The average monthly salary cost of the banks' 46,000 employees was NIS 30,700 in 2013, an all-time high, and 8% more than in 2012. The increase was due to automatic pay hikes of 3-5% a year and bonuses awarded at most banks, following their strong annual results.
Bank Leumi (TASE: LUMI) and Israel Discount Bank (TASE: DSCT) distributed no bonuses in 2012, which dragged down the average salary cost.
"Globes" has examined the average salary cost at the bank for eight years. Banks are considered as offering the best salary terms in the country, and salaries are a major expense. The banks' aggregate salary cost was NIS 17.6 billion in 2013, and they have initiated streamlining measures to cut it. Bank Hapoalim (TASE: POLI), Bank Leumi, and Discount Bank have reduced their aggregate workforces by 1,812 employees over the past two years
Discount Bank has the highest average salary cost, at NIS 33,000 a month, 10% more than in 2012. Bank Hapoalim is in second place, with an average salary cost of NIS 31,800, 5% more than in 2012. Bank Leumi is in third place, with an average salary cost of NIS 30,700, 11% more than in 2012. First International Bank of Israel (TASE: FTIN) is in fourth place, with an average salary cost of NIS 17,100, including subsidiaries Poalei Agudat Israel Bank and Bank Massad, up 3.4%Mizrahi Tefahot Bank (TASE:MZTF) is in fifth and last place, with an average salary cost of NIS 26,500, up 5%.
Many bank employees will goggle at these figures and compare them with their actual pay slips. There are two reasons for the differences. The first is that the salary cost includes social benefits and other non-financial employer provisions, such as participation in daycare costs. The banks estimate that these benefits and provisions account for almost 80% of the gross salary.
The second reason is the wide salary differentials at the banks. In June 2013, the Bank of Israel reported that while the average salary at the banks was NIS 28,000, the median salary was NIS 17,500.
The annual salary cost of Bank Hapoalim CEO Zion Keinan was NIS 9.85 million in 2013 and the salary cost of chairman Yair Seroussi was NIS 9.5 million. The salary cost of Bank Leumi CEO Rakefet Russak-Aminoach was NIS 6.3 million, thanks to bonuses, and the salary cost of chairman David Brodet was NIS 5.2 million. The salary cost of former Mizrahi Tefahot Bank CEO Eli Yones, who left in August, was NIS 5.34 million, and the salary cost of chairman Moshe Vidman was NIS 4.53 million.
The salary cost of former Discount Bank CEO Reuven Spiegel was NIS 4.34 million, and that of chairman Yossi Bachar was NIS 4.07 million. The salary cost of First International Bank CEO Smadar Barber-Zadik, who has had her job for eight years, was NIS 5 million, and the salary cost of chairman Roni Hizkiyahu was NIS 3.9 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 1, 2014
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