It is nine months since the Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) board of directors dismissed former CEO Dr. Jeremy Levin, but it appears there are still unresolved issues between the two parties. Levin served as Teva CEO from May 2012 - October 2013, and, according to his employment agreement, and as Teva reported to the Tel Aviv Stock Exchange (TASE) in the past, he was entitled to compensation totaling $7.2 million last year, including a $2.5 million “golden parachute.”
However, it has become clear that there are differences of opinion between Levin and Teva regarding the agreement, with Levin claiming certain sums that Teva does not believe he is entitled to. Lawyers for the two parties are discussing the matter. Levin is represented by Fischer Behar Chen Well Orion & Co. Partner Reuven Behar.
The parties are in agreement about most of the clauses, and efforts are being made to resolve the differences without resorting to legal proceedings.
At the same time, Teva’s activist investor, high-tech entrepreneur Benny Landa, has started a blog in which he has detailed his actions over the Teva board. Among other things, Landa tells how he began investing in Teva in 2012, after the new strategy was presented (by then CEO Jeremy Levin); after he discovered, much to his chagrin, that Teva’s stock performance was declining, he began investigating the matter, and in August 2013 he expressed his concern regarding the size and configuration of the board.
In late October, when rumors of a dispute between Levin and board chairman Phillip Frost began circulating, and Levin denied that he intended to resign, Landa called Levin to express his satisfaction with his performance as CEO, and his support. “It doesn’t matter,” Levin said, “I think the board is going to fire me anyway.” According to Landa, “It is impossible not to think that the board’s actions are capricious.”
“Busy finding a new chairman”
Recently, Landa announced, along with Ruth Cheshin (from one of Teva’s founding families), a statement of position, in which they expressed their objection to the appointment of Uri Slonim to Teva’s board of directors. Landa also expresses concern regarding the appointment of vice chairman Amir Elstein (also from Teva’s founding families) as chairman, to replace Phillip Frost, who recently announced his resignation. According to Landa, board member Moshe Many told him that Elstein has already been appointed in flagrant disregard of proper corporate governance practices.
Teva said, “No decision has been made regarding the identity of the company’s next chairperson. A committee headed by Prof. Moshe Many and Joseph Nitzani is busy with the selection process these days, and it should be emphasized that the company updated the public precisely on this matter, in a board announcement made in parallel to the invitation to the shareholders meeting.”
Published by Globes [online], Israel business news - www.globes-online.com - on July 15, 2014
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