Teva CEO Schultz took a big pay cut last year—but he bagged a contract extension, too
Teva CEO Kåre Schultz's total pay hit $11.6 million after a $33 million year in 2018. (Teva)
Teva has undergone a massive transformation in the past two years after a $3 billion restructuring fundamentally reshaped the Israeli drugmaker's operations. The man who led that charge, CEO Kåre Schultz, saw a big pay cut last year but will take solace with an extension that will keep him on board until at least 2023.
Schultz secured $11.6 million in total pay in 2019, down more than $20 million from his $33 million windfall the year before, according to a proxy filing.
But that cut isn't exactly what it looks like: Almost all of Schultz's huge pay raise in 2018 was tied to a cool $20 million signing bonus he secured when he took the troubled company's top job. Meanwhile, Schultz's base salary of $2 million in 2019 was the exact same as the year before.
Teva's board was apparently so pleased with Schultz's performance in his two years on the job that it extended his contract agreement to 2023––one year later than his original five-year contract stipulated. The drugmaker cited Schultz's shepherding of the drugmaker's $3 billion restructuring plan and "his commitment to taking actions aimed at generating shareholder value," adding that he's "positioned the company for a return to growth."
Schultz scored around $6 million in stock awards in 2019, slightly higher than the previous year, but nothing in option awards after a 2018 in which he received $1.5 million. Schultz's non-equity incentive plan total dropped by about $1 million to $2.89 million on the year, and he received around $727,000 in other compensation, including use of a company car and housing relocation payments.