February 10, 2015
By Jessica Wilson, BioSpace.com Breaking News Staff
Teva Pharmaceutical Industries Ltd. on Monday filed the annual report for a foreign-based company, or form 20-F, with the U.S. Securities and Exchange Commission showing one of its executives, Allan Oberman, received $7.3 million in compensation in 2014, despite cutting costs and closing a plant that will lead to massive job losses. Oberman, who served as head of generics for the company, ended his tenure at Teva on Dec. 31.
Though based in Israel, Teva has a significant presence in New Jersey and Pennsylvania. Teva announced in May 2013 that the company would close a plant located in Bucks County, Penn. by 2017. In addition, the company announced in Oct. 2014 that it would eliminate 14 pipeline projects in oncology and women’s health, but would not say how many jobs would be affected or where those jobs are located.
Because of this history, a parting executive who receives a multi-million dollar payout, has raised eyebrows in Pennsylvania. The Philadelphia Inquirer , which reported the job cuts, extensively analyzed the details of Oberman’s 2014 compensation.
The information is found on page 89 of the SEC document, including Oberman received an annual base salary of $850,000 for 2014.
In 2010, Teva granted Oberman two sets of options to purchase shares in the company, which have now vested. The value of these as of December 2014 is $50,224.
In 2011, Oberman was granted options to purchase 33,001 shares in the company and 5,238 restricted share units, of which two thirds have vested. The value of these as of December 2014 is $170,351. In 2012, Oberman was granted options to purchase 17,879 shares in the company and 3,525 restricted share units, of which approximately one third have vested. The value of these as of December 2014 is $97,632. In 2013, Oberman was granted options to purchase 100,002 shares in the company and 20,161 restricted share units, none of which has vested yet. The value of these as of December 2014 is $228,014.
Oberman received “accrued obligations,” including, “cash severance equal to his annual base salary, an amount equal to the average of his annual bonuses paid with respect to fiscal years 2012, 2013 and 2014, a payment representing the value of certain benefits he was entitled to, payments associated with his repatriation to Canada, medical and certain customary benefits.”
Oberman will also receive an amount of money equal to his base salary because he signed a non-compete agreement that will last for 12 months, beginning on December 2014—the date of his termination.
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