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.
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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.