Teva CEO Francis becomes highest paid TASE co exec

• Published date: 17 April 2024
• Author: Shiri Habib-Valdhorn
• Publication title: Globes (Rishon LeZion, Israel)

Besides the stock-based compensation, Francis's basic annual salary as set out in the employment agreement published when he joined Teva was $1.6 million. He received an annual bonus of $1.5 million, a first instalment of a $5 million bonus promised to him when he joined the company, and a further $2.6 in non stock-based compensation. A further amount of $1 million in other costs was recognized, covering housing, relocation to Israel, a car, and other items

Francis thus becomes the highest paid among executives at Tel Aviv Stock Exchange listed companies. Nice Systems CEO Barak Eilam received compensation costing $24.5 million in 2023, of which $22.6 million was stock-based compensation.

In 2022, the compensation cost of Teva's previous CEO, Kare Schultz, was $15.5 million, and over his entire period at the head of the company (from November 2017 to the end of 2022) it totaled $107 million. In his first year at Teva, Schultz received higher compensation, which included a cash grant of $20 million and an allocation of shares on joining the company.

Teva's CFO Eli Kalif received compensation costing $4.9 million last year (up from $4 million in 2022), of which $3 million was stock-based; Executive Vice President, International Markets Commercial Mark Sabag's compensation cost was $3.7 million (down from $3.9 million in 2022), of which $2 million was stock-based; Executive Vice President, European Commercial Richard Daniell's compensation cost was $5.2 million; and that of Executive Vice President Global Operations Eric Drapé was $4.3 million.

Shareholders protest against pay levels

The figures are released as part of the announcement of Teva's annual shareholders' meeting, which will take place on June 6. The shareholders will be asked to extend the terms of several directors, and to approve the compensation packages of Teva's executives, in what is known as the "say on pay" motion that companies listed in the US are obliged to bring to a vote by their shareholders, enabling the shareholders to express their...