billion and $61 billion.

The company’s strong performance has also boosted its stock price. Eli Lilly’s stock has climbed 10% over the past 12 months to about $842 a share. Over the last five years, the company’s stock has surged nearly 500%

With a market cap of $754 billion, Eli Lilly is now the most valuable healthcare company in the world, ranking 12th overall. For comparison, the next closest healthcare companies are UnitedHealth Group (UNH) and Johnson & Johnson (JNJ), with market caps of $448 billion and $406 billion, respectively.

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