Teva Pharmaceutical Industries Ltd. revealed compensation for Chief Executive Officer Jeremy Levin today, marking the first time in 13 years that Israel’s largest company reported individual pay.
Levin’s compensation for 2012 will total $3.7 million excluding options and shares, Teva said in a proxy statement. Part of the pay is a bonus that investors will be asked to approve at an Aug. 27 meeting.
Teva is responding to changes in Israeli corporate law, sparked by public ire at rising income inequality, that require publicly traded companies to request shareholder approval for compensation policy. The increased transparency is a victory for shareholders Sharon Hannes and Ehud Kamar, who in June settled a lawsuit in which Teva agreed to reveal pay for top managers.
Teva, the world’s largest maker of generic drugs, switched from reporting pay for each of its five top managers in its 1999 and 2000 annual reports to publishing a combined figure after Israeli law was changed to allow dual-listed companies to use financial statements produced under rules of the other country.
Levin earned a $1.5 million base salary as well as a $1 million signing bonus for 2012 that was paid in February this year, and is in line for the $1.2 million bonus, Teva said. The CEO also received 450,000 share options with an exercise price of $46.04 and 115,383 restricted share units exercisable in three equal annual installments beginning on the second anniversary of the grant date.
Levin’s pay is lower than the $17.2 million median pay of CEOs leading large pharmaceutical companies in the U.S. and $9.3 million in Europe, according to Bloomberg Industry calculations. Leading that list was Pfizer Inc.’s Ian Read, who earned $25.6 million in 2012.
Levin, a Cambridge University-educated physician, worked at New York-based Bristol-Myers Squibb Co. as senior vice president for strategy before joining Petach Tikva-based Teva.
The Israeli company has gained about 8 percent including reinvested dividends this year. That compares with a 22 percent advance for the 18-member Bloomberg Europe Pharmaceutical Index.
The Aug. 27 shareholder meeting will include votes on compensation policy, bonus objectives and term extensions for board members Moshe Many, Arie Belldegrun, Amir Elstein and Yitzhak Peterburg, Teva said.