Eric Hughes
Executive Vice President, Global R&D and Chief Medical Officer at TEVA PHARMACEUTICAL INDUSTRIES
Executive
About Eric Hughes
Dr. Eric A. Hughes is Executive Vice President, Global R&D and Chief Medical Officer at Teva, appointed in August 2022; age 55; MD/PhD from Yale School of Medicine . Prior roles include SVP Clinical Development & Translational Medicine at Vertex (2021–2022), Global Development Unit Head for Immunology/Hepatology/Dermatology at Novartis (2015–2021), NIH ACTIV Therapeutics Clinical Working Group Co-Chair during COVID-19 (2020–2021), and senior discovery/clinical roles at Bristol Myers Squibb (2010–2015) . In 2024, his team advanced duvakitug (anti‑TL1A) Phase 2b (both UC and Crohn’s met primary endpoints), completed >100% targeted injections without PDSS in olanzapine LAI, activated >91% Phase III sites in DARI (ICS/SABA), and met leadership and sustainability targets; company financial metrics used for annual incentives achieved Net Revenues 105%, non‑GAAP EPS 105%, and Free Cash Flow 109% for 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Vertex Pharmaceuticals | SVP, Clinical Development & Translational Medicine | 2021–2022 | Led clinical development and translational medicine programs . |
| Novartis | Global Development Unit Head, Immunology/Hepatology/Dermatology | 2015–2021 | Led clinical development across multiple therapeutic areas; expanded development in China . |
| NIH (ACTIV) | Co‑Chair, Therapeutics Clinical Working Group | 2020–2021 | Coordinated therapeutics development in public‑private partnership during COVID‑19 . |
| Bristol Myers Squibb | Head roles across Virology, Fibrotic, Genetically Defined Diseases, Autoimmunity, Cardiology; Exploratory Clinical & Translational Research | 2010–2015 | Led discovery and early clinical programs across multiple disease areas . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| NIH ACTIV | Co‑Chair, Therapeutics Clinical Working Group | 2020–2021 | Public‑private collaboration guiding COVID‑19 therapeutic trials . |
Fixed Compensation
| Year | Base Salary ($) | Target Annual Cash Incentive (% of Base) | Actual Annual Incentive Paid ($) | Stock Awards ($) | All Other Compensation ($) | Total ($) |
|---|---|---|---|---|---|---|
| 2024 | 753,846 | 100% | 1,116,748 | 3,749,975 | 134,218 | 5,754,787 |
- Annualized base salary as of Dec 31, 2024: $770,000 .
Performance Compensation
2024 Annual Cash Incentive – Metrics and Results
| Metric | Weight | Threshold | Target | Maximum | Actual | Achievement % |
|---|---|---|---|---|---|---|
| Net Revenues | 25% | $13.6B | $16.0B | $19.2B | $16.8B | 105% |
| Non‑GAAP EPS | 25% | $2.02 | $2.38 | $2.86 | $2.49 | 105% |
| Free Cash Flow | 25% | $1.6B | $1.9B | $2.3B | $2.1B | 109% |
| Individual Performance | 25% | — | — | — | — | 120% (Hughes) |
- Overall payout performance factor applied to Hughes: 148% of target .
Long‑Term Incentives – 2024 Grants and Performance Design
| Award Type | Approval Date | Grant Date | Target Units (#) | Threshold/Max Units (#) | Grant Date Fair Value ($) | Vesting |
|---|---|---|---|---|---|---|
| PSUs | 1/30/2024 | 3/4/2024 | 186,011 | 46,503 / 465,027 | 2,499,988 | 100% in 2027, subject to performance |
| RSUs | 1/30/2024 | 3/4/2024 | 93,005 | — | 1,249,987 | 25% annually in 2025–2028 |
PSU performance metrics for 2024–2026: Net Revenue Growth (annual and cumulative) and three‑year Cumulative Free Cash Flow, modified by an Absolute Stock Price test; cap at 250% of target .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership (4/1/2025) | Dr. Eric A. Hughes: —; <1% of shares outstanding (1,146,959,855 shares) . |
| Unvested RSUs (12/31/2024) | 105,486 (8/1/2022 grant) $2,324,911 MV; 74,701 (3/3/2023) $1,646,410 MV; 93,005 (3/4/2024) $2,049,830 MV; all 25% annual tranches . |
| Unearned PSUs (12/31/2024) | 110,668 (2023 grant) $2,439,123 MV vests 2026; 46,503 (2024 grant) $1,024,926 MV vests 2027 (subject to performance) . |
| Options | None disclosed for Hughes . |
| Ownership Guidelines | Executives required to hold 3x base salary; expected within five years of appointment; compliance status not disclosed . |
| Hedging/Pledging | Prohibited for directors and executive officers; also short‑sales and derivatives prohibited . |
Employment Terms
| Term | Detail |
|---|---|
| Employment start | Appointed EVP Global R&D & CMO in August 2022; employment agreement dated June 14, 2022 . |
| Initial base salary | $700,000 (at agreement inception) . |
| Notice period | 3 months (company and executive), with ability to waive/accelerate with pay through waived period . |
| Severance (no cause/good reason) | Lump sum equal to 9× monthly base salary; COBRA continuation payment equal to 18× monthly COBRA premium; plus non‑compete payment equal to 9× monthly base salary paid in installments, conditioned on 9‑month non‑compete and other covenants . |
| Change‑in‑Control (CIC) | Additional $1.5 million lump sum if terminated without cause within one year following certain mergers and as a result thereof . |
| Non‑compete / non‑solicit | Non‑compete 9 months post‑termination; non‑solicit 12 months . |
| Clawback | Robust clawback policy compliant with SEC/NYSE/Israeli law; three‑year lookback for restatements; broader remedial authority for misconduct . |
| Sign‑on awards | $2,000,000 RSUs vesting in four equal annual tranches; up to $500,000 cash reimbursement for obligations to prior employer; relocation support . |
| Nonqualified deferred comp (2024) | Executive contributions $37,154; Company contributions $71,781; earnings $7,812; aggregate balance $161,234 (not yet vested) . |
Performance & Track Record
- Pipeline execution: Duvakitug (anti‑TL1A) Phase 2b met primary endpoints; Phase III starts with partner Sanofi in UC and Crohn’s in H2 2025; 44‑week Phase II follow‑up to complete end‑2025 with presentation in 2026 .
- Olanzapine LAI: Completed >100% targeted injections with no PDSS; pre‑NDA meeting held April 9, 2025; on track for NDA submission in H2 2025; approval anticipated in 2026 .
- DARI (dual‑action rescue inhaler in asthma): >91% Phase III sites activated; global initiation progressing; targeted full enrollment by end‑2025 with results H2 2026 .
- Lifecycle management: AUSTEDO XR titration kit and once‑daily formulation improving dosing adherence and persistence; >60% new Rx choosing XR .
Investment Implications
- Pay‑for‑performance alignment: 2024 cash incentive tied equally to Net Revenues, non‑GAAP EPS, and Free Cash Flow plus individual objectives, yielding a 148% payout; PSUs hinge on multi‑year revenue and cash generation with an absolute stock price modifier, creating strong linkage to operational and shareholder outcomes .
- Retention risk and selling pressure: Significant scheduled RSU vesting across 2025–2028 and PSU cliffs in 2026/2027 may create periodic supply from settlements; however, hedging/pledging is prohibited and ownership guidelines target 3× salary within five years, supporting alignment and retention .
- Contract economics: Moderate severance (9× monthly base), 9‑month non‑compete with paid consideration, and $1.5M CIC cash add‑on are protective yet not excessive; robust clawback and double‑trigger vesting standards reduce governance risk .
- Execution track record: Clear milestones across TL1A, olanzapine LAI, and DARI, plus lifecycle work on AUSTEDO XR, support near/medium‑term catalysts and reinforce role‑linked value creation in Teva’s “Pivot to Growth” strategy .