A rift has developed between the heads of the Tel Aviv Stock Exchange (TASE), chairman Sam Bronfeld and CEO Ester Levanon. The background is difference of opinion on how to deal with shrinking trading volumes. Sources inform "Globes" that Bronfeld has submitted a written opinion to the TASE board describing Levanon's performance as mediocre.
"Globes" has also learned that the board discussed the matter, and that at the end of a prolonged and highly emotional discussion it was decided to allow Levanon a period of a few months to show an improvement in her performance. The TASE stated that "the conclusions of the examination are internal, and, out of considerations of personal privacy we cannot confirm or deny tendentious leaks from anonymous sources."
As part of the evaluation of senior TASE managers (using key performance indicators, or KPI), Bronfeld was asked to give a numerical assessment of Levanon's performance. The assessment covers several organizational and personal performance goals, set according to the organization's work plan. As far as is known, Bronfeld did give Levanon fairly good marks on some measures, such as for day-to-day management of the stock market, but the overall score, as mentioned, was mediocre.
This is the first time in the history of the TASE that its senior managers have undergone performance reviews. The reviews were at the initiative of the board of directors, which decided to measure the attainments of the CEO and deputy CEOs and the extent to which they fulfill the work plan. Last month, it was revealed by "Globes" that the compensation committee and the TASE board had decided to toughen compensation policy for senior managers, and, besides freezing Bronfeld and Levanon's salaries, they also denied the pair salary rises and bonuses for 2012.
Published by Globes [online], Israel business news - www.globes-online.com - on July 11, 2013
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