Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) has announced that CEO Kare Schultz had agreed to extend his contract with Teva from November 2022 until November 2023
The cost of Schultz's salary in 2019 was $11.9 million, according to a report by the company. Schultz's basic pay was $2 million, the same as in the preceding year. He also received $6 million in stock-based compensation and additional compensation costing the company $2.8 million, as stipulated in the plan provided for him by the board of directors. His employment also cost Teva $727,000 for housing in Israel, a car, etc. Schultz was not entitled to a bonus in 2019.
The cost of Schultz's salary was substantially lower in 2019 than its $32.5 million cost in 2018, primarily because of the $20 million bonus that he received for joining Teva, paid to him in 2018 (he joined Teva in late 2017).
In addition to Schultz, six other senior executives and former senior executives received $19.9 million in aggregate compensation in 2019. Former CFO Michael McClellan received $4.2 million, and former EVP global operation Dr. Carlo de Notaristefani received $4.3 million. EVP global R&D Dr. Hafrun Fridriksdottir was in second place on the list after Schultz with $4.4 million.
The figures were published as part of the summons to Teva's annual shareholders' meeting, which will convene on June 8, at which the shareholders will be asked to approve a number of proposals. Among other things, Teva wants to increase the proportion of Schultz's compensation based on performance, so that he will receive $7 million in performance stock units (PSUs), compared with $4 million in 2019. Teva announced that Schultz had agreed to extend the validity of his deal with Teva from November 2022 until November 2023.
In a letter to the shareholders attached to the summons, Teva chairman Dr. Sol Barer wrote, "I am writing this letter at a critical time for all of our stakeholders, when we are facing the global effects of Covid-19. This a time at which a strong and durable pharma industry is of enormous significance for the welfare of all of us. Teva is completely committed to helping all of those involved with the challenges of public health, and we recognize our critical role in leading the global generic drug industry."
Published by Globes, Israel business news - en.globes.co.il - on March 22, 2020
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