XTL Biopharma files to raise $40m on Nasdaq
Shareholders are being asked to approve $1 million in travel expenses for Phillip Frost and a 70% hike in directors' salaries.
Next week, Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) will convene is general shareholders meeting, where it will ask them to approve raising the compensation for its directors and chairman Dr. Phillip Frost. The meeting will presumably be calm, and no objections are expected to the company's proposals, but some shareholders have found cause to disrupt the items on the agenda.
Platinum Investment Portfolio Management Ltd. CEO Gabi Haber today sent a letter to Teva's directors, calling on them to remove from the agenda the proposal to raise their salaries and approval of Frost's travel expenses by his private jet.
Teva's board of directors is asking to raise directors' salaries by an average of $76,000 per year to $190,000. This is in addition to NIS 2,000 for every board meeting to be left unchanged from previous years. At the same time, the proposal includes a salary hike for the chairman from $517,000 in 2011 to $900,000 this year. Frost is also entitled to receive annual travel expenses of $700,000 for using his private jet, and shareholders are being asked to approve an additional $298,000 bringing his travel expenses in 2011 to $1 million.
Haber told "Globes" that if Frost wants to attend Teva board meetings in his private jet then he should fund it himself. He said, "If not then the company could buy him a first class or business class air ticket for about $5,000 as is normal," said Haber.
Regarding the board of directors salaries, Haber said, "Teva has not grown in recent years. On the contrary, the company's market value has fallen. The shareholders are not satisfied with the company's results so there is no reason to raise the directors' salaries."
Teva says that the reason for raising the salaries is the need to attract directors of the highest professional standards but Haber is not convinced. "Even at $76,000 Teva had no problem filling the board and none of the directors would quit if the salary was left unchanged," he said.
This would not have happened under Eli Hurvitz
In his letter to the board of directors Haber writes that under the late Eli Hurvitz as chairman and CEO, the company reached tremendous achievements while maintaining relative modesty. "It is difficult to imagine that during his time it would have been possible to put forward the aforementioned proposal," wrote the CEO of Platinum, a boutique investment firm located in Haifa's German Colony.
Why are all the financial institutions that hold Teva's shares not complaining about the proposals on the agenda and only a small company like Platinum dealing with the subject?
Haber said, "We are focused on the investment funds of our clients, while it's possible that the large institutions have different interests to take into account, and for one reason or another don't want to make large waves. It's true that in relation to Teva's huge revenue, these additional expenditures of several million dollars won't bring it down, but from a public point of view it is not right."
Teva said in response, "Teva is asking to update directors' pay in direct proportion to the rise in activities and global expansion. The recommended level of pay, which is being brought for the shareholders' approval is not different from acceptable levels at global companies with a scale of operations and business revenue similar to those of Teva in the pharmaceuticals industry and in general."
Teva added, "In contrast to many other global companies, the rate of directors' salaries does not include an additional equity component, and hence the pay awarded to directors is clear, transparent, and agreed in advance, and proportionate in relation to the rate of the company's success, and their efforts to push the company forward."
Published by Globes [online], Israel business news - www.globes-online.com - on September 3, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012
You comment was recieved and soon will be published.
Load more comments
XTL plans to initiate a large Phase IIb clinical trial for the treatment of Lupus.
Teva launches generic cancer drug
Brand Xeloda, made by Genentech, had $754 million in US sales in 2013.
Yelin Lapidot takes stake in Brainsway
Brainsway raised NIS 41 million in the private placement.
Barclays upgrades Teva
Barclays raised its recommendation to "Overweight" and its target price to $65.
BiolineRX raises $24m in Nasdaq offering
Three months ago, the company announced promising preliminary clinical trial results.
Teva VP Ika Abravanel resigns
Abravanel's is the first senior departure from Teva since Erez Vigodman became CEO.
FDA approves Pluristem cell production facility
Pluristem's Haifa plant can produce 150,000 doses of PLX cells annually.
Desheh: Splitting Teva will not create value
Teva CFO Eyal Desheh says Teva's tight integration means that a split makes no sense.
InsuLine expanding in Europe
24Care will distribute the company's InsuPad product in the Netherlands and Belgium.
Teva launches generic breast cancer, osteoporosis drug
Teva has 180 days of marketing exclusivity for generic Evista, which had 2013 US sales of $824 million.
BiolineRX raising $21m in Nasdaq secondary offering
The company will use the proceeds to develop leukemia and celiac disease drugs.
MediWound sets terms for $92m Nasdaq IPO
The burns and wounds treatment developer's offering is at a value of $350-370 million.
Opko losses triple
CEO Phillip Frost: From an R&D perspective, all our programs are progressing.
D-Pharm doubles on good interim stroke study results
The Phase IIa trial interim results found the company's drug was safe for cerebral strokes.
Perrigo selling OTC drugs through Amazon
Perrigo: It is also a platform for obtaining good information about consumer behavior.
Teva launches bipolar, schizophrenia treatment
Adasuve is the first orally inhaled medicine for the acute treatment of agitation in schizophrenia and bipolar I disorder.
Perrigo acquires Aspen Global products for $51m
Perrigo bought value-brand OTC products sold in Australia and New Zealand.
Galmed updates $30m Nasdaq IPO prospectus
The liver disease drug developer will issue shares at a company value of $132 million.
Enzymotec shareholders raise $131m in offer to sell
Kibbutz Ma'anit's Galam reportedly sold shares for $46 million.
Compugen raises $63m, Magic $51m
The two companies held secondary offerings on Nasdaq on the basis of shelf prospectuses.
If Rose Fostanes played basketball
Reforms in regulations for foreign caregivers are welcome, but don't go far enough.
Private treatment kills public healthcare
If the German Committee validates private healthcare, it will be the last nail in public healthcare's coffin, argues Prof Dani Filc.
Reducing the number of polyps that colonoscopies miss
EndoChoice's Israel development center has devised an endoscope with a 330-degree arc.
Neopharm moves into orphan drugs
The company, better known for marketing others' products, has been quietly building up its innovative capacity, as VP Tal Fuhrer relates..
Merck Serono Israel incubator nurtures early stage projects
Merck Germany head of pharmaceuticals Dr. Stefan Oschmann says R&D is enjoying a renaissance at big pharma companies.
Israeli biomed cos bring in US CEOs
"Globes" speaks to 3 US CEOs appointed to boost marketing at TASE traded medical device companies.
Alcobra has had two successful Nasdaq offerings this year as it develops an ADHD treatment with fewer side effects.
Restructuring can help Teva's Copaxone woes
Avishai Ovadia argues that Teva can offset falling Copaxone sales by reducing overall company costs.
Enabling diabetes patients to sleep soundly
Excess insulin levels can be fatal when they occur at night. NightSense aims to remove the fear.