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The basic salary of incoming Teva Pharmaceutical Industries Ltd. (NYSE:TEVA; TASE: TEVA) president and CEO Erez Vigodman will be $1.35 million a year, according to the summons for a general shareholders meeting on February 24 to approve his compensation. His basic salary is 10% less than the salary of his predecessor, Dr. Jeremy Levin.Vigodman will keep his unpaid position as a director at Teva.
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In addition to his salary, Vigodman will receive an annual targets-based bonus. The targets include operating profit, cash flow, revenue, product quality, and products pipeline. He will be ineligible for a bonus if he fails to meet the 85% threshold of the targets. If he meets 85-100% of the targets, he will be eligible for a bonus of $118, 000.
If he achieves the target threshold, he will be eligible for a bonus of 140% of his annual salary, or $1.9 million, and if he achieves 125% of the targets, his maximum bonus will be double his salary, or $2.7 million.
Vigodman will be granted capital-based compensation, worth $3 million. This compensation comprises 80% options and 20% restricted shares. The strike price is $41.05, Teva share’s closing price on the NYSE on January 8. The shares will vest, subject to Vigodman’s continued employment with Teva, in three equal installments, on the second, third and fourth anniversaries of the effective date.
If Teva fires Vigodman “without cause”, as was the case of his predecessor, or if he resigns for good reason, he will be eligible for his salary and benefits for nine months, plus a bonus equal to 18 months’ salary, or $2 million, subject to a 12-month non-competition agreement. If Vigodman’s termination is because Teva is acquired, he will be eligible for an additional bonus equal to his salary.
Vigodman’s cumulate compensation at his two previous jobs, as CEO of Makhteshim Agan Industries Ltd. and Strauss Group Ltd. (TASE:STRS), is NIS 78 million.
Published by Globes [online], Israel business news – www.globes-online.com
