Lid blown off Teva’s big secret
Calcalist reveals drug maker CEO Jeremy Levin’s salary for 2012, shedding light on Israel’s executive compensation policies, discrepancies between executive pay and company performance
The pharmaceuticals giant has managed to keep its chief’s pay from the public’s eye thus far; however, just before the approval of Levin’s compensation at the shareholders general meeting, the company’s carefully kept secret is out.
According to information obtained by Calcalist, the grand total of Levin’s wages for 2012 was NIS 14.7 million (about $4 million), or NIS 1.2 million ($330,000) per month. The breakdown of that cost includes a basic salary of NIS 1.5 million ($420 million); NIS 1.2 million ($330,000) in annual bonuses and NIS 1.26 million ($350,000) in restricted shares and in options that will mature over the next few years.
Levin received 100,000 restricted shares and approximately 450,000 options at a strike price of $46.04, a level at which Teva’s shares have not been traded since June 2011. In order to get there, the share would have to climb 15.5% from its current $39.85 per share.
Levinjoined the company in February 2012 and only assumed office in May that year, so the figures in fact cover 11 months of work.
Aside from the annual bonus, Levin also received a signing bonus of about $1 million dollars at the beginning of 2013 – a year after Levin took the helm – thus it was not penciled in with the cost of his 2012 wages.
Until this report, Teva was able to keep under wraps the compensation of its top five executives under the aegis of the dual listing law that allows withholding such information.
