Kare Schultz has been the CEO of Teva Pharmaceutical Industries Restricted (NYSE:TEVA) since 2017, and this text will look at the chief’s compensation with respect to the general efficiency of the corporate. This evaluation will even consider the appropriateness of CEO compensation when bearing in mind the earnings and shareholder returns of the corporate.
Take a look at our newest evaluation for Teva Pharmaceutical Industries
How Does Complete Compensation For Kare Schultz Evaluate With Different Firms In The Trade?
In keeping with our information, Teva Pharmaceutical Industries Restricted has a market capitalization of US$11b, and paid its CEO whole annual compensation worth US$12m over the 12 months to December 2019. Notably, that is a lower of 64% over the 12 months earlier than. Whereas this evaluation focuses on whole compensation, it is worth acknowledging that the wage portion is decrease, valued at US$2.0m.
For comparability, different firms within the trade with market capitalizations above US$8.0b, reported a median whole CEO compensation of US$17m. That’s to say, Kare Schultz is paid underneath the trade median. Moreover, Kare Schultz instantly owns US$4.7m worth of shares within the firm.
| Part | 2019 | 2018 | Proportion (2019) |
| Wage | US$2.0m | US$2.0m | 17% |
| Different | US$9.6m | US$30m | 83% |
| Complete Compensation | US$12m | US$32m | 100% |
Speaking by way of the trade, wage represented roughly 25% of whole compensation out of all the businesses we analyzed, whereas different remuneration made up 75% of the pie. It is fascinating to notice that Teva Pharmaceutical Industries allocates a smaller portion of compensation to wage compared to the broader trade. It is necessary to notice {that a} slant in direction of non-salary compensation means that whole pay is tied to the corporate’s efficiency.
A Take a look at Teva Pharmaceutical Industries Restricted’s Progress Numbers
Over the previous three years, Teva Pharmaceutical Industries Restricted has seen its earnings per share (EPS) develop by 72% per 12 months. Its income is up 1.7% over the past 12 months.
This demonstrates that the corporate has been bettering just lately and is nice information for the shareholders. It is good to see income heading northwards, as that is per wholesome enterprise situations. Trying forward, you would possibly need to verify this free visible report on analyst forecasts for the corporate’s future earnings..
Has Teva Pharmaceutical Industries Restricted Been A Good Funding?
Since shareholders would have misplaced about 35% over three years, some Teva Pharmaceutical Industries Restricted traders would absolutely be feeling unfavourable feelings. This means it might be unwise for the corporate to pay the CEO too generously.
In Abstract…
As we famous earlier, Teva Pharmaceutical Industries pays its CEO decrease than the norm for similar-sized firms belonging to the identical trade. Nonetheless, the EPS development over three years is actually spectacular. It is powerful to criticize CEO compensation when the per-share EPS motion is optimistic. Shareholders, although, would ideally prefer to see shareholder returns head north earlier than they comply with any increase.
So that you may need to verify if insiders are shopping for Teva Pharmaceutical Industries shares with their very own cash (free entry).
Switching gears from Teva Pharmaceutical Industries, for those who’re looking for a pristine steadiness sheet and premium returns, this free listing of excessive return, low debt firms is a good place to look.
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