Teva board of directors takes 50% pay cut

Sol Barer  photo: Teva website

The company announced the cut after Meitav Dash chairman Zvi Stepak told the Globes Business Conference that the board should set an example.

"Teva's board of directors decided back in December 2017 to cut the financial remuneration of its members for 2018. It should be noted that chairman Sol Barer agreed to forego his financial remuneration from August 2017 until December 2018," Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) told "Globes" today.

The statement was a response to harsh criticism of the company today at the Globes Business Conference in Jerusalem by Meitav Dash chairman Zvi Stepak.

Teva had not previously announced the decision to cut the board's remuneration. Since the streamlining plan was announced last month to lay off 14,000 employees worldwide, there has been fierce public criticism about the high salaries paid to Teva's executives in light of the failed performance of the company including problematic acquisitions.

Stepak said today at the Globes Business Conference, "They mainly worried about the short term at the expense of the long term. They made critical mistakes especially in taking such very high leverage and they took exaggerated risks and the price is being paid by the employees and the shareholders."

He added, "I would expect Teva's board of directors to set a personal example and forego a certain percentage of their salary cost - not because they are guilty over what happened to the company, but in solidarity with the employees."

At present Teva's directors earn $160,000 annually and for bonuses of $10,000 to $20,000 per years for sitting on various committees. They also enjoy blocked share options. Chairman Sol Barer is entitled to $567,000 per year and blocked shares worth $378,000.

Published by Globes [online], Israel business news - www.globes-online.com - on January 10, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Sol Barer  photo: Teva website
Sol Barer photo: Teva website
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