Sources inform ''Globes'' that, Israel Corporation (TASE: ILCO) CEO will not receive a NIS 4 million bonus for the upcoming division of the company, and his annual bonus will be nearly halved - capped at NIS 5 million, instead of NIS 9.5 million. The annual profit threshold for eligibility for the bonus will be raised to NIS 350 million, not including the gains from completing the debt settlement at Zim Integrated Shipping Services Ltd..
The sources said that the measures are included in the new executive compensation policy of Israel Corp, controlled by Idan Ofer, after the company has been operating without an approved compensation policy for six months.
Israel Corp.'s new executive compensation policy follows talks with Entropy Consultants Ltd., which advises investment institutions. Entropy advised its clients to oppose Israel Corp.'s previous executive compensation policy, which aroused strong public criticism. Israel Corp. is the last large public company without an approved executive compensation policy pursuant to Amendment 20 of the Companies Law.
"Compensation levels at the company are high, and it is hard to justify them in view of the company's weak performance," states Entropy in its report on Israel Corp.
Under Israel Corp.'s previous executive compensation policy, Gilad's gross basic salary is NIS 246,000 a month, or NIS 3 million a year. This does not include bonuses.
Under the new executive compensation policy, Israel Corp. chairman Ron Moskovitz will only receive a director's salary, instead of a salary of NIS 221,000 a month.
Published by Globes [online], Israel business news - www.globes-online.com - on March 27, 2014
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