Teva Pharmaceuticals is making even more cuts, and this time it’s coming from the board of director’s own wallets.
The company’s board cut their cash compensation in half until further notice and Teva’s board chairman Sol Barer waives his right to cash compensation altogether, Calcalist reports.
Apparently, the decision was made back in December, before the company’s cost-cutting plans were made public, but Teva decided not to share the detail.
Teva’s board consists of 12 people, whose compensation package includes an annual board membership fee, committee membership fees, and annual equity-based compensation. Teva gives its directors an annual cash payment of $160,000 as board membership fees, and $10,000-$20,000 for individual committee membership fees, according to documents filed with the SEC.
In case you missed the string of reports about the financially-troubled Teva, the generics drugmaker announced in December that it was making massive cuts to combat its $32 billion in debt. Teva’s strategy for preserving shareholder value: $3 billion in cost reductions by the end of 2019, global workforce slashed by 14,000 jobs, and facility closures. Of the company’s 80 facilities, Teva plans to close “around half” those sites over time, with 20-25 sites to close by the end of next year.
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