The highest salary cost at Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) in 2014 was for Allan Oberman who stepped down as president and CEO Teva Americas Generics at the end of the year. His salary cost was $7.3 million in 2014, of which $4.5 million was tied to his departure from the company.
However, this is not the end of the road as far as Teva's payments to Oberman are concerned. As revealed by the F-20 form, "Mr. Oberman is also entitled to receive an amount equal to his annual base salary in consideration for his release and waiver of claims as well as in consideration of, and conditioned upon, his non-compete obligations (which apply for a period of twelve months following his termination date)." That annual base salary is $850,000.
Oberman, 57, joined Teva's senior management in 2000 when Eli Hurvitz was still CEO. Until 2008, he managed Novopharm, which became Teva Canada, and subsequently served as president EMIA (Europe, Middle East, Israel and Africa) and VP international operations division. In 2012, former Teva CEO Jeremy Levin promoted him to CEO Americas Generics.
Current CEO Erez Vigodman has implemented an organizational restructuring, which including setting up a Global Generics Medicine Group headed by Sigurdur Olafsson who came into the company and is also responsible for Generics America, which had been under Oberman's management.
Teva's second highest salary cost in 2014 was president of Global R&D and Chief Scientific Officer Dr. Michael Hayden, who weighed in with $5.2 million, while president and CEO Erez Vigodman only had the third highest salary cost at $4.5 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 11, 2015
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