Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) shareholders meeting has approved the remuneration terms of president and CEO Erez Vigodman. This despite opposition from Entropy Consultants Ltd., an advisor to Israeli investment institutions, mainly because his stock options are in the money, following the rise in Teva's share price since the announcement of his appointment. The strike price of $41.05 was based on the share price on the day of the appointment, and the share price closed at $44.45 on the New York Stock Exchange on Friday.
Teva's general shareholders are meeting today to approve his salary. In the past, the company was able to get the shareholders meeting to approved decisions with the support of US investment institutions, despite objections by investors.
The summons to the general shareholders meeting states that Vigodman's basic salary will be $1.35 million a year, 10% less than the salary of his predecessor, Dr. Jeremy Levin. Vigodman will keep his position as a director, but he will not be paid for these duties.
Vigodman will also be eligible for a performance-based bonus, up to a maximum of $4.1 million. He will also receive capital-based compensation with an aggregate value of $3 million, comprising 80% options and 20% in vested shares.
Vigodman earned a total of NIS 78 million as CEO of Adama Agricultural Solutions Ltd. and Strauss Group Ltd. (TASE:STRS).
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2014
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