Teva CEO Kåre Schultz hasn’t managed to turn the ship around at Teva, but that didn’t stop him from becoming the highest paid Big Pharma exec we’ve seen so far for 2018 — and we’re almost done counting now.
Teva’s newly filed proxy shows that Schultz’s $20 million cash bonus dropped in his first full year managing the troubled giant, pushing his total compensation package for the year to $32.5 million. That follows $16.2 million in stock awards and options that hit the year before, when Schultz earned $17 million for his compensation package. And at $49.5 million for 14 months of work, that is the top of the curve.
As the rules require, Teva did calculate how many salaries Schultz’s package was equal to — 170 to 1 — but only after deducting the $20 million windfall. Put that back in, and you come up with a ratio of 444 jobs to 1. That may not sit well with the Israeli unions that took the brunt of the layoffs after the CEO’s arrival from Lundbeck.
Schultz wasted no time in carving into the company soon after his arrival, looking to stem a rout that had been initiated by the softening that set in on the generics they sell, while Copaxone has faced generic competition of its own. Teva had tried to come up with a successor to safeguard the franchise, but it flopped badly after a long and expensive development campaign.
Cutting costs, though, hasn’t saved the bottom line. Subtract it all up and Teva’s sales revenue fell 16.5% last year, with no sign that the bottom had been hit in early 2019.
In one of the few bright spots last year, Teva did score an FDA OK for one of a few CGRP migraine drugs now on the market.
Teva’s shareholders have also been hurting. After shoving past the $24 mark last June, the stock ended today at $14.69 — down 39%. The new R&D chief at Teva, Hafrun Fridriksdottir, meanwhile earned close to $6 million, not so far below GSK CEO Emma Walmsley, still in last place at $7.7 million.
AstraZeneca CEO Pascal Soriot had been hotly rumored to be in the hunt for this job, though he later affirmed he’d stay on at the UK-based company. With the numbers we’re seeing here, it’s not hard to see what might have attracted him to the Teva job. Soriot’s 2018 compensation package was less than half of what Schultz grabbed.
Image: Kåre Schultz. Johan Wessman, News Øresund
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