The Master Game Plan A Communication Plan for a Season ... · -11- Acquisition in Light of Equity...

The Master Game Plan ‐ A Communication Plan for a Season, Not a Game!

Yael Elbaz, Teva John Hammond, CEP, bendystraw Chris Dohrmann, Equatex

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Introducing

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Purpose

Audience

Message

Resources

Execute

Evaluate

Communication Plan Components

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Think like a marketing manager – Projects are projects – and this one never ends – Multiple audiences and multiple products – must craft message accordingly

Exec and Non-Exec, localization

Goal: – Check the box or create engagement and understanding?

Not judging – just be honest – it’s a corporate culture issue “No, John, we really care…we just don’t put any effort or investment into

education.” Company should not expect incredible results from zero effort or investment

Plan Tips

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Again – thinking like a marketing manager

Brand Management – Who are you? – About half of companies have a brand for

recruiting purposes – few manage strategically for retention (or anything else)

Employer Brand

If your company is beginning to take employer brand seriously, use this to your advantage in seeking resources – Best branded companies require consistency of messaging – Even if it isn’t clear internally, if you are in a recruiting mode, it’s important – Employer branding budget often not in HR – it’s in marketing Not just money – bodies, too

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Employer: communicating value – Maximize return on investment in stock plan – Promote a culture of ownership – Employee retention

Employee: appreciating the benefit – Value the stock plan as an important component of total compensation and

benefits – Understand the mechanics of transactions, taxes, and payout of proceeds

Simplest Objectives

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Tools for creation, distribution and measurement – Favorite free picture site

Librestock.com – PowerPoint Plugins

Power-user, LiveWeb – Screen capture tools

Camtasia, Snag-it – Video hosting

Vimeo, Wistia – Mail tools

MailChimp, Constant Contact, Get Response

Do-it-yourselfer Resources

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How Many Have a Communication Budget?

How Many Have Access to Corporate Marketing or Communication Resources?

Quick Audience Survey

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Introduction – About Teva Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA), headquartered in Israel is a leading global

pharmaceutical company that delivers high-quality, patient-centric healthcare solutions used by approximately 200 million patients in 100 markets every day

Teva is the world’s largest generic medicines producer, leveraging its portfolio of more than 1,800 molecules to produce a wide range of generic products in nearly every therapeutic area

Teva's specialty medicines business, which is focused on delivering innovative solutions to patients and providers via medicines, devices and services in key regions and markets around the world, includes Teva's core therapeutic areas of CNS (with a strong emphasis on MS, neurodegenerative disorders, and pain care including migraine) and respiratory medicines (with a focus on asthma and chronic obstructive pulmonary disease). Teva also has specialty products in oncology, women’s health and selected other areas

Teva has ~60,000 employees in 65 countries with net revenues in 2016 were $21.9 billion

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Why Actavis Acquisition?

Combining Two of the Best Generics Businesses in Global Pharma Industry

Strongly reinforces Teva's strategy, accelerates creation of its new business model

Continued improvement in operating profitability

More focus on portfolio management

Increased sales force effectiveness and focus in key markets

$1.35 billion cumulative net cost savings from 2014 – 2016E from ongoing cost reduction initiatives at Teva

Multiple growth drivers at various stages of development

Overall product portfolio that leads the industry in terms of differentiation and durability

Expect to achieve cost synergies and tax savings of approximately $1.4 billion annually

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Acquisition in Light of Equity

Integration of two thousand new plan participants from Actavis into Teva equity incentive scheme and systems

Implementation of new plan countries including its tax, legal and operational requirements

Leaver rules of acquired company had to be integrated

The whole process had to be completed in a few days in order to give a great participant experience and best care in onboarding new employees

Clear communication and new platform training

Grant conversion process had to be straightforward in order to make sure the optionees of acquired company will be happy with new grants and overall process

Strong partnership and collaboration key factor contribution to a successful and remarkably efficient M&A transformation of share plans from one company and culture to the other

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Teva’s Communication Plan As part of the major 40B$ acquisition, all non vested equity grants had to be converted into new grants as

per agreed ration. Annual grant had to be given as well.

Employees of the acquired company were not familiar with the Equity platform, nor equity structure and rule of Teva.

As per above points, a full communication plan had to be build for Go-Live:

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Welcome Info Letter

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Interactive FAQ’s for Actevis

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Customer Support and Past Equity Award quick Reference Guide

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Teva – Allergan Equity Award Conversion Guide

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Second Info Letter

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Get to Know E+

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Cromlish conducted an acquisition study consisting of two phases as follows: – Interviews with 30 ESOP Executives – 20 were with ESOP acquiring firms

and 10 were with non-ESOP target companies who were acquired by an ESOP company.

– A larger internet survey was distributed to over 3700 ESOP executives.

– The results of both phases are equally enlightening as over 95% of the ESOP acquisitions were successful 2 – 3 years after the acquisition!

Research completed by Suzanne Cromlish, Assistant Professor of Management at Saint Xavier University as Ph.D. candidate from Case Western Reserve University

Three Year ESOP Acquisition Research Study Shows Great Success

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All ESOP Acquiring Executives Interviewed: – Extensively planned and strategized prior to the acquisition carefully selecting

complimentary target companies with the same goals, objectives and concern for employee welfare.

– Viewed the target company employees as assets and strategized as to how to retain and locate employment for them.

– Provided extraordinary efforts during the cultural integration by having power point presentations, conducting one on one meetings with every target company employee, installing hot lines, providing dedicated contact people, working side by side, exchanging positions, etc.

Three Year ESOP Acquisition Research Study Shows Great Success

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For the Target Firms: – The ESOP was a huge factor as they were concerned about the welfare of

their employees after selling their company.

– Some target companies were maxed out prior to the acquisition and needed improved resources, capital investments, training, travel and enhanced technology and benefit packages.

– Open book management and open door communication was a better culture.

– Employees were excited about participating in company ownership.

– The increased level of bureaucracy did create some frustration and new policies and procedures were also a factor .

Three Year ESOP Acquisition Research Study Shows Great Success

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Baseline: Joint NASPP and PwC Survey

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Frequency of Communications: – At Issuance/Grant (Every Grant or Award 73%

– At Vest (Exercise) 47% (up 10% from same

survey in 2012)

– Annually with Total Rewards Package 41%

– Don’t Communicate 1% (down from 5% in same survey in 2012)

2015 Global Equity Incentives Survey : Full Report – A joint effort between PwC and NASPP, Page 18

Baseline: Joint NASPP and PwC Survey

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Types/Methods of Communication: – Letter from Senior Management 48%

– Printed Materials 44%

– Individual Meetings 33%

– Service Provider Presentations 34%

– Help-Line 30%

2015 Global Equity Incentives Survey : Full Report – A joint effort between PwC and NASPP, Page 19

Baseline: Joint NASPP and PwC Survey

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Approach to developing a comprehensive communications plan

Feedback and Management

Q & A

Bringing It All Together