The compensation package of Jeremy Levin, CEO of Teva Pharmaceutical Industries, amounted to NIS 14.7 million in 2012, the company said on Wednesday, revealing such information for the first time since 2000.
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His pay included NIS 5.4 million ($1.5 million) in salary, an annual bonus of NIS 4.3 million ($1.2 million) and the value of a package of stock options and restricted shares that will vest in coming years, Teva said in a letter ahead of a shareholders meeting that will vote on his terms of employment.
Levin’s bonus is conditional on Teva attaining specified targets. The strike price on the 450,000 stock options he received is $46, 16.7% above Teva’s current price on the New York Stock Exchange. He also received 100,000 restricted shares.
Levin, who has been CEO since May 2012, also received a NIS 3.6 million signing bonus that was paid at the beginning of this year and not included in his 2012 compensation cost.
Executive pay at Teva was the subject of a class action suit by Tel Aviv University professors Sharon Hannes and Ehud Kamar, in which they claimed that Teva violated securities laws requiring them to disclose the pay of each of its five best paid employees.
Until 1999 Teva reported what it paid to each of its top executives. But when the Israeli securities law was amended to allow dual-listed companies traded on the Tel Aviv Stock Exchange to submit their financial reports according to the format required abroad, it began reporting only an aggregate of its top managers.
The suit was settled last month out of court, with Teva agreeing to pay Hannes and Kamar $200,000 and $1.1 million to their lawyers and to make the disclosures.
Levin was paid less last year than the CEOs of Teva’s two main rivals in the generics market, Mylan and Actavis. Mylan’s Heather Bresch received $8 million while Actavis’ Paul Bisaro was paid $8.7 million.
But Mylan enjoyed a 27% increase in earnings per share in 2012 and a 10.9% increase in sales. Actavis had an overall 200% return between 2007 and 2012. By comparison, Teva’s adjusted earnings per share rose 7.6% and its revenues grew by 10.9%. Teva shares declined 7.5% in 2012 while Mylan’s gained 28% and Actavis’ 43%.