Several weeks ago, My Size (TASE:MYSZ) reported that it planned to raise $10 million through an IPO on the New York Stock Exchange MKT, an exchange designated for small and medium-sized companies. No prospectus has been submitted yet, but the company is already looking forward and seeking to ensure bonuses for its CEO and chairman, depending on the success of the offering.
My Size, which was merged into biomedical company TopSpin Medical, develops fashion applications. The company's product is designed to take a person's measurements through his cell phone, thereby making it easier to buy clothes through the Internet.
The company CEO, his wife, and the company chairman
My Size yesterday published a summons to a general shareholders meeting to approve its remuneration for senior executives. The company is recommending approval of a special one-time bonus for CEO Ronen Luzon, one of its controlling shareholders. The company explains this NIS 150,000 bonus by saying that Luzon has never been paid for his work as CEO and director, having worked as a volunteer.
Another bonus that the company is recommending for the CEO is directly linked to its US IPO. This bonus is contingent on achieving targets for 2015. If the IPO goes through, Luzon will be entitled to a NIS 100,000 bonus (as long as the company's share capital has not been consolidated).
In addition, Luzon will be entitled to further bonuses in the following cases: if My Size raises over $5 million, he will receive a NIS 50,000 bonus; if it raises $7.5-10 million, he will receive NIS 75,000; if it raises over $10 million, this bonus will be NIS 100,000.
My Size chairman Eli Walles will also be entitled to a NIS 100,000 bonus if the US IPO goes through, plus a further bonus between NIS 20,000 and NIS 100,000, depending on how much capital the company raises.
Balla Billy Luzon, the CEO's wife, who is VP Products in My Size, currently does not receive a salary. The shareholders will be asked to approve a NIS 20,000 monthly salary for her, plus a bonus, subject to achieving targets. The shareholders' meeting will also be asked to approve a NIS 60,000 one-time bonus for her.
My Size's market cap is NIS 98 million, after the share climbed 6% this year. The company's main shareholders are Shoshana Zigdon, Ronen Luzon, Yisrael Levi, and Boaz Yelinevitz.
Published by Globes [online], Israel business news - www.globes-online.com - on November 19, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014