Bank Hapoalim (TASE: POLI) today disclosed the salary terms of CEO Zion Kenan. Kenan, who took up his post at the end of August 2009, will earn NIS 160,000 a month (NIS 1.92 million a year), retroactive to when he began as acting CEO in June. Had he been CEO for all of 2009, his total salary cost would have been NIS 4.25 million.
Kenan announced that he would forego 10% of his salary for June-December 2009, leaving him with NIS 112,000 per month. He will not receive a bonus for 2009, and bonuses for 2010 onwards will be set on the basis of the bank's policy and decisions of the board of directors.
Kenan also received 290,000 phantom Bank Hapoalim shares for no consideration. The fair value of these shares, based on the current share price, is NIS 4.6 million. The shares mature on June 30, 2010, but will be vested and automatically realized in December 2011. If the bank distributes a dividend during this period, Kenan will receive a bonus in the amount of the dividend he would have received had he owned the shares.
Kenan's contract stipulates that if he leaves his position before the contract terminates at the end of 2012, he will receive a golden parachute of twelve monthly salaries, if he leaves before August 2012, or six salaries if he leaves afterwards. In both cases, he will receive an adaptation grant of six salaries.
In total, Kenan's golden parachute will be NIS 1.9-2.9 million. He will also be eligible for 250% severance pay for his 31 years at the bank before his appointment as CEO, provided that he leaves his post before 2017.
Bank Hapoalim's general shareholders meeting today approved the employment terms of chairman Yair Seroussi. 89.7% of the participants voted in favor. Seroussi's basic salary will be NIS 150,000 a month, the same as his predecessor, Dan Dankner. Seroussi will receive a signing bonus of NIS 405,000 (after he forewent 10% of his salary). For 2009, he will receive a bonus of 250,000 phantom shares, which are currently worth NIS 4.2 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 6, 2010
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