Teva shareholders extend Kare Schultz's contract

Kare Schultz  / Photo: Cadya Levy

The Teva CEO's contract has been extended until November 2023 and his performance-based remuneration has been raised.

The annual general meeting of the shareholders of Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) has voted to extend the contract of Kare Schultz as CEO. Meeting virtually because of the coronavirus 71.5% of shareholders voted to change the terms of the contract.

Schultz's contract has been extended from November 2022 to November 2023 and his performance-based remuneration has also been increased. His basic annual salary remains $2 million plus annual bonuses of up to $2.8 million and blocked shares worth $3 million. In terms of performance related bonuses, in 2020 he can receive blocked shares of up to $7 million compared with $4 million in 2019.

Schultz became Teva CEO in December 2017 with the company deep in crisis. He has successfully implemented a streamlining plan to save the company annual costs of $3 billion and by the end of 2019 had cut the company's huge debt by 21%. He has offset some of the huge fall in sales of Copaxone, whose patent has expired by launching new branded drugs such as Ajovy to treat migraine and Austedo to treat chorea associated with Huntington’s disease and tardive dyskinesia as well as new biosimilars. All these achievements were cited by the board as reasons for extending Schultz's term as CEO and raising his remuneration.

In 2018 and 2019, Schultz cost Teva $52.5 million including a $20 million signing on fee. The board noted that Teva's share price faces pressures related to matter preceding Schultz's arrival at the company - opioid and price fixing litigation in the US.

Published by Globes, Israel business news - en.globes.co.il - on June 10, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Kare Schultz  / Photo: Cadya Levy
Kare Schultz / Photo: Cadya Levy
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