Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) chairman Phillip Frost has told "Bloomberg" that he may step down before his term ends in 2015, "If he can deliver on pledges to overhaul governance and find an adequate successor."
“I might not want to go that far,” Frost, 77, told "Bloomberg, “I might want to retire sooner. Practically speaking, I’m at the age where it doesn’t really make a lot of sense to go beyond that, but that might already be longer than what I want.”
Frost has been under pressure to improve governance after ousted CEO Jeremy Levin’s sudden departure last October exposed a rift between the board and management.
“It’s important to me that I stay as long as it feels it’s the right thing to do,” Frost said. “I’m not putting any timing on it.”
"Bloomberg" recounted that investors led by digital printing pioneer Benny Landa persuaded Frost to reduce the size of the Teva board from 16 to 12. He also wants a board dominated by industry experts to support new CEO Erez Vigodman as he implements streamlining measures to cope with generic competition for Copaxone.
Frost said, “Governance issues have been an interest of mine for some time. The fact that recent events have highlighted governance issues is actually fine with me. The board is already far along the way to considering governance policy that will suit the company’s interests.”
He added, “There are many good people on the board. The board will want to choose the person who they think is best suited for the job at that moment. It wouldn’t want to limit itself.”
Frost concluded, "We will see all kinds of positive activities sooner, rather than later, and then I’ll be happy."
Published by Globes [online], Israel business news - www.globes-online.com - on February 18, 2014
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